If you take a withdrawal is your 6 month penalty for FERS deducted from your time/years of service?

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For instance if I want to retire the month after my 20 years of service for the Federal Government at age 64 and I had 2 withdrawals in my career and they penalized me for no contributions to FERS for 6 months for each withdrawal, will I only be given credit for 19 years of service since there was 12 months of no contributions?

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Asked on July 2, 2019 3:58 pm


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I think you are confusing FERS and the TSP. FERS does not allow active employees to make withdrawals; withdrawals of FERS contributions can only be made by an employee who separated from federal service. Such an employee is allowed to re-deposit those withdrawals of FERS contributions when they later return to federal service.
Because you refer to a 6 month period where no contributions can be made, it seems that you are talking about hardship withdrawals from the Thrift Savings Plan. Periods where you do not contribute to the TSP have no effect on your length of service for FERS retirement purposes. Therefore, you can safely retire the month after you get your 20 years of service.

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Answered on July 2, 2019 9:53 pm