Retirement Planning

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VAer1		#1 Posted : Sunday, August 30, 2020 4:49:22 AM(UTC)
Rank: Groupie Groups: Registered Joined: 1/27/2020(UTC) Posts: 82 Location: Washington DC Thanks: 2 times		https://www.opm.gov/reti...url=Voluntary-Retirement https://www.opm.gov/reti...nt/#url=Early-Retirement I have looked up OPM website, and I have a few questions. I am younger than 50 years old(FERS, already has 10+ years of service, just regular General Schedule employee, not law enforcement, not fire fighter, etc). However, when I reach 50 years old, I will have more than 20 years of service. 1) If there is Voluntary Retirement when I am 50 years, I can request for retirement, correct? But the more important question is: will the quest get guaranteed approval? 2) If there is no Voluntary Retirement, then the earliest year I can retire is when I reach 57 years old, correct? This is guaranteed, correct? 3) Of course, it is less likely that there is Voluntary Retirement when I am 50 exactly. But there is still possible that Voluntary Retirement comes sometimes when I am between 50 and 57. How often do they offer Voluntary Retirement? 4) I am not concerned about deducted pension for early retirement, after I am retired, I can still enroll in Federal Employees Health Benefits (FEHB) Program, correct? 5) If I leave federal government now, can I come back around 57 years old and work another 5 years, and retire when I am 62? But in this case, I have less than 20 years of service in total, am I qualified for enrolling in FEHB program after retirement? Thanks.


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postalvet		#2 Posted : Sunday, August 30, 2020 6:51:45 AM(UTC)
Rank: Guest Groups: Guests Joined: 2/6/2014(UTC) Posts: 33,037 Was thanked: 14 time(s) in 14 post(s)		Originally Posted by: VAer1 https://www.opm.gov/retirement-services/fers-information/types-of-retirement/#url=Voluntary-Retirement https://www.opm.gov/reti...nt/#url=Early-Retirement I have looked up OPM website, and I have a few questions. I am younger than 50 years old(FERS, already has 10+ years of service, just regular General Schedule employee, not law enforcement, not fire fighter, etc). However, when I reach 50 years old, I will have more than 20 years of service. 1) If there is Voluntary Retirement when I am 50 years, I can request for retirement, correct? But the more important question is: will the quest get guaranteed approval?if a voluntary retirement is offered for your department it will have all the info needed to make a decision 2) If there is no Voluntary Retirement, then the earliest year I can retire is when I reach 57 years old, correct? This is guaranteed, correct?as far as i know ths is correct 3) Of course, it is less likely that there is Voluntary Retirement when I am 50 exactly. But there is still possible that Voluntary Retirement comes sometimes when I am between 50 and 57. How often do they offer Voluntary Retirement?early outs are offered by departments when staff needs to be reduced. they do not happen that often 4) I am not concerned about deducted pension for early retirement, after I am retired, I can still enroll in Federal Employees Health Benefits (FEHB) Program, correct?fers does not have a early out penalty. in order to have FEHB you MUST be enrolled for 5 years before retirement. 5) If I leave federal government now, can I come back around 57 years old and work another 5 years, and retire when I am 62? But in this case, I have less than 20 years of service in total, am I qualified for enrolling in FEHB program after retirement? first question don't know. second question see 4 above Thanks. Q-5 ask here https://forum.federalsou...lt.aspx?g=topics&f=6

