Federal Retirement Checklist: What FERS Employees Should Review Before Retirement

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A federal retirement checklist is a structured pre-retirement review covering the seven core areas every FERS employee must verify before separating from service: eligibility, the annuity calculation, TSP strategy, FEHB and FEGLI continuation, Social Security and the FERS Annuity Supplement, survivor benefits, and the OPM paperwork timeline. Federal Pension Advisors, a retirement planning firm specializing in federal employee benefits, recommends working through this checklist 12 to 18 months before your planned retirement date.

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This federal retirement checklist walks FERS employees through every decision that must be finalized before submitting retirement paperwork. Each section answers a specific question regulators, payroll offices, and benefits specialists will ask during processing. Treat it as a working FERS retirement guide: review one section at a time, verify your figures against your most recent Personal Statement of Benefits, and document every confirmation in writing.

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Confirm Your FERS Retirement Eligibility

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FERS, the Federal Employees Retirement System, has five retirement types. You must meet the age and service requirements for at least one of them before OPM, the U.S. Office of Personnel Management, will authorize an immediate annuity. The most common path is reaching your MRA, or Minimum Retirement Age (the earliest age a FERS employee can retire with an immediate annuity), with at least 30 years of creditable service.

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According to the U.S. Office of Personnel Management, the MRA ranges from age 55 to age 57 depending on year of birth. Employees born in 1970 or later have an MRA of 57. The other eligibility paths are age 60 with 20 years of service, age 62 with 5 years of service, and the reduced MRA + 10 option, which lets you retire at MRA with at least 10 years of service but cuts your annuity by 5% for every year you are under age 62.

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Verify your Service Computation Date (SCD)

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Your Service Computation Date for retirement determines your years of creditable service. Pull your most recent SF-50 and confirm the SCD-Retirement field. If you have any prior federal service, military time, or a deposit owed for non-deduction service, request a formal service history audit from your agency benefits officer at least 12 months before retirement.

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Errors at this stage can delay annuity processing and may require additional documentation before OPM finalizes your case.

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Calculate Your FERS Annuity Using the High-3 Formula

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The FERS basic annuity formula is straightforward, but small input errors produce large lifetime differences. The standard formula is 1% of your High-3 average salary multiplied by your years and months of creditable service. Employees who retire at age 62 or older with at least 20 years of service receive 1.1%, a 10% lifetime increase that often justifies delaying retirement by a few months.

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Your High-3 is based on your highest average basic pay over any three consecutive years. According to the U.S. Office of Personnel Management, basic pay includes pay for which retirement deductions are withheld, but excludes overtime, bonuses, and similar payments. Locality pay is included. Confirm your High-3 with your HR shop in writing. The figure on retirement estimators isn't binding until OPM validates it.

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Example: standard FERS annuity calculation

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An employee retiring at age 60 with 30 years of service and a High-3 of $110,000 receives an annual annuity of $33,000 before reductions ($110,000 × 1% × 30). The same employee retiring at age 62 with 30 years of service receives $36,300 ($110,000 × 1.1% × 30). The age-62 multiplier alone adds $3,300 per year for life, before any cost-of-living adjustment.

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To run your own numbers against different retirement dates, use our FERS pension calculator.

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FERS Retirement Types Compared

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Before you choose a retirement date, confirm which retirement type you qualify for. The table below summarizes the five FERS retirement types, the age and service requirements for each, and any annuity reduction that applies. Eligibility figures are verified against the U.S. Office of Personnel Management FERS Information page.

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If you are weighing MRA + 10 against waiting to reach 30 years of service, run both numbers with a benefits officer. The 5% per year reduction under MRA + 10 is permanent, and the math rarely favors the earlier date unless you have a strong outside income source.

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Review Your TSP Strategy Before You Separate

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The TSP, or Thrift Savings Plan, is the federal government's tax-advantaged retirement savings program and typically the second-largest source of retirement income for FERS employees after the annuity. According to the Thrift Savings Plan, the 2026 elective deferral limit is $24,500. Participants age 50 and older may make standard catch-up contributions of $8,000, while eligible participants ages 60 through 63 may qualify for a higher catch-up limit of $11,250 under SECURE 2.0.

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Maximize contributions in your final working years

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For many federal employees, the final three to five years are high-earning years and can be an important window for increasing TSP contributions. Set your contribution percentage to capture the full agency match, 5% of basic pay, at minimum. Then layer on catch-up contributions if you are age 50 or older, and the higher catch-up if you are between ages 60 and 63. Missing the full agency match is one of the most common and avoidable retirement planning mistakes for FERS employees.

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Choose a withdrawal strategy before retirement

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The TSP offers installment payments, partial withdrawals, annuity purchase, and full transfers to an IRA. Each carries different tax treatment and flexibility. Decide your TSP withdrawal strategy before you separate so you can begin the paperwork immediately after your retirement date.

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Under SECURE 2.0, the TSP required minimum distribution (RMD) starting age increased from 72 to 73 beginning January 1, 2023. Some younger participants may have a later RMD starting age under future SECURE 2.0 rules, so confirm your required beginning date with TSP before planning withdrawals. 

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Carry FEHB and FEGLI Into Retirement

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FEHB, the Federal Employees Health Benefits Program, is one of the most valuable benefits a federal retiree keeps for life, but only if you meet the continuation rule. To carry FEHB into retirement, you must be enrolled in the program for the five years immediately before your retirement date and be eligible for an immediate annuity. Eligible retirees generally keep FEHB coverage with the same government contribution structure available to active employees, although plan premiums can change each year.

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FEGLI, the Federal Employees Group Life Insurance program, follows similar continuation rules. You must have FEGLI Basic coverage for the five years immediately before retirement to keep it. According to the U.S. Office of Personnel Management, retirees choose between three Basic reduction options at retirement: 75% reduction (free after age 65), 50% reduction, or no reduction (premium continues for life). Run the cost comparison before you elect.

