FEHB Eligibility or Age: What Really Decides When Federal Employees Can Retire?

Key Points

‍

• Who this affects

‍
U.S. federal employees planning retirement, especially those approaching MRA, considering MRA+10, or assuming FEHB is automatic with a pension.

‍

• What changed

‍
Nothing in the law—but a common misunderstanding is clarified: pension eligibility (age + service) and FEHB eligibility (5 years of continuous coverage) are governed by entirely different rules and timelines.

‍

• What action is required

‍
Confirm that your retirement date aligns with both pension eligibility and completion of the five-year FEHB continuous enrollment requirement. Plan carefully if considering MRA+10, as delaying a pension does not preserve FEHB.

‍

• What happens if ignored

‍
You may qualify for a pension but permanently lose FEHB in retirement, forcing you into costly private health insurance and potentially delaying or derailing your retirement plans.

‍

‍

In reality, retirement is shaped by two parallel systems working side by side. One determines when you can start receiving your pension. The other determines whether you can keep your health insurance for life. Many employees qualify for a pension and still cannot retire comfortably because their Federal Employees Health Benefits coverage is not protected.

‍

This distinction is critical. 

‍

Age and years of service decide when your pension begins, but FEHB eligibility depends on something entirely different: continuous enrollment. 

Understanding how these two systems operate together is what allows federal employees to retire with confidence rather than compromise.

Below is a clear breakdown following the exact framework that governs federal retirement decisions.

‍

Retirement Eligibility (Pension)

‍

Federal employee retirement eligibility is primarily determined by age and years of creditable service. These two factors work together to decide when you can begin receiving an immediate pension, when benefits are reduced, or when retirement may need to be postponed.

‍

Under the Federal Employees Retirement System, common combinations that allow immediate retirement include

‍

• Age 62 with at least 5 years of service
• Age 60 with at least 20 years of service
• Minimum retirement age with 30 years of service

‍

These combinations unlock an unreduced immediate pension. Once eligible, you can leave federal service and start receiving monthly retirement income.

‍

There is also an option known as MRA plus 10. This allows employees who reach their minimum retirement age with at least 10 years of service to retire earlier, but with reduced benefits.

‍

Important characteristics of MRA plus 10 retirement include

‍

• Pension is permanently reduced based on age
• Reduction can be avoided by delaying the pension start date
• Retirement eligibility exists, but benefits are not optimized

‍

From a pension standpoint, age and service years are the gatekeepers. If you meet the criteria, the system allows you to retire. However, pension eligibility alone does not account for healthcare, which is often the most expensive and unpredictable cost in retirement.

‍

FEHB Eligibility for Retirees

‍

The Federal Employees Health Benefits Program is not automatically guaranteed just because you qualify for a pension. FEHB follows its own rules, and these rules are often the real reason federal employees delay retirement.

‍

To carry FEHB into retirement, two conditions must be met

• You must be enrolled in FEHB on the day you retire
• You must have been continuously covered under FEHB for the five years immediately before retirement or for your entire federal career if less than five years

‍

This five-year requirement is absolute in most cases. It is not tied to your age. It is not tied to your pension eligibility. It is tied only to continuous FEHB enrollment.

‍

What counts toward the five-year requirement

• Self-only or family FEHB plans
• Coverage under a spouse’s FEHB plan
• Continuous enrollment without unapproved breaks

‍

What does not count

‍

• Private insurance outside FEHB
• Temporary continuation of coverage after separation
• Gaps in FEHB enrollment without approved exceptions

‍

If you retire without meeting the FEHB requirement, you lose the ability to carry FEHB into retirement permanently. There is no option to re-enroll later.

‍

This is why many federal employees who are fully eligible for a pension still cannot afford to retire.

‍

The Federal Employees Health Benefits Program is not automatically guaranteed just because you qualify for a pension. FEHB follows its own rules and is often misunderstood by retirees (see Federal Employee Health Benefits After Retirement: Eligibility, Key Benefits, and Pitfalls to Avoid).

‍

The Key Difference: Pension vs. FEHB

‍

The most important concept for federal employees to understand is that pension eligibility and FEHB eligibility are governed by different rules and timelines.

‍

Pension eligibility is decided by age and years of service. FEHB eligibility is decided by participation history.

‍

This difference becomes especially important in MRA plus 10 retirement scenarios.

‍

Under MRA plus 10, an employee may choose to retire at the minimum retirement age with at least 10 years of service and then delay their pension to reduce or eliminate penalties. However, FEHB does not work the same way.

‍

If you retire under MRA plus 10 and delay your pension

• FEHB coverage stops when you separate
• FEHB does not automatically restart when the pension begins
• The five-year rule does not protect you if coverage is interrupted

‍

This means an employee could be eligible for a future pension but permanently lose FEHB because of timing.

‍

In simple terms

• Service years decide pension eligibility
• Continuous FEHB enrollment determines healthcare eligibility
• Delaying a pension does not preserve FEHB

‍

This is where many retirement plans break down.

