Resignation and TSP question


Q. I turn 56 in February 2016. I plan to resign from the government, and, then, request and draw my retirement with federal health benefits when I reach my minimum retirement age at age 60. I was reading your post regarding FERS formula and saw this:

You would only receive a refund of your retirement contributions if you resigned from the government and asked for one. If you did, you’d cancel all future entitlement to an annuity.

I am “NOT” going to request a refund of my retirement contributions, but I am going to resign from the federal government. Will my resignation cancel all future entitlement to an annuity and/or receiving the “government’s money” after my retirement contributions run out? How does TSP index my retirement annuity? I have a balance of about $75,000 in the TSP right now. Does it make much of a difference, or should I just cash it in?

A. There is a calculator that will provide you with a TSP annuity estimate at You should maintain your TSP account for as long as you can — for life, if possible.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to and view his blog at

1 Comment

  1. This person is so confused about his retirement entitlements its sad. He needs to talk to a federal retirement specialist. I think he is confusing his pension with his TSP monies…and more! I hope he or she sees this and talks to his office’s retirement section or at least looks on line at

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