Annuity and early withdrawal


Q. I resigned from the government in 1985 and withdrew $10,000 from my retirement. I returned to the government in 1986. If an early buyout was offered and I accepted it, what effect would this have on my annuity? Would I be penalized for the $10,000 I withdrew, or am I responsible for paying it back? My service computation date is 1976.

A. Because you withdrew your retirement contributions before March 1, 1991, you’d get credit for that time in determining your total years of service; however, if you didn’t redeposit the money you took out, plus accrued interest, when you retired, your annuity would be actuarially reduced based on the amount you owe and your age.


About Author

Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to

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