Ask The Experts: Retirement

By Reg Jones

Resign now, risk suspension, or retire in September?

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Q. I am 61 and will be 62 in September. I would like to retire at age 62. I have eight years of federal civilian service and bought back three years and eight months of military service. I know I cannot retire until I am 62. Due to a current civil legal action that I have, I would like to resign my position within the next 30 to 60 days. This would mean a deferred annuity with a retirement date of Sept. 30. My boss is looking to suspend me from duty without pay due to this situation pending the final results of my civil action. What will I be losing by resigning and not waiting until my retirement date, even if I am suspended from duty without pay? Should I just stay on suspension and submit for retirement for the end of September?

A. I can’t advise you about what to do. What I can tell you is this: If you resign and apply for a deferred annuity at age 62, you won’t receive any credit for your unused sick leave when your annuity is computed.

Further, if you are currently enrolled in the Federal Employees Health Benefits program, you won’t be able to re-enroll in it when your annuity begins.

Comments

  1. Pat M Says:
    May 20th, 2013 at 5:44 pm

    Stick it out and put in your application for retirement ASAP, to be effective the date you turn 62 (most Agencies ask for your application 90 days prior to your retirement date). So what if you are suspended without pay? The important thing is to make it to retirement. Even if management decides to take further action against you, the fact that you have applied for retirement will sometimes mitigate whatever they plan to do. For instance, if they want to remove you, and you’ve already applied for retirement, it’s unlikely they will waste the time and resources to do a removal. If you feel you are under a lot of stress due to the situation, there is always sick leave and possibly LWOP until you retire. Just my opinion.

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