CSRS Early Voluntary Retirement FERS i 

Chapter 43
 

Table of Contents 

Subchapter 43A CSRS 

Part 43A1 General Information 

Section 43A1.1-1 Overview ........................................ 1
 

A. Introduction ................................................ 1
 

B. Topic Covered ............................................... 1
 

C. Organization of Subchapter ....................................... 2
 

D. Statement of Authority .......................................... 2
 

Section 43A1.1-2 Definitions ....................................... 3
 

A. Reduction-in-Force ............................................ 3
 

B. Reorganization ............................................... 3
 

C. Function ................................................... 3
 

D. Local Commuting Area ......................................... 3
 

E. Transfer of Function ........................................... 3
 

F. Furlough .................................................. 4
 

Section 43A1.1-3 Administrative Requirements .......................... 5
 

A. OPM Authority to Permit Early Retirement ............................ 5
 

B. Determination of Major RIF ...................................... 5
 

C. Designation of Geographic Area/Occupation ............................ 5
 

D. Designation of Time Period ...................................... 5
 

E. Additional Information ......................................... 5
 

Section 43A1.1-4 Employee Eligibility Requirements ....................... 6
 

A. General ................................................... 6
 

B. Minimum Age and Service ....................................... 6
 

C. Minimum Civilian Service ....................................... 6
 

D. Separation from Covered Position .................................. 7
 

E. "One-Out-of-Two" Requirement ................................... 7
 

F. Minimum Time Requirement ..................................... 8
 

G. Separation by Close of Early Out Period .............................. 8
 

Part 43A2 Effect of Early Voluntary Retirement on Benefits 

Section 43A2.1-1 Effect of Early Voluntary Retirement on Benefits ............. 9
 

A. Reduction for Early Retirement .................................... 9
 

B. Commencing Date of Annuity ..................................... 9
 

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Chapter 43
 

Part 43A3 Required Documentation 

Section 43A3.1-1 Required Documentation ............................. 10
 

A. Entry on Retirement Record ...................................... 10
 

B. Entry on SF 50 .............................................. 10
 

C. Reference to Chapter 41 ......................................... 10
 

Part 43A4 Advice to Employee 

Section 43A4.1-1 Advice to Employee ................................. 11
 

A. Retirement Is Optional .......................................... 11
 

B. Eligibility for Regular Voluntary Retirement ........................... 11
 

C. Eligibility for Discontinued Service Retirement .......................... 11
 

D. Reduction for Early Retirement .................................... 12
 

E. Effect of Deposit/ Redeposit ...................................... 12
 

F. Eligibility to Continue FEHB and FEGLI ............................. 13
 

G. Withdrawal of Retirement Application ............................... 13
 

Subchapter 43B FERS 

Part 43B1 General Information 

Section 43B1.1-1 Overview ........................................ 15
 

A. Introduction ................................................ 15
 

B. Organization of Subchapter ....................................... 15
 

C. Applicable CSRS Provisions ...................................... 15
 

D. Statement of Authority .......................................... 15
 

Section 43B1.1-2 Employee Eligibility Requirements ....................... 16
 

A. General ................................................... 16
 

B. Post-1956 Military Service ....................................... 16
 

C. Minimum Civilian Service ....................................... 16
 

D. Noncreditable Civilian Service .................................... 17
 

E. Separation from Covered Position .................................. 17
 

F. Applicable CSRS Provisions ...................................... 17
 

Part 43B2 Effect of Early Voluntary Retirement on Benefits 

Section 43B2.1-1 Effect of Early Voluntary Retirement on Benefits ............. 18
 

A. Reduction for Early Retirement .................................... 18
 

B. Retiree Annuity Supplement ...................................... 18
 

C. Commencing Date of Annuity ..................................... 18
 

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Chapter 43
 

Part 43B3 Advice to Employee 

Section 43B3.1-1 Advice to Employee ................................. 19
 

A. Applicable CSRS Provisions ...................................... 19
 

B. Reduction for Early Retirement .................................... 19
 

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 CSRS Early Voluntary Retirement 1 

Chapter 43 

Subchapter 43A CSRS 

Part 43A1 General Information 

Section 43A1.1-1 Overview 

A.	 Introduction The purpose of the early voluntary retirement option is to assist an agency 

in completing a major personnel or workload change with minimal 

disruption to the work force. 