TheRealOrange		#3 Posted : Monday, August 31, 2020 3:34:53 AM(UTC)
Rank: Senior Member Groups: Registered Joined: 5/22/2011(UTC) Posts: 899 Thanks: 1 times Was thanked: 167 time(s) in 146 post(s)		1) If there is Voluntary Retirement when I am 50 years, I can request for retirement, correct? But the more important question is: will the quest get guaranteed approval? Voluntary Early Retirement Authority (VERA) is done by individual agencies and is generally targeted to specific positions. Therefore, while I guess it is not guaranteed, it is usually granted for those who elect to retire based on the offer. 2) If there is no Voluntary Retirement, then the earliest year I can retire is when I reach 57 years old, correct? This is guaranteed, correct? Yes, assuming 57 is your minimum retirement age and you expect to receive an immediate annuity. 3) Of course, it is less likely that there is Voluntary Retirement when I am 50 exactly. But there is still possible that Voluntary Retirement comes sometimes when I am between 50 and 57. How often do they offer Voluntary Retirement? There is no set timing, as VERA authority is requested by individual agencies based on a particular need. There is no telling whether a need will arise in the future for any given agency. From OPM: "An agency must request VERA and receive approval from the Office of Personnel Management (OPM) before the agency may offer early retirement to its employees. The approval from OPM will stipulate a period of time during which the option will remain available. Agencies such as the Department of Defense that have been granted agency-specific VERA are not required to seek OPM approval for their use of this option." 4) I am not concerned about deducted pension for early retirement, after I am retired, I can still enroll in Federal Employees Health Benefits (FEHB) Program, correct? Yes, assuming you meet the usual requirements. From OPM: "To continue your health benefits enrollment into retirement, you must: (1) have retired on an immediate annuity (that is, an annuity which begins to accrue no later than one month after the date of your final separation); and (2) have been continuously enrolled (or covered as a family member) in any FEHB Program plan (not necessarily the same plan) for the five years of service immediately preceding retirement, or if less than five years, for all service since your first opportunity to enroll." 5) If I leave federal government now, can I come back around 57 years old and work another 5 years, and retire when I am 62? But in this case, I have less than 20 years of service in total, am I qualified for enrolling in FEHB program after retirement? I am unsure about the ability to retire with the added annuity multiplier when you reach age 62 as a rehired annuitant. It doesn't seem as if your annuity would stop under the conditions noted in the article, so I am not sure that your annuity would ever be recomputed using age 62. That is something that you would need to look into upon being rehired. As noted in this article -- https://ask.fedweek.com/...nt/reemployed-annuitant/ -- "Federal retirees have the right to apply for a government job and return to full-time employment status as a reemployed annuitant. However, should you find such a job and successfully apply for it, there will be major changes in the way your current annuity check is handled." For FEHB: Federal Employees Health Benefits If your annuity stops upon reemployment, your health insurance coverage as an annuitant stops, too. If your appointment is one that gives you eligibility for FEHB coverage, you can enroll in the program when you are reemployed. If your annuity continues after you are reemployed, your FEHB coverage as an annuitant continues and withholding of premiums continues to be made from your annuity payment.


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VAer1		#4 Posted : Monday, August 31, 2020 3:48:57 AM(UTC)
Rank: Groupie Groups: Registered Joined: 1/27/2020(UTC) Posts: 82 Location: Washington DC Thanks: 2 times		Originally Posted by: TheRealOrange 1) If there is Voluntary Retirement when I am 50 years, I can request for retirement, correct? But the more important question is: will the quest get guaranteed approval? Voluntary Early Retirement Authority (VERA) is done by individual agencies and is generally targeted to specific positions. Therefore, while I guess it is not guaranteed, it is usually granted for those who elect to retire based on the offer. 2) If there is no Voluntary Retirement, then the earliest year I can retire is when I reach 57 years old, correct? This is guaranteed, correct? Yes, assuming 57 is your minimum retirement age and you expect to receive an immediate annuity. 3) Of course, it is less likely that there is Voluntary Retirement when I am 50 exactly. But there is still possible that Voluntary Retirement comes sometimes when I am between 50 and 57. How often do they offer Voluntary Retirement? There is no set timing, as VERA authority is requested by individual agencies based on a particular need. There is no telling whether a need will arise in the future for any given agency. From OPM: "An agency must request VERA and receive approval from the Office of Personnel Management (OPM) before the agency may offer early retirement to its employees. The approval from OPM will stipulate a period of time during which the option will remain available. Agencies such as the Department of Defense that have been granted agency-specific VERA are not required to seek OPM approval for their use of this option." 4) I am not concerned about deducted pension for early retirement, after I am retired, I can still enroll in Federal Employees Health Benefits (FEHB) Program, correct? Yes, assuming you meet the usual requirements. From OPM: "To continue your health benefits enrollment into retirement, you must: (1) have retired on an immediate annuity (that is, an annuity which begins to accrue no later than one month after the date of your final separation); and (2) have been continuously enrolled (or covered as a family member) in any FEHB Program plan (not necessarily the same plan) for the five years of service immediately preceding retirement, or if less than five years, for all service since your first opportunity to enroll." 5) If I leave federal government now, can I come back around 57 years old and work another 5 years, and retire when I am 62? But in this case, I have less than 20 years of service in total, am I qualified for enrolling in FEHB program after retirement? I am unsure about the ability to retire with the added annuity multiplier when you reach age 62 as a rehired annuitant. It doesn't seem as if your annuity would stop under the conditions noted in the article, so I am not sure that your annuity would ever be recomputed using age 62. That is something that you would need to look into upon being rehired. As noted in this article -- https://ask.fedweek.com/...nt/reemployed-annuitant/ -- "Federal retirees have the right to apply for a government job and return to full-time employment status as a reemployed annuitant. However, should you find such a job and successfully apply for it, there will be major changes in the way your current annuity check is handled." For FEHB: Federal Employees Health Benefits If your annuity stops upon reemployment, your health insurance coverage as an annuitant stops, too. If your appointment is one that gives you eligibility for FEHB coverage, you can enroll in the program when you are reemployed. If your annuity continues after you are reemployed, your FEHB coverage as an annuitant continues and withholding of premiums continues to be made from your annuity payment. Thank you for detailed information, but I am not sure if I follow question 5's response. As mentioned,I am less than 50 yrs old, with 10+ years of service now, actually less than 15 years of service. If I leave federal government now, I am not qualified for any kind of retirement, just leaving. Then if I come back to federal government. and service another 5 years (from 57 yrs old to 62 yrs old), then the total service is still less than 20 years.


