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

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