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# Types of Retirement

# Overview

The Office of Personnel Management (OPM) works with your Agency's personnel and payroll offices to process your retirement application. There are actions your personnel and payroll offices must take in order to process your retirement application.. You can help reduce delays in processing by submitting your retirement application at least thirty days in advance of your separation date. However, your personnel office may want you to submit your application even earlier than thirty days before separation. Additionally, it may be helpful to ensure your Official Personnel Folder is complete and reflects your entire service history. By submitting your paperwork early, your personnel and payroll offices can complete their actions as soon as possible after your retirement date.

There are multiple types of retirements, and they are listed below:

## Voluntary Retirement

Voluntary Retirement – The most common type of retirement. Eligibility is primarily based upon age and the number of years of creditable service at retirement.

## Early Retirement

Early Retirement – Although this type of retirement is similar to Voluntary Retirement, , there are different age and service requirements, and the annuity may begin at an earlier age than a Voluntary Retirement. Early Retirement provisions often have other special requirements.

## Disability Retirement

Disability Retirement –Disability Retirement has specific medical requirements and service requirements. Disability Retirement also has a different annuity computation than Voluntary Retirement.

## Deferred Retirement

Deferred Retirement – Former Federal employees who were covered by the FERS may be eligible for a deferred annuity at age 62 or the Minimum Retirement Age.

## Phased Retirement

Phased Retirement – In Phased Retirement status the retiring employee works on a part-time basis for a limited period. During that time, the employee’s pay is split between employee pay and annuity payments. The employee also continues to receive additional service credit towards full retirement.

## Related Information

                      - OPM annuity payments are payable on the first business day of each month for the month prior                         - Example: November 1 payment is payment for annuity that covers October 1 st  through October 30 th 
                      - The Application for Immediate Retirement (FERS)
                      - Other forms and applications

# Disability

## When to Consider Applying for Disability Retirement

You should consider applying for disability retirement only after you have provided your employing agency with complete documentation of your medical condition and your agency has exhausted all reasonable attempts to provide you with a reasonable accommodation or reassignment in which you can render useful and efficient service.

## Eligibility Requirements

You must meet **all** the following conditions to be eligible for disability retirement:
                - You must have completed at least 18 months of Federal civilian service creditable under the Federal Employees Retirement System (FERS).
                - You must, while employed in a position subject to the retirement system, have become disabled, because of disease or injury, for useful and efficient service in your current position.
                - Your disability must be expected to last at least one year.
                - Your agency must certify that it is unable to accommodate your disabling medical condition in your present position and that it has considered you for any vacant position in the same agency, at the same grade or pay level, and within the same commuting area for which you are qualified for reassignment.
                - You, or your guardian or other interested person, must apply before your separation from service or within one year thereafter. The application must be received by either OPM or your former employing agency within one year of the date of your separation. OPM may not waive the time limit for filing an application unless you were mentally incompetent on the date of separation or within one year of this date.
                - Application for disability retirement under FERS requires an application for Social Security benefits. If the application for social security disability benefits is withdrawn for any reason, OPM will dismiss the FERS disability retirement application upon notification by the Social Security Administration.

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## Applying for FERS Disability Retirement

You must complete the following forms:
                - SF 3107 , Application for Immediate Retirement, and
                - SF 3112 , Documentation In Support of Disability Retirement
                - If you are under age 62, documentation that you have applied for social security disability benefits after you separated from your agency.

### If you have been separated from Federal service for 31 days or less

Your employing agency will help you complete these forms and will forward the completed forms to OPM. However, it is your responsibility to obtain all the information necessary for OPM to make a decision on your claim. This includes providing all the required forms and documents necessary to apply and for purposes of providing evidence in support of your application for FERS disability retirement.

