As a federal employee, you are eligible for retirement income that includes Social Security, a pension, and distributions provided by your Thrift Savings Plan. But as you save and plan for retirement, you probably want to know when you will be eligible to retire!
The rules on retirement age are fairly complicated for federal workers, and it would be best to consult with your financial advisor. That way, you can discuss your particular situation and make sure your retirement plans are realistic. But in general, there are four type of retirement offered by the Federal Employee Retirement System.
Immediate retirement. Your retirement benefits will be calculated based on your number of years in service, along with your Minimum Retirement Age (MRA). The federal government bases your MRA on your year of birth.
Early retirement. Sometimes the federal government must reorganize, reduce, or even close entire departments. You might have the option of transferring to another federal job, or you might be offered an early retirement. This option is sometimes available for certain involuntary separation cases.
Deferred retirement. In some cases, you may leave your federal job before you have met the requirements for immediate retirement benefits. If you have accumulated at least 5 years of service, you can receive benefits at age 62. If you have between 10 and 30 years of service, you can receive benefits at your MRA, subject to certain reductions.
Disability. If you become disabled during your time as a federal employee, you may be able to claim your FERS benefits. You must be unable to continue in your current position, and your agency must certify that it is unable to accommodate you in any other open position at the same pay and grade level.
As you can see, the rules regarding retirement benefits for federal employees can be complicated. This should underscore the importance of consulting regularly with your financial advisor, to make sure your desired retirement timeline will be possible.
This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
14640 – 2015/6/30
