VERA and annuity reduction


Q. I am planning to retire Feb. 21, 2014. I will be 60 years old and will have completed 10 years and one month of service. I am prepared to take the permanent reduction for being under age 62.

1. If a Voluntary Early Retirement Authority/Voluntary Separation Incentive Pay is offered at the time of my planned retirement, would I qualify for one or both?

2. I was told that if a VERA/VSIP is offered at the time of my retirement, I could approach my leadership and ask that the 10 percent reduction be waived. I believe this was because I would be fully eligible, so the VERA would not be applicable. Is this true?  If so, how do I approach this?

A. Yes, if a VERA or VSIP was offered, you could accept it. However, if you did, it wouldn’t affect the 5 percent-per-year age penalty. That waiver only applies to early retirees who are age 50 with 20 years of service or at any age with 25. Since this is a matter of law, your agency would have no say in it.


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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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