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Retirement Planning


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GiannaLuna  
#1 Posted : Sunday, November 10, 2019 6:58:15 AM(UTC)
GiannaLuna

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I have a question regarding this statement on the OPM website


What is a Minimum Retirement Age (MRA) plus 10 annuity under the Federal Employees Retirement System (FERS)?

This is a provision that allows you to retire with benefits beginning immediately if you have ten years of service and have reached the Minimum Retirement Age (at least 55). However, the annuity is reduced for each month you are under age 62. The reduction equals five percent per year (or 5/12 of one percent per month). To avoid the reduction, you can postpone payment. You can later apply for the benefit by writing to us or filing an "Application for Deferred or Postponed Retirement," Form RI 92-19. You should submit the form two months before you want the benefit to begin.

So the reduction, under age 62, is 5/12 of one percent per month.

Question: How many days in a calendar month must be worked in order to get the full 5/12 of one percent versus nothing at all?

Thank you
roger.d  
#2 Posted : Sunday, November 17, 2019 12:34:02 PM(UTC)
roger.d

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Originally Posted by: GiannaLuna Go to Quoted Post
I have a question regarding this statement on the OPM website


What is a Minimum Retirement Age (MRA) plus 10 annuity under the Federal Employees Retirement System (FERS)?

This is a provision that allows you to retire with benefits beginning immediately if you have ten years of service and have reached the Minimum Retirement Age (at least 55). However, the annuity is reduced for each month you are under age 62. The reduction equals five percent per year (or 5/12 of one percent per month). To avoid the reduction, you can postpone payment. You can later apply for the benefit by writing to us or filing an "Application for Deferred or Postponed Retirement," Form RI 92-19. You should submit the form two months before you want the benefit to begin.

So the reduction, under age 62, is 5/12 of one percent per month.

Question: How many days in a calendar month must be worked in order to get the full 5/12 of one percent versus nothing at all?

Thank you


There are many factors to consider for a "full 5/12". What day of the month did you start? How much SL is being credited to your years of service?

http://www.fedcalc.com/fers.jsp

You can plug your information into the above calculator and see what the answer is for your situation.
Learn to discipline yourself, so someone else doesn't have to
junkmail  
#3 Posted : Monday, November 18, 2019 12:14:33 PM(UTC)

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The reduction is not based on months worked but on how many full months are between when you will reach age 62 and your age at the commencement of the annuity. You can find the full answer in the CSRS/FERS Handbook at: https://www.opm.gov/reti...rsfers-handbook/c042.pdf
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