Expert's View

Over the last few weeks, I’ve written about the rules governing those employees who retire under the Voluntary Early Retirement Authority and those who aren’t eligible to retire when they leave the government but do have enough years of service to receive an annuity when they reach the right age, the so-called deferred annuity.

Now I want to talk about FERS employees who aren’t offered an opportunity to retire early but who do meet the age and service requirements to retire at their minimum retirement age with at least 10 but fewer than 30 years of service. They can do that under the MRA+10 provision of law.

MRAs are based on your year of birth, as shown below:

In 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 through 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

If you retire under the MRA+10 provision, your annuity will be reduced by 5 percent for every year (5/12 percent per month) that you are under age 62. However, you can reduce or eliminate that penalty by postponing the receipt of your annuity. And you can elect to have that annuity begin on any date later than the first day of any month following separation. To do that you’ll have to fill out Retirement and Insurance form RI 92-19, Application for Deferred or Postponed Annuity, and send it to OPM. The form is available at www.opm.gov/forms.

Just be aware that even if you are eligible for a FERS annuity before age 62, you won’t be entitled to receive the special retirement supplement, which approximates the amount of Social Security benefit you earned while a FERS employee. No one who retires under the MRA+10 provision is.