What is phased retirement?

In phased retirement, agencies may allow employees to reduce their work schedules as they approach retirement and receive a combination of salary and retirement benefits.

Phased retirement is voluntary to both the employee and the agency, and available only to an employee who has worked full time for the preceding three years and is eligible to retire under certain of the standard age and service combinations: with 20 years of service at age 60 under both CSRS and FERS; or with 30 years of service at age 55 under CSRS and at minimum retirement age (currently 56) under FERS.

The rules exclude those eligible for retirement in other ways, including under other standard age and service combinations for voluntary retirement and those eligible for voluntary retirement only under early retirement rules. Also ineligible are those subject to mandatory retirement, primarily meaning law enforcement officers, firefighters, air traffic controllers and nuclear materials transporters.

2021 Digital Almanac

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