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Early Retirement

Early Retirement

MRA+10 Retirement

If you have 10 or more years of service, you can retire at the Minimum Retirement Age (MRA).

Age Reduction

Under this type of retirement, your annuity will be reduced for each month that you are under age 62. The reduction is 5% per year (5/12 of a percent per month). However, your annuity will not be reduced if you completed at least 30 years of service, or if you completed at least 20 years of service and your annuity begins when you reach age 60.

You can reduce or eliminate this age reduction if you choose to have your annuity begin at a date later than your Minimum Retirement Age. You can choose any beginning date between your MRA and 2 days before your 62nd birthday.

Determine Your MRA

Type of Retirement
Minimum Age
Minimum Service
Special Requirements
Voluntary (Optional)
62
5
None
60
20
None
MRA*
30
None
MRA*
10
None
Note: Annuity is reduced by 5% for each year the employee is under age 62.)
Any age
25
You must retire under special provisions for air traffic controllers, law enforcement, firefighter or Military Reserve Technician personnel.
50
20
Any age
25
OPM must have determined that your agency is undergoing a major reorganization, reduction-in-force, or transfer of function.
50
20

Early Optional Retirement

If your agency undergoes a major reorganization, reduction in force, or transfer of function, and a significant percentage of the employees will be separated, or will be reduced in pay, the head of your agency can ask the U.S. Office of Personnel Management (OPM) to permit early optional retirement for eligible employees. If your agency gets approval to permit early optional retirements, eligible employees will be notified of the opportunity to retire voluntarily.

Discontinued Service Retirement Because of an Involuntary Separation

The term “involuntary separation” means any separation against the will and without the consent of the employee, other than “for cause” for misconduct or delinquency. The most common cause of an involuntary separation is a reduction in force. Another frequent cause for an involuntary separation is when the location of an office or unit is moved to an area outside the commuting area of the old worksite*. Employees who decline reasonable offers of other positions are not eligible for discontinued service annuities.

*Exception: If, when you accepted your current position, you were placed under a general mobility agreement whereby you would be subject to geographic reassignment, you would not be eligible for discontinued service annuity rights if your position is moved to an area outside the commuting area.

If your agency

  • makes you a reasonable offer and you choose to decline the offer and resign, you will not qualify for discontinued service retirement, or
  • separates you by adverse action procedures for not complying with a directed reassignment to a position that is a “reasonable offer”

your separation would not be qualifying for discontinued service.

Reasonable Offer

  • Written offer of another position in your agency and commuting area for which you are qualified, and
  • Which is no more than two grades or pay levels below your current grade or pay level.

Commuting Area

Geographic area that usually constitutes one area for employment purposes. It includes any population center (or two or more neighboring ones) and the surrounding localities in which people live and reasonably can be expected to travel back and forth daily in their usual employment.

Eligibility Requirements for Early Optional Retirement and Discontinued Service Retirement Because of an Involuntary Separation

Age
Years of Service Needed
(At least 5 years must be civilian service)
50
20
Any
25

Annuity Computation

Here is how the basic FERS annuity formula is calculated:

FERS Basic Annuity Formula

Age
Formula
• Under Age 62 at Separation for Retirement or
• Age 62 or Older With Less Than 20 Years of Service
1 percent of your high-3 average salary for each year of service
• Age 62 or Older at Separation With 20 or More Years of Service
1.1 percent of your high-3 average salary for each year of service

Reductions in Annuity

In addition to the regular reductions for survivor benefits, unpaid service and refunded service, your annuity would be subject to the following age reduction:

  • If you retire under the MRA+10 provision
    • If you have 10 or more years of service and retire at the Minimum Retirement Age (MRA), your benefit will be reduced by 5/12 of 1% for each full month (5% per year) that you were under age 62 on the date your annuity began. However, your annuity will not be reduced if you complete at least 30 years of service, or if you complete at least 20 years of service and your annuity begins when you reach age 60.
    • If you postpone the beginning date of your annuity, the age reduction will be reduced or eliminated.
    • The age reduction applies to both the Civil Service Retirement System and the Federal Employees Retirement System components of your annuity, if you transferred to FERS and part of your annuity is computed under the CSRS provision.
  • If you retire under the discontinued service or early optional retirement provision with a CSRS Component
    • If you retire on a discontinued service retirement or early optional retirement because your agency was undergoing a major reorganization, reduction-in-force or transfer of function, and part of your benefit was computed under CSRS rules, the CSRS portion will be reduced if you are under age 55. The reduction is 1/6 of 1% (2% per year) for every month that you are under age 55 at the time of retirement.

