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This page can be found on the web at the following url:
http://www.opm.gov/retire/faq/pre/faq10.asp

Retirement Information & Services

Planning for Retirement in One Year


What steps should I take when I get close to retiring?

When you get within one year of retirement eligibility, you should:

  • Confirm when you will be eligible to get a retirement benefit;
  • Decide when you want to retire;
  • Get information about other benefits to which you may also be eligible, such as Thrift Savings Plan payment options and any other entitlements based on employment, for example: Foreign Service, Social Security, pensions from private industry, and Individual Retirement Accounts (IRA). You should have a fairly comprehensive picture of all sources of your retirement income and when each is payable.
  • Tell your supervisor about your proposed retirement date. You should give sufficient notice to allow for planning for someone to take your place.
  • Attend a pre-retirement counseling seminar.
  • Make an appointment with your personnel officer to review your Official Personnel Folder (OPF) or its equivalent to make sure all your records are complete and accurate, all service is verified, and your insurance coverage is documented.
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What documentation should be in the Official Personnel Folder (OPF)?
  • The beginning and ending dates for each period of employment which will be used for your benefit computation;
  • The effective dates for each promotion or within-grade increase during the period that will be used to compute your high-3 average salary;
  • The dates of pay changes or earnings and the pay rate, during employment periods when retirement deductions were not withheld from your salary;
  • The tour-of-duty during any part-time employment (if you worked more hours than the official tour-of-duty, document the hours actually worked.);
  • A record of time actually worked during intermittent or "when-actually-employed" service; and,
  • Documentation of the dates of military service.

If any service is not verified or any of the required documentation is missing, you should obtain assistance from your personnel officer.

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Are there other records I should check?

You should review your designation of beneficiary for the lump sum payment of retirement contributions when no one is eligible for monthly payments. This designation is made on a Standard Form 2808 for the Civil Service Retirement System (CSRS) or a Standard Form 3102 for the Federal Employees Retirement System (FERS). Make sure the form shows the person or people you want designated. If a copy is not available to review, you may wish to file a new designation.

If you transferred to FERS, any prior designation you made for CSRS coverage is canceled. You may wish to file a FERS designation. If you were automatically transferred to FERS coverage from CSRS, your designation will remain in force.

If there is no designation of beneficiary, benefits will be paid in the following order:

  1. Your widow or widower.
  2. Your children in equal shares.
  3. Your parents in equal shares.
  4. Your appointed executor or administrator of your estate.
  5. Your next of kin under the laws of the state you reside in when you die.
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What records are needed for my health benefits?

Your Official Personnel Folder should contain a record of all of your health benefits registration forms, Standard Form 2809, and, if appropriate, Standard Form 2810, Notice of Change in Health Benefits. Be sure that when you retire, your records will show a complete history of your health insurance enrollment for the last five years.

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What records are needed for my life insurance?

Your Official Personnel Folder should contain a record of your current Federal life insurance coverage on a Standard Form 2817, "Life Insurance Election", and, if appropriate, your current life insurance designation of beneficiary, Standard Form 2823.

If there is no designation of beneficiary, benefits will be paid in the following order:

  1. Your widow or widower.
  2. Your children in equal shares.
  3. Your parents in equal shares.
  4. Your appointed executor or administrator of your estate.
  5. Your next of kin under the laws of the state you reside in when you die.
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What can I do if I am eligible to continue my health benefits coverage but my retirement payment will not cover the cost of my premium?

You can pay your premiums directly to the Office of Personnel Management. In this case, we will tell you how to make these arrangements. You should not send any payments until we do.

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How do I make a payment to receive retirement credit for my military service after 1956?

You may be able to receive retirement credit for active-duty military service after 1956 if you make a payment for that service. You must make the payment before you stop working for the government. You should ask your local servicing personnel center for help in determining whether to make this payment. They can provide personalized assistance because they have your employment records.

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I worked for a time when retirement deductions were not withheld from my pay. Will I still get retirement credit for that time?

That depends on when you worked and whether you are covered by the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS).

Make a selection from the list of circumstances below which best describes your situation and ask your local personnel service center for assistance because they have your employment records.

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I got a refund of the retirement deductions that were withheld from my pay. Will I still get retirement credit for that time?

That depends on when you worked and whether you are covered by the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS).

