VSIP offer and annuity reduction


Q. I am a FERS employee. On Aug. 31, 2014, I will meet my minimum retirement age of 56 with 30 years in.  If my agency offers Voluntary Separation Incentive Pay three to four months before the Aug. 31 date, will my annuity still be penalized because I did not reach the full 30-year mark? Or would I still get the full 30-year annuity and the Social Security gap pay? If not, what would be the reason for any FERS employee to take an early-out if there is any type of penalization?

A. If you are offered an opportunity to retire early, you won’t be subject to the age penalty.


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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 fedexperts@federaltimes.com.

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