Q & A
Deferred vs. postponed retirement?
Full Question: I have been reading several answers regarding deferred or postponed retirement. In my situation I think I understand that I can postpone my retirement until age 60 then request a postponed retirement. I am 57 years and 3 months old and plan to resign for a different position outside of government. I have 21 years of federal service, which includes 2 years 11 months of military buy back time. My MRA is 56. I know I will be eligible to re-enroll in federal employee group health insurance, as I have had it for 18 years continuously. What happens to my accrued sick time? Finally, is there a difference in deferred or postponed retirement in a case like mine? It seems these are interchangeable words in this case?
Answer: A postponed annuity is unique to FERS. It’s one where you meet the age and service requirements to retire but postpone the receipt of your annuity to reduce or eliminate the age penalty. A deferred annuity is available to both CSRS and FERS employees. It’s one where you don’t meet the age and service requirements to retire and can only apply for that benefit when you do.
In your case, you’d be eligible to retire under the MRA+10 provision and, because you have at least 20 years of service, you’d be eligible for an unreduced annuity at age 60, earlier if you don’t mind the 5 percent per year reduction in your annuity. You’d also be eligible for the special retirement supplement at that time and could reenroll in the FEHB program. Any sick leave you had to your credit would be included in your annuity computation.
Source: Reg Jones, FederalTimes.com - May 9, 2014
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