Special Provisions for Each Type of Retirement

by | Apr 6, 2017

Last Updated May 20, 2024
Special Provisions Under Retirements

Under the Federal Employees Retirement System (FERS), there are four types of retirement; voluntary, early, deferred, and disability. We have looked at the eligibility requirements and annuity computation for each. This post will focus on the special provisions under each retirement.

Special Provisions Under Voluntary Retirement

If you fall under any of the following special provisions, your annuity is computed differently than a normal voluntary annuity.

  • Air Traffic Controllers, Firefighters, Law Enforcement Officers, Capitol Police, Supreme Court Police and Nuclear Materials Couriers receive 1.7 percent of their High-3 salary times years of service that doesn’t exceed 20 years PLUS one percent of their High-3 salary times the service years exceeding 20 years.
  • Members of Congress of Congressional employees (or any combination of the two) must have at least 5 years of service as a member of Congress and/or a Congressional employee. Once that requirement is met, their annuity computation is the same as above.
  • If you transferred to FERS and had at least 5 years of creditable civilian service at the time of the transfer, which was covered by CSRS or Social Security (but not both) and excludes service during which partial CSRS deductions were withheld, your annuity will have two components—FERS and CSRS.
    • The FERS component is calculated the same way as a voluntary retirement.
    • The CSRS component is calculated in the following way:
      • During the first 5 years of the CSRS service, you receive 1.5 percent of your High-3 salary for each year.
      • The second 5 years you receive 1.75 percent of your High-3 salary for each year.
      • For all years over 10, you receive 2 percent of your High-3 for each year.

Special Provisions Under Early Retirement

If you retire under the MRA+10 provision, you may be subject to the age reduction. This age reduction applies to both the CSRS and FERS components of your annuity if you transferred to FERS and part of your annuity is computed under CSRS.

If you retire under discontinued service or an early optional retirement provision with a CSRS component because your agency id undergoing a major reorganization, RIF, or transfer of function, and part of your benefit was computed under CSRS rules, the CSRS portion will be reduced if you are under age 55. The reduction is 1/6 of one percent (2 percent per year) for every month you are under age 55 at the time of retirement.

Under Deferred Retirement

If you retire with a deferred retirement and under these special provisions, you are still subject to the age reduction.

Under Disability Retirement

For those in an enhanced position, your annuity is 1.7 percent of your High-3 salary for each year of service.

Harris Federal Law Firm has helped thousands of federal workers with their disability cases, especially those in these “special” positions. If you think you may qualify, please give us a call at 877-226-2723 or fill out this INQUIRY form. We would love to schedule a FREE consultation with you and discuss the specifics of your case.

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