Top 10 Questions Federal Employees Ask About FERS Retirement
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Quick answers to the questions we hear most, each checked against current OPM, TSP, IRS or Medicare pages. Follow the links for the full guide.
1. When can I retire under FERS?
You can retire on an immediate annuity at 62 with 5 years of service, at 60 with 20 years, or at your Minimum Retirement Age (MRA) with 30 years. Your MRA is between 55 and 57 depending on your birth year; it is 57 if you were born in 1970 or later. You can also retire at your MRA with 10 to 29 years (MRA+10), but the annuity is reduced 5% for each year you are under 62 unless you postpone it.
Read more: When can I retire? · What is my MRA? · MRA+10 explained
Source: OPM: FERS eligibility · OPM: Types of retirement
2. How is my FERS pension calculated?
The basic formula is 1% of your high-3 average salary for each year of service. If you are 62 or older when you separate and have at least 20 years, it is 1.1% instead. Your high-3 is the highest average basic pay you earned in any 3 consecutive years; overtime and bonuses do not count.
Read more: How the pension is calculated · What counts in your high-3
Source: OPM: FERS computation
3. What is the FERS Supplement, and when does it stop?
The supplement is a temporary payment for people who retire on an immediate, unreduced annuity before 62. OPM estimates it from your projected Social Security benefit times your years of FERS civilian service divided by 40. It ends by the month you turn 62. It is reduced $1 for every $2 you earn over Social Security's annual exempt amount. MRA+10, deferred and disability retirees do not get it.
Read more: FERS Supplement guide
Source: OPM: FERS annuity supplement
4. Can I keep FEHB health insurance in retirement?
Yes, if you retire on an immediate annuity (including MRA+10) and were continuously enrolled in FEHB for the 5 years of service just before your annuity starts, or since your first chance to enroll if that is less than 5 years. If you leave and take a deferred annuity instead, you cannot re-enroll.
Read more: FEHB in retirement
Source: OPM: FEHB eligibility · OPM: Deferred retirement
5. Do I need Medicare Part B if I have FEHB?
It is your choice, but plan for it before 65. Part B has a monthly premium, and your FEHB premium stays the same when you enroll in Medicare. If you sign up late without a Special Enrollment Period, Medicare adds 10% to your Part B premium for each full 12 months you could have had it, usually for life. Some FEHB plans waive cost-sharing when Medicare pays first.
Read more: Medicare Part B for federal retirees
Source: OPM: Medicare and FEHB · Medicare.gov: Late enrollment penalties
6. How can I take money out of my TSP, and how is it taxed?
After you separate, the TSP offers partial withdrawals (at least $1,000), a total withdrawal, a life annuity purchase (at least $3,500), and monthly, quarterly or annual installments, in any combination. Traditional money is taxed as income when withdrawn. Withdrawals before 59½ can carry a 10% additional tax, but the IRS exempts you for example, if you separated from service after reaching age 55, or for qualified public safety employees who separated in or after the year they reached age 50 or 25 years of service.
Read more: TSP withdrawal options · TSP taxes
Source: TSP: Withdrawals in retirement · IRS Topic 558
7. What survivor benefit should I choose?
A full survivor benefit pays your spouse 50% of your unreduced annuity and costs you 10% of your annuity. A partial benefit pays 25% and costs 5%. If you are married and choose less than the full benefit, your spouse must consent. With no survivor annuity, nothing is paid to your spouse and their FEHB coverage through you ends when you die.
Read more: Survivor benefit guide
Source: OPM: Survivor benefits · OPM: FERS computation
8. Do FERS retirees get a cost-of-living adjustment?
Most FERS retirees receive COLAs only from age 62. Disability retirees (after the first year), survivors, and special-provision retirees such as law enforcement officers and firefighters can receive them earlier. For 2027, OPM lists a 2.6% COLA for FERS and 3.6% for CSRS, paid starting in January.
Read more: FERS COLA explained
Source: OPM: Cost-of-living adjustments · OPM: FERS computation
9. Do unused sick leave and military service count?
Unused sick leave is added to your service when OPM computes your pension, but it cannot help you qualify to retire or raise your high-3. Post-1956 military service can count toward a FERS pension if you pay a deposit, generally 3% of your military basic pay plus any interest, and you must finish paying it before you separate.
Read more: Sick leave credit · Military buyback
Source: OPM: BAL 18-103 (sick leave) · 5 CFR 842.307 (military deposit)
10. How do I apply for FERS retirement, and how long does it take?
Your agency HR office starts the application in OPM's Online Retirement Application (ORA). OPM asks for it at least 30 days before you separate, and your HR office may want it sooner. For cases processed in September 2026, OPM reported an average of 66 days for immediate retirements, with interim payments starting in about 6 days.
Read more: How to apply
Source: OPM: Types of retirement · OPM: Processing times
Estimate only, not financial advice. Your official figures come from OPM when your retirement is processed.