Category: Thrift Savings Plan (TSP)

Key Takeaways

• While law enforcement officers (LEOs) can retire earlier than most public employees, this benefit comes with lesser-known financial and healthcare tradeoffs that can catch retirees off guard.

• The FERS Special Retirement Supplement ends at age 62, potentially creating a retirement income gap for LEOs who don’t plan for the switch to Social Security.

The Appeal of Early Retirement in Law Enforcement

One of the most attractive features of a law enforcement career is the opportunity to retire early. Under the Federal Employees Retirement System (FERS), law enforcement officers, along with firefighters and air traffic controllers, are considered special category employees. You can retire with a full pension as early as age 50 with 20 years of qualifying service, or at any age with 25 years of qualifying service. This accelerated timeline reflects the physically demanding and high-risk nature of your work.

However, early retirement comes with a set of assumptions that, if misunderstood or unplanned for, can jeopardize your long-term financial stability. Simply retiring early doesn’t mean retiring worry-free.

As a special category employee, your pension under FERS is calculated differently during your first 20 years of service:

This makes it more generous than the standard FERS formula, which offers 1.0% (or 1.1% if retiring at 62 with 20 years) across the board. If you leave after exactly 20 years at age 50, you’re entitled to 34% of your high-3 average salary. But if you serve an extra five years, the jump is modest—just 5% more. That’s a tradeoff: higher early benefits, but slower increases if you extend your career.

Special Retirement Supplement Ends at 62

You are eligible for the FERS Special Retirement Supplement (SRS) if you retire before age 62 and meet the criteria for an immediate annuity. The SRS is designed to replicate the Social Security benefit you would receive at 62—based on your federal service alone.

But here’s the catch: The supplement stops at age 62, regardless of when you claim Social Security. If you delay claiming your Social Security benefit for a higher payout (which you can do until age 70), you’ll need to fill the income gap from your savings, your Thrift Savings Plan (TSP), or other sources.

Mandatory Retirement Age: A Double-Edged Sword

As a law enforcement officer, you’re subject to mandatory retirement at age 57 if you’ve completed 20 years of service. This rule ensures that agencies maintain a physically fit workforce—but it can cut your earnings potential short.

If you entered federal service late in life, this could mean you’re forced out before reaching your maximum earning or saving potential. While you might be eligible for retirement, you may not feel ready financially. Planning ahead is essential.

What Happens to FEHB?

One of your biggest concerns post-retirement might be health coverage. If you’re enrolled in the Federal Employees Health Benefits (FEHB) Program and have been for the five years before retirement, you can carry it into retirement. The government continues to pay a large share of your premiums, typically around 70%.

But if you retire in your early 50s, you’ll be paying FEHB premiums out-of-pocket until you’re eligible for Medicare at age 65. That’s over a decade of potentially rising healthcare costs. Some retirees find this financially burdensome, especially when combined with reduced income post-retirement.

Medicare and Coordination—Not Automatic

Once you reach age 65, Medicare becomes your primary insurer, and FEHB serves as secondary coverage if you keep it. But be aware:

• You must actively enroll in Medicare Part B to coordinate coverage.

• You’ll pay Part B premiums on top of your FEHB premiums.

This dual-premium setup offers strong coverage but adds to your monthly costs. Many LEO retirees don’t fully understand this dynamic until it arrives. If you don’t enroll in Medicare Part B when first eligible, you may face late enrollment penalties and gaps in coverage.

The TSP Factor in Early Retirement

Because your pension and SRS may not fully cover your needs—especially between ages 57 and 62—your Thrift Savings Plan (TSP) often becomes a vital income source.

LEOs are eligible for penalty-free withdrawals from the TSP as early as age 50 if they retire in the year they turn 50 or later. This rule provides flexibility, but:

It’s essential to structure your TSP use wisely to bridge the gap between the end of the Special Retirement Supplement and the start of Social Security.

Survivor Benefits—Know Your Options

When you retire under FERS, you can elect survivor benefits for your spouse. To keep your FEHB coverage going for a surviving spouse, you must:

Survivor benefits reduce your monthly pension, but skipping them could leave your spouse without coverage or income. This is a decision worth discussing with a licensed professional.

Retiring Early Doesn’t Mean Escaping Inflation

Your FERS annuity receives Cost-of-Living Adjustments (COLAs), but early retirees face a limitation. If you retire under age 62, you don’t receive COLAs until you turn 62. That means the value of your annuity could erode over time, especially in high-inflation periods.