Early voluntary retirement allows eligible employees to retire early. It does 

not matter whether they are facing involuntary separation, transfer to 

another commuting area, or an immediate reduction in the rate of basic pay. 

Their retirements create vacancies that can be filled by employees who 

would otherwise be separated or downgraded. 

The results of the use of an early voluntary retirement authority should, in 

most cases, reflect one employee saved from separation or demotion for 

each early retiree. 

B. Topic Covered	 This subchapter covers: 

•	 The administrative steps an agency must take in order to offer early 

voluntary retirement to its employees; 

•	 The requirements an employee must meet to be eligible for an early 

voluntary retirement; 

•	 The documentation of OPM authority to permit early voluntary 

retirement; 

•	 Counseling that should be given the employee before he or she retires. 

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Chapter 43 

Section 43A1.1-1 Overview (Cont.) 

C.	 Organization of The CSRS subchapter has four parts. 

Subchapter 

PART NAME OF PART PAGE 

43A1 General Information 1 

43A2 Effect of Early Voluntary 

Retirement on Benefits 9 

43A3 Required Documentation 10 

43A4 Advice to Employee 11 

NOTE: Subchapter 43B about early voluntary retirement under FERS 

begins on page 14. 

D.	 Statement of This subchapter is based on the laws and regulations cited below. 

Authority 

•	 United States Code: 5 U.S.C. 8336(d) 

•	 Code of Federal Regulations: 5 CFR 831.108 

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Chapter 43
 

Section 43A1.1-2 Definitions 

A.	 Reduction-in- A reduction-in-force (RIF) action, as defined in 5 CFR, Part 351, means the 

Force	 release of a competing employee from his or her competitive level by 

furlough for more than 30 days, separation, demotion, or reassignment 

requiring displacement, when the release is required because of: 

•	 lack of work; 

•	 shortage of funds; 

•	 insufficient personnel ceiling; 

•	 reorganization; 

•	 an individual's exercise of reemployment rights or restoration rights; 

or 

•	 reclassification due to erosion of duties when it occurs within 180 days 

of a formally announced RIF in the competitive area. 

B. Reorganization "Reorganization" means the planned elimination, addition, or redistribution 

of functions or duties in an organization. (See 5 CFR Part 351.) 

C.	 Function "Function" means all or a clearly identifiable segment of an agency's 

mission, including all integral parts of that mission, regardless of how it is 

performed. (See 5 CFR 351.203.) 

D.	 Local "Local commuting area" means the area that usually constitutes one area for 

Commuting Area	 employment purposes. It 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. (See 5 CFR Part 351.) 

E. Transfer of 

Function 

"Transfer of Function" means (1) the transfer of the performance of a 

continuing function from one competitive area and its addition to one or 

more other competitive areas, except when the function involved is virtually 

identical to functions already being performed in the other competitive 

area(s) affected; or (2) the movement of the competitive area in which the 

function is performed to another commuting area. (See 5 CFR Part 351.) 

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Chapter 43
 

Section 43A1.1-2 Definitions (Cont.) 

F.	 Furlough "Furlough" under reduction-in-force procedures means the placement of an 

employee in a temporary nonduty/nonpay status for more than 30 

consecutive calendar days or more than 22 work days if done on a noncontinuous basis, but not for more than 1 year when the action is based on 

one of the RIF reasons and is not in accordance with pre-established 

conditions of employment. 

For additional information, see 5 CFR Part 351 on RIF furloughs and 

5 CFR Part 752 for procedures governing furloughs of 30 days or less (22 

work days or less on a non-continuous basis). 

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Chapter 43
 

Section 43A1.1-3 Administrative Requirements 

A. 

B. 

OPM Authority 

to Permit Early 

Retirement 

Determination of 

Major RIF 

OPM may permit early voluntary retirements for employees of an agency or 

a segment of an agency undergoing a major RIF, a major reorganization, or 

a major transfer of function when requested by the agency concerned. The 

steps outlined below must be followed before OPM authorizes an early 

retirement.

The Employment Service within OPM determines that an agency is 

undergoing a major RIF, a major reorganization, or a major transfer of 

function. 

C. 

D. 

Designation of 

Geographic 

Area/Occupation 

Designation of 

Time Period 

OPM makes this determination only after receipt of a written request from 

the agency head or his or her designee. 

OPM designates the specific geographical area(s) or occupation(s) covered 

by the RIF retirement option. 

