Deferred Retirement Under FERS Explained
Deferred Retirement Under FERS Explained
If the holiday season has you wanting to spend more time with loved ones, a deferred retirement may be the answer. Federal Educators takes a look at the eligibility requirements needed for an immediate retirement under FERS so you can start your next chapter.
The first step is to determine if you are eligible for a deferred retirement under FERS. Federal employees may qualify for this if they separate from service before they are eligible for regular FERS retirement. Qualifications that will give you title to your deferred FERS retirement pension include having at least 5 years of creditable civilian service, leaving your FERS retirement contributions in the system and being any age under 62 when you separate. The last part is particularly crucial because if you completed 5 years of service and were 62 at the time of separation, you would qualify for a regular FERS retirement.
Ready for next steps? You will want to confirm that you have at least 5 years of creditable civilian service (bought back military service time does not count towards this requirement). Upon separation, you must leave any contributions in the system. Taking any refund amount from a FERS retirement contribution will make the deferred FERS retirement null and void. Later, when you reach a specific age, in most cases 62, contact the Office of Personnel Management to begin your FERS pension paperwork. Once submitted, the annuity payment application process begins one month after your separation date.
The age requirement does offer some flexibility depending on the number of years served. The more service completed, the earlier you can draw on a FERS pension. At 20 years of creditable service, you can begin at age 60 and for 30 years of service, you can begin between 55 and 57 as determined by a MRA (minimum retirement age). For 10 years or more of service and MRA reached, you may draw on your pension earlier, but it will be reduced by 5% for each year younger than 62 you start receiving the pension. This is a permanent reduction and cannot be adjusted. If you have the option to wait until 62, you will receive the full pension earned.
Federal Educators understands that everyone’s financial situation is unique. We’re here to help you understand the full scope of retirement benefits available through our complimentary benefit analysis. Contact our team at (813) 285-4692 to get started today.