Federal Employee Top 10 Retirement Questions

Here are the Top 10 Federal Employees Retirement Questions (A Deeper Dive) with concise, accurate answers that apply across generations — especially relevant for federal employees under FERS or CSRS:

• 1. When can I retire with full benefits?

  Under FERS, full (unreduced) retirement eligibility depends on your Minimum Retirement Age (MRA) and years of service:

  • MRA + 30 years
  • Age 60 + 20 years
  • Age 62 + 5 years
    CSRS employees typically qualify with age 55 + 30 years, or age 60 with 20 years.
• 2. How much will my federal retirement benefit be?

  Your FERS annuity is roughly 1% x high-3 salary x years of service (1.1% if you retire at 62+ with 20+ years).
  CSRS uses a more generous formula, often replacing 50–80% of salary. TSP and Social Security fill in the rest under FERS.

• 3. When should I take Social Security?

  You can claim at age 62 (reduced), full benefits at your FRA (66–67), or delay to age 70 for a higher monthly benefit.
  Delaying past FRA adds ~8% per year in delayed retirement credits.

• 4. Will I get the FERS Special Retirement Supplement (SRS)?

  Yes, if you retire before age 62 with an immediate FERS pension. It bridges the gap until Social Security starts.
  Note: Subject to the earnings test if you work after retirement.

• 5. What are my TSP withdrawal options?

  You can:

  • Leave it in TSP
  • Take monthly, partial, or full withdrawals
  • Roll over to an IRA
  • Purchase a TSP annuity
    Withdrawals are subject to taxes, and RMDs begin at age 73.
• 6. Will my retirement income be taxed?

  Yes. Your FERS/CSRS pension and TSP withdrawals are taxable at the federal level, and possibly by your state.
  A portion of Social Security may also be taxed depending on your total income.

• 7. What happens to my benefits if I die?

  Survivor benefits may include:

  • A reduced annuity to your spouse (if elected)
  • Lump-sum unpaid annuity/TSP balances
  • Social Security survivor benefits
    FEHB coverage can continue for a surviving spouse if you elected a survivor annuity.
• 8. Do I need Medicare Part B if I have FEHB?

  It’s optional. Many retirees choose FEHB + Part B for broader coverage and fewer out-of-pocket costs.
  Part A is usually premium-free and is recommended.

• 9. Can I work after I retire?

  Yes, but if you receive the FERS SRS, your benefits could be reduced if you earn more than the annual limit (~$22,320 in 2025).
  Working for the federal government may affect your pension unless you’re under a reemployment waiver.

• 10. How do I apply for retirement?
  • Submit SF-3107 (FERS) or SF-2801 (CSRS)
  • Apply 90–120 days before your desired retirement date
  • Coordinate with your HR and use the OPM retirement checklist
  • Apply for Social Security at ssa.gov or 1-800-772-1213