Q. I will be 60 years of age in December 2018 with 17 years of service with the United States Fish and Wildlife Service. I have signed a Declination of Unreasonable Offer since the position will be outside commuting area, so I will be involuntarily separated. Do I qualify for severance pay and, if so, can I postpone FERS retirement for two years to receive FEHB? Are both events possible?
A. You can retire under the MRA+10 provision. If you do, you annuity will be reduced by 5 percent for every year (5/12ths of 1 percent per month) that you are under age 62. You can reduce or eliminate that penalty by delaying the receipt of your annuity to a later date. If you begin receiving your annuity immediately, your FEHB coverage will be continuous. If you delay receiving your annuity, it will be reactivated when your annuity begins. Note: Since you are eligible for an annuity, you wouldn’t be entitled to severance pay.