### If you have been separated from Federal service for more than 31 days

Your application for disability retirement must be received by OPM within one year after the date of your separation. If you have been separated from Federal service for more than 31 days, your former employing agency may no longer have your personnel records and may not be able to recover them in time to process your disability retirement application and submit it to OPM within the one-year time limit. If this is the case, you should submit your application directly to OPM rather than to your agency.
> 
U.S. Office of Personnel ManagementRetirement Operations CenterPost Office Box 45Boyers, PA 16017

                - Ask your former supervisor and employing agency to complete SF 3112B, SF 3112D and SF 3112E and give them to you so you can send them to OPM.
                - If you think you will not have the completed package in time to meet the one-year time limit, send OPM the completed SF 3107 and SF 3112A, along with the name, address, and telephone number of the person(s) you have asked to complete the remaining forms.

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## Periodic Medical Exams to Keep Your Disability Benefit

When OPM approves your application for disability retirement, we may determine that based on your medical condition you will need to periodically provide us with current medical information to retain eligibility for disability benefits.

### Paying for Periodic Medical Exams

You are responsible for paying for any medical exams that are needed. If you do not fulfill the request for evidence of your continuing disability, OPM will suspend your annuity payments until you have established your continued eligibility for a FERS disability annuity.

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## Changing Your Retirement to Disability Retirement

You can submit an application for disability retirement within one year after your separation from employment provided you did not elect the alternative form of annuity with a lump sum payment equal to your retirement contributions. You and your former employing agency must submit evidence that shows you became disabled while employed in a position subject to FERS coverage, and you and your agency must provide evidence that you were unable to perform useful and efficient service because of disease or injury in the position from which you retired. Your former agency will also have to certify that it could not reasonably accommodate your condition. Moreover, you must not have declined a reasonable offer of reassignment to a vacant position in the commuting area at the same grade or pay level and tenure.

If you decide to receive a disability retirement instead of an immediate retirement, you will not be entitled to a FERS annuity supplement. This supplement is not payable to individuals who retire under disability retirement provisions.

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## Termination of FERS Disability Benefit

If you are under age 60, your benefit will stop in these circumstances:
                - You are found to be medically recovered from your disabling condition;
                - In any calendar year you have been restored to earning capacity. You will be restored to earning capacity if your income from wages and self-employment is at least 80 percent of the current rate of basic pay from the position you occupied immediately before retirement; or
                - You are reemployed in the Federal service in a position equivalent to the position you held at retirement (also called “administratively recovered”).

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## Reinstatement of Disability Benefit if it Stops

                - If your disability benefit stopped because you were found recovered either medically or administratively, your benefit can resume only if the disability recurs and you do not exceed the 80 percent earnings limitation.
                - If your disability stopped because you exceeded the earnings limitation, your benefit can resume effective the first of the year after you no longer exceed the 80 percent earnings limit.

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## Disability Retirement Computation

FERS disability benefits are computed in different ways depending on the annuitant’s age and amount of service at retirement, as described below. In addition, FERS disability retirement benefits are recomputed after the first twelve months of entitlement and again at age 62, if the annuitant is under age 62 at the time of disability retirement.

### FERS Annual Unreduced Disability Computation if you are

                - Age 62 or older at retirement, or
                - Meet the age and service requirements for immediate voluntary retirement

You receive your “earned” annuity based on the general FERS annuity computation, as follows

#### Example 1-Age 62 or older at retirement with less than 20 years of service:

High 3 Average Salary-$90,000

Service-18

1% x $90,000 x 18 = $16,200 (annual amount)

$16,200 / 12 = $1,350 per month

*note this example does not account for any reductions (survivor annuity, etc....)

#### Example 2-Age 62 or Older at Separation with 20 or More Years of Service:

High 3 Average Salary-$90,000

Service-20

1.1% x $90,000 x 20 = $19,800 (annual amount)

$19,800 / 12 = $1,650 per month

*note this example does not account for any reductions (survivor annuity, etc....)

### FERS Annual Unreduced Disability Computation if you are

                - Under age 62 at retirement, and
                - Not eligible for immediate voluntary retirement

Note: Disability annuities for individuals who performed service in an enhanced position such as law enforcement officer, firefighter, nuclear materials courier, air traffic controller, Capitol Police, or Supreme Court Policy will be credited at the higher 1.7% for that service.