Make a selection from the list of circumstances below which best describes your situation and ask your local personnel service center for assistance because they have your employment records.

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How do I make a payment to get credit for service?

You should apply to make a payment by completing a Standard Form 2803 if you are covered by the Civil Service Retirement System (CSRS). You should use Standard Form 3108 if you are covered by the Federal Employees Retirement System (FERS).

If you are within six months of retirement, you should submit your request to make the deposit or redeposit at the same time you submit your application for retirement. You can use a form or letter to do this. We will notify you of any amounts due so you can decide whether or not to make the payment. We cannot, however, authorize your regular annuity payments until we have your decision about the payment.

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How do I know if I can retire on the date I picked?

Check with your local personnel service center to verify that you have enough service and meet the age requirements for retirement eligibility. They can provide personalized assistance because they have your employment records.

Your local personnel service center will also talk with you about the date your annuity payments can start based on the date you pick.

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How do I plan to provide benefits to my survivors after my death?

Your personnel officer will review the election opportunities to provide benefits after your death to your husband or wife, ex-spouse, or another person you designate as having an insurable interest in your continuing life.  If you do not provide for a monthly benefit after your death, your survivor will not be able to continue coverage under the Federal Employees Health Benefits (FEHB) program.  The advisor will also cover the requirements that each survivor must meet to qualify.

When making an election to provide a benefit after your death, you must obtain your husband's or wife's written consent to provide less than the maximum benefit allowed. To designate an insurable interest, you must have a physical examination at your own expense.

You local personnel service center is the best place to begin. They can provide personalized assistance and they have your employment records.

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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.

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What happens if I postpone the Minimum Retirement Age (MRA) plus 10 annuity?
  • The benefit is not reduced if it begins after your 60th birthday and you have at least 20 years of service or you reach the Minimum Retirement Age and have 30 years of service. Delay of the benefit can be used to avoid all or part of the reduction for retirement before age 62 that would otherwise have been applied.
  • Your life insurance enrollment will stop until the annuity begins. Once the annuity begins, the life insurance coverage you had when you stopped working will resume if you are eligible.
  • Your health benefits can be temporarily continued under the Temporary Continuation of Coverage for 18 months. You must pay the full cost of coverage, including both the employee and government shares, plus a two percent administrative charge. Your employer will collect the premiums and maintain this coverage.
  • When your payments begin, if you are otherwise eligible to continue coverage, you can again enroll in the Federal Employees Health Benefits (FEHB) program and we will pay the government share of the premiums.
  • If you do not file an application before your death, the rights of your surviving family members would be protected because you would be considered a retiree.
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What are voluntary contributions?

Voluntary contributions are payments made to the retirement fund in addition to the deductions that are withheld from pay. You can make these contributions only if you are covered by the Civil Service Retirement System (CSRS) and do not owe a deposit for a period of time when deductions were not withheld from your pay. To make voluntary contributions, you should submit a Standard Form 2804 to your employer.

You can make voluntary contributions in multiples of $25. Total contributions cannot exceed 10 percent of your pay.

You can purchase additional annuity of $7 per year for each $100 of voluntary contributions, plus 20 cents for each full year you are over age 55 when you retire. By electing to take a reduction in the additional annuity, you can also purchase additional annuity for a surviving spouse who may receive a benefit after your death.

Interest is paid on voluntary contributions at the rate of three percent annually until December 31, 1984. After that date, a variable interest rate is compounded annually on December 31st until service ends or a refund is paid. View the table of variable interest rates.

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How will I receive credit for my voluntary contributions?

You can use voluntary contributions you made while working under the Civil Service Retirement System to purchase additional annuity when you retire or you can withdraw the contributions in a one-time payment.

You can purchase additional annuity of $7 per year for each $100 of voluntary contributions, plus 20 cents for each full year you are over age 55 when you retire. By electing to take a reduction in the additional annuity, you can also purchase additional annuity for a surviving spouse who may receive a benefit after your death.

Most people want to withdraw their voluntary contributions in a one-time payment. If the amount of the voluntary contributions, plus interest, is more than $200, you can roll the funds into an Individual Retirement Account (IRA) or other qualified retirement plan to defer income tax.

If you want to withdraw your voluntary contributions, you should submit either a Form RI 38-124 or Standard Form 2802 with the statement in item number seven, "I want only my voluntary contributions to be refunded to me." You can get these forms from your employer. You should submit your request at least 60 days before your expected retirement.

