The Office of Personnel Management has updated its FAQ section about the “Fork in the Road” Deferred resignation offer to include information on VERA:
“Employees who are eligible for the deferred resignation offer and are at least age 50 with at least 20 years creditable Federal service, or any age with at least 25 years creditable Federal service are eligible for VERA along with the deferred resignation offer (unless your position is exempted from the deferred resignation program by your agency).”
VERA stands for Voluntary Early Retirement Authority. It allows agencies to temporarily lower the age and service requirements to increase the number of employees eligible for retirement.
FERS Annuity
Calculation of annuity/pension—The FERS Basic Annuity is calculated based on the average high-3 salary and years and months of creditable service. There is no annuity reduction in FERS for employees who retire on an early voluntary retirement.
A FERS annuity supplement is also payable to an employee when he/she reaches Minimum Retirement Age (MRA). MRA is age 55 to 57, depending on date of birth. The annuity supplement is payable until eligibility for Social Security begins at age 62, subject to an earnings limitation.
Effect of Early Retirement on Benefits
Health Benefits: Employees retiring in conjunction with a VERA must have been covered under the FEHB Program (1) for the last 5 years of their Federal civilian service in order to continue such coverage in retirement, or (2) if less than 5 years, for all service since the employee was eligible for these benefits unless these requirements are waived. Coverage as an annuitant is identical to coverage as an employee, but premiums are not paid on a pre-tax basis.
Life Insurance: Federal Employees Group Life Insurance can be continued through the retirement system provided the employee has carried the coverage for at least five years prior to retirement. The cost, however, can increase dramatically depending on elections made at retirement.
The information above has been directly sourced from the OPM website. It is intended for information purposes only and should not be considered as advice on whether or not to accept the deferred resignation offer. Please consult an employment attorney if you have additional concerns.