#### Example 1-**Under age 62 First Year of Annuity:**

High 3 Average Salary-$90,000

Annual SSA Benefit-$22,000

60% of High 3 Average Salary – 100% SSA Benefit

$54,000 (60% x $90,000) - $22,000 (SSA Annual) = $32,000 / 12 = $2,666 per month

*note this example does not account for any reductions (survivor annuity, etc...).

#### Example 2-Age 62 or Older at Separation with 20 or More Years of Service:

High 3 Average Salary-$90,000

Annual SSA Benefit-$22,000

40% of High 3 Average Salary – 60% SSA Benefit

$36,000 (40% x $90,000) - $13,200 (60% x $22,000) = $22,800 / 12 = $1,900 per month

*note this example does not account for any reductions (survivor annuity, etc....)

#### Example 3-Recomputation at Age 62:

High 3 Average Salary-$98,950 (original average salary increased by all FERS COLAs paid during the time the disability annuity as paid

Service time - 5 years

Total time on disability annuity rolls-7 years 6 months

Total adjusted service for recomputation-12 years 6 months

1% x $98,950 x 12.5 = $12,368.75 / 12 = $1,030 per month

*note this example does not account for any reductions (survivor annuity, etc....)

*If your actual service plus the credit for the time you are on the disability annuity rolls equals 20 or more years, the formula will use 1.1% of your High 3 Average Salary

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## Reductions in Disability Annuity

### Survivor Benefits

If you are married, your benefit will be reduced for a survivor benefit, unless your spouse consented to your election of less than a full survivor annuity. If the total of the survivor benefit(s) you elect equals 50% of your benefit, your annuity is reduced by 10%. If the total equals 25%, the reduction is 5%.

### Unpaid Service if “earned” annuity paid

If you have a CSRS component in your annuity, the CSRS portion of your benefit will be reduced by 10% of any deposit owed for CSRS non-deduction service performed before October 1, 1982, unless the deposit was paid before retirement.

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## Cost of Living Adjustments for FERS Disability Retiree

If you are under age 62, and your annuity was computed using 60% of your high-3 average salary, COLAs are not payable for the first 12 months of entitlement. COLAs which occur after this 12-month period are payable. If you are age 62 at retirement or if you meet the age and service requirements for an immediate FERS annuity, all cost-of-living adjustments occurring after the commencing date of annuity are payable.

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## Entitlement to Other Benefits-Effect on FERS Disability Benefit

### Social Security Benefits

If you are under age 62 and your annuity benefits were computed using either 60% or 40% of your high-3 average salary, the Office of Personnel Management will reduce your monthly annuity by all or a portion of your Social Security benefits. While you are receiving an annuity using the 60% computation, OPM must reduce your monthly annuity by 100% of any Social Security disability benefit to which you are entitled. While you are receiving an annuity computed using the 40% computation, your monthly annuity will be reduced by 60% of any Social Security disability benefit to which you are entitled. This reduction only applies for months in which you are concurrently entitled to both FERS and Social Security benefits.

### Receipt of disability benefits from the Office of Personnel Management and total or partial disability benefits from the U.S. Department of Labor, Office of Workers' Compensation Programs (OWCP) at the same time

Generally, you must decide whether the FERS disability benefit or the OWCP benefit is most advantageous for you and then make an election to be paid one benefit instead of the other. If you decide you want to receive OWCP benefits, payments from OPM will be suspended. However, if your OWCP benefits stop, you can submit a request to OPM to begin your FERS disability benefit. In most cases, you must elect between FERS disability benefits and OWCP. However, you can receive an OWCP “Scheduled Award” and OPM benefits at the same time. Contact OPM to tell us if you are awarded workers' compensation benefits to see if you need to make an election between benefits.

Contact OWCP for additional information about workers' compensation benefits.

