"I'm xx years old, Can I Retire YET?"

 

WHEN | Are we there yet?

Exiting from the Career Highway into retirement is an exciting adventure, but you must be careful to follow all the rules for an immediate retirement under FERS.

There are two eligibility requirements you must meet to receive a lifetime monthly payment from FERS:

• The right number of birthdays (age)
• The right amount of time (years of creditable service)

The age requirement is easy to understand!  But the creditable service has a few more twists and turns to it.

WHAT | This vs. that

Let’s start by defining two OPM terms that can be confusing:  eligibility vs computation

Step 1. Eligibility—first, only two types of creditable service are added together to meet this requirement: 

• Federal covered service, that is, service in which the individual's pay is subject to FERS retirement deductions
• Military service with deposit

Step 2. Computation—next, all three types of creditable service are added together to calculate the FERS pension:

• Federal covered service, that is, service in which the individual's pay is subject to FERS retirement deductions
• Unused Sick Leave
• Military service with deposit

HOW MUCH | Age + Creditable Service for Eligibility

The eligibility requirements are dependent upon age at retirement—the younger you are, the more years of creditable service you’ll need to get a full FERS pension:

• Minimum Retirement Age (MRA) + 30 Years of Creditable Service 
  You also receive the FERS supplement, a separate payment, until you reach your 62^nd birthday  (See MRA chart below) 

• Age 60 + 20 Years of Creditable Service
  You also receive the FERS supplement, a separate payment, until you reach your 62^nd birthday
• Age 62 + 5 Years of Creditable Service

There is one more retirement eligibility option, but it is for a reduced FERS pension:

• Minimum Retirement Age (MRA) + 10 Years of Creditable Service
  FERS pension is permanently reduced by 5% for every year you retire under age 62

WHAT ABOUT | FERS Special Provisions

Public Safety Officers who retire under FERS Special Provisions have a different set of eligibility requirements and a mandatory retirement age.

• Age 50 + 20 Years of Covered Service
  You also receive the FERS supplement, a separate payment, until you reach your 62^nd birthday
  
• Any Age + 25 Years of Covered Service
  You also receive the FERS supplement, a separate payment, until you reach your 62^nd birthday
  
• Mandatory Retirement Age
  Law Enforcement Officer—Age 57
  Air Traffic Controller—Age 56
  Firefighter—Age 57 
  

WHAT ELSE | Make Sure of This

Your creditable service will be tabulated with information from your Official Personnel Folder (OPF) and recorded on the FERS Immediate Retirement Application.  It’s imperative that you know ahead of time if your personnel records are complete, accurate and up to date—otherwise the information that OPM uses to calculate your FERS may be wrong.

NEED MORE | The FERS Toolkit^TM Benefit Workshop

Would you like to learn more about the ‘ins and outs’ of your FERS pension + the other 5 FERS benefits and Social Security? Join us for our next livestream webinar called The FERS ToolkitTM Benefit Workshop on Sep 30 + Oct 1.  It’s a 2-evening virtual training starting at 4 pm Pacific, finishing at 7 pm Pacific.

The Toolkit is an A-Z benefits training that breaks down each retirement topic into bite-sized pieces, while also providing you with a resource you can refer back to time and time again. Plus, this is the last Toolkit we’re offering in 2020.  Register here.

Our webinars are very user-friendly—with thoughtful use of technology, a supportive learning environment, an organized, caring moderator, and ample live Q & A time with instructor. All sessions are recorded, and replays are available for 90 days.

Register | Sep 30/Oct 1 Class | 4 pm Pacific