‍

‍

How This Plays Out in Real Life for Federal Employees

‍

Across federal agencies in the United States, many employees reach a point where pension eligibility arrives before FEHB readiness.

‍

Common scenarios include

‍

• An employee meets the age of 60 with 20 years but enrolled in FEHB only four years ago
• A worker qualifies for MRA plus 10 but cannot afford to lose FEHB coverage
• A federal employee retires early, assuming FEHB will restart later with the pension

‍

In each case, age and service create the illusion of readiness, while FEHB rules quietly say otherwise.

‍

Because healthcare costs in the U.S. can be high, retiring without FEHB often means relying on expensive private insurance until Medicare eligibility at age 65. For many retirees, this gap alone makes early retirement financially unrealistic.

‍

Why FEHB Often Becomes the Final Decision Maker

‍

In theory, age opens the retirement door, and service years unlock the pension. In practice, FEHB decides whether walking through that door is safe.

‍

FEHB offers

• Continued government contribution toward premiums
• Stability in healthcare costs
• Nationwide plan access
• Coordination with Medicare later in retirement

‍

Without FEHB, retirees face uncertainty at a time when medical needs typically increase.

‍

This is why many federal employees choose to work longer than required for pension purposes. They are not chasing a higher pension. They are protecting lifelong healthcare coverage.

‍

Planning Retirement the Right Way

‍

To retire successfully, federal employees must align both systems at the same time.

‍

Key questions to ask include

‍

• When do I meet the age and service requirements for an immediate pension
• Will I complete five full years of FEHB coverage by that date
• If considering MRA plus 10, how will FEHB be affected
• Can I afford healthcare costs without FEHB if I retire earlier

‍

When pension eligibility and FEHB eligibility align, retirement becomes a strategic decision rather than a forced delay.

‍

Final Thoughts

‍

After working closely with federal employees across the United States, one truth becomes very clear. Most retirement mistakes are not caused by a lack of savings or a late career. They are caused by poor timing and an incomplete understanding of benefits. Age does not derail retirement plans, but misalignment does.

‍

This is where Federal Pension Advisors makes the difference. Whether you are ready to retire now, need to fine-tune your timing, or must make a few critical adjustments to protect lifelong benefits, we show you the smartest way forward with clarity and confidence.

‍

Schedule a consultation today and begin your journey toward a secure retirement.

‍

‍

Frequently Asked Questions

‍

1. Is retirement eligibility for federal employees based only on age?

‍
No. Retirement eligibility under FERS depends on a combination of age and years of creditable service. Meeting an age requirement alone does not guarantee an immediate or unreduced pension.

‍

2. What are the main age and service combinations for an immediate FERS retirement?

‍
Common combinations include:

• Age 62 with at least 5 years of service
• Age 60 with at least 20 years of service
• Minimum Retirement Age (MRA) with 30 years of service
  These allow an unreduced, immediate pension.
  ‍

3. What is MRA plus 10 retirement?

‍
MRA plus 10 allows federal employees to retire at their minimum retirement age with at least 10 years of service. However, the pension is permanently reduced unless the start date is delayed.
‍

4. Does qualifying for a pension automatically allow me to keep FEHB in retirement?

‍
No. FEHB eligibility is separate from pension eligibility. You must meet specific FEHB enrollment rules to carry health insurance into retirement.

‍

5. What is the five-year FEHB rule?

‍
To keep FEHB in retirement, you must:

• Be enrolled in FEHB on the day you retire, and
• Have been continuously enrolled in FEHB for the five years immediately before retirement (or your entire federal career if less than five years).
  ‍

6. What counts toward the five-year FEHB requirement?

‍
Qualifying coverage includes:

• Self-only or family FEHB plans
• Coverage under a spouse’s FEHB plan
• Continuous enrollment without unapproved breaks
  ‍

7. What does NOT count toward FEHB eligibility?
The following do not count:

• Private health insurance outside FEHB
• Temporary Continuation of Coverage (TCC) after separation
• Gaps in FEHB enrollment without approved exceptions
  ‍

8. Can FEHB be reinstated later if I retire without meeting the five-year rule?
No. If you retire without meeting the FEHB eligibility requirements, you permanently lose the ability to carry FEHB into retirement.
‍

9. How does MRA plus 10 affect FEHB coverage?
Under MRA plus 10, if you retire and delay your pension:

• FEHB coverage stops at separation
• FEHB does not restart when the pension begins
  Delaying a pension does not preserve FEHB.
  ‍

10. Why do some federal employees delay retirement even when pension-eligible?
Many employees delay retirement to complete the five-year FEHB requirement, ensuring they can keep affordable, government-subsidized health insurance for life.

‍

Disclaimer

‍

This article is intended for informational and educational purposes only and should not be construed as financial, legal, or retirement advice. Federal pay rules, retirement benefits, and pension calculations are governed by federal law and agency-specific regulations and may vary based on individual circumstances, employment status, retirement system, and timing.

‍

‍