Hitting 20 Years in Law Enforcement? Here’s What You Can Expect From Your Pension

Key Takeaways

• Reaching 20 years in law enforcement service opens the door to early retirement and enhanced pension benefits under special provisions available to qualifying personnel.

• Your pension amount depends on your high-3 average salary, years of service, retirement system, and whether you qualify for the Special Retirement Supplement before age 62.

Understanding Your Retirement Eligibility at 20 Years

• Also Read: Medicare Might Look Optional—But It Could Cost You If You Delay Too Long
• Also Read: FERS Looks Great on Paper—Until You Realize What Happens at Age 62
• Also Read: The Wrong Election Can Cut Survivor Benefits by 50%—Here’s How to Avoid That

If you’ve completed 20 years in law enforcement in 2025, you’re now at a critical decision point for retirement planning. As a law enforcement officer (LEO) under the Federal Employees Retirement System (FERS), your retirement eligibility and benefits are different from those of most federal employees.

Under current law, you become eligible for immediate retirement once you reach 20 years of service and are at least age 50. Alternatively, if you have 25 years of service, you can retire at any age.

This early eligibility exists because of the physically demanding and high-risk nature of law enforcement work. The intent is to allow you to step away from active duty roles while still providing financial security.

How Your Pension Is Calculated

Your pension under FERS is based on the “high-3” average salary — that is, the average of your highest three consecutive years of basic pay. This does not include overtime or bonuses.

Here’s how the basic pension formula works for LEOs:

• 1.7% of your high-3 salary for each of the first 20 years of service

• 1% of your high-3 salary for each year beyond 20

So, if you retire with exactly 20 years of service, your annuity is:

1.7% x 20 years x high-3 salary = 34% of your high-3

If you work past 20 years, the calculation becomes more generous but shifts slightly:

(1.7% x 20 years) + (1% x additional years) x high-3 salary

This formula gives you a predictable and stable source of income in retirement.

The Special Retirement Supplement: Bridge to Social Security

One of the key advantages of retiring under the LEO provision is the Special Retirement Supplement (SRS). This benefit is unique to certain FERS retirees who leave federal service before age 62 but are not yet eligible to claim Social Security.

If you retire with at least 20 years of law enforcement service and are under age 62, the SRS provides an estimated amount of what you would receive from Social Security if you were eligible.

Key facts about the SRS in 2025:

• It is available until you reach age 62.

• It stops once you become eligible for Social Security.

• It is subject to the earnings test if you go back to work in a non-federal job.

This supplement helps smooth the financial transition until your Social Security benefits begin.

Impact of Working Beyond 20 Years

Choosing to continue working past the 20-year threshold can have financial advantages:

• You continue earning creditable service time, which increases your pension.

• Your high-3 salary may rise, further boosting your annuity.

• You may postpone using your Special Retirement Supplement, allowing you to avoid earnings reductions.

Some officers choose to work up to 25 or even 30 years to maximize their benefits. However, mandatory retirement at age 57 still applies in most agencies, unless you qualify for an exception.

What Happens If You Leave Before 20 Years

If you resign from law enforcement before completing 20 years of service, you lose access to the enhanced 1.7% multiplier. Instead, your pension would be calculated using the standard 1% (or 1.1% if retiring at age 62 with 20+ years).

Additionally, you wouldn’t qualify for the Special Retirement Supplement. This can significantly reduce your overall retirement income.

That’s why many officers carefully plan to stay until they hit the 20-year mark. The jump in pension value and supplemental benefits is substantial.

Survivor Benefits and Insurance Options

Upon retirement, you have the option to elect survivor benefits for a spouse or eligible family member. This allows your loved one to continue receiving a portion of your annuity in the event of your passing.

You can choose between different survivor annuity options, such as:

• Full survivor benefit (typically 50% of your annuity)

• Partial survivor benefit (usually 25%)

Electing a survivor benefit reduces your monthly pension but provides long-term security for your family.

You also retain access to the Federal Employees Health Benefits (FEHB) Program into retirement, provided you were enrolled for the five years leading up to retirement. This health coverage continues as long as you pay your share of the premium.

Similarly, Federal Employees’ Group Life Insurance (FEGLI) coverage can be continued into retirement, with options to reduce coverage or maintain it at full cost.

Cost-of-Living Adjustments and Long-Term Income

Your FERS pension is adjusted annually based on inflation. These Cost-of-Living Adjustments (COLAs) help preserve your purchasing power over time.

In 2025, COLAs are only fully applied to special category retirees like LEOs if they retire under age 62. The COLA policy for FERS provides:

• Full COLA if inflation is 2% or less

• Reduced COLA if inflation is higher (e.g., 2% to 3% COLA triggers a 2% adjustment)

Once you reach age 62, you receive the same COLA adjustments as all other FERS retirees.

This indexing ensures that your annuity keeps pace, even if prices rise in the years after you retire.

Thrift Savings Plan and Its Role After Retirement

While your FERS annuity provides a steady income, many law enforcement retirees also rely on the Thrift Savings Plan (TSP) to supplement retirement.

After reaching 20 years and retiring, you can begin withdrawing from your TSP without penalty if you retire in the year you turn 50 or older. This is different from the age 59½ rule that applies to many other retirement accounts.

TSP withdrawals can be structured as:

• One-time lump sum

• Monthly payments

• Life annuity purchases

Your TSP serves as a valuable additional resource to help cover expenses or plan for travel, relocation, or other retirement goals.

Retirement Planning Tips for LEOs at 20 Years

Here are a few best practices to help you prepare once you hit your 20-year mark:

• Request an official retirement estimate from your agency’s HR office to see exactly what your pension will look like.

• Verify your service time records to ensure all eligible time has been credited correctly.

• Coordinate your FEHB and Medicare options to maintain optimal health coverage in retirement.

• Review TSP allocation and withdrawal strategy with a financial advisor.

• Consider electing survivor benefits if you have dependents.

• Understand the earnings test if you plan to work while receiving the SRS.

Taking these steps ensures you retire with confidence and clarity.

When and How to Apply for Retirement

Once you decide to retire, the application process generally starts 60 to 90 days before your planned retirement date.

Here’s a general timeline:

• 3 months before: Notify your HR office of your intention to retire.

• 2 months before: Submit your retirement application (SF-3107) and any other required forms.

• 1 month before: Confirm your FEHB, FEGLI, TSP, and survivor elections.

The Office of Personnel Management (OPM) processes your retirement application and issues your interim and final annuity payments.

In 2025, processing times vary, so starting early is key to a smooth transition.

What You Can Expect From Your Pension Going Forward

Reaching 20 years in law enforcement service unlocks a reliable stream of benefits designed to reward your commitment. You can expect:

• A pension equaling 34% or more of your high-3 salary

• Access to the Special Retirement Supplement until age 62

• Annual COLAs to maintain your pension’s value

• Continued access to health and life insurance options

As you transition from active duty to retirement, careful planning allows you to maximize these hard-earned benefits.

Prepare Now for the Retirement You Deserve

Crossing the 20-year milestone is a proud achievement—and the gateway to a well-earned retirement. Take the time to evaluate your benefits, explore your timelines, and understand the full picture of what your pension offers.

If you’re uncertain about any part of the process, or want help customizing a plan based on your personal situation, get in touch with a licensed agent listed on this website for professional advice tailored to your needs.