FERS Federal Agent with over 22 years of service but only 46 years old

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I have over 22 years as a Special Agent/1811. I am 46 years old and want to retire before I get my 25 years of service. Can I retire and go do something else in private industry and when I turn 50 years old, file for my deferred retirement with OPM and if need be get some monthly payments from my TSP through the life expectancy withdrawal, so I don’t need to pay the 10% penalty.?

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Posted by (Questions: 1, Answers: 0)
Asked on September 1, 2020 7:39 pm
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TSPW88: Unfortunately, what you are asking is not possible. In order for you to collect a Special Provision retirement using the enhanced formula for a LEO, you must retire on what OPM calls an immediate annuity. An immediate annuity is defined as one that is payable within 30 of leaving federal service. IF you do what you want, you will not be eligible for your FERS pension until you reach your Minimum Retirement Age, which is probably age 57, and at age 57, you get a pension at the rate of 1% x high-3 average salary, not the 1.7% that is payable for Special Provision Employees. Your best bet is to stay until you reach the 25 years of Special Provision service and retire on the immediate annuity. You, in addition to your FERS being computed at 1.7% x 20 = 34% plus and extra 5% (1% for every year over 20) will total 39% x high-3, you will be eligible for the FERS Retiree Annuity Supplement which is not be earnings tested until your reach your MRA. You have other options. If you must leave federal service before you reach the 25 year mark, your option would be to return to federal service at 50, be reinstated into any position (does not have to be a special provisions position) and then retire. The law states you do not need to sit in a special provision position at the time of retirement as long as you meet the 50/20 rule. Likewise, maybe there is another federal job, outside the 1811 series you could take, and then at age 50 retire under the special provision rules as I have stated above. GOOD LUCK!

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Posted by (Questions: 0, Answers: 594)
Answered on September 1, 2020 9:20 pm