Q. I am Chapter 38, with 17.5 years of federal service. I am 55 years old and under the Federal Employees Retirement System. How can I early out and keep insurance? If I do not touch the retirement until 62, is there a penalty? A. You can’t “early out” because you haven’t met the new age and service requirements to retire: age 50 with 20 years or any age with 25.
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Q: Is there a FERS early out penalty (five per year under MRA or 60, etc?)? If I took an early-out with 25 years of service at 53 years old would my retirement (not TSP) be reduced a percentage for each year under MRA or 60? A: Under FERS, the age penalty is waived for any employee who accepts an early retirement offer.