Early retirement and age penalty


Q. I am a FERS employee with 25 years of service (21 Postal Service, four military, which I bought back). I am 45 years old. As a FERS employee, will I be penalized 2 percent or 5 percent a year for accepting an early-out offer? If so, what other penalties will I face?

A. If you accept an offer of early retirement, you won’t be subject to the age penalty. And there aren’t any other penalties that would apply.


About Author

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

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