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What annuity estimates do I need?

At your request, your employer should provide you with any of the following estimates that apply to your circumstances. However, the U.S. Office of Personnel Management determines the actual amount of the benefit that is payable based on the laws and regulations and on the certified record of your employment.

  • If you receive military retired pay, an estimate of your benefit with and without credit for military service.
  • If you are considering deposit for military service after 1956, an estimate of your benefit with and without credit for the military service you performed after December 31, 1956.
  • If you are considering a deposit, under the Civil Service Retirement System, for federal employment before October 1, 1982, estimates of the amount of the deposit and the amount of your benefit with and without the reduction for the deposit.

Deposit service ending before October 1, 1982 and covered by the CSRS.

  • If you are considering a deposit, under the Civil Service Retirement System (CSRS), for federal employment on/after October 1, 1982, estimates of the amount of the deposit and the amount of your benefit with and without credit for the employment period.

    Deposit service ending after October 1, 1982 and covered by the CSRS.

  • If you are considering repaying, under the Civil Service Retirement System (CSRS), a refund of retirement contributions for employment ending before October 1990, an estimate of the amount of the redeposit and your benefit with and without the actuarial reduction taken if the redeposit is not paid.

    Redeposit service ending before October 1, 1990 and covered by CSRS.

  • If you are considering repaying, under the Civil Service Retirement System (CSRS), a refund of retirement contributions for employment ending after October 1990, an estimate of the amount of the redeposit and your benefit with and without credit for the employment period covered by the refund.

    Redeposit service ending on/after October 1, 1990 and covered by CSRS.

  • If you are considering a deposit, under the Federal Employees Retirement System (FERS), for federal employment before 1989, estimates of the amount of the deposit and the amount of your benefit with and without credit for the employment period.

    Deposit service ending before January 1, 1989 and covered by FERS.

  • If you are considering providing less than the maximum annuity payable after your death to a husband, wife, or ex-spouse, estimates of the amount of the survivor's annuity and the amount of your annuity with and without the reduction for full survivor's benefit.

    View information on family benefits.

  • If you are considering providing a survivor annuity to someone who has a financial interest in your continued life, an estimate of your benefit with and without the reduction for this election.

    View information on family benefits.

  • If you have made voluntary contributions and can elect to purchase additional annuity with those contributions, benefit estimates with and without credit for the voluntary contributions.

    View information about voluntary contributions.

  • If you can elect to receive the alternative form of annuity, an estimate of your benefit with and without the lump sum payment of retirement contributions.

    View information about the alternative form of annuity.

  • For employees, under the Federal Employees Retirement System (FERS), who can elect to receive an annuity supplement, an estimate of the monthly amount payable to age 62.

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Will I receive a cost-of-living adjustment (COLA)?

See information here about cost-of-living adjustments. Then, check with your local personnel service center for an explanation about how the cost-of-living increases apply to those retiring under the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS). They can provide personalized assistance and they have your employment records.

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I am covered under the Civil Service Retirement System (CSRS) subject to offset due to Social Security eligibility. This coverage is known as CSRS-Offset. How does the offset affect the computation of my benefit?

Your benefit will be computed in the same manner as if it were not subject to offset. However, it will be reduced when you become eligible for Social Security benefits. The offset applies when the basic requirements for Social Security are met, generally at age 62, even if you do not apply for those benefits. If you are not eligible for Social Security benefits at age 62, there is no offset unless you become eligible later.

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Will I get paid for my unused annual leave?

You can be paid for any unused annual leave you hold at retirement.

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How will workers compensation affect my civil service annuity?

When you apply for retirement, you should list your workers compensation on your application. Generally, you cannot receive workers' compensation and civil service annuity payments at the same time. You must decide which benefit is most advantageous and elect to receive that one. If you decide to receive workers' compensation benefits, payments from the Office of Personnel Management will be suspended. If your workers compensation benefit stops, you can ask us to pay your civil service annuity.

You can continue to receive your civil service annuity payments when your workers' compensation is for a Scheduled Award. If you missed work before retirement for an on-the-job injury or illness and received workers' compensation, generally, you can receive credit for time in the computation of your civil service annuity.

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What withholdings will be taken from my retirement payments?

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