Which Type of Retirement is Right for You?–Deferred Retirement

by | Sep 9, 2016

Last Updated April 19, 2024
A federal worker learning about deferred retirement

types of retirementA deferred retirement is one where you postpone the when you receive your annuity. This may be right for you if you are a former federal worker covered by FERS, and you want to apply for your retirement annuity. In this case, your annuity would begin at least one month after separation from Federal service (or a transfer to a position not covered by FERS). To be eligible for a deferred retirement, you must meet one of these age and service requirements:

  • You have completed at least 5 years of creditable civilian service, then you are eligible for a deferred annuity beginning the first day of the month after you reach 62.
  • You have completed at least 10 years of creditable service, including 5 years of civilian service, then you are eligible beginning the first day of the month after you reach MRA.

The Age Reduction mentioned earlier, will come into play if you have completed at least 10 years, but less than 30 years of creditable service and your annuity begins before age 62. The only exception to this is if you have at least 20 years of service and your annuity begins at age 60.

Things to Keep in Mind When Applying for a Deferred Retirement

  • FEHB: If you have separated from Federal service after reaching your MRA, and have at least 10 years of service, but you postponed your annuity to reduce or eliminate the Age Reduction, you are eligible to re-enroll in FEHB/FEGLI provided you participated in the programs for the 5 years of service immediately before you separated from Federal service. If you separated from Federal service with at least 10 years of service before reaching your MRA, or if you separated with between 5 and 10 years of service, and are applying for a deferred annuity, you are not eligible to continue any health benefits.
  • FLTCIP: If you’re enrolled in FLTCIP when you separate from service, your coverage will continue. No action is required. However, you can opt to have your premium payments deducted from your annuity. If you’re not currently enrolled, you may apply for coverage as long as you are eligible for a deferred or postponed annuity.

As we saw with voluntary retirement, deferred retirement has its own set of qualifications for eligibility. Understanding these can help you make an informed decision about your future. Lastly, we’ll discuss disability retirement.

Message us & find out if you qualify today!

  • This field is for validation purposes and should be left unchanged.

Recent Articles

Deferred Resignation FAQs: A Simple Guide for Federal Employees

Thinking about Deferred Resignation but not sure if it’s the right choice? You’re not alone – the decision can feel overwhelming, and we’ve been getting lots of questions about it. To make things easier, we’ve put together a simple Q&A with the answers you need to...

The Federal Employee’s Guide to New Executive Orders and Actions

Since his first day in office, President Trump has been signing executive orders, memos, and plans to reshape the federal workforce, all aimed at creating a more efficient government. So far, this has meant reducing the number of workers and updating old tech that...

How DOGE’s Push for Tech Upgrades Could Impact Your Federal Job

If you’ve been reading the news as the administration change takes place, you’ve probably seen that President Donald Trump has established The Department of Government Efficiency, or DOGE.   There are plenty of changes in the works under this agency, but its main...

Federal Employee Resources

Our ever growing library of federal employee resources give you the knowledge you need to make smart choices about your future.

FAQs

Frequently Asked Questions

Get the answers you need on-demand, from a team of federal employee benefits professionals.

View FAQ
Webinars

Federal Benefit Webinars

Twice per month we host webinars to help federal employees better understand their benefits and answer their questions LIVE.

See Webinar Schedule
Guides

Benefit Guides

From guides to detailed charts, these educational resources will help clarify confusing federal employee benefits topics.

See our resources