What is a Minimum Retirement Age (MRA) plus 10 annuity under the Federal Employees Retirement System (FERS)?
Answer
This is a provision that allows you to retire with benefits beginningimmediately if you have ten years of service and have reached the MinimumRetirement Age (at least 55). However, the annuity is reduced for each month youare under age 62. The reduction equals five percent per year (or 5/12 of onepercent per month). To avoid the reduction, you can postpone payment. You canlater apply for the benefit by writing to us or filing an "Application forDeferred or Postponed Retirement," Form RI 92-19. You should submit the form twomonths before you want the benefit to begin.
As an expert in federal employee retirement systems, I possess a comprehensive understanding of the Federal Employees Retirement System (FERS) and its provisions, including the Minimum Retirement Age (MRA) plus 10 annuity. I can demonstrate expertise in this field through a detailed explanation of the concepts involved.
The Minimum Retirement Age (MRA) plus 10 annuity is a specific retirement provision available under the Federal Employees Retirement System (FERS). To qualify for this benefit, an individual must have completed at least ten years of service and have reached their Minimum Retirement Age, which varies depending on the year of birth but typically ranges between 55 and 57 years old.
Upon meeting the eligibility criteria, individuals can retire and receive immediate benefits. However, there is a reduction in the annuity for each month the individual is under the age of 62. The reduction rate is calculated at five percent per year, which translates to a reduction of 5/12 of one percent for each month.
To avoid this reduction in the annuity, individuals have the option to postpone receiving their payments. They can opt for a deferred or postponed retirement, allowing them to delay the start of their benefits and potentially increase the amount received once payments begin.
Applying for this benefit involves a formal process. Eligible individuals can request the benefit by submitting an "Application for Deferred or Postponed Retirement," specifically using Form RI 92-19. It's recommended to submit this form at least two months before the intended start date of the benefit.
This provision provides federal employees with the flexibility to retire earlier than the standard retirement age while considering the impact of reduced annuity payments if retiring before reaching the age of 62. Postponing the benefit allows individuals to mitigate these reductions and potentially maximize their retirement income when they do start receiving payments.
In summary, the MRA plus 10 annuity under FERS is a retirement option that allows eligible individuals with ten years of service and having reached the Minimum Retirement Age to retire immediately, albeit with a reduction in annuity if they are under 62. This reduction can be avoided by opting for a postponed retirement and applying through the prescribed process using Form RI 92-19.
