Quick Decision

You want to be eligible to retire earlier than you can under CSRS rules

FERS does allow more flexibility in deciding when to retire than CSRS. Review the following choices for more information.

• When you can receive retirement benefits under FERS
• Postponing your benefits under FERS
• If you leave before retirement age

When You Can Receive Retirement Benefits Under FERS

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.

Postponing Your Benefits

If you retire at...

• your Minimum Retirement Age with at least 10, but less than 30 years of service -
• age 60 with at least 10, but less than 20 years of service -

You can wait until age 62 for full benefits and get a postponed annuity. You can begin receiving reduced benefits any time before age 62. Your monthly benefits will be reduced 5/12 of 1% for each month (up to 5% per year) you are younger than age 62 when you start receiving benefits. For example, if you retire at age 56 with 10 years of service, you are 6 years away from age 62. Your retirement benefit checks will be reduced by 30%.

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.

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To read more about this:

• Minimum Retirement Age
• Thrift Savings Plan under FERS