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Retirement Planning


Whether you are close to federal employee retirement or just starting out in your career, this is the place to share ideas with your federal colleagues on creating a secure financial foundation.


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OhioFed1  
#1 Posted : Tuesday, January 08, 2019 7:56:24 AM(UTC)
OhioFed1

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I know this has been talked about but I am getting conflicting answers from my agency. I have a great opportunity in front of me right now.
I am 3 years away from MRA (FERS). My current benefit based on years and high 3 is about $3,000 a month. If I resign today I would still get the $3,000 a month but that wouldn't start until the month in which I turn 60????
TheRealOrange  
#2 Posted : Tuesday, January 08, 2019 8:53:22 AM(UTC)
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Originally Posted by: OhioFed1 Go to Quoted Post
I know this has been talked about but I am getting conflicting answers from my agency. I have a great opportunity in front of me right now. I am 3 years away from MRA (FERS). My current benefit based on years and high 3 is about $3,000 a month. If I resign today I would still get the $3,000 a month but that wouldn't start until the month in which I turn 60????

According to OPM, these are the age and service requirements for a deferred annuity:

You are eligible for a deferred annuity if you meet one of the following age and service requirements:

• You have completed at least 5 years of creditable civilian service, then you are eligible for a deferred annuity beginning the first day of the month after you reach age 62; or
• You have completed at least 10 years of creditable service, including 5 years of civilian service, then you are eligible for a deferred annuity beginning the first day of the month after you reach the Minimum Retirement Age (MRA).*

https://www.opm.gov/reti...#url=Deferred-Retirement

Note that if you start your annuity at your MRA, then you will be hit by the age reduction:

If you completed at least 10 years, but less than 30 years of creditable service before you left Federal service years, your annuity will be reduced if it begins before age 62. The only exception to this is if you had at least 20 years of service and your annuity begins when you reach age 60.

Your annuity will be reduced by 5/12 of 1 percent (5 percent per year) for each month by which your benefit commencing date precedes your 62nd birthday. However, you can postpone the commencing date of your annuity to reduce or eliminate this age reduction.

You appear to meet the exception to allow starting the annuity at age 60, assuming you separate from the service with at least 20 years of service. Absent an early out option offered by your agency, you are not entitled to an immediate annuity of any kind until you reach your MRA.
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