Can I take early retirement if I otherwise would be RIF’d?

You might be eligible for “discontinued service” retirement, which has the same qualifications rules as early retirement: at least age 50 with at least 20 years of creditable service, or any age with at least 25 years of service.

If you are in the Civil Service Retirement System, the annuity is reduced by 2 percent for each year you are under age 55. There is no age reduction under FERS, but you wouldn’t be eligible for the Special Retirement Supplement (payable under FERS until age 62 in lieu of Social Security benefits), until you reach your Minimum Retirement Age (55 to 57, depending upon year of birth).

Under both FERS and CSRS, separating employees who do not meet the requirements for an immediate annuity but who have at least five years of creditable civilian service are entitled to a deferred annuity, as long as they don’t take a refund of their retirement contributions. Under both systems, this deferred annuity can begin at age 62. Under FERS, it can begin at age 60 if the former employee has at least 20 years of service, or at Minimum Retirement Age with at least 10 years of service. This MRA+10 annuity would be reduced by 5 percent for each year you are under 62 when the annuity begins; you could lessen or eliminate that reduction by postponing receipt of the annuity.

RIF’d employees who are not eligible for an immediate annuity also may elect to withdraw their retirement contributions in a lump sum but this would void eligibility for a deferred annuity.

2021 Digital Almanac

Stay Connected

Latest Forum Posts

Ask the Expert

Have a question regarding your federal employee benefits or retirement?

Submit a question