Create a Flexible Federal Retirement System
Create a more flexible federal retirement system that allows workers to leave the federal government earlier. Currently, the federal employee must reach his or her Minimum Retirement Age (MRA) and have 30 years of service to receive a reasonable annuity (about 30% of their average high 3 salary under FERS). While retirement with less than 30 years of service is possible, the annuity is reduced by 5% for each year you ...more »
Create a more flexible federal retirement system that allows workers to leave the federal government earlier. Currently, the federal employee must reach his or her Minimum Retirement Age (MRA) and have 30 years of service to receive a reasonable annuity (about 30% of their average high 3 salary under FERS). While retirement with less than 30 years of service is possible, the annuity is reduced by 5% for each year you are under age 62. For example, if you are 56 (MRA) with 25 years of service and you retired, your annuity would be reduced by 30% (6 years X 5%). This reduced benefit and the MRA requirement create incentives for people to stay in government even if they wish to pursue other career goals. Many folks at high pay grades with 20 or more years of service are just waiting to reach their MRA and 30 years of service. Removing the penalty for early retirement (i.e., the 5% reduction per year under age 62) and the MRA requirement would give workers the option of leaving and pave the way for hiring younger workers who bring new ideas and energy.
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