You’ll need to factor in this delay and ensure your savings, TSP investments, and supplemental income sources can support rising living costs during this gap.

Disability and Early Retirement—A Misunderstood Area

Some LEOs consider disability retirement as an alternative to standard retirement if they’re injured or face chronic conditions. But disability retirement has its own rules:

• You must apply before you separate from federal service

• Approval requires medical documentation and agency certification of your inability to perform your duties

If you qualify, you may receive 60% of your high-3 average for the first year, then 40% thereafter (offset by Social Security disability benefits). But this is not a guaranteed fallback—you must meet strict eligibility.

Planning Is the Most Critical Asset

Early retirement is possible, but not without planning. You must address questions such as:

• How will I replace the Special Retirement Supplement after 62?

• Can my TSP and savings cover over a decade of FEHB premiums before Medicare?

• What if inflation erodes my annuity before I get COLAs?

These are complex questions that deserve informed answers.

Before You Hand in the Badge

The ability to retire early under FERS is a meaningful benefit—but it comes with obligations that aren’t always visible on the surface. Understanding how your pension, FEHB, TSP, Medicare, and Social Security benefits intersect is critical to making your retirement sustainable.

Don’t wait until the gaps appear. Speak with a licensed professional listed on this website to create a tailored plan that secures your benefits and protects your family.

Key Takeaways

• Survivor benefits can provide crucial financial security for your loved ones after your passing, but understanding eligibility and payment structures is essential.

• Failing to plan ahead, including electing the right survivor benefit options, could significantly impact your spouse or dependents in the future.

Survivor benefits play a major role in ensuring your family has financial stability

after your death. As a government employee or retiree, you have access to these benefits, but knowing how they work and what choices you have is crucial. This guide breaks down the key points so you can make informed decisions about your retirement and legacy.

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1. How Survivor Benefits Work Under Your Retirement System

Your survivor benefits depend on the retirement system you are covered under: the Federal Employees Retirement System (FERS) or the Civil Service Retirement System (CSRS). Each system has its own rules and payout structures.

FERS Survivor Benefits

Under FERS, survivor benefits are available to your spouse and dependents if you pass away before or after retirement. There are three main types:

• Basic Employee Death Benefit (BEDB): Your surviving spouse is entitled to a lump sum payment and a portion of your final salary. This applies if you had at least 18 months of creditable service.

• Survivor Annuity: If you had at least 10 years of creditable service, your spouse may receive a monthly annuity equal to 50% of your earned pension.

• Children’s Benefits: Eligible children may also receive a monthly annuity, which varies depending on factors like Social Security eligibility.

CSRS Survivor Benefits

CSRS retirees can elect a survivor annuity, which typically provides a spouse with 55% of the retiree’s pension. Unlike FERS, CSRS does not offer Social Security benefits, making the survivor annuity a crucial financial source for spouses.

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2. The Cost of Electing a Survivor Annuity

Electing a survivor annuity reduces your retirement income but ensures financial protection for your spouse. Here’s what you need to consider:

• Under FERS, the reduction in your annuity is 10% for a full survivor annuity (50% benefit) or 5% for a partial survivor annuity (25% benefit).

• Under CSRS, the reduction is approximately 10% of your pension to provide a 55% survivor annuity.

If you decline the survivor annuity, your spouse must provide written consent. Opting out can be risky, as it may leave your spouse without long-term financial support.

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3. The Effect of Remarriage and Age on Survivor Benefits

Your survivor’s eligibility and benefits can change based on their age and marital status.

• Remarriage Before Age 55: If your spouse remarries before turning 55, they may lose eligibility for the survivor annuity unless they later become single again.

• Surviving Spouses Over 55: A surviving spouse who remarries after age 55 retains full survivor benefits.

• Children’s Benefits: Dependent children typically qualify until age 18 (or 22 if still in school). If a child is disabled before age 18, they may qualify for lifetime benefits.

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4. Life Insurance and Survivor Benefits – How They Work Together

Survivor annuities may not always be enough, so many government employees supplement them with life insurance. If you’re covered under the Federal Employees’ Group Life Insurance (FEGLI) program, your beneficiaries may receive a lump sum payment to help with immediate expenses.

Here’s why life insurance matters:

• Survivor annuities offer long-term financial support, but they may not cover all costs.

• Life insurance provides immediate financial assistance to cover debts, funeral costs, and other urgent needs.

• If you opt out of a survivor annuity, life insurance could be your spouse’s only source of financial protection.

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5. What Happens to Survivor Benefits If You Pass Away While Still Working?