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## Table of Contents

                      - When to Consider Applying for Disability Retirement
                      - Eligibility Requirements
                      - Applying for FERS Disability Retirement
                      - Periodic Medical Exams to Keep Your Disability Benefit
                      - Changing Your Retirement to Disability Retirement
                      - Termination of FERS Disability Benefit
                      - Reinstatement of Disability Benefit if it Stops
                      - Disability Retirement Computation
                      - Reductions in Disability Annuity
                      - Cost of Living Adjustments for FERS Disability Retiree
                      - Entitlement to Other Benefits-Effect on FERS Disability Benefit:

# Early Retirement

## Early Optional Retirement

If your agency undergoes a major reorganization, reduction in force, or transfer of function, and a significant percentage of the employees will be separated, or will be reduced in pay, the head of your agency may ask the U.S. Office of Personnel Management (OPM) for a Voluntary Early Retirement Authority (VERA), allowing early optional retirement for eligible employees. If your agency receives approval to permit early optional retirements, eligible employees will be notified of their option to retire early. Early optional retirement has different age and service requirements than voluntary retirement (see eligibility requirement below).

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## Discontinued Service Retirement Because of an Involuntary Separation

A discontinued service retirement provides an immediate annuity for employees who are separated involuntarily. Discontinued service retirement has different age and service requirements than voluntary retirement (see eligibility requirement below). The term “involuntary separation” means any separation against the will and without the consent of the employee, other than “for cause” for misconduct or delinquency. The most common cause of an involuntary separation is a reduction in force. Another frequent cause for an involuntary separation is when the location of an office or unit is moved to an area outside the commuting area of the old worksite*. Employees who decline reasonable offers of other positions are not eligible for discontinued service annuities.

*Exception: If, when you accepted your current position, you were placed under a general mobility agreement whereby you would be subject to geographic reassignment, you would not be eligible for discontinued service annuity rights if your position is moved to an area outside the commuting area.

If your agency:
                - makes you a reasonable offer and you choose to decline the offer and resign, you will not qualify for discontinued service retirement, or
                - separates you by adverse action procedures for not complying with a directed reassignment to a position that is a “reasonable offer,”

then your separation would not qualify for discontinued service.

### Reasonable Offer

                - Written offer of another position in your agency and commuting area for which you are qualified, and
                - That is no more than two grades or pay levels below your current grade or pay level.

### Commuting Area

Geographic area that usually constitutes one area for employment purposes. A commuting area includes any population center (or two or more neighboring ones) and the surrounding localities in which people live and reasonably can be expected to travel back and forth daily in their usual employment.

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## Eligibility Requirements for Early Optional Retirement and Discontinued Service Retirement Because of an Involuntary Separation

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## Annuity Computation

Here is how the basic FERS annuity formula is calculated:

### Example 1-Under age 62 at retirement or age 62 with less than 20 years of Service:

High 3 Average Salary-$90,000

Service-18

1% × $90,000 × 18 = $16,200 (annual amount)

$16,200 ÷ 12 = $1,350 per month

*Note this example does not account for any reductions (survivor annuity, etc.... ).

### Example 2-Age 62 or Older at retirement with 20 or more years of service:

High 3 Average Salary-$90,000

Service-20

1.1% × $90,000 × 20 = $19,800 (annual amount)

$19,800 ÷ 12 = $1,650 per month

*Note this example does not account for any reductions (survivor annuity, etc....).

### Reductions in Annuity

In addition to the regular reductions for the cost of survivor benefits, unpaid service and refunded service, your annuity could be subject to an age reduction:

If you retire under the discontinued service retirement or early optional retirement provision, 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 1% (2% per year) for every month by which your annuity commencing date precedes your 55th birthday.

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## Table of Contents

                      - Early Optional Retirement
                      - Discontinued Service Retirement Because of an Involuntary Separation
                      - Eligibility for Early Optional and Discontinued Service Retirement Because of Involuntary Separation
                      - Annuity Computation

# Voluntary Retirement

## Age and Service Requirements for Voluntary Retirement

Eligibility is based on your age and the number of years of creditable service and any other special requirements. If you meet one of the following sets of requirements, you may be eligible for a voluntary immediate retirement benefit. An immediate annuity is one that begins within 30 days after your separation.

