Federal Employees News Digest

Federal Benefits Q&A

Question: "What is the impact of retiring at my minimum retirement age of 56 with 29 years of service, which is about one year away? Would I still receive the FERS supplement and keep my FEHB?"

Answer: Assuming that your agency does not offer an early retirement (VERA/VSIP) next year to eligible employees like yourself, you could retire next year under than the "MRA+10" postponed retirement option and keep your FEHB and FEGLI benefits. You would not, however, be eligible for the FERS annuity supplement under the MRA+10 retirement. Also, if you elect to start receiving your FERS annuity immediately rather than postponing it until age 60 (in order to not temporarily lose your FEHB and FEGLI benefits), your FERS annuity will be permanently reduced by 20 percent (four years under age 60 when the annuity starts, times 5 percent, or 20 percent).


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Contributors

Edward A. Zurndorfer Certified Financial Planner
Mike Causey Columnist
Tom Fox VP for Leadership and Innovation, Partnership for Public Service
Mathew B. Tully Legal Analyst

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