Unforeseen predicament of forced retirement
Are you considering retirement as a federal employee? Here's a helpful guide to navigating the process, focusing on the Voluntary Early Retirement Authority (VERA).
First and foremost, when applying for immediate retirement through your personnel department, it's essential to provide specific personal details, your exact retirement date, and confirm that you meet the conditions under the VERA. These conditions include employment duration, age, and any special insurance or legal prerequisites relevant for early voluntary retirement.
The requirements for VERA are flexible. You can retire as early as age 50 or after completing 25 years of service. For those who don't meet these criteria, there's still the option of deferred retirement. In this case, you would use Application for Deferred or Postponed FERS Retirement RI 92-19 if you had at least 10 years of service and separated at the Minimum Retirement Age (MRA) or later.
If you're postponing retirement and don't meet the age and service requirements for an immediate retirement but had at least 5 years of creditable civilian service when leaving, you should also use Application for Deferred or Postponed FERS Retirement RI 92-19.
It's important to note that retiring under the VERA provision may result in significantly less income compared to a federal paycheck. However, it could also provide a separation package and additional benefits, making it an attractive option for some.
Remember, the first step for immediate retirement benefits after accepting the offer to resign is to file a retirement application with the human resources office. For CSRS employees, the form is Application for Immediate CSRS Retirement SF 2801, while for FERS employees, it's the Application for Immediate Retirement (FERS) SF 3107.
If retirement begins within 30 days of separation, FERS employees should use the Application for Immediate Retirement (FERS) SF 3107.
To be eligible for an unreduced, immediate FERS retirement, you must be at the FERS MRA with 30 years of service, or age 60 with 20 years or age 62 with 5 years of service. If you're at the MRA with 10 years but less than 30 or at age 60 or 61 with less than 20 years, a "reduced" immediate retirement is eligible, or you can choose to postpone the application to avoid some or all the age reduction.
As you approach retirement, it's crucial to review the eligibility rules and ensure you meet all the requirements. For more tips on applying for a deferred and postponed retirement, see the earlier columns Postponing retirement problems: Part 1 and Postponing retirement problems: Part 2.
Lastly, the Jan. 28 "Fork in the Road" offer from the Office of Personnel Management is being considered by many federal employees regarding their employment status. Make sure you're well-informed and prepared for your decision.
In FY2022, there were approximately 44,000 federal employees covered under the Civil Service Retirement System, with all CSRS employees aged 55 or older, compared to 32% of FERS employees who were aged 55 or older. Ninety-one percent of CSRS employees were aged 60 or older, whereas 15% of FERS employees were in this age range.
Remember, this guide is intended to provide a general overview of the retirement process for federal employees. For specific questions or concerns, consult your personnel department or the Office of Personnel Management.
Retirement is a significant decision, and we hope this guide helps you make an informed choice. Good luck!
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