If you die while still employed by the government, your survivors may qualify for benefits based on your length of service.

• Less than 18 months of service: A refund of your retirement contributions is provided to your survivors.

• More than 18 months but less than 10 years: Your spouse may receive the Basic Employee Death Benefit (BEDB).

• More than 10 years of service: Your spouse qualifies for a survivor annuity based on your earned pension.

It’s essential to keep your beneficiary designations updated so your benefits go to the right people.

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Making the Right Choice for Your Family’s Future

Understanding your survivor benefit options is critical to ensuring your loved ones are financially secure. Government employees have valuable benefits, but planning ahead is key to making the most of them. Whether you choose a full survivor annuity, supplement with life insurance, or explore other options, taking proactive steps can make all the difference.

For guidance on your survivor benefits, talk to a licensed agent listed on this website. They can help you evaluate your choices and secure the best possible outcome for your family.

Key Takeaways

• Fixed annuities provide guaranteed returns and protect your principal investment, making them a safe choice if you’re risk-averse.

• Understanding key features like surrender charges, payout options, and interest rates can help you make informed decisions that match your retirement goals.

Guaranteed Returns: Why Stability Matters

When you’re looking to secure your financial future, stability often comes first. Fixed annuities offer you exactly that—predictable, guaranteed returns. Unlike other investments that can fluctuate wildly based on market conditions, fixed annuities promise a consistent interest rate for a defined period, typically ranging from 3 to 10 years. Once set, this rate doesn’t change, ensuring you always know exactly how much your investment will earn.

The assurance of a fixed return means you won’t have to stress over market downturns or unexpected losses. You can plan your retirement budget accurately, knowing your returns won’t vary due to economic changes. Keep in mind, though, while your returns are stable, they might be lower compared to potentially higher-risk investments like stocks.

Understanding the Interest Rate: The Core of Fixed Annuities

Initial Interest Rate Period

When you first invest in a fixed annuity, you’ll receive an initial interest rate guaranteed for a specific duration, typically ranging between 1 and 10 years. This initial rate often tends to be higher to attract investors, but it might reset to a lower rate afterward. Always pay close attention to how long your initial rate lasts and what happens once this introductory period ends.

Renewal Rates

After your initial period expires, your annuity provider typically sets renewal rates annually. Renewal rates can vary depending on prevailing market interest rates, but they typically won’t drop below a guaranteed minimum outlined in your annuity contract. This floor rate ensures your investment remains protected, though the exact earnings might fluctuate slightly year by year.

Surrender Charges: The Price of Early Withdrawal

What Are Surrender Charges?

Fixed annuities are designed to be long-term investments, usually meant to last at least 5 to 10 years or even longer. If you withdraw your money prematurely—typically within the first 7 years—you’ll likely encounter surrender charges. These charges are fees your provider deducts from your withdrawal amount, typically starting around 7-10% and decreasing gradually each year you hold the annuity.

Planning Around Surrender Periods

Since surrender charges diminish over time, it’s wise to carefully plan your withdrawal strategy. Make sure your financial needs align with the annuity’s surrender schedule. If you anticipate needing early access to your funds, consider annuities with shorter surrender periods or other financial products entirely. The key is to avoid costly surprises down the road.

Tax Advantages: Grow Your Investment Efficiently

Tax-Deferred Growth

One of the appealing features of fixed annuities is their tax-deferred growth. This means your investment accumulates interest tax-free until you start making withdrawals. Unlike regular savings accounts or CDs, where you’re taxed annually on the interest earned, fixed annuities allow your investment to compound more rapidly. Your money grows quicker because you’re earning interest on the entire amount, including what would have otherwise gone to taxes.

Taxes Upon Withdrawal

While the tax-deferral advantage is beneficial, remember that when you eventually withdraw your funds, you’ll pay ordinary income tax rates on the accumulated earnings. Planning withdrawals strategically—especially during retirement when your income might be lower—can help minimize your overall tax liability.

Payout Options: Tailoring Your Retirement Income

Lifetime Income Payments

Choosing lifetime income payouts can provide you with guaranteed payments for the rest of your life, regardless of how long you live. This security can be comforting, particularly if you’re concerned about outliving your savings. Options typically include single-life payouts or joint-life payouts, which continue providing income to your spouse if you pass away first.

Period Certain Payouts

If lifetime payouts aren’t ideal for your situation, fixed annuities also offer “period certain” payouts. With this option, you receive guaranteed payments over a fixed duration—say 10, 15, or 20 years. If you pass away before the payout period ends, your named beneficiaries continue receiving payments until the predetermined period concludes.

