Leaving the fed--any advantage to completing ten years first?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Hi OP. Read the section here on deferred annuities: https://www.opm.gov/retirement-services/fers-information/eligibility/

OP again. Ah--after reading this, I am confused, and I wonder if there *is* something slightly different about ten years of service.

If I understand correctly, with ten years of service, you can begin receiving your pension at the "Minimum Retirement Age" of 57. Otherwise, you wait until 62.

Yes, you could get your pension at the MRA with 10 years of service but it will be reduced unless you wait until 62. If you make it to 20 years, you could begin collecting at age 60 without being penalized.

+1. You would at least have the option to take the payments at MRA if you needed them, or wait for 62. If you have less than 10 you would have to wait for 62.

[Anonymous]

Anonymous wrote:Under FERS, your spouse acquires survivor's rights to your pension after ten years of service. OP, depending on what your pension will be worth at age 62, you may want to stay those extra few months.

Note that survivor's benefits include health insurance for the spouse and kids (until they're 27). You have to retire directly from Federal service, though, to stay in FEHB.

[Anonymous]

Thanks for all this--it is very helpful. I am in my 30's so I hadn't really looked at things like retirement benefits much, and it's all been confusing. It's helpful to hear from actual people.

I guess whether the benefits of sticking out ten years are worth it depends on what sort of job I get on the other side.

My slightly junior colleague who recently left for industry received a $50k pay bump (!). I'm not sure whether I could get that type of job, but if I could then maybe the retirement benefits of waiting out ten years wouldn't matter much in the long run. We'll see.

[Anonymous]

Maybe you can work a few months towards 10, and your boss would let you burn off the rest using annual leave and LWOP? Not everyone will let you do this though, and you'll probably have to go in for your last week or two.

Or you can quit, and when you're in your late 50s try to work a few months for the TSA

[Anonymous]

Anonymous wrote:Maybe you can work a few months towards 10, and your boss would let you burn off the rest using annual leave and LWOP? Not everyone will let you do this though, and you'll probably have to go in for your last week or two.

Or you can quit, and when you're in your late 50s try to work a few months for the TSA

I was going to suggest something like this. I seen folks who had their time in, but weren't old enough to retire, who left federal service, only to return for a short period when they reached retirement age. There's no guarantee that you can get a new Fed job at that point, but it doesn't have to be at the level you're at now. Your pension would still be based on your high 3, even if you're making minimum wage when you retire.

[Anonymous]

Taking leave without pay still counts towards your total service time. You could theoretically take 5 months of leave without pay, come back for one month (or maybe even less), and reach the 10 year mark.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Maybe you can work a few months towards 10, and your boss would let you burn off the rest using annual leave and LWOP? Not everyone will let you do this though, and you'll probably have to go in for your last week or two.

Or you can quit, and when you're in your late 50s try to work a few months for the TSA

I was going to suggest something like this. I seen folks who had their time in, but weren't old enough to retire, who left federal service, only to return for a short period when they reached retirement age. There's no guarantee that you can get a new Fed job at that point, but it doesn't have to be at the level you're at now. Your pension would still be based on your high 3, even if you're making minimum wage when you retire.

Plus since it is immediate retirement you can keep your FEHB.

[Anonymous]

Anonymous wrote:Taking leave without pay still counts towards your total service time. You could theoretically take 5 months of leave without pay, come back for one month (or maybe even less), and reach the 10 year mark.

Are you positive about this? I was told that LWOP and furious affect your retirement dates. However SL and AL do not.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Taking leave without pay still counts towards your total service time. You could theoretically take 5 months of leave without pay, come back for one month (or maybe even less), and reach the 10 year mark.

Are you positive about this? I was told that LWOP and furious affect your retirement dates. However SL and AL do not.

OP--I too thought that LWOP beyond a pay period or something in a year didn't count, and would move your "Service Computation Date."

[Anonymous]

Anonymous wrote:

Anonymous wrote:Maybe you can work a few months towards 10, and your boss would let you burn off the rest using annual leave and LWOP? Not everyone will let you do this though, and you'll probably have to go in for your last week or two.

Or you can quit, and when you're in your late 50s try to work a few months for the TSA

I was going to suggest something like this. I seen folks who had their time in, but weren't old enough to retire, who left federal service, only to return for a short period when they reached retirement age. There's no guarantee that you can get a new Fed job at that point, but it doesn't have to be at the level you're at now. Your pension would still be based on your high 3, even if you're making minimum wage when you retire.

OP--Wow, that is really interesting! It's fascinating all the things people come up with.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Taking leave without pay still counts towards your total service time. You could theoretically take 5 months of leave without pay, come back for one month (or maybe even less), and reach the 10 year mark.

Are you positive about this? I was told that LWOP and furious affect your retirement dates. However SL and AL do not.

OP--I too thought that LWOP beyond a pay period or something in a year didn't count, and would move your "Service Computation Date."

Every benefit is affected differently by LWOP. For retirement, up to six months in a year LWOP can be counted. But it might impact your high 3 since your salary will be reduced. Here is a good chart:

https://www.opm.gov/policy-data-oversight/pay-leave/leave-administration/fact-sheets/effect-of-extended-leave-without-pay-lwop-or-other-nonpay-status-on-federal-benefits-and-programs/

[Anonymous]

You need to ask HR about this. I believe it is key to get to 10 with a cushion in case anyone challenges your computation.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Taking leave without pay still counts towards your total service time. You could theoretically take 5 months of leave without pay, come back for one month (or maybe even less), and reach the 10 year mark.

Are you positive about this? I was told that LWOP and furious affect your retirement dates. However SL and AL do not.

OP--I too thought that LWOP beyond a pay period or something in a year didn't count, and would move your "Service Computation Date."

Every benefit is affected differently by LWOP. For retirement, up to six months in a year LWOP can be counted. But it might impact your high 3 since your salary will be reduced. Here is a good chart:

https://www.opm.gov/policy-data-oversight/pay-leave/leave-administration/fact-sheets/effect-of-extended-leave-without-pay-lwop-or-other-nonpay-status-on-federal-benefits-and-programs/

There was a guy at my agency who was on LWOP for 5 months and 29 days, came into the office one day, did another 5 months and 29 days, etc. I forget the situation, but it stuck in my mind as quite a loophole.

[Anonymous]

^^wow. That's extreme! Did he actually contribute anything those two days a year?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Maybe you can work a few months towards 10, and your boss would let you burn off the rest using annual leave and LWOP? Not everyone will let you do this though, and you'll probably have to go in for your last week or two.

Or you can quit, and when you're in your late 50s try to work a few months for the TSA

I was going to suggest something like this. I seen folks who had their time in, but weren't old enough to retire, who left federal service, only to return for a short period when they reached retirement age. There's no guarantee that you can get a new Fed job at that point, but it doesn't have to be at the level you're at now. Your pension would still be based on your high 3, even if you're making minimum wage when you retire.

Plus since it is immediate retirement you can keep your FEHB.

You have to be in FEHB for the 5 years prior to your retirement date. There are some limited exceptions to that, but basically you couldn't be a TSA screener for a couple of months and walk away with health benefits for life.