RIF, VERA, penalty and SRS


Q. I was born in 1966 and my organization may undergo a reduction in force. I anticipate that I will have the 50 years of age and 20 years of service by the time they may offer the Voluntary Early Retirement Authority/Voluntary Separation Incentive Pay. Please let me know if the minimum retirement age counts during a RIF if I am a FERS employee because my MRA is 56½, of which I will only be 50 years of age, so I need to know if I will be penalized 5 percent each year under MRA. Hoping that the 50/20 rule is an exception to being penalized.

Also, how can I find out more about the special retirement supplement?

A. If you are offered an opportunity to retire early, either voluntarily or involuntarily, you wouldn’t be penalized for being under your minimum retirement age. And when you reached your MRA, you’d be entitled to receive the special retirement supplement. The SRS would approximate the Social Security benefit you earned while you were a FERS employee.


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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