Welcome Guest! To enable all features please Login or Register.

Notification

Icon
Error

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.


To read today's top news stories on federal employee related news visit FederalDaily.com.

Options
Go to last post Go to first unread
Mac86  
#1 Posted : Sunday, April 14, 2019 8:45:58 AM(UTC)
Mac86

Rank: Member

Groups: Registered
Joined: 1/20/2016(UTC)
Posts: 21
United States

Was thanked: 1 time(s) in 1 post(s)
One of the administrative people in my office wants to retire when her husband does so they can move to Florida. Even though her MRA is 56 years, 8 months, she wants to retire at 55 years and would have 37 years of federal employment. Our personnel office said she would fall under the MRA + 10 rule, but I thought that rule only applied if you had reached your MRA. What would her options be in this situation if she wants to retire at 55? Her one goal is to retain her FEHB into retirement.
roger.d  
#2 Posted : Sunday, April 14, 2019 11:35:42 AM(UTC)
roger.d

Rank: Senior Member

Groups: Registered
Joined: 8/25/2016(UTC)
Posts: 2,924
United States
Location: Midwest

Thanks: 129 times
Was thanked: 714 time(s) in 558 post(s)
Originally Posted by: Mac86 Go to Quoted Post
One of the administrative people in my office wants to retire when her husband does so they can move to Florida. Even though her MRA is 56 years, 8 months, she wants to retire at 55 years and would have 37 years of federal employment. Our personnel office said she would fall under the MRA + 10 rule, but I thought that rule only applied if you had reached your MRA. What would her options be in this situation if she wants to retire at 55? Her one goal is to retain her FEHB into retirement.
\


https://forum.federalsou...lt.aspx?g=topics&f=6

I would ask this question in the "benefits Q & A" section.

My guess is:

a: they would have to wait until their MRA to start to receive a pension. And they would fall under MRA + 30.

b: this would not be an "immediate" retirement, thus would not qualify for the FEHB in retirement.

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

If health insurance is their goal, they need to wait.
Learn to discipline yourself, so someone else doesn't have to
Mac86  
#3 Posted : Sunday, April 14, 2019 12:08:45 PM(UTC)
Mac86

Rank: Member

Groups: Registered
Joined: 1/20/2016(UTC)
Posts: 21
United States

Was thanked: 1 time(s) in 1 post(s)
Thanks for your response Roger. I'm still trying to figure out why OASAM told my coworker that her retirement would be considered an "MRA+10 deferred retirement," since she will not meet her MRA if she leaves at 55 although she would have more than 30 years of service. You're right that a deferred retirement means she could not keep her FEHB and she doesn't seem to meet the requirements for a postponed retirement (in a postponed retirement you can start up your FEHB coverage when you start collecting your annuity). I thought I would run it by the readers of Federal Soup to see if I'm missing something. So far, I can't seem to find any scenario where she could retire at 55 (1 year 8 months before her MRA), with 37 years of service, and still keep her federal health care benefits (including through a deferred or postponed retirement).
roger.d  
#4 Posted : Sunday, April 14, 2019 12:23:24 PM(UTC)
roger.d

Rank: Senior Member

Groups: Registered
Joined: 8/25/2016(UTC)
Posts: 2,924
United States
Location: Midwest

Thanks: 129 times
Was thanked: 714 time(s) in 558 post(s)
Ed in the "benefits Q&A" section I linked to is an expert in Federal Employee benefits.
Learn to discipline yourself, so someone else doesn't have to
FS0201  
#5 Posted : Sunday, April 14, 2019 1:34:15 PM(UTC)
FS0201

Rank: Senior Member

Groups: Registered
Joined: 12/22/2011(UTC)
Posts: 1,154

Thanks: 98 times
Was thanked: 274 time(s) in 239 post(s)
Only option other than discontinued would be if they are offering VERA.
The excuse of, "I read it on FederalSoup..." won't work. Please do your due diligence.
postalvet  
#6 Posted : Sunday, April 14, 2019 7:03:33 PM(UTC)
postalvet

Rank: Senior Member

Groups: Registered
Joined: 9/29/2009(UTC)
Posts: 16,412
Location: southern calif

Thanks: 1607 times
Was thanked: 2855 time(s) in 2253 post(s)
Originally Posted by: Mac86 Go to Quoted Post
One of the administrative people in my office wants to retire when her husband does so they can move to Florida. Even though her MRA is 56 years, 8 months, she wants to retire at 55 years and would have 37 years of federal employment. Our personnel office said she would fall under the MRA + 10 rule, but I thought that rule only applied if you had reached your MRA. What would her options be in this situation if she wants to retire at 55? Her one goal is to retain her FEHB into retirement.


what retirement plan are they under?
Postal employee (retired) 38 yrs who helps even if some do not believe me! I was a Steward, officer & trouble maker. Just Sayin'
Mac86  
#7 Posted : Sunday, April 14, 2019 7:08:06 PM(UTC)
Mac86

Rank: Member

Groups: Registered
Joined: 1/20/2016(UTC)
Posts: 21
United States

Was thanked: 1 time(s) in 1 post(s)
She is under FERS
Citrine  
#8 Posted : Sunday, April 14, 2019 7:28:25 PM(UTC)
Citrine

Rank: Member

Groups: Registered
Joined: 10/13/2018(UTC)
Posts: 20
United States
Location: midwest

Was thanked: 4 time(s) in 3 post(s)
since she has a few years to go, she can set herself up for a job in Florida.

