Postponed Retirement

Postponed retirement is a special option for employees who separate from service at their Minimum Retirement Age (MRA) with at least 10 years of service but postpone receiving their annuity to reduce or eliminate the age reduction penalty.

Key features of postponed retirement:

• Must have at least 10 years of service and reach MRA before leaving
• Can postpone benefits until age 60 or 62 to avoid age reduction
• Eligible to continue FEHB and FEGLI if covered for 5 years
• Different from deferred retirement - preserves health benefits
• Annuity calculated same as immediate retirement

Age reduction elimination:

• No reduction if postponed to age 62
• 5% per year reduction if started between age 60-62 with 20+ years
• Can help maximize your lifetime benefits