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TheRealOrange		#5 Posted : Monday, August 31, 2020 4:05:44 AM(UTC)
Rank: Senior Member Groups: Registered Joined: 5/22/2011(UTC) Posts: 899 Thanks: 1 times Was thanked: 167 time(s) in 146 post(s)		Originally Posted by: VAer1 Thank you for detailed information, but I am not sure if I follow question 5's response. As mentioned,I am less than 50 yrs old, with 10+ years of service now, actually less than 15 years of service. If I leave federal government now, I am not qualified for any kind of retirement, just leaving. Then if I come back to federal government. and service another 5 years (from 57 yrs old to 62 yrs old), then the total service is still less than 20 years. I misunderstood question 5 and assumed it meant being re-employed after retiring under VERA. If you simply separate now, yes, you could try to return to a federal job later and retire at age 62. Normal FERS retirement rules would apply.


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VAer1		#6 Posted : Monday, August 31, 2020 4:07:54 AM(UTC)
Rank: Groupie Groups: Registered Joined: 1/27/2020(UTC) Posts: 82 Location: Washington DC Thanks: 2 times		Originally Posted by: TheRealOrange Originally Posted by: VAer1 Thank you for detailed information, but I am not sure if I follow question 5's response. As mentioned,I am less than 50 yrs old, with 10+ years of service now, actually less than 15 years of service. If I leave federal government now, I am not qualified for any kind of retirement, just leaving. Then if I come back to federal government. and service another 5 years (from 57 yrs old to 62 yrs old), then the total service is still less than 20 years. I misunderstood question 5 and assumed it meant being re-employed after retiring under VERA. If you simply separate now, yes, you could try to return to a federal job later and retire at age 62. Normal FERS retirement rules would apply. Thanks.


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VAer1		#7 Posted : Monday, August 31, 2020 4:43:13 AM(UTC)
Rank: Groupie Groups: Registered Joined: 1/27/2020(UTC) Posts: 82 Location: Washington DC Thanks: 2 times		Originally Posted by: TheRealOrange Originally Posted by: VAer1 Thank you for detailed information, but I am not sure if I follow question 5's response. As mentioned,I am less than 50 yrs old, with 10+ years of service now, actually less than 15 years of service. If I leave federal government now, I am not qualified for any kind of retirement, just leaving. Then if I come back to federal government. and service another 5 years (from 57 yrs old to 62 yrs old), then the total service is still less than 20 years. I misunderstood question 5 and assumed it meant being re-employed after retiring under VERA. If you simply separate now, yes, you could try to return to a federal job later and retire at age 62. Normal FERS retirement rules would apply. https://www.opm.gov/reti...information/eligibility/ As above link, could you explain more about Deferred Retirement? Can I( less than 50 years old, 10+ years of service) apply for Deferred Retirement then claim pension when I turn to MRA(57)? If yes, in this case, I am also concerned about Federal Employees Health Benefits (FEHB) Program after retirement. How does it work? Thanks.


