The federal workforce continues to experience mass upheaval as the current administration carries out its plan to reduce costs and increase efficiency. As lawsuits challenging mass layoffs filter through the courts and proposals to reduce federal benefits advance, federal employees face an uncertain future. This could spur many to seek retirement earlier than planned, so let’s revisit some federal retirement options.
Voluntary Retirement – Immediate Unreduced Annuity
You can retire with an immediate unreduced annuity if you are:
- 62 with at least 5 years of service
- 60 with at least 20 years of service
- Minimum Retirement Age (MRA) with at least 30 years of service
If you retire under this option and are under 62, you are eligible for the retiree annuity supplement.
If you retire under this option and meet the continuity requirements, you can carry your FEHB coverage into retirement.
Retirement – Immediate Reduced Annuity (MRA+10)
You can retire with an immediate reduced annuity when you reach your MRA with at least 10 years of service. Your annuity will be reduced by 5% for every year or 5/12 of a percent for every month you are under the age of 62.
If you retire under this option, you are not eligible for the retiree annuity supplement.
If you retire under this option and meet the continuity requirements, you can carry your FEHB coverage into retirement.
Voluntary Early Retirement Authority
Agencies undergoing substantial restructuring can temporarily lower the age and service requirements for retirement. To qualify, you must be:
- 50 or older with at least 20 years of creditable federal service, OR
- Any age with at least 25 years of creditable federal service
Unused accrued annual leave can be used to reach eligibility requirements.
There is no reduction of your FERS annuity.
If you retire under this option, you are eligible for the retiree annuity supplement once you reach your MRA.
If you retire under this option and meet the continuity requirements, you can carry your FEHB coverage into retirement.
Discontinued Service Retirement
Employees may qualify for Discontinued Service Retirement (DSR) after an involuntary separation (such as layoffs) that does not involve misconduct. If your agency makes you a reasonable offer of another position, you will not be eligible. Age and service requirements are:
- 50 or older with at least 20 years of creditable Federal service, OR
- Any age with at least 25 years of creditable Federal service
- A minimum of 5 years must be in civilian service
Unused accrued annual leave can be used to reach eligibility requirements.
There is no reduction of your FERS annuity under discontinued service retirement.
If you retire under this option, you are eligible for the retiree annuity supplement once you reach your MRA.
If you retire under this option and meet the continuity requirements, you can carry your FEHB coverage into retirement.
Unsure whether you’re retirement-ready? Speak with a Federal Retirement Consultant (FRC®) who can run a comprehensive benefits analysis and help you craft a blueprint for a successful retirement.
