Frequently Asked Questions
by Federal Employees 

General Questions About Federal Retirement

Does federal employee sick leave count toward active service?

Yes, federal employee sick leave does count toward active service for retirement purposes, providing a valuable benefit by potentially increasing retirement benefits and eligibility.

• Accumulation of Sick Leave
  Federal employees accumulate sick leave over their careers. The amount accrued depends on years of service and agency policies. Accumulated sick leave can be added to your service time, potentially increasing your annuity. This addition can enhance your pension by providing credit towards your total years of service, thereby increasing the retirement benefit calculation.
• Credit for Retirement
  When federal employees retire, their unused sick leave is converted into additional service credit for calculating retirement benefits. Each full month of sick leave is typically credited as one month of service for retirement purposes. Any extra days of service credit that don't add up to a full month are disregarded in the calculation of retirement benefits. For instance, if an employee has 20 days over the total completed months, those 20 days won’t count towards their annuity calculation.
• Impact on Retirement Benefits
  The inclusion of sick leave in service calculations can increase the total length of service used to compute retirement benefits, potentially enhancing the pension amount or eligibility for retirement at an earlier age.

What are the service and age requirements to retire from the federal government?

To retire from the federal government, eligibility depends on the retirement system and specific criteria. Under the Federal Employees Retirement System (FERS), regular (immediate) retirement typically requires reaching age 57 with at least 30 years of service, or age 60 with at least 20 years of service. Early retirement options are available from age 55 with at least 10 years of service, though benefits are reduced if retiring before age 62.

Federal air traffic controllers, law enforcement officers, and firefighters have distinct retirement requirements under the Federal Employees Retirement System (FERS) or Civil Service Retirement System (CSRS). For air traffic controllers, mandatory retirement is required at age 56. However, they can opt for voluntary retirement after completing 25 years of service or upon reaching 20 years of service by age 50. Similarly, Federal law enforcement officers and firefighters must retire by age 57. They also have the option of voluntary retirement after 25 years of service or at age 50 with 20 years of service. These roles come with specific, enhanced retirement benefits due to the high-stress and physically demanding nature of their duties.

For those under the Civil Service Retirement System (CSRS), regular retirement can occur at age 55 with 30 years of service, age 60 with 20 years, or age 62 with 5 years. Early retirement under CSRS starts at age 50 with 20 years of service, with benefits reduced if retiring before age 55. Special provisions may apply to certain groups like law enforcement, firefighters, and military reserve technicians, offering earlier retirement options and reduced service requirements based on their roles.

Federal employees must navigate these age and service requirements to plan their retirement effectively, understanding the specific rules of their retirement system and any provisions that might apply based on their career path or job responsibilities. These criteria ensure retirement benefits are appropriately structured to reflect years of service and age at retirement, providing different options for employees based on their circumstances and career longevity.

What will my income be when I retire from the federal government?

Your retirement income from the federal government hinges on several factors tailored to your career. Under the Federal Employees Retirement System (FERS), your pension is computed from your highest average salary over three years, years of service, and a fixed percentage multiplier. FERS retirees receive 1% of their highest average salary for each year of service or 1.1% for each year of service beyond 20 years after age 62. Benefits can start as early as age 55, depending on your years of service. In contrast, under the Civil Service Retirement System (CSRS), pensions are determined by your years of service and highest three-year average salary, with a formula involving specific percentages tied to your length of service.

In addition to your federal pension, Social Security benefits play a role if you're eligible. Social Security computes benefits based on your top 35 years of indexed earnings, adjusting for inflation. These benefits can provide supplementary income in retirement, depending on when you start collecting them and your earnings history. Other potential sources of income include personal savings, investments, and retirement accounts such as the Thrift Savings Plan (TSP), all of which can enhance your overall retirement income. For a precise assessment of your retirement income, consulting with your agency's HR department or using retirement calculators from the Office of Personnel Management (OPM) can offer tailored insights based on your specific career path and retirement plans.

