With several retirement options available under FERS, it’s essential to understand the details to choose the best one for you.
Your Minimum Retirement Age (MRA) for Unreduced Benefits
For FERS participants, the Minimum Retirement Age (MRA) for unreduced benefits depends on your birth year and ranges between 55 and 57. For example, if you were born before 1948, your MRA is 55; if you were born in 1948, your MRA is 55 years and 2 months. You can check your specific MRA [here].
Creditable Years of Service Requirements
“Creditable Service” refers to the total number of years your pay has been subject to FERS retirement deductions. While unused sick leave can increase your creditable service when calculating your monthly annuity, it does not count toward the years required for eligibility to retire.
Immediate Voluntary FERS Retirement
To qualify for a full (unreduced) immediate annuity, you must meet one of the following service requirements:
- Your MRA with 30 years of creditable service
- Age 60 with at least 20 years of creditable service
- Age 62 with at least 5 years of creditable service
FERS MRA+10 Retirement
Under the FERS MRA+10 option, if you start receiving your pension before age 62, your benefit will be reduced by 5% per year (or 5/12 of a percent per month) for each year under age 62. However, with the Postponed Retirement Option, you can defer receiving payments until you reach the age at which you qualify for your full benefit, allowing you to avoid this reduction. This option is ideal if you plan to work in the private sector after leaving federal service.
Voluntary Early Retirement Authority (VERA)
Also known as “early out,” VERA allows agencies to temporarily lower the age and service requirements for an immediate, unreduced annuity, making more employees eligible for early retirement. To qualify, your agency must obtain approval from the OPM to offer VERA for your position, and you must meet eligibility requirements: either 20 years of service and at least age 50 or 25 years of service at any age.
For personalized advice on selecting the right FERS retirement option based on your financial situation, consult with an FRC® trained advisor.
