FERS – Deferred Retirement Pros/Cons

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I have 32 years of govt. service and cannot retire with full benefits for another 6.5 years. There is a possibility that I may have to leave my job. I know I will lose the medical/life insurance benefit, but unclear about the retirement loss. I understand that my retirement will be frozen until I am 62 but with my years of service will I be penalized for X amount of % until retirement age? Thx

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Posted by (Questions: 1, Answers: 1)
Asked on April 16, 2018 4:19 pm
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IF you are not able to remain in federal service or return to federal service prior to your Minimum Retirement Age, MRA, since you already have 32 years of creditable service, you will be eligible to collect a deferred retirement at your MRA with no age penalty as long as you do not take a refund of your retirement contributions. Deferred retirements are calculated based on your years of service and high-3 average salary as of the date you resigned federal service. You are correct that your health benefits and life insurance will not be available when your unreduced pension commences nor will you receive any credit for your unused sick leave. To qualify for FEHB, FEGLI, and sick leave, you must retire on an immediate annuity. The reason you do not have to wait until age 62 is because you have 30 or more years of service when you reach your MRA. IF you can find another federal position, you will pick up where you left off and once you reach your MRA can retire on an immediate annuity which permits FEHB, FEGLI, and sick leave in addition to also qualify for the FERS Retiree Annuity Supplement.

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Posted by (Questions: 0, Answers: 527)
Answered on April 16, 2018 10:59 pm
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Thank you so much. This helped a lot. You’re awesome!!!!!

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Posted by (Questions: 1, Answers: 1)
Answered on April 17, 2018 1:28 am