When can I retire?

With 5 years of service, age 62

With 20 years of service, age 60

With 30 years of service, age 57 if born after 1970.....before that it is 

• Before 1948: 55 years old
• 1948: 55 years and 2 months old
• 1949: 55 years and 4 months old
• 1950: 55 years and 6 months old
• 1951: 55 years and 8 months old
• 1952: 55 years and 10 months old
• 1953–1964: 56 years old
• 1965: 56 years and 2 months old
• 1966: 56 years and 4 months old
• 1967: 56 years and 6 months old
• 1968: 56 years and 8 months old

Are there service/age requirements for federal employees to retire based on federal agency?

Yes, federal employees must meet specific service and age requirements to retire based on their federal agency and retirement system. Federal employees are encouraged to check with their agency for specific requirements. Here's a general overview for the two main retirement systems:

Civil Service Retirement System (CSRS)

• Age Requirements: Employees can retire at age 55 with 30 years of service, age 60 with 20 years of service, or age 62 with 5 years of service.
• Service Requirements: Generally, employees must have at least 5 years of creditable civilian service to be eligible for retirement benefits under CSRS.

Federal Employees Retirement System (FERS)

• Age Requirements: Employees can retire at the Minimum Retirement Age (MRA), which varies from 55 to 57 depending on the employee's year of birth, and they must have at least 30 years of service, age 60 with 20 years of service, or age 62 with 5 years of service.
• Service Requirements: FERS employees must have at least 5 years of creditable civilian service to be eligible for retirement benefits.

Air Traffic Controllers, Federal Law Enforcement Officers, and Firefighters

• Mandatory Retirement: Air traffic controllers must retire at age 56 while law enforcement and firefighters must retire at age 57. 
• Voluntary Retirement: All are eligible for voluntary retirement after completing 25 years of service or at age 50 with 20 years of service.

These requirements ensure that federal employees have worked a minimum number of years and have reached a certain age to qualify for retirement benefits under their respective retirement system. It's important for employees to review their specific agency policies and consult with their agency's human resources or benefits office to understand their individual eligibility for retirement based on their service and age. 

What is the federal pension calculation max out by years of service?

The federal pension calculation for both the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS) is based on a formula that considers the employee's years of service and highest average salary. Here's a summary of how it works for each system:

Civil Service Retirement System (CSRS)

For employees under CSRS, the pension calculation formula is:

• 1.5% of the employee's highest average salary (usually based on the highest three consecutive years of salary) for each of the first 5 years of service.
• 1.75% for each of the next 5 years of service.
• 2.0% for each year of service over 10 years.

Therefore, the maximum pension amount under CSRS is achieved after 41 years and 11 months of service, where the formula would result in a pension equivalent to 80% of the average highest salary.

Federal Employees Retirement System (FERS)

For employees under FERS, the pension calculation is slightly different:

• 1.0% of the employee's highest average salary (usually based on the highest three consecutive years of salary) for each year of service up to 20 years.
• 1.1% for each year of service beyond 20 years after age 62.

Therefore, the maximum pension under FERS is reached after 30 years of service, where the formula would result in a pension equivalent to 30% of the average highest salary.

Both systems also allow for cost-of-living adjustments (COLAs) to help protect the purchasing power of the pension payments over time. It's important for federal employees to understand these calculations and factors to effectively plan for retirement and maximize their potential pension benefits based on their years of service and salary history.

What is the MRA +10 Rule?

The MRA (Minimum Retirement Age) +10 Rule under the Federal Employee Retirement System (FERS) is a penalty reduction that allows eligible federal employees to retire and receive an immediate annuity before reaching the age of 62. To qualify, employees must have reached their Minimum Retirement Age (typically between 55 and 57, depending on their year of birth) and have completed at least 10 years of creditable federal civilian service. This rule offers an option for early retirement with reduced benefits, reflecting the actuarial adjustment for retiring before reaching age 62.