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TheRealOrange		#8 Posted : Monday, August 31, 2020 5:05:58 AM(UTC)
Rank: Senior Member Groups: Registered Joined: 5/22/2011(UTC) Posts: 899 Thanks: 1 times Was thanked: 167 time(s) in 146 post(s)		Originally Posted by: VAer1 As above link, could you explain more about Deferred Retirement? Can I( less than 50 years old, 10+ years of service) apply for Deferred Retirement then claim pension when I turn to MRA(57)? If yes, in this case, I am also concerned about Federal Employees Health Benefits (FEHB) Program after retirement. How does it work? Thanks. You can qualify for a deferred retirement if you have completed at least 10 years of creditable service, including 5 years of civilian service. The annuity would begin the first day of the month after you reach MRA. Under a deferred retirement if you completed at least 10 years, but less than 30 years of creditable service before you left Federal service, your annuity will be reduced if it begins before age 62. 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. If you receive a deferred annuity, you are not eligible to continue any health benefits or life insurance coverage you had while employed. https://www.opm.gov/reti...#url=Deferred-Retirement


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VAer1		#9 Posted : Monday, August 31, 2020 5:09:33 AM(UTC)
Rank: Groupie Groups: Registered Joined: 1/27/2020(UTC) Posts: 82 Location: Washington DC Thanks: 2 times		Originally Posted by: TheRealOrange Originally Posted by: VAer1 As above link, could you explain more about Deferred Retirement? Can I( less than 50 years old, 10+ years of service) apply for Deferred Retirement then claim pension when I turn to MRA(57)? If yes, in this case, I am also concerned about Federal Employees Health Benefits (FEHB) Program after retirement. How does it work? Thanks. You can qualify for a deferred retirement if you have completed at least 10 years of creditable service, including 5 years of civilian service. The annuity would begin the first day of the month after you reach MRA. Under a deferred retirement if you completed at least 10 years, but less than 30 years of creditable service before you left Federal service, your annuity will be reduced if it begins before age 62. 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. If you receive a deferred annuity, you are not eligible to continue any health benefits or life insurance coverage you had while employed. https://www.opm.gov/reti...#url=Deferred-Retirement Thanks.


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VAer1		#10 Posted : Monday, August 31, 2020 8:04:45 PM(UTC)
Rank: Groupie Groups: Registered Joined: 1/27/2020(UTC) Posts: 82 Location: Washington DC Thanks: 2 times		Originally Posted by: TheRealOrange Originally Posted by: VAer1 As above link, could you explain more about Deferred Retirement? Can I( less than 50 years old, 10+ years of service) apply for Deferred Retirement then claim pension when I turn to MRA(57)? If yes, in this case, I am also concerned about Federal Employees Health Benefits (FEHB) Program after retirement. How does it work? Thanks. You can qualify for a deferred retirement if you have completed at least 10 years of creditable service, including 5 years of civilian service. The annuity would begin the first day of the month after you reach MRA. Under a deferred retirement if you completed at least 10 years, but less than 30 years of creditable service before you left Federal service, your annuity will be reduced if it begins before age 62. 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. If you receive a deferred annuity, you are not eligible to continue any health benefits or life insurance coverage you had while employed. https://www.opm.gov/reti...#url=Deferred-Retirement One more question: for example, my MRA is 57, if I have 29 years of service by 57, and I have 2087 hours of sick leave balance, can I be considered as "retire with 30 years of service"? So that there will be no benefit deduction. But it seems that the website suggests "sick leave balance can be calculated as annuity", but not mentioning if it will consider sick leave as one year of service. It clearly says "30 years of service", not sure if "20 years of service plus 2087 hours of sick leave" can substitute as 30 years of service. In the event of early retirement (50 yrs old with more than 20 yrs of service), will benefit be reduced by 5% per year till 62 years old? I guess they will not reduce 5%, correct? By the way, it is not fair that 2087 hrs of sick leave is counted as only one year. We have slightly more than 26 pay period, where 80 hrs/pp * 26 pp = 2080 hours, so 2087 hrs is whole years (working hours + 104 hrs sick leave + 208 hrs annual leave + 80 hrs holiday). Actually working hour is about 1695 hrs per year (2087-104-208-80), it is more reasonable to consider 1695 hrs as one year. However, this is not important, policy is policy, I am not trying to argue about it. My questions are in above paragraphs. https://www.federalretir...t.net/sickleavechart.htm https://www.opm.gov/reti...nt/#url=Early-Retirement If you have 10 or more years of service and retire at the Minimum Retirement Age (MRA), your benefit will be reduced by 5/12 of 1% for each full month (5% per year) that you were under age 62 on the date your annuity began. However, your annuity will not be reduced if you complete at least 30 years of service, ...... Edited by user Monday, August 31, 2020 8:17:59 PM(UTC) \| Reason: Not specified


