Annuity reduction


Q. I turned 60 on May 17. As of this past November, I have 27 years as a fed. If I retired now, with less than 30 years, is there a penalty? How much?

A. You would be eligible for an unreduced annuity at age 60, which would be calculated using this formula: .01 x your high-3 x your years and full months of service.


About Author

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


  1. Happy Memorial, sir,
    The 10% reduction in my CSRS Offset annuity, (employment before October 1982) means the total of 7% deposit and 3% interest?

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