{"id":44012,"date":"2025-02-19T07:00:00","date_gmt":"2025-02-19T12:00:00","guid":{"rendered":"https:\/\/ourpublicservice.org\/?p=44012"},"modified":"2025-03-28T16:39:32","modified_gmt":"2025-03-28T20:39:32","slug":"how-recent-changes-to-the-civil-service-affect-federal-employee-benefits-retiremet-federal-employee-explainer-series-webinar","status":"publish","type":"post","link":"https:\/\/ourpublicservice.org\/blog\/how-recent-changes-to-the-civil-service-affect-federal-employee-benefits-retiremet-federal-employee-explainer-series-webinar\/","title":{"rendered":"How recent changes to the civil service affect federal employee benefits"},"content":{"rendered":"\n

The Partnership’s Federal Employee Explainer Series<\/a> featured a webinar on federal retirement and other employee benefits. <\/p>\n\n\n\n

Partnership Vice President of Government Affairs Jenny Mattingley led a discussion with Tammy Flanagan, the founder and principal retirement specialist of Retire Federal<\/a>, a National Active and Retired Federal Employees service partner. <\/p>\n\n\n\n

They addressed the following questions.<\/p>\n\n\n\n

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What are the different retirement options in the federal government?  <\/h3>\n\n\n\n

Optional immediate retirement<\/a>, often simply called “retirement,\u201d is available for employees who meet certain age and service requirements. The Minimum Retirement Age<\/a>\u2014or MRA\u2014depends on your birth year.\u00a0<\/p>\n\n\n\n

A Minimum Retirement Age plus 10 annuity<\/a> is an option for employees who have reached their MRA and have at least 10, but less than 30, years of service. <\/p>\n\n\n\n

Voluntary Early Retirement Authority<\/a> allows employees who are at least 50 years old with 20 years of service, or who have 25 years of total service (including at least five years of civilian service), to retire.  <\/p>\n\n\n\n

Discontinued service retirement<\/a> is another form of early retirement, often occurring during a reduction in force or major agency reorganization. The age and service requirements are the same as they are for the Voluntary Early Retirement Authority. <\/p>\n\n\n\n

Deferred retirement<\/a> is for employees who leave federal service before meeting the requirements for immediate retirement. To be eligible, employees must have at least five years of civilian federal service.<\/p>\n\n\n\n

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Can I carry my health insurance and other benefits into retirement? <\/h3>\n\n\n\n

Generally, retirees can keep their existing health benefits if they meet certain conditions<\/a>. These include being enrolled in a federal health benefits program<\/a> at the time of retirement and having continuous coverage under such a program for the five years immediately preceding retirement. <\/p>\n\n\n\n

There may be exceptions for reductions in force or discontinued service retirements, so check with your human resources office. <\/p>\n\n\n\n

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What are my options if I am involuntarily separated, such as through a reduction in force, before reaching retirement age? <\/h3>\n\n\n\n

If you are affected by a reduction in force<\/a> or are involuntarily separated\u2014unless the separation is for cause or misconduct\u2014you may still be eligible for a deferred retirement benefit, even if you are below retirement age. Standard deferred retirement rules apply.<\/p>\n\n\n\n

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What happens to my health insurance if I am on administrative leave or separated? <\/h3>\n\n\n\n

Employees on administrative leave retain their health benefits. If employees are subsequently separated (due to a reduction in force or for another reason), their ability to continue those benefits depends on whether they are eligible for immediate retirement.  <\/p>\n\n\n\n

Those eligible for immediate retirement can likely continue their federal health benefits coverage. Those only eligible for deferred retirement will be offered Temporary Continuation of Coverage for up to 18 months, but they will be responsible for paying the full premiums. <\/p>\n\n\n\n

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What happens if I leave federal service with less than 5 years of service (including probationary employees)? <\/h3>\n\n\n\n

If an employee leaves federal service with fewer than five years of civilian service, including during their probationary period, they are not eligible for a retirement benefit. However, they can apply for a refund of their retirement contributions (currently 4.4% of salary) through the Office of Personnel Management. Processing this refund may take several months.<\/p>\n\n\n\n

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What happens to my Thrift Savings Plan if I leave federal service? <\/h3>\n\n\n\n

Funds can be left in the Thrift Savings Plan<\/a> (with a minimum balance of $200), where they will continue to earn interest. No new contributions are allowed after separation, including from lump-sum annual leave payments.  <\/p>\n\n\n\n

TSP contributions can continue during administrative leave. Post-separation withdrawals are not yet permitted. For TSP loans, outstanding balances can be paid off in a lump sum or through continued monthly payments. It is important to make appropriate loan arrangements to avoid potential tax consequences. <\/p>\n\n\n\n

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How can I find information about my total length of service, and who should I contact with questions? <\/h3>\n\n\n\n

Save a copy of your SF-50, which documents your federal career history, including length of service. If possible, download a copy your electronic official personnel folder, often referred to as the eOPF. If you cannot access the eOPF, request your SF-50 from human resources. If your SF-50 is missing, contact the National Personnel Records Center<\/a>. <\/p>\n\n\n\n

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Stay informed\u202f <\/h3>\n\n\n\n

No official benefit changes are currently associated with deferred resignations or other similar situations. This is an evolving situation, so it is important to stay informed via official OPM channels and agency communications. <\/p>\n\n\n\n

For additional real-time updates on civil service rules, regulations and proposals, explore\u202four new resource hub<\/a>. <\/p>\n\n\n\n

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Webinar recording<\/h5>\n\n\n\n
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