F.E.R.S. & C.S.R.S.

What kinds of retirement are provided for in the retirement law?
They are known as optional, early optional, disability, deferred and discontinued service annuity for either 25 years of service or 20 years of service, if at least age 50. For both early optional retirement (e.g. reduction in force) and discontinued service retirement (e.g. involuntary separation except for misconduct), employees can retire at any age with 25 years of service or age 50 with 20 years of service. There would be an annuity reduction of 2 percent for each year employee is under age 55.

Is there a minimum requirement as to the amount of civilian service?
Yes. Five years of civilian service is required before annuity benefits may be paid in any case.
Must an employee apply for retirement? Yes. An application must be completed for any annuity benefits.
Under what conditions may an employee retire optionally?

• Age 62 with a minimum of years of service;
• Age 60 with 20 years of service; or
• Age 55 with 30 years of service.

Must application for optional retirement be made before the employee is separated from the service?
No. However, it is advisable to apply about 6 weeks in advance of the date scheduled for separation.
What is the maximum annual leave a letter carrier can be paid for?
There is a temporary agreement (M-01993) to increase the maximum to 520 hours through December 31, 2024. The maximum will return to 440 hours in 2025 unless another agreement is reached.

What day should you retire on?
For optional retirement, an employee should retire on the last day of a month, or on the first 3 days of the month so that annuity will commence the following day after the effective date of retirement. If the employee is retired after the 3rd of the month, annuity will commence the first of the following month.

F.E.R.S.

How is civilian service under CSRS treated for employees who retire under FERS?
Employees with prior CSRS service that was not converted into FERS service at the time they transferred into FERS (voluntarily or otherwise) will receive credit for such service for the purposes of retirement eligibility under FERS, but annuity benefits for such service are determined by CSRS rules.
Is credit for FERS benefits given for service with state and municipal governments?
No, except for service performed by certain employees of the government of the District of Columbia.
Is credit for FERS benefits given for periods of leave without pay (LWOP)?
Credit is given for up to six months of leave without pay in any calendar year. No deposit is required (except for periods of LWOP when military service interrupts civilian service, in which case deposit must be made in order to receive service credit. See the next section for details). If receiving benefits from the Office of Worker's Compensation Programs, credit is generally given for the entire period of compensation if the employee is carried on the agency rolls in a leave without pay status. Public Law 108-92 allows 1% annuity enhancement for certain FERS employees who retire after October 3, 2003 and have at least 2 months of cumulative LWOP while receiving Workers' Compensation benefits.
Do FERS employees get service credit for unused sick leave under FERS?
FERS employees receive full credit for unused sick leave. See the following chart for converting unused sick leave into increased service time credit for higher annuity. Note that credit for unused sick leave does not count toward retirement eligibility. Service credit for unused sick leave is only used in the FERS basic benefit calculation. It is not included in the FERS annuity supplement calculation. Days of unused sick leave are used only to determine the number of years and months of service for annuity computation purposes; they cannot be used to compute the employee's high-3 average salary or to meet the minimum length of service required for retirement eligibility.
Can FERS employees withdraw their retirement contributions if they separate from government service?
Yes. FERS employees are entitled to receive a refund of their contributions to FERS, (plus interest, if the employee has more than one year of service). But they will no longer be able to draw a pension.
Can separated FERS employees who return to federal service redeposit previously withdrawn FERS contributions to get credit for prior service under FERS?
FERS employees who leave government service and receive a refund of retirement contributions are able to redeposit those funds plus interest back into the retirement fund upon reemployment.

---