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## MRA (Minimum Retirement Age) + 10 Retirement

To qualify for an MRA + 10 retirement you must meet the following eligibility requirements:
                - You must be separated from Federal service with at least 10 years, but less than 30 years of creditable service, or
                - On the day you separated from Federal service, you must have reached your MRA (see above), but also be younger than age 62. If you did not reach your MRA upon separation from Federal service, you may be entitled to a  deferred retirement .

### Age Reduction

Under an MRA + 10 annuity your annuity will be reduced by 5/12 of 1 percent (5 percent per year) for each month by which your annuity commencing date precedes your 62nd birthday. However, you can postpone the commencing date of your annuity to reduce or eliminate this age reduction. The next section discusses postponing your annuity to avoid age reduction.

### Postponing the Beginning Date of Annuity to Reduce or Avoid the Age Reduction

You can reduce or eliminate the age reduction if you choose to have your annuity begin at a date later than your MRA, this is called postponing your annuity. You can choose to have your annuity commence any date between your MRA and 2 days before your 62nd birthday, subject to certain application requirements.  

If you decide to postpone the commencing date of your annuity, the age reduction will decrease based upon the proximity of your elected annuity commencing date to your 62nd birthday. In other words, the closer your annuity commencing date is to your 62nd birthday, the larger your annuity will be.

Special circumstance: If you have 20 years of creditable service and elect to have your annuity commence at age 60, the age reduction is eliminated.

Note, you cannot begin your annuity while you are reemployed with the federal government.

### If you postpone the beginning date of your annuity, you should be aware of the following

#### Life Insurance

You cannot continue your life insurance coverage unless you are receiving an annuity. Therefore, if you postpone the beginning date of your annuity, your life insurance enrollment will terminate. When your annuity begins, if you meet the usual requirements for continuing coverage into retirement at separation, the life insurance coverage you had when you separated will resume.

#### Health Insurance

If you postpone the beginning date of your annuity, you will be eligible to temporarily continue your health benefits coverage for 18 months from the date of separation from your employing agency; however, you must contact your agency within 60 days and pay the total premium, which includes the employee share and the government share plus a 2% administrative charge. When your annuity payments begin, if you had Federal Employees Health Benefits (FEHB) coverage for the 5 years of service immediately before you separated, you will again have the opportunity to enroll in a health benefits plan under the FEHB program, and OPM will pay the Government share of the premium.

#### Long Term Care Insurance

If you already have Long Term Care Insurance Coverage when you separate for retirement, but postpone the commencing date of your annuity, your coverage will continue as long as you continue to pay premiums. If you are not enrolled in the Long Term Care Insurance Program when you separate for retirement, you can apply for enrollment any time after your separation, even if you postpone the commencing date of your annuity.

#### Dental and Vision Insurance

Learn more about OPM’s Dental and Vision Insurance .

**Cost of Living Adjustments (COLAs)**

If you postpone your annuity commencing date you will begin receiving applicable COLAs only in years after your annuity commences. FERS annuities begin to receive COLAs when you reach age 62.  However, if your FERS annuity has a CSRS component, the CSRS component will receive any applicable CSRS COLAs you are entitled to before age 62.

#### Survivor Benefits

If you defer receipt of your annuity and die before you begin to receive annuity, your spouse can still receive FERS survivor benefits.

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## Computation of Annuity

Go to the Computation Page to see how an annuity is calculated.

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## Table of Contents

                      - Age and Service Requirements for Voluntary Retirement
                      - MRA (Minimum Retirement Age) + 10 Retirement
                      - Computation of Annuity

# Deferred Retirement

If you are a former Federal employee who was covered by the Federal Employees Retirement System (FERS), you may be eligible for a deferred annuity at age 62 or at your Minimum Retirement Age (MRA). Deferred retirement is for former federal employees who were not entitled to an annuity upon separating from Federal service but will become entitled to an annuity after reaching a certain age. Former employees may be eligible for a deferred retirement if they—
                - Are not eligible for an immediate annuity within one month of separation from their agency;
                - Meet the minimum civilian service requirements (see next section); and
                - Do not take a refund of retirement deductions after separating from service (or transferring to a non-covered position).