Lump-Sum Withdrawals

Alternatively, you might choose a lump-sum withdrawal, taking the entire accumulated value at once or over a few significant installments. While this grants immediate access to your funds, be cautious about potential tax consequences, as receiving a large amount at once could push you into a higher tax bracket for that year.

Beneficiary Protection: Securing Your Legacy

Naming Beneficiaries

A crucial yet sometimes overlooked feature of fixed annuities is the ability to designate beneficiaries. Clearly naming beneficiaries ensures your annuity’s remaining balance directly transfers to your loved ones upon your passing, bypassing probate and avoiding lengthy legal processes.

Avoiding Probate

Beneficiary designation helps your heirs quickly access funds without the delays and expenses associated with probate. This immediate access is particularly helpful in covering end-of-life expenses or ensuring financial stability for your beneficiaries without interruptions or costly delays.

Flexible Inheritance Options

Your beneficiaries typically have flexible options for receiving inherited annuity funds. They might take a lump-sum payment, opt for continued periodic payments, or potentially transfer the annuity into their own retirement planning, maintaining tax-deferred growth. Discussing these options beforehand with your beneficiaries can streamline their decision-making during a challenging time.

Fees and Costs: Hidden Expenses You Should Consider

Understanding Fees

Fixed annuities typically have lower fees compared to variable annuities, but they’re not entirely fee-free. Some common costs include administrative charges, contract fees, or charges for optional riders (additional features like inflation protection or long-term care). These fees might seem minor initially but can significantly impact your total returns over the lifetime of your investment.

Comparing Costs

Always compare different annuity products, asking specifically about fees and expenses. A lower-rate annuity with minimal fees might sometimes be more advantageous than one offering slightly higher rates but loaded with hidden charges. Getting a clear understanding upfront can save you thousands over the life of your annuity.

Making the Right Decision for Your Future

Investing in a fixed annuity is about aligning your personal financial goals with a product offering security, stability, and predictability. Before committing, take the time to thoroughly understand interest rates, payout methods, fees, surrender charges, and tax implications. The right annuity should complement your retirement plans, giving you confidence and peace of mind as you approach retirement age.

Explore your options carefully, and don’t hesitate to seek professional guidance. A little preparation today can significantly enhance your financial security tomorrow.

Key Takeaways

• Electing a survivor benefit is the only way to ensure your spouse continues to receive a portion of your federal annuity after your death.

• Failing to elect this benefit at retirement—or removing it later—can result in permanent financial loss for your spouse, with limited options for correction.

Understanding the Survivor Benefit Election

When you retire under the Federal Employees Retirement System (FERS) or the Civil Service Retirement System (CSRS

), you must make a crucial choice: whether or not to elect a survivor annuity. This decision directly affects whether your spouse receives any retirement income after your passing.

The survivor benefit provides your spouse with a portion of your monthly annuity—up to 50% under FERS and up to 55% under CSRS. But it only works if you elect it in writing at retirement.

Why the Decision Matters More Than You Think

If you do not choose a survivor benefit when you retire—or cancel it after retirement—your spouse is left without ongoing income from your annuity. That means no guaranteed monthly payments, no cost-of-living adjustments, and no continued access to certain health benefits.

For many retirees, this oversight isn’t discovered until it’s too late. And by then, even a legal will cannot override your original retirement election.

Timeline: When and How You Must Elect It

You must make the survivor benefit election at the time of retirement. The Office of Personnel Management (OPM) requires this decision on your retirement application (SF 3107 for FERS, SF 2801 for CSRS). You may:

• Elect a full survivor annuity, which reduces your own monthly annuity by about 10% but gives your spouse up to 50% of your annuity after you die.

• Elect a partial survivor annuity, which reduces your annuity by approximately 5% and provides up to 25% to your spouse.

• Choose no survivor annuity, but only with your spouse’s notarized written consent.

What Happens If You Skip the Election?

If you retire and fail to elect a survivor benefit—and your spouse does not provide written consent—OPM will automatically reduce your annuity to cover a full survivor benefit. This is designed to protect your spouse by default.

But if you are not married at retirement, no reduction is made, and no survivor benefits will exist unless you later marry and take steps within two years to elect a new survivor annuity.

The Two-Year Window After Marriage or Remarriage

If you marry after retirement, you can still elect a survivor benefit for your new spouse—but you must do so within two years of the marriage. This election requires:

• A written request to OPM

• An actuarial reduction in your annuity

• Possibly repaying the difference in benefits that would have been withheld had the election been made earlier

Missing this two-year window means your spouse will not be eligible for a survivor benefit—ever.

