To become eligible for Federal retirement benefits under the retirement system, a person needs to serve for five years; only after serving the system, is he or she eligible for an annuity under any circumstances.
Yes, five years of actual service. Other employment options, including active duty service in the armed forces, don’t count toward that limit. Once an employee has served for five years or fulfilled this requirement, military service may be counted under certain circumstances in exceptional cases. This is similar to unused sick leave also. The private sector has different criteria.
Retirement benefits for employees under FERS:
A minimum of five years of service but less than 10 when you leave your job and retire at age 62.
In the case of a minimum of ten years of service, an employee can take retirement at MRA (minimum retirement age, between 55 and 57, depending on the birth year—currently 56). Your annuity may be reduced by 5% for every year if you retire under age 62. You can eliminate this penalty when you postpone the receipt of your annuity to a later date.
In the case of a minimum of 20 years of service, you get an option to retire on a penalty-free annuity at age 60.
In the case of a minimum of 30 years of service, you may retire at your MRA.
Retirement benefits for employees under CSRS:
Minimum five years of service but less than 20 when you leave your job and retire at age 62.
In the case of a minimum of 20 years of service, you can take retirement at age 62.
In the case of a minimum of 30 years of service, you can take retirement at age 55.
What would happen when you leave your job before completing five years of service and aren’t eligible for an annuity?
If you don’t want to return to your job, you are free to take a refund of your retirement deductions. If you plan to return to the workforce, you can leave your retirement deductions in the fund.
If you return later, you don’t have to deposit the money again, plus accrued interest to get credit. If you are not planning to come back, you are free to ask for a refund later, which you’ll get with accrued interest.