## Age and Service Requirements

You are eligible for a deferred annuity if you meet one of the following age and service requirements:
                - Age 62 + 5 years of creditable service. If you have 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 age 62. There is no age reduction.
                - MRA + 10 years of service. If you have at least 10 years of creditable service, including 5 years of civilian service, then you are eligible for a deferred annuity beginning the first day of the month after you reach the MRA. Your annuity may be subject to an age reduction as described in the section below.

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## Age Reduction

Under a deferred MRA + 10 retirement, your annuity will be reduced by 5/12 of 1 percent (5 percent per year) for each month by which your annuity commencing date precedes your 62nd birthday. However, you can postpone the commencing date of your annuity to reduce or eliminate this age reduction. The next section discusses postponing your annuity to avoid an age reduction.

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## Postponing the Beginning Date of Annuity to Reduce or Avoid the Age Reduction

You can reduce or eliminate the age reduction if you choose to have your annuity begin at a date later than your MRA, this is called postponing your annuity. You can choose to have your annuity commence any date between your MRA and 2 days before your 62nd birthday, subject to certain application requirements.

If you decide to postpone the commencing date of your annuity, the age reduction will decrease based upon how close your elected annuity commencing date is to your 62nd birthday. In other words, the closer your annuity commencing date is to your 62nd birthday, the larger your annuity will be.

### Special circumstances:

                - If you have 20 years of creditable service and elect to have your annuity commence at age 60, the age reduction is eliminated.
                - If you have 30 years of creditable service your annuity will not have an age reduction.

Note, you cannot begin your annuity while you are reemployed with the federal government.

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## Health Benefits and Life Insurance Coverage

If you receive a deferred annuity, you are not eligible to continue any health benefits, life insurance coverage, or dental and vision benefits you had while employed.

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## Retiree Annuity Supplement

Former employees who receive a deferred annuity are not eligible for the retiree annuity supplement.

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## Commencing Date of Deferred Retirement

### Retirement With 10 or More Years of Service

The annuity begins either:
                - the first day of the month after the former employee attains the MRA, or
                - later date specified by the retiree, in order to reduce or avoid the age reduction

### Retirement With At Least 5 Years But Less Than 10 Years of Service

The annuity begins:
                - first day of the month after the individual reaches age 62

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## Survivor Annuity

If you are married when your annuity begins, it will be computed with a reduction to provide a maximum survivor annuity (50 percent of your unreduced annuity) for your spouse upon your death. You can elect to provide a partial survivor annuity (25 percent of your unreduced annuity) or no survivor annuity; however, you must get your spouse's notarized consent to elect either of these options. You can also elect a survivor annuity for a former spouse or an insurable interest survivor annuity.

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## Computation of Deferred Annuity

Your deferred annuity is based on the length of service and high-3 average salary in effect when you separated from Federal service.

### High-3 Average Salary

Your “high-3” average pay is the highest average basic pay you earned during any 3 consecutive years of service. These three years are usually your final three years of service, but can be an earlier period, if your basic pay was higher during that period. Your basic pay is the basic salary you earn for your position. It includes increases to your salary for which retirement deductions are withheld, such as shift rates. It does not include payments for overtime, bonuses, etc. (If your total service was less than 3 years, your average salary was figured by averaging your basic pay during all of your periods of creditable Federal service).

The following special types of pay are included in basic pay:
                - Night differential pay for wage employees (prevailing rate).
                - Environmental differential pay for employees exposed to various degrees of hazard, physical hardship, and working conditions of an unusual nature.
                - Additional remuneration pay (also known as Panama Area differential pay) and tropical differential pay for citizen employees of any agency on the Isthmus of Panama.
                - Premium pay for:                   - Standby time under 5 U.S.C. 5545(c)(1), limited to a maximum of 25 percent of the minimum rate of pay for GS 10 (primarily affects firefighters); and
                  - Irregular, unscheduled overtime authorized under 5 U.S.C. 5545 (c)(2) for law enforcement officers, limited to a maximum of 25 percent of the rate of basic pay for the position (administratively uncontrollable overtime).  NOTE: Public Law 101-173, enacted November 27, 1989, amended the previous method by which premium pay is determined for irregular, unscheduled overtime duty performed by Federal employees. The amended computation for premium pay affects overtime duty performed on or after the first day of the first applicable pay period beginning after September 30, 1990. 
                - Special pay established for recruiting and retention purposes under 5 U.S.C. 5303.
                - Interim geographic adjustments made under Public Law 101-509, the Federal Employees Pay Comparability Act of 1990.
                - Locality-based comparability payments to begin in FY 1994, made under Public Law 101-509, the Federal Employees Pay Comparability Act of 1990.