Divorce Complicates the Equation

If you divorce after retirement, your survivor election can be affected in several ways:

• If you had elected a survivor benefit for your now ex-spouse, it is automatically cancelled unless a court order mandates its continuation.

• If you remarry, the new spouse is not entitled to the survivor benefit unless you submit a new election within the required time.

• A divorce court order can grant your former spouse a survivor annuity even if you do not want them to have one, and this can reduce your annuity.

Reviewing your divorce decree and coordinating with OPM early is essential to ensure there are no surprises.

Survivor Benefits and Health Insurance Access

Under FERS and CSRS, continued health insurance coverage through the Federal Employees Health Benefits (FEHB) Program depends on electing a survivor annuity. If your spouse does not receive a survivor benefit, they cannot continue FEHB coverage under your record after your death.

This detail is often overlooked, but it can leave your spouse without health insurance when they may need it most.

Cost vs. Security: Is It Worth Electing?

While it’s true that electing a survivor annuity reduces your monthly retirement income, that reduction provides significant peace of mind:

• Your spouse receives guaranteed monthly payments for life.

• The payments are adjusted for inflation through cost-of-living increases.

• Health benefits can be preserved.

If you forgo the survivor benefit to increase your own annuity, the short-term gain could result in long-term loss for your spouse.

Making Changes After Retirement: What Are the Limits?

After retirement, your ability to make changes to the survivor benefit election is extremely limited. You may:

• Cancel a survivor election only with your spouse’s written and notarized consent

• Add a new survivor after marriage or remarriage within two years

• Comply with a court order in divorce to maintain or assign a survivor benefit

You cannot:

• Add a survivor benefit for a spouse after two years have passed since your marriage

• Reinstate a survivor benefit after canceling it (unless tied to divorce or death of the original spouse)

What If Your Spouse Passes First?

If your spouse dies before you, your survivor annuity deduction stops—but you do not automatically regain all the funds previously withheld. You will receive your full annuity going forward, but past reductions are not refunded.

You should notify OPM immediately upon your spouse’s death so they can adjust your annuity accordingly.

Planning Ahead to Protect Your Family

You should start discussing survivor annuity options well before your retirement date. Consider the following steps:

• Estimate your spouse’s future needs, especially if they do not have their own pension or substantial savings

• Weigh the cost of reducing your annuity against the financial protection it offers

• Confirm your election choice with your spouse, and discuss it with a licensed professional if necessary

The right decision often depends on the specifics of your household finances, health, age difference, and whether your spouse has access to other income streams.

Don’t Leave It to Chance—Your Family’s Security Depends on It

Failing to elect a survivor benefit—or waiting too long to correct a misstep—can jeopardize your spouse’s financial future and healthcare access. The rules around elections, deadlines, and eligibility are strict, and exceptions are rare.

If you’re nearing retirement or reviewing your benefits, now is the time to make informed decisions. Speak with a licensed professional listed on this website to help you evaluate your options and avoid costly mistakes.

Key Takeaways

• If you resign from federal service under FERS, your pension isn’t automatically gone—but whether you can claim it, and when, depends on your age and years of service.

• A deferred retirement is often available, but you must understand the timelines, penalties, and how benefits like FEHB and TSP access may be impacted.

Resigning Under FERS: What You Need to Know

If you’re covered by the Federal Employees Retirement System (FERS) and thinking about resigning before reaching retirement eligibility, you might wonder whether you’re walking away from your pension. The truth is, your benefits don’t disappear—but they do change dramatically based on how and when you leave federal service.

Eligibility Matters More Than You Think

Under FERS, your eligibility for retirement benefits is determined by your age and years of creditable service. If you resign before reaching the required combination of age and service for immediate retirement, you may still qualify for deferred retirement—but you must meet key thresholds:

• Minimum of 5 years of creditable service to be eligible for any pension.

• Deferred retirement is available starting at age 62 with at least 5 years of service.

• With 10 years of service, you’re eligible at the Minimum Retirement Age (MRA), which in 2025 is between 56 and 57 depending on your birth year.

However, these options don’t come with full benefits.

Your Pension Isn’t Gone—But It’s Not Immediate Either

When you resign, you’re not entitled to an immediate annuity unless you meet retirement eligibility. That means:

• No monthly FERS pension begins until you reach the required age.

