When to retire


Q. I am under FERS with 28 years of service, more than 65-years-old and want to retire at the end of this year (Dec. 31, 2015). However, I am unsure if it would be a good financial decision for me to wait until Jan. 9, 2016, which is the end of leave for the year. What is the best day to retire?

A. If you retire on Dec. 31, 2015, you’d be on the annuity roll for the entire month of January and entitled to a full annuity payment for that month, which would be payable on Feb. 1, 2016. However, since you’d be retiring in the middle of a pay period, you wouldn’t get credit for any annual or sick leave you earned up to that point. If you retire on Jan. 9, 2016, you’d earn an additional week of pay and get credit for the annual and sick leave you earned during that pay period. However, you wouldn’t be on the annuity roll until February and entitled to an annuity payment until March 1, 2016. Which is better for you financially is something you’ll have to figure out on your own.


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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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