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!

Recent Articles

USPS Pension Pause: Are Your Retirement Benefits Safe?

The USPS has announced that it’s temporarily pausing FERS payments, starting April 10. For any USPS retirees or workers who are getting ready to retire, this sounds like scary news.   But here’s some reassurance – there will be no immediate impact on current or future...

Seniority May Matter Less Under New Federal RIF Rules

Newly proposed changes to the way RIFs work would put federal workers already struggling with their health at an even greater risk for losing their job during a RIF.   The Trump administration is trying to correct what it sees as exaggerated performance ratings within...

The USPS Could Run Out of Money Within the Year: What Workers should know

The USPS has suffered dramatic financial losses in recent years, even after attempts to cut costs, and now says it could run out of money by the end of 2026.   From 2007 to 2024, the agency lost about $109 billion. That number has continued to climb in the last...

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

Intake Form

Step 1: Share just the essentials up front, and our team will text you back shortly.

By submitting, you authorize Harris Federal Law Firm to text and call the number you provided with offers and other information, possibly using automated means. Message/data rates apply. Consent is not a condition of purchase. Use is subject to terms.

Step 1 complete!

We'll be with you soon. In the meantime, complete Step 2 to help us serve you better.

Select all that apply
Federal Disability Retirement
Federal Workers' Compensation
Social Security Disability Insurance
Veterans Affairs Disability
Other

Almost done!

Just a few more details so we can best prepare for your case.

Thanks for the additional information — we're eager to discuss your case.

If you reached out during regular office hours, Monday–Friday from 8 a.m. to 5 p.m. EST, you should expect to hear from us soon. If your message came in after hours, we'll follow up as soon as we're back in the office.