Early retirement and annuity


Q. I am under the Federal Employees Retirement System.  I am 49 with 21 years of service. I am being told there will be a Voluntary Early Retirement Authority/Voluntary Separation Incentive Pay offered this fall and next spring. I will turn 50 during the VERA/VSIP timeline. If I take the VERA, will my government annuity be reduced by 5 percent per year? Will I be able to receive both my government annuity and my Thrift Savings Plan annuity as soon as I leave service? Is there a penalty in taking the TSP annuity now? Will I qualify to get the Social Security supplement when I reach my minimum retirement age of 56?

A. You may use your TSP assets to purchase a life annuity when you retire, and there will be not early withdrawal penalty for doing so.


About Author

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 fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

1 Comment

  1. when u retire with a tsp loan u have 90 days to decide to keep paying it or have the loan end an receive it as loan amount paid to u in cash an u claim it on taxs as money received

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