OPM stipulates a limited period of time during which the option will 

remain in effect. The agency may, in its discretion, end the time period 

earlier. 

E. Additional 

Information 

For additional detailed information concerning the purpose of this option 

and the procedures to be followed in securing OPM approval, see 5 CFR 

Part 351. 

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6 CSRS Early Voluntary Retirement 

Chapter 43 

Section 43A1.1-4 Employee Eligibility Requirements 

A.	 General When OPM determines that an agency is undergoing a major RIF, a major 

reorganization, or a major transfer of function, an eligible employee may 

apply to retire on an immediate annuity under this Chapter if he or she 

satisfies all of the following conditions: 

• Meets the age and service requirements; 

•	 Meets the minimum civilian service requirement; 

•	 Separates from a position subject to CSRS coverage; 

•	 Meets the "1-out-of-2" requirement; 

•	 Has served in a position covered by the OPM authorization for the 

minimum time specified by OPM (usually at least 30 days); and 

•	 Separates by the close of the early out period. 

B. Minimum Age 1. The employee must meet one of the age and service requirements 

and Service below at separation:

 AGE is at least... and CREDITABLE SERVICE is 

at least...

 50 20 years

 any age 25 years 

2.	 If an employee has the minimum 5 years of creditable civilian service, 

creditable military service may be used to meet the balance of service 

necessary for an early voluntary retirement. 

CAUTION: Accrued and unused sick and/or annual leave may not be used 

to meet either of the service requirements noted above. 

C. Minimum 

Civilian Service 

An employee must have at least 5 years of creditable civilian service to be 

eligible for an early voluntary retirement. Creditable civilian service for 

this purpose includes: 

• Service for which full CSRS deductions were taken (even if CSRS 

deductions were refunded and not redeposited); 

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Chapter 43 

Section 43A1.1-4 Employee Eligibility Requirements (Cont.) 

C.	 Minimum • Service for which full Social Security taxes and reduced CSRS 

Civilian Service deductions were taken (even if CSRS deductions were refunded and not 

(Cont.) redeposited); and 

•	 Nondeduction service (that is, temporary or intermittent service), 

whether or not a deposit for such service is made or deemed made 

under the alternative annuity provisions. 

NOTE:	 See Chapter 20, Creditable Civilian Service, for a full description 

of creditable service. 

D. Separation from The employee must be separated from a position covered by retirement 

Covered Position deductions. 

E.	 "One-Out-ofTwo" 

Requirement 

An employee must be covered by CSRS for at least 1 year within the 2-year 

period immediately preceding the separation on which the annuity is based. 

The 1 year of service does not have to be continuous. The year of service 

does, however, have to be service subject to CSRS deductions. An 

employee cannot meet the requirement by paying a deposit for nondeduction 

service. The following examples assume the employee is 57 years old. 

EXAMPLE SERVICE HISTORY ELIGIBLE TO

 RETIRE? 

1 Career appt. 2-1-51

 Separated 4-3-80

 Career reinst. 9-4-88

 Separated 9-30-89 Yes 

2 Career appt. 2-1-51

 Separated 4-3-80

 Career reinst. 9-4-88

 Separated 6-30-89 

Comment: The employee is not 

eligible to retire with an 

immediate annuity because he or 

she has less than 1 year of service 

during the 2-year period preceding 

the last date of separation.

 No 

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8 CSRS Early Voluntary Retirement 

Chapter 43 

Section 43A1.1-4 Employee Eligibility Requirements (Cont.) 

F. Minimum Time 

Requirement 

The employee must have been on the agency's rolls for which the early 

retirement is authorized at least 30 calendar days before the agency's initial 

request to OPM and, must have remained continuously on the agency's rolls 

covered without a break in service of 4 or more days since that time. 

This minimum length of time may vary depending on the specific early 

optional authority from OPM. 

G. Separation by The employee must be separated by the end of the last day of the early out 

Close of Early period authorized by OPM. 

Out Period 

If the agency has exercised its discretion to end the early out period earlier 

than the date authorized by OPM, the employee must be separated by the 

end of the last day permitted by the agency. 

April, 1998 CSRS and FERS Handbook 
 CSRS Early Voluntary Retirement 9 

Chapter 43 

Part 43A2 Effect of Early Voluntary Retirement on Benefits 

Section 43A2.1-1 Effect of Early Voluntary Retirement on Benefits 

A.	 Reduction for If the retiring employee is under age 55, the annuity rate is reduced by oneEarly Retirement sixth of one percent for each full month (2 percent a year), if any, he or she 

is under age 55. 

