“Normal Retirement” Isn’t the Only Path

Many federal employees think of retirement as a single finish line: hit your Minimum Retirement Age (MRA) with enough service, and collect your benefits.

But life—and federal service—rarely fits neatly into boxes. That’s why it’s essential to understand the alternative retirement options available to you under FERS and CSRS.

Whether due to agency restructuring, health issues, or a desire to shift gears early, these less-talked-about paths can provide viable retirement solutions when full eligibility isn’t yet on the table.

Here’s a clear breakdown of alternative federal retirement types, why they matter, and how to plan for them.

1. Early Retirement (Voluntary Early Retirement Authority – VERA)

What It Is:
This allows eligible employees to retire early during workforce reshaping efforts—like downsizing or reorganization.

Eligibility (FERS & CSRS):

• At least age 50 with 20 years of service OR

• Any age with 25 years of service

Why It Matters:
You can access immediate benefits without the full penalties of regular early retirement. Your agency must offer it, so timing is everything.

Planning Tip:
If you're in an agency facing restructuring, talk to HR early. This option often comes with limited application windows.

2. Discontinued Service Retirement (DSR)

What It Is:
An involuntary retirement option due to job abolishment or directed separation (not for misconduct).

Eligibility:
Same as VERA:

• Age 50 with 20 years

• Any age with 25 years

Why It Matters:
If you’re separated against your will due to no fault of your own, DSR provides immediate retirement benefits. TSP access and FEHB (health insurance) may still be retained if you meet key criteria.

Planning Tip:
Maintain updated service records. To keep FEHB in retirement, you’ll need 5 years of coverage before separation.

3. MRA + 10 Retirement

What It Is:
A flexible option if you’ve reached your Minimum Retirement Age (55–57 depending on birth year) but don’t yet have 30 years of service.

Eligibility:

• MRA + at least 10 years of service

Why It Matters:
You can leave federal service and start your pension early, but with a 5% per year reduction before age 62.

Planning Tip:
You can delay taking the annuity to reduce or avoid the penalty. For example, if you retire at 57 with 10 years of service, waiting until 62 to draw your pension eliminates the reduction.

4. Disability Retirement

What It Is:
A benefit for employees who become medically unable to perform their job, and the agency cannot accommodate them.

Eligibility:

• At least 18 months of service under FERS, or 5 years under CSRS

• Must apply while still employed or within one year of separation

Why It Matters:
Provides a percentage of your high-three salary, often bridging the gap until age 62 when it converts to a regular annuity.

Planning Tip:
Documentation is everything. If you're struggling with a chronic condition, start tracking symptoms and treatments well before applying.

5. Deferred Retirement

What It Is:
If you leave federal service before retirement eligibility, you may still qualify for a pension later.

Eligibility (FERS):

• At least 5 years of creditable service

Why It Matters:
You won’t keep FEHB or FEGLI, but at age 62 (or as early as 60 with 20 years), you can start drawing a pension you earned earlier in your career.

Planning Tip:
This is ideal if you're leaving for a private-sector role but want to preserve your federal retirement credit. Keep your address updated with OPM to claim benefits later.

📌 Summary Table – Key Eligibility at a Glance

Why This Matters for Your Planning

Many employees don’t consider these paths until they're facing an unexpected change—a reorg, a family crisis, or a health issue. But knowing the options ahead of time puts you in control.

If you’re within five years of retirement—or think you may face an early exit—review your service history, insurance coverage, and TSP strategy now.

Next Steps:

• Request a retirement estimate for each of the options you might qualify for

• Ensure your FEHB enrollment is continuous for at least 5 years

• Consider how each path impacts your TSP withdrawals, insurance, and tax situation