Author: Phil Gardner, Federal Benefits Specialist

Are you planning to retire? Here is some important information to consider when you prepare to meet with Human Resources (HR) to apply for retirement.

The Office of Personnel Management (OPM) has developed an Online Retirement Application. The ORA moves the retirement application and process from paper to online and allows employees to apply and agencies to submit supporting documentation electronically.

Your agency HR Office will initiate your application in ORA. You should contact HR to start the process at least 60 days before your anticipated retirement date. Provide your personal email address as it will be needed to link your Login.gov account to be used in ORA. After you retire, you can use the same Login.gov account to access Services Online, where you can view information on your annuity and insurance, keep your direct deposit and correspondence address updated, among other things.

After HR has initiated your account, you will receive an email inviting you to apply and will provide instructions for accessing ORA. Log in securely with Login.gov. The system will prompt you to link your account and create your digital signature PIN. You will use this PIN to certify your retirement application when you have completed it. Once you have access to ORA, you may begin to complete your retirement application and upload any required documents. HR will also provide you with an estimate of your annuity. For additional guidance on preparing your retirement application, please visit: https://www.opm.gov/retirement-center/apply/online-retirement-application/. 

Here are some things to consider before setting up your meeting.

Are you eligible to retire? You are eligible for voluntary retirement when:

• CSRS: At least age 55 with at least 30 years of creditable Federal service. FERS: Your Minimum Retirement Age (MRA), between ages 55 and 57, based on your date of birth, with at least 30 years of creditable Federal service; or,
• At age 60 (CSRS and FERS) with at least 20 years of service; or,
• At least age 62 (CSRS and FERS) and at least 5 years of service.
• FERS only: You are also eligible to retire at your MRA with at least 10 years of service. Your annuity will be reduced 5% per year for each year or part of a year you are under age 62. You can postpone the commencing date up to age 62 to reduce or eliminate the reduction.

You are eligible for early retirement if you are offered a Voluntary Early Retirement (VERA) or a Discontinued Service Retirement (DSR) if you are involuntarily separated for any reason other than willful misconduct or delinquency and you are:

• CSRS and FERS: At least age 50 with at least 20 years of creditable Federal service, or at any age, with 25 years of service; or,
• CSRS only: If you retire under age 55, your annuity is reduced by 2% for each year or part of a year that you are under 55.

Do you owe any deposits for military service, civilian service not covered by retirement contributions or redeposits for civilian service for which you took a refund of retirement contributions?

• Your military service deposit must be completed before you separate for retirement. Neither your agency or OPM can accept a military deposit after retirement.
• OPM will give you a final opportunity to pay any unpaid civilian deposits and/or redeposits when processing your retirement application.

Survivor Benefits

• CSRS: You may elect a survivor benefit for your spouse based on 55% of any amount you select up to a maximum of your full unreduced annuity. Your annuity will be reduced by 2.5% of the first $3,600 of elected base and 10% of the amount over $3,600.00
• FERS: You may elect a maximum survivor annuity for your spouse (50% of your unreduced annuity, 10% annuity reduction), or a partial benefit (25%, 5% annuity reduction).
• An election of less than the maximum survivor benefit, including no survivor benefit, requires notarized, written spousal consent to that election.
• Your spouse will not be able to continue your health insurance unless you elect a survivor annuity and they are covered under your enrollment on the day you pass away.
• You may elect an insurable interest survivor annuity of 55% of your reduced annuity for a close relative or someone who relies on you for support. You must be in good health to make this election. If the individual you elect is fewer than 5 years younger than you, the reduction is 10%. For every additional 5 years younger, there is an additional 5% reduction, up to a maximum reduction of 40% if the individual is 30 or more years younger than you. 
• A court order awarding a portion or all the survivor benefit takes precedence over your election. The maximum total spousal survivor is limited to 50%. Your current spouse is only entitled to the portion that you elected for them that is not already awarded to the former spouse. They have a contingent entitlement to the former spouse’s portion if the former spouse remarries prior to age 55 or predeceases your spouse. If you want to provide the maximum potential benefit to your current spouse, you should elect the maximum benefit regardless of the court order. You may also consider an insurable interest election for your spouse.
• Your unmarried dependent children may be entitled to a survivor annuity if they are under age 18, between ages 18 and 22 and a full-time student, or if disabled prior to age 18 and incapable of self-support.

Do you plan to continue your health and life insurance coverage into retirement?

• Health Insurance: You must be covered at retirement and have been covered for at least the 5 years of service immediately preceding your retirement and retire on an immediate annuity. You are covered if you are the enrollee or a family member. 
• Life Insurance: You must be covered for at least the 5 years of service immediately preceding your retirement and retire on an immediate annuity.

Do you have an outstanding TSP loan? You may:

• Set up monthly payments to repay the outstanding balance; or,
• Pay off the outstanding TSP loan balance by the required deadline; or,
• Stop making payments and the outstanding balance will be reported as a taxable distribution
• You cannot withdraw your TSP account until the loan is closed
• You will receive a letter from the TSP shortly after your retirement advising you of the amount due, payment due date and the date the taxable distribution will be declared if not paid

Phil Gardner is a Federal Benefits Specialist with the National Institute of Transition Planning, Inc. He retired from the U.S. Office of Personnel Management (OPM), following a 41-year career. He served in numerous technical, professional, supervisory and managerial positions in Retirement Operations for OPM’s Retirement Services, directly involved with the processing of initial retirement and survivor annuity claims, post-retirement claims, and annuity roll maintenance. In 2001, Phil moved out of Retirement Operations to work as a Human Resources Specialist in Retirement Services, providing advisory services and training to other agency’s benefits officers. He has been an instructor with NITP since 2018.

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