Q. I am a FERS employee. I reach my minimum retirement age in October with 36 years of service. I plan to work until January 2015. I was told by a retired co-worker that he was offered a Voluntary Separation Incentive Pay two years ago, but he did not accept it. He did not accept the VSIP because he was informed if he took the VSIP, then he would not be eligible for the special retirement supplement. If a VSIP is offered next year, I would consider retiring early if it meant that I would lose the special retirement supplement. Do you have any information?
A. Your retired co-worker was misinformed. Accepting a VSIP would have no effect on a FERS employee’s entitlement to the special retirement supplement if he was otherwise eligible to receive it. By that, I mean that he meets the age and service requirements for an immediate annuity or early retirement. On the other hand, no one who retires under the MRA+10 provision or applies for a deferred retirement is eligible for the SRS.