What is phased retirement?
The federal government’s phased retirement program allows retirement-eligible employees to help younger feds transition to a new position and give them a chance to share their years of knowledge. It’s a great idea for employees who aren’t quite ready to make the leap into retirement. Instead, they will have the opportunity to incrementally reach retirement by working part-time first, rather than being at work full time one day and retired the next.
|Must be eligible for immediate retirement with at least 30 years of service at age 55, or with 20 years of service at age 60.||Must be eligible for immediate retirement with at least 30 years of service at minimum retirement age, or with 20 years of service at age 60.|
|Employed on a full-time basis for the preceding three years.|
|Pay & Benefits|
|Phased Retirement||Full Retirement|
|Receive pay for part-time service and receive credit for part-time service toward full retirement.||Revised annuity will include pro-rated service for time worked during phased retirement.|
|Unused sick leave not used in computation of annuity.||Unused sick leave used in computation of annuity.|
|FEHBP and FEGLI benefits remain the same.|
Making the jump into retirement is a major life decision. Phased retirement may help to ease that transition for many federal employees. Phased retirement, when it becomes a reality, may help to ease that transition for many federal employees.
If you’re thinking about retirement, contact a Financial Advisor for help reviewing your annuity projections, TSP account, and to make sure you’re ready to take that next step.