Federal Retirement Postponed versus Deferred. Which is better?

Postponing or deferring a FERS retirement both sound like they're the same thing. If you came to work as a fed later in your career, one of these might impact your retirement greatly. Thiago Glieger discusses the differences between these two federal retirements and how to pick the better choice for you.

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#TSP #fersretirement #federalemployees

[ImOldNow]

I heard postpone retirement at age 57. What if you left service at age 54 with 20 years of service? Am I eligible for postpone retirement at age 60? Will I be eligible for FEHB at age 60?

[Revel]

Am 58 and hit the 60 and 20 in two more years. Am retired military but did not buy back my military years - 21 years. I have Tricare health coverage and took out a $1M term life policy a couple years ago and cancelled my FEGLI. Can I retire at 60 and 20 years Fed service without penalty? The EBIS site says I can with an unreduced annuity. Thank you.

[michealsizemore]

I am a military retiree and already have Tricare for life. I am also 100% service connected through the VA so I don't care about the health insurance. For me, it would be better to postpone my retirement and not take a reduction and draw at age 62. I have 7 years of Government service (work for the VA). I am 50 years old and still have 7 years left before I hit MRA. I know that everyones situation is different. Great video.

[Letizia]

If I separate at 57 with 22 years of service and postpone to 59 would the permanent reduction be calculated from age 60 (since I am eligible for unreduced at 60) or age 62? Also, what are the best options for private health insurance after separating at 57 (OPM TCC, COBRA, Obamacare)?

[CanesFan]

Great Explanations. Been trying to understand all of this because there are so many things to consider. Curious how buying back and combining Military Service (22 years receiving pension) with say 18 years federal service would impact this. My understanding is that I would waive my Military pension and then be able to retire and Immediately start receiving my Federal Pension based on my High 3 of Civil Service @ 40 Years (Combined Service and in addition I would also be eligible for the FERS Supplement until I reach 62. I would still have Tricare from my Military Service so I don't see any issue regarding whether or not I receive FHEB benefits or not. I have heard that most think you are better off NOT buying back your military service time if you are receiving a retirement pension but if by combining both and your High 3 for Federal was more than your High 3 for Military, then it seems it makes more sense to combine. My understanding is that I can also receive the FERS Supplement from age 59 to 62 (approx 3 years). That FERS Supplement might offset the Money I would have to pay to Buy back / combine my Military Service time (22 years). Yes there are always other things to consider like no longer receiving a PAYCHECK and No longer accruing that 5% TSP match but at that age....TIME becomes more important than income.

[willa]

49yo with 26 years of service. My spouse and I are ready for a change…but may not necessarily involve me working for the federal government. With that being said, what is my best option with getting the most out of a federal retirement and benefits?

[toddwerther]

Is the MRA+10 reduction pro-rated e.g., if retiring at 58 yr 6 mo is it still 20% or would it be 17.5%?

[Letizia]

If you are eligible to postpone under MRA+10 will you get credit for unused sick leave? My understanding is that you do get credit if you postpone but do not get credit if you defer, is that correct?

[ciao]

If I’ve hit my MRA + 10 years of service, but will not be 62 until 2024. I’ve been told that to take Postponed Retirement, I actually resign from my agency, and then 60 days prior to the date that I want to start collecting my annuity, I submit the RI92-19 directly to OPM. Is this correct? Do I actually RESIGN my position and then expect that OPM will process my Postponed request in 2024? So basically I just give them my two week notice today and then wait until the year 2024 to start my annuity. Do I let HR know that is what I am doing?