Under the MRA +10 Rule, the annuity amount is reduced based on the number of months the retiree is under age 62 at the time of retirement. This reduction is calculated to reflect the longer period over which the annuity payments will be made compared to retiring at or after age 62. Federal employees considering retirement under this rule should carefully evaluate their financial readiness and retirement goals, considering the impact of reduced annuity payments and any additional retirement income sources they may have, such as Thrift Savings Plan (TSP) savings or Social Security benefits upon reaching eligibility age.

Can I leave my pension to my spouse or children?

Yes, you may leave your pension to your spouse. Currently, 50% of pension costs you 10% of pension each month and 25% of pension costs you 5% of pension each month. However, pensions cannot be left to children. Federal employees can designate their pension to continue for an adult disabled child or an adult with an insurable interest under specific conditions. An adult child who became disabled before age 18 can receive a survivor annuity for life as long as the disability persists. Alternatively, an employee can provide a survivor benefit to someone with an insurable interest, typically reducing the retiree's own annuity to support a beneficiary who would suffer financially from the employee’s death.

What are some common mistakes federal employees make when planning for retirement? 

When planning for retirement, federal employees may encounter several common mistakes that can impact their financial security and overall retirement readiness. One common mistake is underestimating the amount needed for retirement income. Federal employees should calculate their expected expenses in retirement, including healthcare costs, housing, and leisure activities, to ensure their retirement savings and pensions will adequately cover these needs. Failure to accurately assess these expenses can lead to financial strain later in retirement.

Another mistake is not taking full advantage of retirement savings vehicles available to federal employees, such as the Thrift Savings Plan (TSP). Some employees may not contribute enough to their TSP, may not take advantage of making additional catch-up contributions after age 50, or may not allocate their investments effectively to maximize growth potential over time. Additionally, delaying retirement planning until later years can limit the ability to build sufficient savings and take advantage of compound interest. It's crucial for federal employees to start planning early, regularly review their retirement goals and savings strategies, and seek professional financial advice if needed to navigate complex retirement planning decisions effectively.

Questions About Social Security

When should I take Social Security? Are there any age requirements to receive the maximum Social Security retirement benefit?

Yes, there are age requirements to receive the maximum Social Security retirement benefit. The amount of your monthly benefit depends significantly on the age at which you start receiving Social Security benefits. To receive the maximum Social Security retirement benefit, you should aim to delay your benefits until age 70.

• Early Retirement
  If you start receiving benefits before your FRA, as early as age 62, your monthly benefit will be permanently reduced. The reduction is based on the number of months you receive benefits before your FRA, which can significantly lower your monthly payments.
• Full Retirement Age (FRA)
  To receive the standard maximum benefit, you must wait until your FRA, which is between 66 and 67, depending on your birth year. For example, for those born between 1943 and 1954, the FRA is 66, and it gradually increases to 67 for those born in 1960 or later.
• Delaying Beyond FRA
  To receive the absolute maximum benefit, you must delay taking your Social Security benefits until age 70. Delaying benefits beyond your FRA increases your monthly benefit by a certain percentage (up to 8% per year) for each year you delay, up to age 70.

Is there a limit to how much a federal employee can earn in retirement while still receiving Social Security?

Yes, there is a limit to how much a federal employee can earn in retirement while still receiving Social Security, particularly if they retire early and begin receiving benefits before reaching full retirement age (FRA). This limit is known as the Social Security Earnings Test. 

If you are under full retirement age for the entire year, Social Security deducts $1 from your benefits for every $2 you earn above the annual limit. 

In the year you reach full retirement age, Social Security deducts $1 in benefits for every $3 you earn above a different limit, but only counts earnings before the month you reach your full retirement age. 

For more details regarding the earnings test limit, please visit the Social Security Administration website.

What types of income do NOT count under the earnings test?

https://www.ssa.gov/OP_Home/handbook/handbook.18/handbook-1812.html

Special Earnings Limit Rule

https://www.ssa.gov/benefits/retirement/planner/rule.html 

Retirement Earnings Test Calculator

https://www.ssa.gov/oact/cola/RTeffect.html

What is the maximum Social Security retirement benefit for federal employees?

