Thread: FERS retirement at 62?

What if someone is offered a VERA/VSIP I have 27 years and 59 would I get the 1% only if I go.

you have to have at least 20 years AND retire at 62 or later to get the 1.1%.

Originally Posted by Lindoug

However, if you go out on a Disability Retirement before the age of 62, once you reach the age of 62 the annuity is re-calculated at the 1.1%.

Thanks for that info; that's good to know!

A word to the wise, though, you don't get a medical retirement if you already qualify for a regular retirement. We had a guy in the office get a medical last July when he could of retired in August. The way the dates on the paperwork lined up had them retract his medical retirement in September in favor of a standard 30 year FERS retirement. He also had to pay back the difference he'd received so far.

Thanks for the feedback, everyone.

I went back and checked the sight where I thought that it said you only received the extra 0.1% for over 30 years, but it now says what others have pointed out here - 1.1% if you are at least 62.

I was planning on retiring three months short of my 61st birthday. Now I need to decide if it's worth it for me to work an extra 15 months.

Something weird Ripper...
Something that nobody has talked about...
But, something that 'I heard' was true, but haven't verified...

I think that 1/2 of your accrued Sick Leave counts toward your years. So, I think you can take 1/2 of your sick leave off the 15 months left.

Originally Posted by Boghie

Something weird Ripper...
Something that nobody has talked about...
But, something that 'I heard' was true, but haven't verified...

I think that 1/2 of your accrued Sick Leave counts toward your years. So, I think you can take 1/2 of your sick leave off the 15 months left.

As of January 1, 2014 FERS folks can apply 100% of accrued SL towards their years. I won't have zip. I always followed the old philosophy "use it or lose it."

I will hit my 30 years of service the year before I become 56, which is my minimum retirement age. To get that extra .1% of 1% for each year of service, I would need to work 6 more years and would then have 36 years of service. That would give me 36% for the 36 years of service at 1% PLUS 3.6% (36x .01) for a total of 39.6% at age 62 as opposed to 30% if I retire at age 56.

That is almost 10% for 6 more years, or about a third more then I would be getting from FERS otherwise.

I still want to retire at 56!! But folks are living longer so who knows...depends on health and personal financials.

20 years or more time and 62 years old or more get you a 1.1% multiplier of the high three basic salary.


That is mainly why I am sticking around.

Originally Posted by Cactus

Thanks for that info; that's good to know!


A word to the wise, though, you don't get a medical retirement if you already qualify for a regular retirement. We had a guy in the office get a medical last July when he could of retired in August. The way the dates on the paperwork lined up had them retract his medical retirement in September in favor of a standard 30 year FERS retirement. He also had to pay back the difference he'd received so far.

Absolutely true. It's all on the OPM web site.

Computation

You just need to search around to find the info applicable to you.

PO

Originally Posted by Cactus

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.

for me, I'll probably stay at least until after my 60th, which would be an additional 6 months, add in the 100% SL for another 7 months worth of credit... hmm. I might have to stay long enough to get the other 11 months. hmmm, hadn't thought about it that way til now. oth, 10hrs worked on the weekend, long day yesterday, worked til 830 tonight, hmmm. aged parents 1000 miles away. yep, I will probably make decisions month by month once I get the 30 in and get another birthday under my belt after that. the tsp and outside accounts can't afford a megadive in the meantime or I can throw all these calculations out the window.

My retirement plan keeps changing.

I was always going to retire when first eligible, which is the end of this month. I'll be 60 in March and had my 30-year anniversary three days ago.

But last year I thought maybe it would be better if I used my accumulated AL rather than cashing it out, so I decided I'd work one more year while using up most of my AL. I'll have up to 16 weeks to use and I thought it would be kind of enjoyable working my final year kind of like I was part-time.

But that puts me 15 months from being 62, when I would get the 1.1%/year. Gotta admit I'm considering that now.

I just don't want to fall into the mind-set of thinking, "Well, if I work one more year, I'll have x-amount more money". I've seen others do that who ended up working until they weren't able to enjoy their retirement.

Originally Posted by ripper

My retirement plan keeps changing.

I was always going to retire when first eligible, which is the end of this month. I'll be 60 in March and had my 30-year anniversary three days ago.

But last year I thought maybe it would be better if I used my accumulated AL rather than cashing it out, so I decided I'd work one more year while using up most of my AL. I'll have up to 16 weeks to use and I thought it would be kind of enjoyable working my final year kind of like I was part-time.

But that puts me 15 months from being 62, when I would get the 1.1%/year. Gotta admit I'm considering that now.

I just don't want to fall into the mind-set of thinking, "Well, if I work one more year, I'll have x-amount more money". I've seen others do that who ended up working until they weren't able to enjoy their retirement.

Ripper...

If you enjoy your job then stay the 15 months, but if not.....put the pedal to the metal and get on with enjoying the rest of your life. Who knows how much time each of us have left on earth. How much more a month will that .1% give you if you wait it out until 62? Enough to want to stay another 15 months?

I'm punching the clock for the last time when I turn 60 and will not look back. I plan on taking that first year of retirement and travel around the U.S. If after the first year I think I need to make some more mad money...I'll get a part time job. No biggy. I want the freedom to come and go, and not punch a clock anymore.

Don't keep second guessing yourself...go with your gut feeling, it's always the right choice.

Aloha