Is The FERS Annuity Reduced Prior to 62

Are there consequences for collecting your annuity under FERS before reaching age 62?

The FERS regulations state that if an employee completes 10 years of service but less than 30 years of creditable service before separation from service, the proposed annuity will be reduced if it commences before reaching age 62.

There is one exclusion in the regulation.  If a FERS

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 employee had 20 years of service prior to separation, and the annuity begins at age 60, then the employee is not subject to an age reduction of the annuity payment.  Otherwise all things being equal, the annuity will be reduced prior to reaching age 62 by approximately 5% each month you begin receiving your annuity before your 62nd birthday.

Postponing receipt of your annuity until you reach age 62 will eliminate the age reduction provision. OPM asks that persons submitting applications for retirement annuities, submit the application at least 60 days in advance so as to avoid delays in processing.

When submitting applications and any other information to the Office of Personnel Management make certain that the information is correct and complete.  Fashion a checklist so that you will be sure that all requested information has been included.  The more accurate and complete your information, the quicker it can be processed.

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