this might mean taking a different job for a while, to open more opportunities in Florida.


don't overlook term or part-time jobs. (IF they are under FERS)
TheRealOrange  
#9 Posted : Monday, April 15, 2019 2:45:58 AM(UTC)
TheRealOrange

Rank: Senior Member

Groups: Registered
Joined: 5/22/2011(UTC)
Posts: 616

Thanks: 1 times
Was thanked: 123 time(s) in 106 post(s)
Originally Posted by: Mac86 Go to Quoted Post
One of the administrative people in my office wants to retire when her husband does so they can move to Florida. Even though her MRA is 56 years, 8 months, she wants to retire at 55 years and would have 37 years of federal employment. Our personnel office said she would fall under the MRA + 10 rule, but I thought that rule only applied if you had reached your MRA. What would her options be in this situation if she wants to retire at 55? Her one goal is to retain her FEHB into retirement.

Yes, the MRA + 10 retirement does not apply until the person is at their MRA. Until a person reaches their MRA, they are not eligible for an immediate annuity absent special circumstances like an early retirement offered by her agency. If she leaves before her MRA, she then would have to take advantage of the Deferred Retirement, she would not be eligible for an immediate annuity, and she would not be eligible to take the FEHB into retirement:

Deferred Retirement

Refers to delayed payment of benefit until criteria are met, as follows:

If you leave Federal service before you meet the age and service requirements for an immediate retirement benefit, you may be eligible for deferred retirement benefits. To be eligible, you must have completed at least 5 years of creditable civilian service. You may receive benefits when you reach one of the following ages:

Eligibility Information

Age/Years of Service

62/5
MRA/30
MRA/10

If you retire at the MRA with at least 10, but less than 30 years of service, your benefit will be reduced by 5 percent a year for each year you are under 62, unless you have 20 years of service and your benefit starts when you reach age 60 or later.

Health Benefits and Life Insurance Coverage

If you receive a deferred annuity, you are not eligible to continue any health benefits or life insurance coverage you had while employed.

My suggestion is for the person to wait until her MRA and then take an immediate annuity and be eligible for all related benefits (FEHB, FEGLI, etc.). She will have to delay the receipt of her annuity anyway under a deferred retirement and she will lose the FEHB and other insurance benefits. It's just not worth it in my opinion.

Edited by user Monday, April 15, 2019 2:48:12 AM(UTC)  | Reason: Not specified

Mac86  
#10 Posted : Monday, April 15, 2019 5:11:54 AM(UTC)
Mac86

Rank: Member

Groups: Registered
Joined: 1/20/2016(UTC)
Posts: 21
United States

Was thanked: 1 time(s) in 1 post(s)
Thank you to all who responded. This is the type of discussion I was hoping to have. I think Orange summed it up nicely and Citrine had a good suggestion. If my coworker and her husband are set on going to Florida by a certain date, and if she must hold onto her FEHB, then perhaps she should first arrange for a Fed job in Florida, that would allow her to reach her MRA and then retire. The job would not even need to be at her current pay grade, as long as it falls under FERS and is close to where they want to move (Melbourne, FL)
HoosierDaddy  
#11 Posted : Wednesday, April 17, 2019 1:40:10 PM(UTC)

Rank: Senior Member

Groups: Registered
Joined: 1/18/2011(UTC)
Posts: 265

Was thanked: 20 time(s) in 16 post(s)
Originally Posted by: Mac86 Go to Quoted Post
One of the administrative people in my office wants to retire when her husband does so they can move to Florida. Even though her MRA is 56 years, 8 months, she wants to retire at 55 years and would have 37 years of federal employment. Our personnel office said she would fall under the MRA + 10 rule, but I thought that rule only applied if you had reached your MRA. What would her options be in this situation if she wants to retire at 55? Her one goal is to retain her FEHB into retirement.


Something is off with the numbers you provided. The only people covered by FERS with a MRA of 56 years 8 months are those born in 1968 which would make them 50 or 51 years old so to have 37 years of service means they started their federal service at 13 or 14.
Mac86  
#12 Posted : Wednesday, April 17, 2019 3:28:02 PM(UTC)
Mac86

Rank: Member

Groups: Registered
Joined: 1/20/2016(UTC)
Posts: 21
United States

Was thanked: 1 time(s) in 1 post(s)
She started working for the government right out of high school. If she took retirement at 55, she would have 37 years of service which means she started when she was about 19 years old. I believe she is currently 51 years old. Her husband is about 6 years older and they have started having the "when should we retire" talk.
roger.d  
#13 Posted : Wednesday, April 17, 2019 8:33:34 PM(UTC)
roger.d

Rank: Senior Member

Groups: Registered
Joined: 8/25/2016(UTC)
Posts: 2,924
United States
Location: Midwest

Thanks: 129 times
Was thanked: 714 time(s) in 558 post(s)
Originally Posted by: Mac86 Go to Quoted Post
She started working for the government right out of high school. If she took retirement at 55, she would have 37 years of service which means she started when she was about 19 years old. I believe she is currently 51 years old. Her husband is about 6 years older and they have started having the "when should we retire" talk.


You need to know what year she was born to know what her MRA is.

https://www.opm.gov/reti...information/eligibility/

Learn to discipline yourself, so someone else doesn't have to
Rss Feed  Atom Feed
Users browsing this topic
Guest (2)
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.


This page was generated in 0.195 seconds.