Q. I am planning to retire ASAP but am working out a few issues. I do not want the early retirement penalty (5/12 percent per month) to impact my retirement compensation so understanding how my military time rolls toward my retirement will dictate when I can retire. I will have 27 years of FERS service and four years of paid military time. I will have met my MRA of 57.6 yrs. Does my military credit count toward the 30 years required service time or does my military time only count toward my annuity computation? If it only counts toward the annuity computation, then that will mean that I would need a total of 30 federal civil service years to retire, correct?
A. No. it isn’t correct. Your annuity will be based on your combined years of civilian and military service. However, your special retirement supplement will be based solely on your years of civilian service. FYI, the early retirement penalty, which won’t apply to you, is 5/12ths of 1 percent per month, not 5 1/2 percent per month.