The annuity rate will not increase when the annuitant reaches age 55. 

B. Commencing 

Date of Annuity 

For individuals in a pay status for 3 days or less in the month of retirement, 

annuities begin on: 

•	 The day after separation; or 

•	 The day after pay ceases and the age and service requirements for title 

to an annuity are met. 

For individuals in pay status 4 or more days in the month of retirement, 

annuities begin on the first day of the month following entitlement. (See 

Chapter 41, Voluntary Retirement Based on Age and Service, section 

41A.1-1 for examples.) 

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10 CSRS Early Voluntary Retirement 

Chapter 43 

Part 43A3 Required Documentation 

Section 43A3.1-1 Required Documentation 

A.	 Entry on 

Retirement 

Record 

For each early retirement under 5 U.S.C. 8336(d)(2), the Individual 

Retirement Record (SF 2806) must identify: 

•	 That it is a major RIF, a major reorganization, or a major transfer of 

function; and 

•	 The OPM authority number. 

A statement similar to the following should appear on the last line under the
 

Service History portion of the form:
 

Ret., 5 U.S.C. 8336(d)(2), OPM Auth. #xx.
 

B. Entry on SF 50 Each early retirement under this Chapter is documented with Nature of 

Action "303/Retirement-Special Option." "AZM/OPM Office Auth. No. 

and Date" will be the second authority (SF 50 blocks 5C-D) on each 303 

action. (See The Guide to Processing Personnel Actions.) 

C. Reference to 

Chapter 41 

For information regarding the additional documentation required to process 

voluntary retirements, see Chapter 41, section 41A4.1-1. 

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 CSRS	 Early Voluntary Retirement 11 

Chapter 43 

Part 43A4 Advice to Employee 

Section 43A4.1-1 Advice to Employee 

A.	 Retirement Is 

Optional 

B.	 Eligibility for 

Regular 

Voluntary 

Retirement 

1.	 Agencies that are granted a voluntary early retirement authorization 

must ensure that employees are not coerced into retiring. An agency 

statement affirming the voluntary nature of retirements must be issued 

to all employees. If agency management becomes aware of any 

coercion against employees, aggressive action should be taken to 

eliminate it. 

2.	 In addition to the information in Chapter 40, Planning and Applying 

for Retirement, agencies are to provide the information that follows to 

employees who have expressed interest in retiring on an early 

voluntary retirement. 

An employee, in a component for which early voluntary retirement has been 

authorized, must have his or her retirement processed as a regular voluntary 

retirement if the employee is eligible for regular retirement, and the 

employee does not retire under the discontinued service retirement 

provisions covered in Chapter 44, Discontinued Service Retirement. If he 

or she is not eligible for regular voluntary retirement, the retirement is 

processed as an early voluntary retirement. For more information and the 

codes to use in processing retirements, see The Guide to Processing 

Personnel Actions. 

C.	 Eligibility for 1. An employee in the component who is eligible for a discontinued 

Discontinued service retirement under Chapter 44 may have the retirement processed 

Service as a voluntary or involuntary retirement. This choice may depend on 

Retirement the employee's interest in subsequent Federal reemployment (see 2 

below). 

2.	 Inform the employee that the choice between taking an early voluntary 

retirement or a discontinued service retirement could make a difference 

in future retirement rights if he or she is later reemployed as a retired 

employee. 

•	 If retirement is voluntary, pay on reemployment will be reduced 

by the amount of the annuity. 

•	 If retirement is for discontinued service after an involuntary 

separation, the annuity is terminated and the employee acquires a 

new retirement right if reemployment is not excluded from 

retirement coverage. 

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12 CSRS	 Early Voluntary Retirement 

Chapter 43 

Section 43A4.1-1 Advice to Employee (Cont.) 

C.	 Eligibility for 

Discontinued 

Service 

Retirement 

(Cont.) 

D.	 Reduction for 

Early Retirement 

E.	 Effect of Deposit/ 

Redeposit 

NOTE: For additional information on how this decision affects subsequent 

reemployment, see Chapter 100, Reemployed Annuitants, and the 

booklet, "Social Security Retirement, Survivors and Disability 

Insurance, and Medicare Program." 