• The annuity is based on your high-3 average salary and years of service at the time you resigned—not when you claim it.

• If you take a deferred retirement at MRA with 10+ years of service, there’s a 5% reduction per year if you claim before age 62.

You can delay your pension to age 62 to avoid this reduction, but that delay means no income from your FERS annuity during that gap.

You Must Apply for Deferred Retirement

Many resigning employees don’t realize this critical step: your pension is not automatic. If you’re not eligible for an immediate retirement, you must file Form RI 92-19 when you reach retirement age to begin receiving your deferred annuity.

Failure to file means you won’t receive anything—even if you’re entitled to it. There’s no automatic notice or check arriving on your birthday.

What Happens to FEHB and FEGLI

If you resign before reaching immediate retirement eligibility, you lose access to FEHB and FEGLI.

• FEHB does not continue into retirement unless you retire with an immediate annuity.

• Resigning employees cannot keep FEHB into retirement unless they later qualify under MRA+10 and meet the five-year rule.

• FEGLI coverage ends unless you convert it to a private policy within 31 days.

Once you leave service, even with a future pension, you’ll need to obtain healthcare and life insurance through other means unless you’re eligible for and elect continuation.

What About the TSP?

The Thrift Savings Plan remains yours after resignation:

• You can leave your money in the TSP and continue to benefit from its tax-advantaged growth.

• You can roll it over into another qualified retirement plan.

• Withdrawals are allowed after separation, but early withdrawals before age 59½ may be subject to a 10% IRS penalty.

However, you lose eligibility for federal matching contributions once you leave employment.

Creditable Service Still Counts

Even after resignation, your years of federal service remain creditable. If you later return to federal employment, those years count toward your new total. You may even be able to buy back military service or prior service not yet counted.

However, time spent after resignation and before deferred retirement does not count toward your pension. Your annuity will be calculated as if time stood still after you left.

Should You Withdraw Your FERS Contributions?

You do have the option to withdraw your FERS contributions (your own retirement deductions from your paychecks). But there’s a catch:

• Doing so forfeits your right to a future FERS pension.

• If you later re-enter federal service, you’ll have to redeposit those funds with interest to regain credit.

Only consider withdrawing if you’re absolutely certain you won’t return to government work and don’t want a future pension.

How Resignation Differs from Retirement

Here’s the key distinction:

• Retirement means you’re eligible for and electing an annuity that begins shortly after you leave.

• Resignation means you’re ending federal service before becoming eligible for an immediate annuity.

Retirees keep their health and life insurance and start receiving annuity payments. Resignees don’t—unless they later apply and qualify for deferred benefits.

Timeline to Expect Your Pension

If you resign in 2025 and are under age 62, you will wait years before you can apply for your pension:

• Resign with 5+ years of service: eligible at 62.

• Resign with 10+ years: eligible at your MRA (but reduced), or wait until 62 for full pension.

• No benefits are paid until you file your application at that time.

This can lead to a long income gap that you’ll need to plan for using savings, your TSP, or other income sources.

Can You Get Social Security?

Yes, your Social Security benefits aren’t tied to your FERS employment directly, but they factor into your retirement:

• Social Security can start as early as age 62, but claiming early reduces your benefit.

• Your FERS pension and Social Security are independent—you don’t lose one for claiming the other.

Remember, you pay into Social Security while working under FERS, so it’s part of your retirement income picture, just not tied to your resignation decision.

Mistakes to Avoid When Resigning

• Assuming you’re retiring when you’re actually resigning.

• Forgetting to file for deferred retirement benefits.

• Withdrawing FERS contributions without understanding the consequences.

• Not planning for the income gap before your deferred annuity begins.

These are common missteps that cost employees thousands in missed pension and healthcare value.

Before You Walk Away

Before resigning from a FERS-covered position, ask yourself:

• Do I have at least 5 years of service?

• How far am I from age 62 or my MRA?

• Can I bridge the income gap with other assets?

• Will I need health insurance, and how will I get it?

• Am I making a temporary decision that affects my permanent retirement?

If you’re unsure, speak with a licensed professional listed on this website before making any irreversible choices.

Make the Right Exit—And Protect Your Future

Resigning under FERS doesn’t mean forfeiting your retirement—but it can delay or reduce it significantly. Knowing how to claim a deferred retirement, what benefits you lose, and how to manage the gap in coverage and income is essential for making a smart decision.

Before you resign, review your service history, understand your eligibility, and plan your next steps. For personalized help evaluating your situation, speak with a licensed professional listed on this website.