FERS Retirement w/ Civil Service Retirement System Component
There are certain FERS workers who are going to retire with annuities that have a Civil Service Retirement System component in them. This usually applies to workers where certain conditions have allowed them to have a break in their service. It also applies to workers who were CSRS but then switched over to FERS, but it had to be during a period in which they were allowed to do it. There are only two periods in which they could have done this.
For the benefit of the annuity, the benefits of each period are calculated individually and then the total of each gets added together. Despite there being a mixed annuity, FERS regulations manage the eligibility for retirement.
To get a lower annuity right away under FERS, you must be the right age and have contributed the proper amount of service time. These combinations are as follows: you must be 62 years of age and have served for 5 years; 60 years of age with 20 years of service, or be at the minimum retirement age with 30 years of age. The minimum retirement age is between 55 and 57; it depends on the year that you were born. You are allowed to retire from an MRA if you have over 10 years of service but under 30 years. If you do this, the annuity part of your FERS gets lowered by 5% per year until the age of 62.
There is a way you can get early retirement if you’re subjected to reorganization, reduction in force, the opportunity of early retirement, or a function transfer. The requirements for service and age get reduced under these situations. You are also allowed to get early retirement if you’re 50 years of age and have given 20 years of active service. Either that or you could serve for 25 years and then retire at any age.
If early retirement is offered to you and you’re less than 55 years of age, your annuity’s CSRS feature gets lowered by 2% per year until you’re 55 years of age. Your annuity’s FERS feature will not get lowered. However, you need to get your MRA before being entitled to your special retirement supplement.
When there is an authorized cost-of-living adjustment for the year, your annuity’s CSRS feature receives the adjustment. It does not matter what age you are retiring at. Just remember that you need to be at least 62 years of age before you can receive a cost-of-living adjustment on your annuity’s FERS feature. The special retirement supplement won’t receive a cost-of-living adjustment either until you’re 62. The only exceptions to this are that air traffic controllers, firefighters, military service technicians, and law enforcement officers can receive cost-of-living adjustments which get added to their annuities.