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TheRealOrange		#11 Posted : Tuesday, September 1, 2020 2:36:04 AM(UTC)
Rank: Senior Member Groups: Registered Joined: 5/22/2011(UTC) Posts: 899 Thanks: 1 times Was thanked: 167 time(s) in 146 post(s)		One more question: for example, my MRA is 57, if I have 29 years of service by 57, and I have 2087 hours of sick leave balance, can I be considered as "retire with 30 years of service"? So that there will be no benefit deduction. No. While sick leave can be used to increase your annuity, it can’t be used to make you eligible to retire. It can only be added after you have met the age and service requirements to do that. That’s true even for the MRA+10 provision. In the event of early retirement (50 yrs old with more than 20 yrs of service), will benefit be reduced by 5% per year till 62 years old? I guess they will not reduce 5%, correct? No. There is no reduction of a FERS annuity if you qualify and retire early under VERA. From OPM: "There is no annuity reduction in FERS for employees who retire on an early voluntary retirement under age 55." https://www.opm.gov/poli...ly-retirement-authority/


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VAer1		#12 Posted : Tuesday, September 1, 2020 3:33:45 AM(UTC)
Rank: Groupie Groups: Registered Joined: 1/27/2020(UTC) Posts: 82 Location: Washington DC Thanks: 2 times		Originally Posted by: TheRealOrange One more question: for example, my MRA is 57, if I have 29 years of service by 57, and I have 2087 hours of sick leave balance, can I be considered as "retire with 30 years of service"? So that there will be no benefit deduction. No. While sick leave can be used to increase your annuity, it can’t be used to make you eligible to retire. It can only be added after you have met the age and service requirements to do that. That’s true even for the MRA+10 provision. Thank you, let me make it perfectly clear(example): if I am 57 yrs old, I am already eligible to retire, by the time, I have 29 yrs of service and 2087 hrs of sick leave. Can they be converted as 30 years of years without 5% yearly annuity reduction? Thank you for all the detailed information. Edit: OPM website (your provided link in above post) states: For retirements effective between October 28, 2009, and December 31, 2013, 50 percent of unused sick leave can be used for additional service credit. For retirements effective after December 31, 2013, 100 percent of unused sick leave can be credited. Edited by user Tuesday, September 1, 2020 3:59:21 AM(UTC) \| Reason: Not specified


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TheRealOrange		#13 Posted : Tuesday, September 1, 2020 5:13:15 AM(UTC)
Rank: Senior Member Groups: Registered Joined: 5/22/2011(UTC) Posts: 899 Thanks: 1 times Was thanked: 167 time(s) in 146 post(s)		Originally Posted by: VAer1 Thank you, let me make it perfectly clear(example): if I am 57 yrs old, I am already eligible to retire, by the time, I have 29 yrs of service and 2087 hrs of sick leave. Can they be converted as 30 years of years without 5% yearly annuity reduction? At 57 years old with 29 years, you are not eligible for an immediate unreduced annuity. You would still be using the MRA+10 retirement. As far as I know, sick leave can never be used for service credit, only for computation of the annuity. The only instance where it may look like time is added for eligibility is for the 1.1% at age 62. If you are already age 62, you generally would need 20 years of service to qualify for the 1.1% multiplier. But, since you would already meet the age and service requirements for an immediate unreduced annuity, the sick leave to calculate the annuity takes it past 20 years, so the calculation is based on 1.1%. OPM indicates that that situation involves an annuity calculation issue, not a retirement eligibility issue. Therefore, the sick leave is not being used for eligibility to retire. Rather, it is being used to qualify for the 1.1% multiplier in the annuity calculation. I am not an expert, so I could be mistaken, but that is how I have seen it explained by every "expert" providing information I have read, including by Ed Zurdorfer on this site.