### Computation for Non-Disability Retirements

### Your benefit was computed differently, if you retired under one of the provisions below

#### Special Provision for Air Traffic Controllers, Firefighters, Law Enforcement Officers, Capitol Police, Supreme Court Police, or Nuclear Materials Couriers

                - 1.7% of your high-3 average salary multiplied by your years of service which do not exceed 20,  PLUS
                - 1% of your high-3 average salary multiplied by your service exceeding 20 years

#### Member of Congress or Congressional Employee (or any combination of the two) must have at least 5 years of service as a Member of Congress and/or Congressional Employee

                - 1.7% of your high-3 average salary multiplied by your years of service as a Member of Congress or Congressional Employee which do not exceed 20,  PLUS
                - 1% of your high-3 average salary multiplied by your years of other service

#### Transferred to the Federal Employees Retirement System (FERS)

At time of transfer, had at least 5 years of creditable civilian service covered by either:
                - Civil Service Retirement System (CSRS)
                - Social Security

(but not both-excludes service during which partial CSRS deductions were withheld)

Annuity will have 2 components:
                - FERS Component
                - CSRS Component

#### If retired under the special provision for firefighters, law enforcement officers, or nuclear material couriers

                - 2.5% of the years and months of CSRS law enforcement officer, firefighter or nuclear material courier service up to 20 years multiplied times the high-3 average salary.  PLUS
                - 2% of the remaining years of service times the high 3 average salary.

#### If retired under the special provision for Members of Congress or Congressional Employees

                - 2.5% of your high-3 average salary multiplied by your years and months of service as a Member of Congress and/or Congressional Employee, your military service while on a leave of absence as a Member and up to 5 years of other military service,  PLUS
                - 1.75% of your high-3 average salary multiplied by your years of other service, which when added to your years of 2.5% service, do not exceed 10 years,  PLUS
                - 2% of your high-3 average salary multiplied by your years of other service in excess of 10 years
                - Members of Congress or Congressional Employees who are covered by FERS-RAE or FERS-FRAE will have their annuity benefits computed under the general FERS formula.  They will not be eligible for the more generous FERS Congressional calculation.

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## Applying for Deferred Annuity

### Form to Use

Use form RI 92-19, Application for Deferred or Postponed Retirement to apply for deferred or postponed retirement annuity under the Federal Employees Retirement System. For instructions on how to complete the RI 92-19, use form RI 92-19A, a pamphlet entitled Applying for Deferred or Postponed Retirement under the Federal Employees Retirement System (FERS).

### When to Apply

Send your application to OPM approximately 60 days before you want your benefits to begin. Send your completed application to:
> Office of Personnel ManagementRetirement Operations CenterP.O. Box 45 Boyers, PA 16017-0045

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## If You Die Before Applying for a Deferred Annuity

If you have less than 10 years of creditable service or no eligible survivor, any employee deductions remaining in the retirement fund are paid in a lump sum (with interest) to your designated beneficiary or an individual under an order of precedence set by law.

If you have 10 or more years of creditable service for which withholdings or deposits remain in the Retirement Fund (5 years of which is creditable civilian service) and your spouse was married to you at the time of your separation from Federal service, your spouse would be eligible for a survivor annuity. Your surviving spouse may elect to receive a lump-sum payment of your retirement deductions in lieu of a survivor annuity. However, OPM cannot pay the decedent’s retirement deductions if there is a child potentially eligible to receive a child survivor annuity. This is true, even if the monthly benefit is not paid because Social Security benefits payable to the child exceed the amount of survivor annuity payable.

