Author: Vanessa Craddock, Federal Benefits Specialist

Reaching the mid-career point of a Federal career is an important milestone and a perfect time to gather information about the benefits you have earned. Here are a few frequently asked questions and answers you may find helpful.

1.  I started working for the Federal government right after high school. When is my earliest opportunity to retire?

Answer: For a regular FERS retirement, you must be at least Minimum Retirement Age (MRA) or older. MRA is between ages 55 – 57 based on birth year. You must also have enough qualifying Federal service, between 20 to 30 years depending on age. Only employees who are age 62 and over may retire with fewer than 20 years of Federal service, if they have at least 5 years of creditable service, the minimum requirement.

However, there is another retirement option called deferred retirement. With this, you can resign after you have enough qualifying years of service for a regular retirement, and later when you reach retirement age. Contact the Office of Personnel Management to begin drawing your FERS retirement. CAUTION: you will lose the Federal health insurance benefits, Federal life insurance benefits, and Federal dental and vision insurance benefits permanently with this retirement. 

A third option which requires a bit of luck is to receive an early retirement offer, known as a VERA (Voluntary Early Retirement Authority). When an agency plans a major reorganization that may threaten many jobs, they can seek the authority to allow qualifying employees the option to retire at any age, if they have at least 25 years of creditable service or more. This retirement allows you to keep the Federal health and life insurance benefits in retirement, if you’ve been enrolled for the last five years. For Federal dental/vision or long-term care, there is no 5-year enrollment requirement.

2.  I want to keep Federal health insurance in retirement, but I’m covered as a spouse on my husband’s Federal insurance. Do I need to have the Federal health insurance in my own name for the last five years of employment to guarantee I am covered after I retire?

Answer: No. If you are covered in the FEHBP as a spouse for the last five years before you retire or at earliest opportunity to enroll, you will still be covered in the health insurance program in retirement. You will have the opportunity to change enrollment options during any Open Season or Qualifying Life Event after you retire, should you want.

3.  I’ve been ill lately and need to confirm what survivor benefits are payable should I pass away before retirement. What should I do now?

First, you may want to update your designation of beneficiary forms through your Human Resources department. They are SF 3102, SF 1152, and SF 2823. The TSP designation is done online at www.tsp.gov. 

Otherwise, when a FERS employee dies with at least 18 months of creditable Federal service, survivor benefits are automatic for eligible spouses and children.

Eligible spouses are entitled to:

• The FERS BEDB (Basic Employee Death Benefit) a one-time payment of $41,568.31.
• Plus, a second one-time payment that equals 50% of the deceased FERS employee’s yearly salary or high-3 average salary if higher, and
• If the deceased employee had at least 10 years or more creditable Federal service, the eligible spouse will receive a monthly FERS spousal annuity that equals 50% of the deceased spouse’s FERS retirement as though they retired as of the date of death.
• Federal health insurance continues for survivors as long as at least one family member is eligible for a survivor benefit and the deceased FERS employee dies with Self+1 or Self and Family coverage.

Eligible children under age 18 are automatically entitled to a “set” monthly amount often offset by Social Security (SS) children’s survivor benefits until age 18. The SS children’s benefit will terminate at age 18, but OPM will continue to pay children between ages 18-22 if they are full time students. OPM also pays disabled children survivor benefits for life, if their disability occurs prior to reaching age 18.  

Ms. Craddock has been an instructor with NITP since the year 2000, presenting seminars on Federal Employee Benefits, Federal insurances, and Social Security/Medicare. She started her career with the Social Security Administration as a Social Insurance Claims Examiner before moving to the U.S. Office of Personnel Management. At OPM, she worked as a Certified Federal Benefits Specialist, trainer, course developer and manager, and supervisor of 20 employees for adjudicating retirement claims. She also provided briefings at many OPM Benefits Officers Conferences.  After more than 25 years of experience in Federal Benefits Administration, she retired and now continues her work as an instructor, providing Federal benefits training nationwide.

This newsletter is designed to provide information on the subjects covered. NITP, Inc. takes great care to insure the accuracy and quality of these materials which are provided without any expressed or implied warranty, including, but not limited to, their fitness for a particular purpose. They are also provided with the understanding that neither the author nor the publisher is engaged in rendering legal, accounting, financial planning or other professional service. If additional assistance is required, the services of a competent professional should be sought.