FERS does allow more flexibility in deciding when to retire than CSRS. Review the following choices for more information.
If You Stay Until Retirement Age
With FERS, you can retire with a Basic Benefit as soon as you reach the
Minimum Retirement Age (MRA) and have just 10 years of service. The MRA is the first year
in which you can receive benefits. It varies according to the year you were born. For anyone born before 1948, the MRA is
age 55. It increases gradually to age 56 for those born before 1965 and goes up to 57 for those born in 1970 and after.
The following chart will help you determine what your MRA is.
Minimum Retirement Age | |
---|---|
If you were born... | Your MRA is... |
Before 1948 | 55 |
In 1948 | 55 and 2 months |
In 1949 | 55 and 4 months |
In 1950 | 55 and 6 months |
In 1951 | 55 and 8 months |
In 1952 | 55 and 10 months |
In 1953 - 1964 | 56 |
In 1965 | 56 and 2 months |
In 1966 | 56 and 4 months |
In 1967 | 56 and 6 months |
In 1968 | 56 and 8 months |
In 1969 | 56 and 10 months |
In 1970 and after | 57 |
Under FERS, you can retire when your age and years of Federal service match any of the retirement combinations shown below. These are all immediate annuity benefits that also allow you to keep your Federal Employees Health Benefits (FEHB) and Federal Employees' Group Life Insurance (FEGLI) coverages as a retiree if you have been enrolled for enough time (usually the 5 years immediately preceding your retirement) before you retire.
Retiring Under FERS | |
---|---|
If you leave with this much service | You get Basic Benefits at this age |
At least 5 years | 62 years |
At least 10 years | Your Minimum Retirement Age, with reduced annuity |
At least 20 years | 60 years* |
At least 30 years | Your Minimum Retirement Age* |
*With these combinations, your Basic Benefit includes the Special Retirement Supplement if you have at least 1 full calendar year of FERS coverage. |
If you retire at...
If You Leave Before Retirement Age
One real advantage to FERS is that you do not have to stay with the Federal Government until retirement to receive good
value from your retirement plan. This value comes from the fact you get an Agency Automatic
contribution to your Thrift Savings Plan (TSP) account equal to 1% of your salary. Plus, if you contribute to the TSP,
you can get up to 4% more. In addition, you will probably earn more Social Security credits wherever you work next. If you
leave the Government long before retirement, with little service, FERS will always be best.
Let's say that you leave before you have the right combination of age and service to retire. Once you reach the age shown in the chart above, you may elect to begin receiving benefits. If you don't have 30 years of service, you may also choose to put off receiving benefits until as late as age 62. This will allow you to receive a bigger benefit by avoiding part or all of the 5% per year reduction, and you can collect on your Social Security and your TSP benefits.
If you don't want to wait until retirement age, you can withdraw all of the money you have contributed toward the FERS Basic Benefit Plan. It will be paid to you with a market rate of interest; that is, the same rate of interest earned by the U.S. Treasury securities purchased by the Retirement Fund (the account that contains all employee and employer contributions to CSRS and FERS). However, you give up your right to your Basic Benefit after retirement. If you take your money out, you cannot put it back in if you return to work with the Federal Government later. It's usually better to leave your money in FERS so that you can receive monthly benefits when you retire. This is because you pay very little compared to the benefits you will eventually receive from the Basic Benefit.
To read more about this: |
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Minimum Retirement Age |
Thrift Savings Plan under FERS |
Updated 26 May 1998