There are two factors involved when determining your eligibility to retire with an unreduced, immediate annuity (pension) under FERS:
- Your Minimum Retirement Age (MRA)
- Your Years of Creditable Service
The first is straightforward because your MRA is based on the year you were born. However, calculating your years of creditable service is far more complicated.
If documentation of your government service is missing, or if there are errors in your Official Personnel Folder (OPF), verifying your creditable service can be difficult. That’s why it’s important to review your OPF a few years before you retire from your federal career. Otherwise it can delay processing your retirement application or, worse, result in a lower annuity.
What Is An Immediate Retirement Under FERS?
An immediate retirement benefit is one that starts within 30 days from the retirement date you selected to stop working and entered on your retirement application. Under FERS, you must meet one of the following age and service requirements to qualify for an immediate retirement benefit
| Age | Years of Service |
| 62 | 5 |
| 60 | 20 |
| MRA | 30 |
| MRA | 10 |
If you retire at your MRA with at least 10, but less than 30 years of service, your benefit is reduced by 5% for each year you’re under age 62, unless you have 20 years of service and your benefit starts when you reach age 60 or later.
“When the OPM calculates creditable service, they only look at years and months. Any days less than 30 are dropped from the calculation.”
How Is Your Creditable Service Calculated?
Creditable Service is the number of years your pay is subject to deductions for your FERS retirement. If you’re wondering about unused sick leave, this is why it can get confusing. Under FERS, unused sick leave can increase your total creditable service when computing the amount of your monthly annuity (pension). However, unused sick leave doesn’t count toward the years of creditable service required to be eligible for an immediate retirement.
Add to this, creditable service is based on your Retirement Service Computation Date (RSCD) not your Service Computation Date (SCD). Your SCD is only used for calculating annual leave.
Look for your RSCD on your Personal Statement of Benefits but keep in mind it’s an estimate. When the OPM calculates your creditable service, they only look at years and months. Any days less than 30 are dropped from the calculation.
Remember – to continue FEHB coverage in retirement also depends on your eligibility for an immediate FERS retirement. Don’t leave it to chance. Work with an FRC® trained advisor who can help make certain you receive all the federal benefits you’ve worked hard to earn.
