Retirement planning for federal employees nationally: FERS, TSP, FEGLI and FEHB in one written plan

Your minimum retirement age (MRA) is between 55 and 57, depending on your birth year. You can generally retire with an immediate, unreduced annuity at your MRA with 30 years of service, at 60 with 20 years, or at 62 with 5 years. With at least 10 years you can retire at your MRA (MRA+10), but the annuity is generally reduced by 5% for each year you are under 62, unless you choose to postpone receiving it, which can reduce or eliminate that reduction. Special-category employees have their own rules, so confirm your eligibility with your agency and OPM.

Your high-3 is the average of your highest three consecutive years of basic pay, which generally includes locality pay but not overtime or bonuses. The basic annuity is generally 1% of your high-3 for each year of creditable service, or 1.1% if you retire at 62 or later with at least 20 years. Special-category employees use a different formula for part of their service.

The FERS supplement is designed to approximate the Social Security benefit earned during your federal career. It's generally paid until age 62 to eligible employees who take an immediate, unreduced retirement before 62, and it's not paid on MRA+10 retirements. If you earn income from work above the annual earnings limit, the supplement is reduced. That limit changes every year, so check the current figure with OPM.

It depends on your health, your spouse's needs and the costs involved. A full or partial survivor annuity permanently reduces your own pension, while private life insurance has its own premiums and depends on underwriting. The survivor election also generally affects whether your spouse can keep FEHB after you pass, which life insurance can't replace. We compare the options side by side so you can decide with the full picture.

You can generally carry FEGLI into retirement if you meet the coverage requirements. At 65, your Basic coverage begins to reduce based on the option you chose, and premiums for some optional coverage rise with age. Depending on your health and goals, private life insurance may cost less or fit better, subject to underwriting and the policy's terms. We help you compare before you make a decision that's hard to reverse.

You can generally keep FEHB in retirement if you were covered for the 5 years of service right before you retire (or since you were first eligible) and retire on an immediate annuity. At 65, Part B isn't required to keep FEHB, but adding it may change your out-of-pocket costs and plan choices, and delaying it can mean penalties if you enroll later. We walk through the pros and cons for your situation.

For education only: when you separate, you can generally take installment payments, single or partial withdrawals, buy a life annuity, use a combination, or leave your money in the TSP. Traditional TSP withdrawals are generally taxed as ordinary income, and Roth TSP rules differ. Check current rules with the TSP, and talk to your tax professional about the tax effect.

Yes, for the calculation. Unused sick leave is added to your creditable service when your annuity is computed, but it does not count toward meeting the age and service requirements to retire. It can be worth looking at when you choose your retirement date.