3.	 Non-disability retirees who have a life-threatening affliction or other 

critical medical condition currently listed in 5 CFR 831.2207 may elect 

the alternative annuity. See Chapter 53, Alternative Annuity Elections, 

for more detailed information. 

4.	 Inform the employee that an annuity under an involuntary retirement 

begins on the day after separation or the day after pay ceases and the 

requirements for title to an annuity are met. 

For individuals in pay status for 3 days or less in the month of retirement, 

annuities under voluntary retirement begin on the day after separation or the 

day after pay ceases and the requirements for title to an annuity are met. 

For individuals in a pay status for 4 or more days in the month of 

retirement, annuities under voluntary retirement begin on the first day of 

the month following entitlement. 

The agency should explain to an employee retiring under the age of 55 that 

the basic annuity rate is reduced by one-sixth of one percent for each full 

month (2 percent a year), if any, he or she is under age 55. 

The annuity rate will not increase when the annuitant reaches age 55. 

If the agency anticipates a major RIF, a major reorganization, or a major 

transfer of function, the agency should give employees some general 

reminder, such as in an employee letter, about the effect of making deposits 

or redeposits. This is especially important in the case of military deposits, 

which must be completed prior to separation. 

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 CSRS	 Early Voluntary Retirement 13 

Chapter 43 

Section 43A4.1-1 Advice to Employee (Cont.) 

F.	 Eligibility to 

Continue FEHB 

and FEGLI 

G.	 Withdrawal of 

Retirement 

Application 

The agency must confirm that an employee is eligible to continue health and 

life insurance including any optional life insurance as a retiree, and inform 

the employee if he or she is not eligible to continue some part of his or her 

coverage. 

Optional retirement is a form of voluntary separation; thus, the filing of an 

application for retirement is equivalent to submitting a resignation. As a 

consequence, a retiring employee has the same rights that are available to 

employees involved in other voluntary actions with respect to establishing 

the effective date of the separation/retirement or withdrawing the 

application for separation/retirement. 

For additional information, see Chapter 41, section 41A3.1-1. 

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14 CSRS Early Voluntary Retirement
 

Chapter 43
 

BLANK PAGE 

April, 1998 CSRS and FERS Handbook 
Early Voluntary Retirement FERS 15 

Chapter 43 

Subchapter 43B FERS 

Part 43B1 General Information 

Section 43B1.1-1 Overview 

A.	 Introduction Subchapter 43B contains the rules and policies that apply to early voluntary 

retirement under the Federal Employees Retirement System (FERS). This 

subchapter explains how FERS differs from CSRS. It refers readers to the 

CSRS rule that applies, or gives the FERS rule if it is different. 

B.	 Organization of The FERS subchapter has three parts. 

Subchapter 

PART NAME OF PART PAGE

 43B1 General Information 14

 43B2 Effect of Early Voluntary

 Retirement on Benefits 17

 43B3 Advice to Employee 18 

C.	 Applicable CSRS 

Provisions 

D.	 Statement of 

Authority 

The following sections and part of subchapter 43A apply entirely to FERS 

employees. 

•	 Section 43A1.1-2: Definitions 

•	 Section 43A1.1-3: Administrative Requirements 

•	 Part 43A3: Required Documentation 

This subchapter is based on the laws and regulations cited below. 

•	 United States Code: 5 U.S.C. 8414(b) 

•	 Code of Federal Regulations: 5 CFR 842.205 

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16 Early Voluntary Retirement	 FERS 

Chapter 43 

Section 43B1.1-2 Employee Eligibility Requirements 

A.	 General When OPM determines that an agency is undergoing a major RIF, an 

employee may apply to retire on an immediate annuity under this 

subchapter if he or she satisfies all of the following conditions: 

•	 Meets the age and service requirements; 

•	 Meets the minimum civilian service requirement; 

•	 Separates from a position subject to FERS coverage; 

•	 Has served in a position covered by OPM authorization for the 

minimum time specified by OPM (usually at least 30 days); and 

•	 Separates by the close of the early out period. 

NOTE:	 There is no "1-out-of-2" requirement under FERS as there is under 

CSRS. Thus, an employee who elects to transfer to FERS does 

not have to be under FERS for 1 year to be eligible to retire. It is 

possible for an employee's separation for retirement to occur on 

the same day (but not before) the FERS election becomes effective, 

provided that the employee meets the other requirements. 