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## Table of Contents

                      - Age and Service Requirements
                      - Age Reduction
                      - Postponing the Beginning Date of Annuity to Reduce or Avoid the Age Reduction
                      - Health Benefits and Life Insurance Coverage
                      - Retiree Annuity Supplement
                      - Commencing Date of Deferred Retirement
                      - Survivor Annuity
                      - Computation of Deferred Annuity
                      - Applying for Deferred Annuity
                      - If You Die Before Applying for a Deferred Annuity

# FERS Annuity Supplement

FERS employees who retire after age 62 are generally eligible to receive not only their FERS annuity retirement benefit after they retire, but also their Thrift Savings Plan benefits and their Social Security benefits. However, if you are eligible to retire before age 62, and are not yet eligible for the Social Security benefit under the Social Security Act, you are generally entitled instead to a FERS annuity supplement. The FERS annuity supplement is part of your FERS employee annuity but is meant to replace the amount of the Social Security benefit you would have otherwise received had you retired after age 62.For that reason, the FERS annuity supplement is calculated as if you were eligible to receive Social Security benefits on the day you retired. Eligibility for the annuity supplement continues until the earlier of—
                - The last day of the month before the first month for which you would be entitled to Social Security benefits, or
                - The last day of the month in which you reach age 62.

## Eligibility for the Annuity Supplement

If you retire voluntarily on an immediate annuity which is not reduced for age, you may be eligible for an annuity supplement. You may also receive the supplement if you retired involuntarily before attaining your Minimum Retirement Age (MRA) or voluntarily because of a major reorganization, reduction in force, or an early retirement for Members of Congress. However, in these three instances, you will not be eligible for the annuity supplement until you reach your Minimum Retirement Age (MRA). If you receive a deferred benefit, a disability benefit or an immediate MRA+10 benefit, you will not be eligible for the annuity supplement.

If your annuity has a Civil Service Retirement System (CSRS) and a Federal Employees Retirement System (FERS) component, you can still receive an annuity supplement. However, you must have completed one full calendar year of service subject to FERS computation rules.

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## Computation of Annuity Supplement

The FERS annuity supplement is computed as if you were age 62, fully insured for a Social Security benefit when the supplement begins and had applied for Social Security benefits. OPM first estimates what your full career (40 years) Social Security benefit would be. Then calculates the amount of your civilian service under FERS and reduces the estimated full career Social Security benefit accordingly. For example, if your estimated full career Social Security benefit would be $1,000 and you had worked 30 years under FERS, OPM would divide 30 by 40 (.75) and multiply ($1,000 × .75 = $750). The result would be your FERS annuity supplement, prior to any reductions.

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## Changes in the Amount of the Supplement

Like Social Security benefits, the FERS annuity supplement is subject to an earnings test. It is reduced if you earn more than the Social Security exempt amount of earnings in the immediately preceding year. The supplement is reduced by $1.00 for every $2.00 of earnings over the minimum level. It is possible that your earnings may cause the supplement to be reduced to $0. However, your remaining FERS employee annuity will not otherwise be reduced. If you are receiving a supplement, you must report your earnings to OPM. You will receive instructions on how to report your earnings once you begin receiving the annuity supplement.

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## Minimum Level of Earnings

The amount you may earn without affecting your FERS annuity supplement is determined by the Social Security Administration each year. It increases with the annual increases in average wages for the national workforce.

Follow this link to learn more about the amount you can earn annually before it impacts your FERS annuity supplement:

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## Definition of Earnings

Your FERS employee annuity is not considered earnings when determining your earnings for the earnings test. Earnings for the year consist of the sum of wages for service performed in the year, plus all net earnings from self-employment for the year, minus any net loss from self-employment for the year.

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## Table of Contents

                      - Eligibility for the Annuity Supplement
                      - Computation of Annuity Supplement
                      - Changes in the Amount of the Supplement
                      - Minimum Level of Earnings
                      - Definition of Earnings