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VAer1		#14 Posted : Tuesday, September 1, 2020 5:33:34 AM(UTC)
Rank: Groupie Groups: Registered Joined: 1/27/2020(UTC) Posts: 82 Location: Washington DC Thanks: 2 times		Originally Posted by: TheRealOrange Originally Posted by: VAer1 Thank you, let me make it perfectly clear(example): if I am 57 yrs old, I am already eligible to retire, by the time, I have 29 yrs of service and 2087 hrs of sick leave. Can they be converted as 30 years of years without 5% yearly annuity reduction? At 57 years old with 29 years, you are not eligible for an immediate unreduced annuity. You would still be using the MRA+10 retirement. As far as I know, sick leave can never be used for service credit, only for computation of the annuity. The only instance where it may look like time is added for eligibility is for the 1.1% at age 62. If you are already age 62, you generally would need 20 years of service to qualify for the 1.1% multiplier. But, since you would already meet the age and service requirements for an immediate unreduced annuity, the sick leave to calculate the annuity takes it past 20 years, so the calculation is based on 1.1%. OPM indicates that that situation involves an annuity calculation issue, not a retirement eligibility issue. Therefore, the sick leave is not being used for eligibility to retire. Rather, it is being used to qualify for the 1.1% multiplier in the annuity calculation. I am not an expert, so I could be mistaken, but that is how I have seen it explained by every "expert" providing information I have read, including by Ed Zurdorfer on this site. Thanks. BUT as my earlier post says, from your provided link, sick leave can be calculated as service credit.


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TheRealOrange		#15 Posted : Tuesday, September 1, 2020 6:01:29 AM(UTC)
Rank: Senior Member Groups: Registered Joined: 5/22/2011(UTC) Posts: 899 Thanks: 1 times Was thanked: 167 time(s) in 146 post(s)		Originally Posted by: VAer1 Originally Posted by: TheRealOrange Originally Posted by: VAer1 Thank you, let me make it perfectly clear(example): if I am 57 yrs old, I am already eligible to retire, by the time, I have 29 yrs of service and 2087 hrs of sick leave. Can they be converted as 30 years of years without 5% yearly annuity reduction? At 57 years old with 29 years, you are not eligible for an immediate unreduced annuity. You would still be using the MRA+10 retirement. As far as I know, sick leave can never be used for service credit, only for computation of the annuity. The only instance where it may look like time is added for eligibility is for the 1.1% at age 62. If you are already age 62, you generally would need 20 years of service to qualify for the 1.1% multiplier. But, since you would already meet the age and service requirements for an immediate unreduced annuity, the sick leave to calculate the annuity takes it past 20 years, so the calculation is based on 1.1%. OPM indicates that that situation involves an annuity calculation issue, not a retirement eligibility issue. Therefore, the sick leave is not being used for eligibility to retire. Rather, it is being used to qualify for the 1.1% multiplier in the annuity calculation. I am not an expert, so I could be mistaken, but that is how I have seen it explained by every "expert" providing information I have read, including by Ed Zurdorfer on this site. Thanks. BUT as my earlier post says, from your provided link, sick leave can be calculated as service credit. Your "BUT" does not apply. This is directly from OPM: "Unused Sick Leave under FERS can be used to increase an individual’s total creditable service for annuity computation purposes only." You are conflating service credit for retirement eligibility and service credit for annuity calculation. https://www.opm.gov/reti...tion/creditable-service/


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EagleDog		#16 Posted : Tuesday, September 1, 2020 6:12:50 AM(UTC)
Rank: Senior Member Groups: Registered Joined: 6/5/2009(UTC) Posts: 1,615 Thanks: 176 times Was thanked: 311 time(s) in 249 post(s)		Originally Posted by: VAer1 One more question: for example, my MRA is 57, if I have 29 years of service by 57, and I have 2087 hours of sick leave balance, can I be considered as "retire with 30 years of service"? So that there will be no benefit deduction. There will be a benefit reduction (5 percent per every year you are under age 62) if your retire at 57 (MRA) and only 29 years. You would also not qualify for the Special Retirement Supplement (since you retired with less than 30 years). One year of sick leave will be added to your annuity calculation as if you worked it. But is does not apply to your 29 years (at age 57).
		: Karma: the force created by a person's actions that causes good or bad things to happen to that person :


