Early Retirement
Early Optional Retirement
If your agency undergoes a major reorganization, reduction in force, or transfer
of function, and a significant percentage of the employees will be separated,
or will be reduced in pay, the head of your agency can ask the U.S. Office of
Personnel Management (OPM) to permit early optional retirement for eligible
employees.
If your agency gets approval to permit early optional retirements, eligible
employees will be notified
of the opportunity to retire voluntarily.
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Discontinued Service Retirement Because of an Involuntary
Separation
The term “involuntary separation” means any separation against
the will and without the consent of the employee, other than “for cause”
for misconduct or delinquency. The most common cause of an involuntary
separation is a reduction in force. Another frequent cause for an involuntary
separation is when the location of an office or unit is moved to an area outside
the commuting area of the old worksite*. Employees who decline reasonable
offers of other positions are not eligible for discontinued service annuities.
*Exception: If, when you accepted your current position, you
were placed under a general mobility agreement whereby you would be subject
to geographic reassignment, you would not be eligible for discontinued service
annuity rights if your position is moved to an area outside the commuting area.
If your agency-
• makes you a reasonable offer and you choose to decline the offer
and resign, you will not qualify for discontinued service retirement, or
• separates you by adverse action procedures for not complying with
a directed reassignment to a position that is a “reasonable offer”
your separation would not be qualifying for discontinued service.
Reasonable Offer
• Written offer of another position in your agency and commuting area
for which you are qualified, and
• Which is no more than two grades or pay levels below your current
grade or pay level.
Commuting Area
Geographic area that usually constitutes one area for employment purposes.
It includes any population center (or two or more neighboring ones) and the
surrounding localities in which people live and reasonably can be expected to
travel back and forth daily in their usual employment.
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Eligibility Requirements for Early Optional Retirement
and Discontinued Service Retirement Because of an Involuntary Separation
Age |
Years of Service |
20 |
25 |
At least 5 years of your service must be civilian service, and you must have
been employed under the Civil Service Retirement System for at least 1 year
out of the last 2 years preceding retirement.
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Annuity Computation
Here is how the CSRS annuity formula is calculated:
Years of Service |
What You Receive |
First 5 years of service |
1.5 percent of your high-3 average salary for each year |
Second 5 years of service |
Plus
1.75 percent of your high-3 average salary for each year |
For all years of service over 10 |
Plus
2 percent of your high-3 average salary for each year. |
Reductions in Annuity
Your annuity will be reduced if:
- You retire before age 55 (unless you retire for disability or under the
special provisions for law enforcement officers, air traffic controllers,
and firefighters). Your annuity will be reduced by one-sixth of 1 percent
for each full month (2 percent a year) you are under age 55.
- You didn’t make a deposit for service performed prior to October 1,
1982, during which no deductions were taken from your pay (non-deduction service
after that date is not used in the computation of benefits if the deposit
is not paid);
- You didn’t make a redeposit of a refund for a period of service that
ended before October 1, 1990;
- You provide for a survivor.
- To provide a full survivor benefit for your current or former spouse,
your annuity will be reduced by 2.5 percent of the first $3,600, plus
10 percent of the annuity over $3,600.
- To provide a survivor annuity for a person who has an “insurable
interest” in you, your annuity would be reduced from 10 to 40 percent,
depending on the difference in your age and the age of the person named.
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