Questions & Answers

Q&A

EMPLOYMENT

FERS MRA+10 RETIREMENT OPTIONS

QI was born in 1966 and reached my FERS minimum retirement age (MRA) of 56 years and two months in September. I have 22 years of creditable service. I’m thinking about leaving federal service early next year to seize a job opportunity outside of federal service. I’ve heard that if I postpone my application until age 62, my pension would be computed with a more generous formula rather than claiming my pension at age 60. Is this true?

ATo qualify for the more generous 1.1% factor in the FERS formula, you would need to work to age 62 and then separate from federal service. This formula does not apply when you separate from federal service prior to age 62 and postpone your application for retirement under the “MRA+10” retirement rules. You may avoid the age penalty and begin receiving your unreduced FERS retirement benefit at age 60. Your retirement will be computed using the 1.0% factor. If you separate from service now, you should not wait until age 62 to apply for your retirement because you will forfeit two years of annuity payments.

It is important to apply for your retirement approximately 60 days before the designated commencing date. In your case, you may request a commencing date on the first day of the month after reaching age 60 because you have more than 20 years of service. You should apply for your postponed FERS retirement benefit on form RI 92-19 (Application for Deferred or Postponed Annuity). OPM will accept an informal written election that designates a specific

THE FOLLOWING QUESTIONS

& ANSWERS were compiled by NARFE’s Federal Benefits Institute experts. NARFE does not provide legal, financial planning or tax advice or assistance.

commencing date, but the election must be ratified on form RI 92-19.

TRICARE AND FEHB

QI’m planning to retire from federal service in 2024. Although I have been using TRICARE health insurance through my spouse’s military retirement for years, it’s my understanding that I could sign up for health insurance under the Federal Employees Health Benefits (FEHB) program during the next Open Season and be allowed to maintain the coverage into retirement. Is that true? If so, what details should I be aware of?

AThat is correct. Time covered under the Uniformed Services Health Benefits Program (also known as TRICARE or CHAMPUS) or CHAMPVA counts towards the “five-year test” to continue FEHB in retirement. You must be covered under an FEHB enrollment at the time of retirement, however, to continue