Buyout and annuity reduction


Q. I’m a FERS employee with 19 years of civil service who is turning 56 in November. If my organization offers a buyout, would there be any type of penalty for retiring earlier than Nov. 27, 2017 (my full retirement date, without penalty)? Would I be eligible for the special retirement supplement?

A. Because you don’t have 20 years of service, you’d be retiring under the MRA+10 provision. As a result, your annuity would be reduced by 5 percent for every year (5/12 of 1 percent per month) that you are under age 62. The only way to reduce or eliminate that penalty would be to delay the receipt of your annuity to a later date.


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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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