Voluntary Retirement

Type of Retirement
Minimum Age
Minimum Service
Special Requirements
Voluntary (Optional)
62
5
None
60
20
None
MRA*
30
None
MRA*
10
None
Note: Annuity is reduced by 5% for each year the employee is under age 62.)
Any age
25
You must retire under special provisions for air traffic controllers, law enforcement, firefighter or Military Reserve Technician personnel.
50
20
Any age
25
OPM must have determined that your agency is undergoing a major reorganization, reduction-in-force, or transfer of function.
50
20

Determine Your MRA

If your year of birth is…
Your Minimum Retirement Age is…
Before 1948
55 years
Before 1948
55 years
1948
55 years, 2 months
1949
55 years, 4 months
1950
55 years, 6 months
1951
55 years, 8 months
1952
55 years, 10 months
1953 to 1964
56 years
1965
56 years, 2 months
1966
56 years, 4 months
1967
56 years, 6 months
1968
56 years, 8 months
1969
56 years, 10 months
After 1969
57 years

MRA (Minimum Retirement Age) + 10 Retirement

Age Reduction

If you have 10 or more years of service and are retiring at the Minimum Retirement Age, your annuity will be reduced for each month that you are under age 62. The reduction is 5% per year (5/12 of a percent per month). However, your annuity will not be reduced if you completed at least 30 years of service, or if you completed at least 20 years of service and your annuity begins when you reach age 60. You can reduce or eliminate this age reduction by postponing the beginning date of your annuity.

Postponing the Beginning Date of Annuity to Reduce or Avoid the Age Reduction

You can reduce or eliminate the age reduction if you choose to have your annuity begin at a date later than the Minimum Retirement Age (MRA). You can choose any beginning date between your MRA and 2 days before your 62nd birthday. However, you cannot begin your annuity while you are reemployed with the federal government.

If you postpone the beginning date of your annuity, you should be aware of the following

Life Insurance

You cannot continue your life insurance coverage unless you are receiving an annuity. Therefore, if you postpone the beginning date of your annuity, your life insurance enrollment will terminate. When your annuity begins, if you meet the usual requirements for continuing coverage into retirement at separation, the life insurance coverage you had when you separated from your employment will resume.

Health Insurance

If you postpone the beginning date of your annuity, you will be eligible to temporarily continue your health benefits coverage for 18 months from the date of separation from your employing agency; however, you must contact your agency within 60 days and pay the total premium, plus a 2% administrative charge. When your annuity payments begin, if you had Federal Employees Health Benefits (FEHB) coverage for the 5 years of service immediately before you separated, you will again have the opportunity to enroll in a health benefits plan under the regular FEHB program, and OPM will pay the Government share of the premium.

Long Term Care Insurance

If you already have Long Term Care Insurance Coverage when you separate for retirement, but postpone the commencing date of your annuity, your coverage will continue as long as you continue to pay premiums. If you are not enrolled in the Long Term Care Insurance Program when you separate for retirement, you can apply for enrollment anytime after your separation, even if you postpone the commencing date of your annuity.

COLAs

If you delay your annuity beginning date, your annuity rate will not include any cost-of-living adjustments (COLAs) that occur before you begin to receive the annuity. Once your annuity begins, you will be entitled to COLAs on any portion of your annuity which was computed under CSRS rules. However, you will not receive COLAs on the FERS part of your benefit until you are 62.

Survivor Benefits

If you defer receipt of your annuity and die before you begin to receive it, your spouse can still receive FERS survivor benefits.

Computation of Annuity

Your basic annuity is computed based on your length of service and “high-3” average salary. To determine your length of service for computation, add all your periods of creditable service, then eliminate any fractional part of a month from the total.

