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Thread: FERS retirement at 62?

  1. #1

    Default FERS retirement at 62?

    A co-worker told me that he's waiting until age 62 to retire because at that age he'll receive 1.1% for each year of service instead of 1.0%. This was the first I've heard of this and I was unable to find any evidence to support this. Is this true?


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  3. #2

    Default Re: FERS retirement at 62?

    Quote Originally Posted by ripper View Post
    A co-worker told me that he's waiting until age 62 to retire because at that age he'll receive 1.1% for each year of service instead of 1.0%. This was the first I've heard of this and I was unable to find any evidence to support this. Is this true?
    i believe that after 20 years of service you get 1.1% for each total years of service. if you have less than 20 years in, then you get 1% per year. all the other rules about minimum retirement age, social security, etc. still apply.

    so after 30 years of service your fers pension should be 30 years x 1.1% of average high 3 salary, or about 1/3rd of what you made while working. if you are really good then tsp withdrawals might provide you with another 1/3rd. and if you are really lucky the social security empty lockbox won't be busto and can still borrow from current wage earners to provide you with another 1/3rd. this is why they call it a 3-legged stool i think. then you can sit around in your own stool and enjoy retirement with virtually no loss of income.
    100g

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  5. #3

    Default Re: FERS retirement at 62?

    Quote Originally Posted by burrocrat View Post
    i believe that after 20 years of service you get 1.1% for each total years of service. if you have less than 20 years in, then you get 1% per year. all the other rules about minimum retirement age, social security, etc. still apply.

    so after 30 years of service your fers pension should be 30 years x 1.1% of average high 3 salary, or about 1/3rd of what you made while working. if you are really good then tsp withdrawals might provide you with another 1/3rd. and if you are really lucky the social security empty lockbox won't be busto and can still borrow from current wage earners to provide you with another 1/3rd. this is why they call it a 3-legged stool i think. then you can sit around in your own stool and enjoy retirement with virtually no loss of income.
    My understanding is that it's 1% for each of the first 30 years and 1.1% for each year after that. But I don't recall ever hearing anything about it changing when you reach 62.

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  7. #4

    Default Re: FERS retirement at 62?

    yrs of service do not figure into this. retire at 62 or older and 1.1% is used, before 62 1% is used. before 62 a supplement paid by OPM is paid to take the place of what SS is at 62. COLAs do not start until 62 even if one retires before 62.
    "Our Constitution was made only for a Moral and Religious people. It is wholly inadequate to the goverment of any other." John Adams 10/11/1798

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  9. #5

    Default Re: FERS retirement at 62?

    Valkyrie is correct. Here is the link to OPM. http://www.opm.gov/retirement-servic...n/computation/

    Different calculation if your FERS Special (LEO/FF/ATC)

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  11. #6

    Default Re: FERS retirement at 62?

    from kauffman's link it appears to get the 1.1% requires that you have both 20 years of service and be age 62? even if 62 yo but not 20 years then only 1.0%? and if 20 years but not 62 yo then only 1.0% also?
    100g

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  13. #7

    Default Re: FERS retirement at 62?

    Actually years of service do figure in. As I understand it you have to have at least 20 years and retire at 62 or later to get the 1.1%. Technically you could retire with as little as 5 years of service at 62 but you only get the 1%.
    Allocations as of COB Dec 28 : 100% S. | Retirement Date:Dec 2025
    Past Returns:
    2020 31.85%,2019 27.97%,2018 -3.36%,2017 13.10%, 2016 -1.79%, 5Yr Avg 12.61%

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  15. #8

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    Default Re: FERS retirement at 62?

    pretty much. for me, it would be 62 and 32. Don't know if can stand to wait til 62, even for the extra 0.1%. I'll figure it out in next couple years how much longer to stay after 30. or agency budgets may figure it out for me sooner. hard to say at this point.
    "life can only be understood backwards, but it must be lived forwards" - soren kierkegaard

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  17. #9

    Default Re: FERS retirement at 62?

    Don't want to change the topic too much, but on a related note I see from Kaufmanrider's link that ATCs get 1.7% for the first 20 years. Are there any controllers out there? The link sounds like you actually have to retire as a controller. Is that correct? If you go on and do something else for the government and then retire do you lose the 1.7% for the years you were an ATC?
    Allocations as of COB Dec 28 : 100% S. | Retirement Date:Dec 2025
    Past Returns:
    2020 31.85%,2019 27.97%,2018 -3.36%,2017 13.10%, 2016 -1.79%, 5Yr Avg 12.61%


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  19. #10

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    Default Re: FERS retirement at 62?

    Computation

    Age Formula
    Under Age 62 at Separation for Retirement, OR
    Age 62 or Older With Less Than 20 Years of Service
    1 percent of your high-3 average salary for each year of service
    Age 62 or Older at Separation With 20 or More Years of Service 1.1 percent of your high-3 average salary for each year of service
    Weatherweenie's Account Talk
    Teddy Roosevelt: Patriotism means to stand by the country. It does not mean to stand by the president or any other public official. Retired on November 30, 2023 with 30+ years of service.

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  21. #11

    Default Re: FERS retirement at 62?

    alevin, the way I look at the 1% vs 1.1% is it's a 10% bonus for sticking around another couple of years. In my case it's going to pay for the 10% reduction I take for survivor benefits. I can do two more years for that. Plus with my TSP performance I need the time.
    Allocations as of COB Dec 28 : 100% S. | Retirement Date:Dec 2025
    Past Returns:
    2020 31.85%,2019 27.97%,2018 -3.36%,2017 13.10%, 2016 -1.79%, 5Yr Avg 12.61%

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  23. #12

    Default Re: FERS retirement at 62?

    Quote Originally Posted by Cactus View Post
    Actually years of service do figure in. As I understand it you have to have at least 20 years and retire at 62 or later to get the 1.1%. Technically you could retire with as little as 5 years of service at 62 but you only get the 1%.
    yep, I was answering ripper's post and forgot about that 20 yrs thing, since it never applied to me. 56 w/32 next yr, planning on last pay period in '15 to be gone. FY16 will not be pleasant for those who stay around.
    "Our Constitution was made only for a Moral and Religious people. It is wholly inadequate to the goverment of any other." John Adams 10/11/1798

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