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.
| Eligibility Guidelines | |
| CSRS | FERS |
| 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.
Source: opm.gov