High-3 Average Salary

Your “high-3” average pay is the highest average basic pay you earned during any 3 consecutive years of service. These three years are usually your final three years of service, but can be an earlier period, if your basic pay was higher during that period. Your basic pay is the basic salary you earn for your position. It includes increases to your salary for which retirement deductions are withheld, such as shift rates. It does not include payments for overtime, bonuses, etc. (If your total service was less than 3 years, your average salary was figured by averaging your basic pay during all of your periods of creditable Federal service).

Computation for Non-Disability Retirements

FERS Basic Annuity Formula

Age
Formula
• Under Age 62 at Separation for Retirement or
• Age 62 or Older With Less Than 20 Years of Service
1 percent of your high-3 average salary for each year of service
• Age 62 or Older at Separation With 20 or More Years of Service
1.1 percent of your high-3 average salary for each year of service

Your benefit was computed differently, if you retired under one of the provisions below

Special Provision for Air Traffic Controllers, Firefighters, Law Enforcement Officers, Capitol Police, Supreme Court Police, or Nuclear Materials Couriers

  • 1.7% of your high-3 average salary multiplied by your years of service which do not exceed 20,PLUS
  • 1% of your high-3 average salary multiplied by your service exceeding 20 years

Member of Congress or Congressional Employee (or any combination of the two) must have at least 5 years of service as a Member of Congress and/or Congressional Employee

  • 1.7% of your high-3 average salary multiplied by your years of service as a Member of Congress or Congressional Employee which do not exceed 20,PLUS
  • 1% of your high-3 average salary multiplied by your years of other service

Transferred to the Federal Employees Retirement System (FERS)
At time of transfer, had at least 5 years of creditable civilian service covered by either:

  • Civil Service Retirement System (CSRS)
  • Social Security

(but not both-excludes service during which partial CSRS deductions were withheld)
Annuity will have 2 components:

  • FERS Component
  • CSRS Component

Computation of FERS Component

Age
Formula
• Under Age 62 at Separation for Retirement or
• Age 62 or Older With Less Than 20 Years of Service
1 percent of your high-3 average salary for each year of service
• Age 62 or Older at Separation With 20 or More Years of Service
1.1 percent of your high-3 average salary for each year of service

Computation of CSRS Component

Duration
Formula
First 5 years of CSRS service
1.5% of your high-3 average salary for each year of service
Second 5 years of CSRS service
1.75% of your high-3 average salary for each year of service
All years of CSRS service over 10
2% of your high-3 average salary for each year of service

If retired under the special provision for firefighters, law enforcement officers, or nuclear material couriers

  • 2.5% of the years and months of CSRS law enforcement officer, firefighter or nuclear material courier service up to 20 years multiplied times the high-3 average salary.
    PLUS
  • 2% of the remaining years of service times the high 3 average salary.

If retired under the special provision for Members of Congress or Congressional Employees

  • 2.5% of your high-3 average salary multiplied by your years and months of service as a Member of Congress and/or Congressional Employee, your military service while on a leave of absence as a Member and up to 5 years of other military service,PLUS
  • 1.75% of your high-3 average salary multiplied by your years of other service, which when added to your years of 2.5% service, do not exceed 10 years,PLUS
  • 2% of your high-3 average salary multiplied by your years of other service in excess of 10 years

Reductions in Non-Disability Annuity

Age

If you retire under the MRA+10 provision

  • If you have 10 or more years of service and retire at the Minimum Retirement Age (MRA), your benefit will be reduced by 5/12 of 1% for each full month (5% per year) that you were under age 62 on the date your annuity began. However, your annuity will not be reduced if you complete at least 30 years of service, or if you complete at least 20 years of service and your annuity begins when you reach age 60.
  • If you postpone the beginning date of your annuity, the age reduction will be reduced or eliminated.

The age reduction applies to both the Civil Service Retirement System and the Federal Employees Retirement System components of your annuity, if you transferred to FERS and part of your annuity is computed under the CSRS provision.

If you retire under the discontinued service or early optional retirement provision with a CSRS Component

  • If you retire on a discontinued service retirement or early optional retirement because your agency was undergoing a major reorganization, reduction-in-force or transfer of function, and part of your benefit was computed under CSRS rules, the CSRS portion will be reduced if you are under age 55. The reduction is 1/6 of 1% (2% per year) for every month that you are under age 55 at the time of retirement.