The following is a question submitted by a Federal Times readers about retirement and other issues facing the federal workforce. It is answered by Reg Jones, a charter member of the senior executive service and a Federal Times columnist since 1995.
Question: I am 61 years old and have 14 years of civilian service. I was planning on retiring at 65. Is it better to wait until 67 when I will have 20 years of service? When is the best time to retire?
Reg’s Response: Employees who retire under the MRA+10 provision have their annuity reduced by 5 percent for each year (5/12ths of 1 percent per month) they are under age 62 when they retire.
Since you plan to retire after you reach age 62, you’ll be entitled to an unreduced annuity based on the following formula:
1.0% X your high-3 X your years of service
Working past age 62 will increase your annuity by 1 percent for each additional year you stay on board. However, if you wait to retire until you have 20 years of service, your entire annuity would be computed using an enhanced formula:
1.1% X hour high-3 X your years of service
The decision about when to retire is yours to make.
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Reg Jones is the resident expert on retirement and the federal government at Federal Times. From 1979 until 1995, he served as an assistant director of the U.S. Office of Personnel Management handling recruiting and examining, white and blue collar pay, retirement, insurance and other issues. Opinions expressed are his own.
Reg Jones, a charter member of the senior executive service, is our resident expert on retirement and the federal government. From 1979 to '95, he served as an assistant director of the Office of Personnel Management handling recruiting and examining, white and blue collar pay, retirement, insurance and other issues. Opinions expressed are his own.
