Make sure to ask your agency’s benefits counselor to go through your Official Personnel Folder with you. Image: Balefire/Shutterstock.com
By: FEDweek StaffMid-year is a critical checkpoint for federal employees considering retirement, especially with the traditional end-of-year retirement surge just six months away. But this year has been far from typical—federal workforce changes, OPM’s Deferred Resignation Program, widespread RIFs (reductions in force), and even entire agency closures have added uncertainty and urgency to the process.
If you’re thinking about retiring at the end of this year, ideally you would’ve begun serious preparations months ago. But it’s not too late to get started. And if your retirement is still a year or two away, all the better—early planning gives you more flexibility, better financial outcomes, and fewer last-minute surprises.
In either case, here are 4 key steps every federal employee should take:
1. Attend a Pre-Retirement Seminar
If your agency offers one, sign up right away. If not, ask if they’ll cover the cost of a private seminar. Even if it’s out of pocket, it’s a worthwhile investment in your future.
2. Review Your Official Personnel Folder (OPF)
Ask your agency’s benefits counselor to verify:
– All periods of federal service are documented.
– Pay adjustment records are accurate.
– FEHB and FEGLI coverage is up-to-date.
– Beneficiary designations are current.
– Military service credit (if applicable) is included.
3. Confirm Eligibility Requirements
Ensure you:
– Meet the minimum age and service years for retirement.
– Qualify to carry FEHB and FEGLI into retirement.
– Understand any early retirement options if facing a RIF or agency closure.
4. Request an Annuity Estimate
Get a personalized estimate of your FERS or CSRS annuity. FERS employees retiring before 62 should also ask about the Special Retirement Supplement. Consider requesting a TSP income estimate for a complete picture.
See our federal annuity estimate calculator, or FERS supplement calculator to get an instant result!
Those four apply to everyone. However, for others there are one or more “ifs” you may have to deal with. For example:
If You Owe Military or Civilian Deposits
If you haven’t paid your military service deposit or owe a redeposit for refunded civilian service, it could reduce your annuity. Use forms SF 2803 (CSRS) or SF 3108 (FERS) from www.opm.gov/forms.
If You Receive Military Retired Pay
You may need to waive your military pension and make a deposit to receive full civilian credit. Exception: If you’re receiving or eligible for reserve retired pay, you can keep both benefits without reduction.
If You Owe Your Agency Money
Arrange a repayment plan to prevent offsets from your annuity. Also, check for court orders that assign annuity portions to a former spouse.
Don’t Forget These Overlooked Retirement Factors
Understand Your TSP Withdrawal Options
Review your TSP balance, investment allocations, and withdrawal strategies. Know your options: monthly payments, lump sum, annuity purchase, or a combination. Required Minimum Distributions (RMDs) begin at age 73.
Plan for Health Insurance in Retirement
FEHB continues into retirement if you’ve been enrolled for at least 5 years. At age 65, consider enrolling in Medicare Part A and evaluating whether Part B makes sense based on your FEHB plan.
Know the Application Timeline
OPM processing can take 6–12 weeks or more. You may receive interim payments while waiting. Plan to submit your application at least 60–90 days before your intended retirement date.
Review Legal and Financial Planning
Update your will, trusts, and powers of attorney. Review tax withholding preferences on your annuity. Meet with a financial planner or estate attorney for holistic guidance.
Final Step: Submit Your Retirement Application
You’ll need to complete:
– SF 2801 for CSRS employees
– SF 3107 for FERS employees
Submit the original to your benefits counselor and keep a copy for your records. After a final review, you’ll be ready to retire on your selected date with confidence.
Federal retirement is complex, but planning ahead gives you control over your finances, benefits, and peace of mind.
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See also
Attorney Schnitzer: How to Challenge a Federal Reduction in Force (RIF) in 2025
Alternative Federal Retirement Options; With Chart
Primer: Early out, buyout, reduction in force (RIF)
Retention Standing, ‘Bump and Retreat’ and More: Report Outlines RIF Process
