Retirement Effective Date Policy at Issue

The DoD bill also contains government-wide language that DoD requested to change the current policy regarding when annuities for new retirees begin. Under present policy, an annuity for a retiring CSRS employee begins on the day after retirement if the person retires within the first three days of the month; otherwise, it begins on the first day of the next month. Under FERS, an annuity begins on the first day of the month after separation regardless of what day of the month the employee separated (under both systems there are exceptions for those separated involuntarily or because of disability). The change would allow annuities to begin on either the day after retirement or the day after age and service requirements are met, for those previously separated from service but not drawing an annuity. “The current deviations in annuity commencement dates between retirement systems results in a cumbersome administrative human resources problem,” the committee said.