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VAer1		#17 Posted : Tuesday, September 1, 2020 6:16:41 AM(UTC)
Rank: Groupie Groups: Registered Joined: 1/27/2020(UTC) Posts: 82 Location: Washington DC Thanks: 2 times		Originally Posted by: TheRealOrange Originally Posted by: VAer1 Originally Posted by: TheRealOrange Originally Posted by: VAer1 Thank you, let me make it perfectly clear(example): if I am 57 yrs old, I am already eligible to retire, by the time, I have 29 yrs of service and 2087 hrs of sick leave. Can they be converted as 30 years of years without 5% yearly annuity reduction? At 57 years old with 29 years, you are not eligible for an immediate unreduced annuity. You would still be using the MRA+10 retirement. As far as I know, sick leave can never be used for service credit, only for computation of the annuity. The only instance where it may look like time is added for eligibility is for the 1.1% at age 62. If you are already age 62, you generally would need 20 years of service to qualify for the 1.1% multiplier. But, since you would already meet the age and service requirements for an immediate unreduced annuity, the sick leave to calculate the annuity takes it past 20 years, so the calculation is based on 1.1%. OPM indicates that that situation involves an annuity calculation issue, not a retirement eligibility issue. Therefore, the sick leave is not being used for eligibility to retire. Rather, it is being used to qualify for the 1.1% multiplier in the annuity calculation. I am not an expert, so I could be mistaken, but that is how I have seen it explained by every "expert" providing information I have read, including by Ed Zurdorfer on this site. Thanks. BUT as my earlier post says, from your provided link, sick leave can be calculated as service credit. Your "BUT" does not apply. This is directly from OPM: "Unused Sick Leave under FERS can be used to increase an individual’s total creditable service for annuity computation purposes only." You are conflating service credit for retirement eligibility and service credit for annuity calculation. https://www.opm.gov/reti...tion/creditable-service/ Thank you, it seems I misunderstand the OPM statement.


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EagleDog		#18 Posted : Tuesday, September 1, 2020 6:18:17 AM(UTC)
Rank: Senior Member Groups: Registered Joined: 6/5/2009(UTC) Posts: 1,615 Thanks: 176 times Was thanked: 311 time(s) in 249 post(s)		This article doesn't deal with sick leave, but it addresses Early Outs, Delayed Annuity, Deferred Annuity and the Special Retirement Supplement: https://www.fedweek.com/...he%20deferred%20annuity.
		: Karma: the force created by a person's actions that causes good or bad things to happen to that person :


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VAer1		#19 Posted : Tuesday, September 1, 2020 6:24:45 AM(UTC)
Rank: Groupie Groups: Registered Joined: 1/27/2020(UTC) Posts: 82 Location: Washington DC Thanks: 2 times		Originally Posted by: EagleDog Originally Posted by: VAer1 One more question: for example, my MRA is 57, if I have 29 years of service by 57, and I have 2087 hours of sick leave balance, can I be considered as "retire with 30 years of service"? So that there will be no benefit deduction. There will be a benefit reduction (5 percent per every year you are under age 62) if your retire at 57 (MRA) and only 29 years. You would also not qualify for the Special Retirement Supplement (since you retired with less than 30 years). One year of sick leave will be added to your annuity calculation as if you worked it. But is does not apply to your 29 years (at age 57). But I still don't quite understand below OPM statement, also mentioned in above post. Is it saying: For retirements effective between October 28, 2009, and December 31, 2013, for every 2087 hrs of sick leave balance, it can be added as 6 months of annuity calculation? For retirements effective between October 28, 2009, and December 31, 2013, 50 percent of unused sick leave can be used for additional service credit. For retirements effective after December 31, 2013, 100 percent of unused sick leave can be credited.


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EagleDog		#20 Posted : Tuesday, September 1, 2020 6:42:37 AM(UTC)
Rank: Senior Member Groups: Registered Joined: 6/5/2009(UTC) Posts: 1,615 Thanks: 176 times Was thanked: 311 time(s) in 249 post(s)		The Fine Points of Crediting Unused Sick Leave toward Retirement There are several fine points of crediting unused sick leave, including one that proves to be a disappointment to many federal employees who are approaching retirement, and another that often proves to be an unexpected bonus. On the negative side, and to the surprise of many, unused sick leave can’t be used to make you eligible to retire. It can only be added after you have met the age and service requirements to do that. https://www.fedweek.com/...leave-toward-retirement/
		: Karma: the force created by a person's actions that causes good or bad things to happen to that person :


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