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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.


  1. Is another option to resign and, because she has at least 10 years of service, apply for a deferred retirement at her MRA? If so, would the penalty be computed from 60 because she has at least 20 years or service, or from 62 as usual for MRA+10?

  2. Another option would be if she could work for 3 more years till she reaches her MRA. Then she could either take an immediate MRA+10 FERS Retirement with 24 years service and incur a roughly 30% penalty on her FERS Pension Annuity OR she resigns when she reaches her MRA and then applies for a POSTPONED FERS Annuity Pension when she reaches 60 based on her 24 years service WITH NO PENALTIES and would also have the option to reenroll in FEHB and FEGLI when she begins receiving her FERS Annuity at age 60, something she will NOT be able to do if she resigns at age 53 and applied for a DEFERRED FERS Annuity Pension at age 60.

    • If she and her husband are planning/counting on her keeping her FEHB and FEGLI benefits into retirement then HER ONLY OPTION is for her to work at least three more years till her MRA at a minimum. If she is a high level GS (GS-9/10 or higher) then she can take an immediate FERS Retirement Annuity at her MRA and after the roughly 30% FERS penalty hit would still have more than enough FERS Retirement Annuity remaining to cover the premium costs of her FEHB and FEGLI plus other tax and survivor benefit fees. If she’s a lower GS/WG she will either have to work till 60 or resign at her MRA then apply for a POSTPONED FERS Annuity at age 60 to resume her FEHB/FEGLI! These are her only options if she wants her FEHB in retirement.

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