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FEHB five-year rule: the most common disqualifier

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If you used TRICARE or another qualifying coverage during the five-year period before retirement, confirm the rules with your agency benefits office. According to the U.S. Office of Personnel Management, TRICARE may help satisfy part of the five-year requirement, but you generally must be enrolled in FEHB on your retirement date to continue FEHB as an annuitant. Check your enrollment history in writing with your benefits office at least two years before retirement.

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Coordinate Social Security and the FERS Annuity Supplement

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FERS employees pay into Social Security and qualify for benefits under the same rules as private-sector workers. According to the Social Security Administration, full retirement age is 67 for anyone born in 1960 or later. You can begin reduced benefits as early as age 62, or earn delayed retirement credits up to age 70.

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The FERS Annuity Supplement bridges the gap between FERS retirement and Social Security eligibility at age 62. It is paid to retirees who retire with an immediate, unreduced annuity before age 62 and meet specific service requirements. The supplement approximates the Social Security benefit you earned during your federal service and stops at age 62 regardless of whether you actually claim Social Security.

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Earnings test reduces the supplement

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If you take outside employment after retirement and earn above the annual Social Security earnings limit, the FERS Annuity Supplement is reduced by $1 for every $2 earned above the limit. According to the Social Security Administration, the 2026 lower annual earnings limit is $24,480. The earnings test does not apply to your basic FERS annuity, only to the supplement.

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Decide on Survivor Benefit Elections

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Your survivor benefit election is permanent. Once OPM finalizes your retirement, you can't increase the election except in narrow circumstances such as a post-retirement marriage. FERS offers three survivor options: full (50% of your annuity, costing a 10% reduction), partial (25%, costing 5%), or none.

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A full survivor election is the only way your spouse keeps FEHB coverage after your death. If you elect no survivor annuity and your spouse outlives you, they lose FEHB. This is one of the most important decisions in the retirement packet, and many employees benefit from reviewing the survivor math before signing SF 3107. Federal Pension Advisors, a retirement planning firm specializing in federal employee benefits, helps clients review survivor election scenarios before submission.

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Submit OPM Paperwork on the Correct Timeline

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FERS retirement applications are submitted on form SF 3107 through your agency, which then forwards the package to OPM for final processing. Submit your application at least 60 days before your retirement date. The most common processing delays come from missing service history documentation, unresolved deposits or redeposits, and incomplete survivor election forms.

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Recommended retirement timeline

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• 12 to 18 months out: Request a service history audit and a formal annuity estimate from your agency.
• 9 to 12 months out: Verify the FEHB five-year rule, finalize TSP contribution strategy, and review survivor election scenarios.
• 6 months out: Confirm High-3 calculation in writing and resolve any deposit balances.
• 60 to 90 days out: Submit SF 3107 and all supporting forms to your agency benefits office.
• Retirement date: Verify your final pay, lump-sum annual leave payout, and final TSP contribution.
• Post-retirement: Expect interim annuity payments for 2 to 6 months while OPM finalizes your case, then a true-up payment.

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Bringing the Federal Retirement Checklist Together

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A complete federal retirement checklist is not a one-time review. The figures change every year, the regulations evolve, and your personal situation shifts as you approach your retirement date. Work through this checklist 18 months out, again at 12 months, and a final time at 6 months. Every confirmation should be documented in writing from your agency benefits office.

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If you want a second set of eyes on your numbers, the survivor election, or your TSP withdrawal strategy, Federal Pension Advisors, a retirement planning firm specializing in federal employee benefits, offers federal-retirement-specific reviews built around this checklist. Schedule a complimentary federal retirement review to walk through your estimated eligibility, High-3 assumptions, survivor election, TSP withdrawal sequence, and income plan before submitting SF 3107.

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Frequently Asked Questions

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1. When can I retire with full benefits under FERS?

Under FERS, you can retire with full, unreduced benefits at your Minimum Retirement Age (MRA) with 30 years of service, at age 60 with 20 years of service, or at age 62 with 5 years of service. According to the U.S. Office of Personnel Management, the MRA ranges from 55 to 57 depending on year of birth.

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2. How is my federal pension calculated?

The FERS basic annuity is calculated as 1% of your High-3 average salary multiplied by your years and months of creditable service. Employees who retire at age 62 or older with at least 20 years of service receive 1.1% per year of service instead, producing a 10% larger lifetime annuity at the same service length.

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3. What happens to my FEHB coverage when I retire?

You keep FEHB coverage into retirement at the same rates active employees pay, but only if you have been continuously enrolled in FEHB for the five years immediately before your retirement date and qualify for an immediate annuity. If you don't meet the five-year rule, coverage typically ends at retirement.

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4. Can I collect FERS and Social Security at the same time?

Yes. FERS retirees collect their FERS annuity and Social Security benefits simultaneously because FERS employees pay into Social Security throughout their federal careers. According to the Social Security Administration, you can begin Social Security as early as age 62 at a reduced rate or wait until age 70 for the maximum benefit.

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5. What is the FERS Annuity Supplement and who qualifies?

The FERS Annuity Supplement is a monthly payment that approximates the Social Security benefit you earned during federal service. It is paid to retirees who retire with an immediate, unreduced annuity before age 62 and meet service requirements. The supplement stops at age 62 regardless of when you claim Social Security.

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6. How much should I contribute to my TSP before retirement?

At minimum, contribute 5% of basic pay to capture the full agency match. According to the Thrift Savings Plan, the 2026 elective deferral limit is $24,500. The standard catch-up limit is $8,000 for participants age 50 and older, with a higher $11,250 catch-up limit for eligible participants ages 60 through 63.

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