FERS pension/annuity vesting

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I have heard about being vested in my FERS pension/annuity after 3-years of overall federal employment. Does this mean that after my 3rd year of service I could essentially leave the federal civil service and go back into the private sector for the rest of my career, and then once I turn 62 years of age, I will receive a pension/annuity payment calculated at 3-years of service remainder of life?

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Asked on November 6, 2019 5:54 pm
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To be vested in FERS, you need five years of federal civilian service. Then if you leave you would be eligible for a FERS pension in the future as long you do not take a refund of your retirement contributions when you resign.
To be vested to receive the automatic TSP one percent and its earnings, you need three years of service. To go from career conditional to career service, you need three of federal service.

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Answered on November 7, 2019 1:19 pm

Can you explain the 5 year and 3 year comments? The way it reads to me is that i would be vested in my TSP after 3-years? Will i have the TSP vested so that i could leave after 3-years of service? Is there something at 5-years that i will be vested in addition to the TSP? Our agency HR is in NSSC at Stennis, but because of the OPM issues, they have not given me any information since i started back with the federal government.

( at November 12, 2019 4:07 am)
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Deleted response as it was a different question.
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Answered on November 7, 2019 3:05 pm
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kelly, what you need to understand is different benefits have different rules. With FERS, to be vested in FERS, you need to have 5 years of FERS civilian service, meaning you paid into FERS for five years. If you leave after that time and do not take a refund of your FERS contributions, you will be eligible for a FERS retirement at a future date. Your age and years of FERS service will determine when you can draw against your FERS.
TSP is a different benefit and with TSP you are always vested in the money you deposit into TSP and their earnings along with the matching the government provides and those earnings. In order to be vested in the automatic 1% the government deposits because you are FERS and the earnings on that 1%, all years of service in a position eligible for the TSP count toward vesting, even if you don’t contribute to the TSP during that time.

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Answered on November 12, 2019 2:16 pm