The maximum Social Security retirement benefit for federal employees, like all workers, depends on the age at which they retire and their earnings history. For those retiring in 2024, here are the maximum monthly benefit amounts:

• At Age 62: $2,572 per month. This amount is lower because taking benefits before FRA results in a reduction.
• At Full Retirement Age (FRA): $3,627 per month. The FRA varies depending on birth year but is typically between 66 and 67 for most current retirees.
• At Age 70: $4,555 per month. This amount is higher because delaying benefits past FRA results in increased monthly payments.

These figures assume a long history of high earnings, as the Social Security Administration calculates benefits based on the highest 35 years of indexed earnings. Federal employees under the Federal Employees Retirement System (FERS) are fully covered by Social Security, while those under the Civil Service Retirement System (CSRS) may have different considerations, particularly if they have fewer years paying into Social Security.

To check current maximums, please visit the Social Security Administration website.

SSA FAQ

https://faq.ssa.gov/en-US/Topic/article/KA-018973

Are survivors of deceased federal employees also eligible for Social Security retirement benefit?

Survivors of deceased federal employees may be eligible for Social Security survivor benefits, which can amount to up to 100% of what the deceased worker would have received at their full retirement age (FRA). The exact amount depends on factors like the survivor's age and relationship to the deceased. If the deceased worker received reduced benefits before their FRA, survivor benefits may also be reduced. Eligible survivors include spouses, ex-spouses meeting certain criteria (see note below), children, and dependent parents. This benefit is separate from the maximum Social Security retirement benefit and is based on the deceased worker's earnings history and the survivor's relationship to them.

Please be aware that you cannot receive the full amounts of both your own Social Security benefit and a survivor benefit from your spouse simultaneously. If you are eligible for both, the Social Security Administration will pay the higher of the two benefits. Essentially, if your survivor benefit from your deceased spouse is larger than your own retirement benefit, you will receive the survivor benefit instead of your own. If your own benefit is larger, you will continue to receive that, but you cannot receive both in full.

Note: Federal employees' ex-spouses may be eligible for a survivor benefit under certain conditions. For an ex-spouse to receive these benefits, the employee must elect the survivor benefit during retirement, or the benefit must be mandated by a court order from a divorce or separation decree. Additionally, the marriage must have lasted at least nine months, and the ex-spouse cannot remarry before age 55 if seeking survivor benefits under the Federal Employees Retirement System (FERS) or the Civil Service Retirement System (CSRS), unless the marriage to the federal employee ended due to their death. These provisions ensure financial support for ex-spouses who were significantly dependent on the federal employee’s income during the marriage.

If I retire at age 62, should I take my Social Security or wait until my full retirement age of 67?

When considering retirement, there are two primary scenarios to evaluate:

Scenario 1: Retiring from Government and Taking a New Job

If you retire from your government job and plan to work elsewhere while collecting Social Security at age 62, you'll encounter the "Earnings Test." Because you haven’t reached your full retirement age of 67, there's a limit on how much you can earn before facing a penalty. For every dollar you earn over this amount, you'll have to pay back 50 cents of your Social Security benefits. For more details regarding the earnings test limit, please visit the Social Security Administration website.

Scenario 2: Fully Retiring at Age 62

Alternatively, if you decide to fully retire at 62, it might be advantageous to start collecting Social Security benefits right away, despite the higher payments you’d receive if you waited until age 67. The key consideration here is the "break-even" point. 

Let’s look at an example:

Age 62 Benefit: $2,400 per month

Total for 5 Years (62-67): $28,800 annually, or $144,000 over 5 years, excluding any cost-of-living adjustments.

If you defer benefits until 67, your monthly payout increases to $3,366, which is $966 more per month than at age 62. To calculate the break-even point:

Additional Annual Income (67-79.4): $966 per month equals $11,592 per year.

