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, it may be authorized to permit early optional retirement for eligible employees to lessen the impact of involuntary separations and demotions. Under early optional retirement, if you have at least 25 years of service, or you are at least age 50 and have as much as 20 years of service, you may retire voluntarily on an immediate annuity.

Under the Civil Service Retirement System, the annuity is reduced by 2 percent for each year you are under age 55 if you are under CSRS. At least five years of your service must be civilian service, and you must have been employed under CSRS for at least 1 year out of the last two years preceding retirement.

Under the Federal Employees Retirement System, if you retire at the minimum retirement age with at least 10, but less than 30 years of service, your benefit will be reduced by 5 percent a year for each year you are under 62, unless you have 20 years of service and your benefit starts when you reach age 60 or later.