B. Post-1956	 Under FERS, post-1956 military service cannot be used to meet the service 

Military Service	 requirement unless the employee makes the military deposit before 

retirement. Military deposits may not be deemed paid under alternative 

annuity provisions. 

C.	 Minimum An employee must have at least 5 years of creditable civilian service to be 

Civilian Service eligible for an early voluntary retirement. 

Creditable civilian service for this purpose includes: 

•	 Service for which full FERS deductions are made and not refunded; 

•	 Nondeduction service (that is, temporary or intermittent service) 

performed prior to January 1, 1989, if a deposit for such service is 

made or deemed made under the alternative annuity provisions; and 

•	 Service for which full Social Security taxes and full or reduced CSRS 

deductions were taken if the CSRS deductions were not refunded; and, 

April, 1998	 CSRS and FERS Handbook 
Early Voluntary Retirement FERS 17 

Chapter 43 

Section 43B1.1-2 Employee Eligibility Requirements (Cont.) 

C.	 Minimum For individuals eligible for a CSRS annuity component: 

Civilian Service 

(Cont.) • Nondeduction CSRS service (that is, temporary or intermittent service) 

whether or not a deposit for such service is made or deemed made 

under the alternative annuity provisions; 

•	 Service for which full CSRS deductions were taken even if CSRS 

deductions were refunded and not redeposited. 

NOTE:	 See Chapter 20, Creditable Civilian Service, for a full description 

of creditable service. 

D.	 Noncreditable 

Civilian Service 

E.	 Separation from 

Covered Position 

The following types of service performed under FERS may not be used in 

meeting the 5-year minimum service requirement: 

•	 Service performed under FERS for which a refund of FERS deductions 

was taken; 

•	 Service subject to FERS computation rules for which a refund was 

made after FERS coverage began; and 

•	 Nondeduction service (that is, temporary or intermittent service) 

performed on or after January 1, 1989. 

The employee must be separated from a position covered by FERS 

deductions. 

F. Applicable CSRS The age and service requirements (except as noted in paragraph B of this 

Provisions section), the 30-day minimum time requirement, and the requirement to be 

separated by the close of the limited period explained in CSRS section 

43A1.1-4 apply entirely under FERS. 

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18 Early Voluntary Retirement	 FERS 

Chapter 43 

Part 43B2 Effect of Early Voluntary Retirement on Benefits 

Section 43B2.1-1 Effect of Early Voluntary Retirement on Benefits 

A.	 Reduction for 

Early Retirement 

B.	 Retiree Annuity 

Supplement 

C.	 Commencing 

Date of Annuity 

There is no annuity reduction in FERS for employees who retire on an 

early voluntary retirement under the age of 55. 

Transferees with a CSRS component: 

If the retiring employee is under age 55, the CSRS portion of the basic 

annuity is reduced by one-sixth of one percent for each full month (two 

percent a year), if any, he or she is under age 55. The annuity rate on this 

portion of the benefit will not increase when the annuitant reaches age 55. 

No reduction will be applied to the FERS portion of a transferee's annuity. 

If the employee has completed at least 1 calendar year of FERS service, a 

retiree annuity supplement is payable to an employee retiring on an early 

voluntary retirement when he or she reaches the Minimum Retirement Age 

(MRA). 

For rules regarding eligibility for and payment of the retiree annuity 

supplement, see Chapter 51, Retiree Annuity Supplement. 

For rules regarding the applicability of the MRA, see Chapter 41. 

Early voluntary retirement annuities begin on the first day of the month 

following separation. 

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Early Voluntary Retirement FERS 19 

Chapter 43 

Part 43B3 Advice to Employee 

Section 43B3.1-1 Advice to Employee 

A.	 Applicable CSRS The advice provisions in CSRS section 43A4.1-1 apply entirely under 

Provisions FERS, with one exception. The exception is noted below. 

B.	 Reduction for The agency should explain to the employee that there is no annuity 

Early Retirement reduction in FERS for employees who retire on an early voluntary
 

retirement under the age of 55.
 

Transferees with a CSRS annuity component: 

If the retiring employee is under age 55, the CSRS portion of the basic 

annuity is reduced by one-sixth of one percent for each full month (two 

percent a year), if any, he or she is under age 55. The annuity rate on this 

portion of the benefit will not increase when the annuitant reaches age 55. 

No reduction will be applied to the FERS portion of a transferee's annuity. 

CSRS and FERS Handbook	 April, 1998