Years to Recoup $144,000: Dividing $144,000 by $11,592 results in approximately 12.4 years.

Thus, you would be 79.4 years old before you break even. 

To compare total benefits by age 79.4:

Starting Benefits at 62: By age 79.4, you'd have received a total of $501,120.

Starting Benefits at 67: By the same age, you'd have accumulated $500,860.

In this scenario, collecting Social Security at age 62 provides slightly more total benefits by age 79.4, even without factoring in potential cost-of-living adjustments

Questions About Federal Employee Health Benefits

Should I cancel my Federal Employee Health Benefit (FEHB) when I retire? ?

FEHB offers comprehensive coverage, government contributions, and good coordination with Medicare, which can be valuable in retirement. However, premiums can be high, and other health insurance options, such as Medicare Advantage or a spouse’s plan, might be more cost-effective. 

Our position is that you should never cancel your FEHB, just suspend it instead. If you ever need FEHB in the future, you can always go back and pick it up, provided you had it 5 years prior to retirement. If you cancel it, you can never go back and pick it up.

Before making any decisions, evaluate your current and future healthcare needs, compare the costs and benefits with other plans, and consult a benefits counselor to understand the implications.

How much does FEHB coverage cost after I retire?

After retiring, Federal Employee Health Benefits (FEHB) coverage continues to require payment of premiums, which vary depending on the chosen plan and whether you select self-only or family coverage. The specific amount you pay is influenced by annual premium adjustments and the federal government's ongoing contribution toward these costs, which helps offset expenses. This subsidy is contingent on your years of service and retirement eligibility, ensuring retirees maintain access to affordable health coverage under FEHB. Typically, retirees receive detailed premium rate information annually during open enrollment periods, allowing for informed decisions about their health care coverage.

For retirees, managing FEHB premiums involves choosing between having payments deducted from annuity disbursements or directly remitting payments to their chosen health plan. This flexibility accommodates individual preferences while ensuring continuous access to comprehensive health care benefits post-retirement. For precise details tailored to your circumstances, consulting the Office of Personnel Management (OPM) website or contacting your agency's benefits officer is recommended, providing clarity on the specific costs and benefits of FEHB coverage during retirement.

Is FEHB an after-tax expense in retirement?

Federal Employees Health Benefits (FEHB) premiums are typically paid on a pre-tax basis during an employee's active federal service. However, upon retirement, FEHB premiums are paid on an after-tax basis. This means that while working, the premiums reduce taxable income, but in retirement, the premiums do not provide this tax advantage. Retirees must pay their FEHB premiums from their annuity income, which has already been taxed.

Questions About Survivor Benefits

Why should I take the Survivor Benefit?

Normally, there are two reasons one takes the Survivor Benefit.

1. Surviving spouse needs health insurance coverage
2. Surviving spouse might need income

If income is the sole reason for doing Survivor Benefit, a life insurance policy may be a better option. Pension income is taxable whereas life insurance is tax-free.

Can I add Survivor Benefit after I retire?

A federal employee may add Survivor Benefit if the employee gets married after they retire. To do this, the retired employee needs to contact OPM to add Survivor Benefit.

What is the survivor benefit max?

The Survivor Benefit maximum refers to the highest amount of survivor benefits that can be paid out to eligible survivors of a deceased federal employee or retiree. For survivors eligible under the Federal Employees Retirement System (FERS), the maximum Survivor Benefit generally equates to 50% of the annuity that the deceased employee or retiree would have received if they had retired with a 100% survivor annuity election.



Under the Civil Service Retirement System (CSRS), the Survivor Benefit maximum varies. Typically, survivors may receive up to 55% of the deceased employee's annuity if the employee elected the maximum Survivor Benefit option.

These percentages represent the highest level of Survivor Benefits payable under each respective retirement system and depend on the retirement elections made by the employee or retiree during their service. It's essential for federal employees and retirees to understand these options and their implications for survivors when planning for retirement benefits.