What happens to my FERS pension if I leave federal service early?

Rules checked October 18, 2026, against opm.gov

Your three choices when you leave

If you leave a FERS job before you can retire on an immediate annuity, OPM lists two paths for your basic benefit: take a refund of your retirement contributions, or, with at least five years of creditable service, wait and draw a monthly annuity later (OPM: Former employees). If you have 10 or more years, the "later" option splits into two flavors that matter a lot for insurance.

Your Thrift Savings Plan account is separate. It stays yours whichever choice you make (see TSP withdrawal options).

Deferred retirement

OPM says former FERS employees "may be eligible for a deferred annuity at age 62 or the Minimum Retirement Age" (OPM: Types of retirement). You need at least 5 years of creditable civilian service, and the annuity can start at:

Source: OPM: FERS eligibility. Your MRA is 55 to 57 depending on birth year. The annuity uses the normal formula: 1% of your high-3 for each year of service. The high-3 is based on the pay you earned before you left.

A deferred annuity has real limits:

• No FERS supplement. OPM says you are not eligible for the supplement "if you receive a deferred benefit."
• No sick leave credit. Credit for unused sick leave applies to people who leave with an immediate annuity (sick leave guide).
• No insurance. OPM says deferred annuitants are "not eligible to reenroll in any health benefits, life insurance coverage, or dental and vision benefits."
• You must apply. Payments don't start on their own. You file form RI 92-19 about 60 days before you want benefits to begin (OPM: RI 92-19 instructions).

Postponed MRA+10 retirement

If you have at least 10 years of service, including 5 civilian, you can use the MRA+10 rule after you leave. You pick a start date from your MRA onward. Starting at your MRA means a cut of 5/12 of 1% for each month you are under 62 (5% a year). OPM explains that "the longer you wait (up to 2 days before your 62nd birthday), the smaller the reduction." If you have 20 years and start at 60 or later, there's no cut at all (OPM: Postponing an MRA+10 annuity).

This is often called postponed retirement. The annuity amount is figured the same way as a deferred annuity. The big difference is insurance, below. OPM's FAQ also notes that if you die before filing, your family's rights are protected because you are treated as a retiree.

Health and life insurance

To carry the Federal Employees Health Benefits program (FEHB) into retirement, OPM generally requires that you were covered for the five years right before you retire, or for all of your service since your first chance to enroll (OPM: Keeping health insurance after retirement). Federal life insurance (FEGLI) has a similar five-year rule.

• Postponed MRA+10: coverage stops when you leave. When the annuity starts, OPM's RI 92-19 instructions say you may reenroll in FEHB and FEGLI if you were enrolled for the 5 years of service just before separation, or continuously since your first opportunity. OPM pays the government share of the premium again.
• Deferred: no return to FEHB, FEGLI or FEDVIP.
• In the gap: you can keep FEHB for up to 18 months under Temporary Continuation of Coverage (TCC), but you pay the full premium plus a 2% charge. Contact your former agency within 60 days of leaving.

Because the rules hinge on how OPM classifies your application, confirm in writing how your case will be handled before you resign. For coverage options in the gap years, see Health insurance before 65 and Keeping FEHB and FEGLI in retirement.

Taking a refund, and what you lose

You can ask OPM to return your FERS contributions with form SF 3106. Here's what the form's instructions and OPM's former-employee page say (OPM: SF 3106 instructions):

• You get only your own contributions. That's the 0.8%, 3.1% or 4.4% of pay you paid in, not your agency's much larger share.
• Interest is paid only if your service totals more than one year, at the rate on government securities. The contributions aren't taxable, but the interest is, and OPM withholds 20% of the interest unless you roll it over.
• You give up the annuity for that service. The form warns that a refund "will permanently eliminate your retirement rights" for the refunded service, unless you later return to federal service and repay it.
• Repaying later. OPM says people covered by FERS on or after October 28, 2009 may redeposit refunded FERS service if they come back. If you don't repay, the service still counts toward eligibility but not toward the annuity amount.
• Your spouse is notified. Current and former spouses must each complete SF 3106A to document notice. A refund also ends any former spouse's FEHB eligibility based on your service.
• Timing limits. No refund until 31 days after separation, and not within 31 days of the earliest date you could start any annuity.

For someone with only a few years, a refund can be reasonable. For someone with 10 or more years, it often means trading a lifetime annuity, and possibly retiree health coverage, for a small check.

Part-time service

Part-time years count fully for eligibility. OPM's handbook says "part-time service is creditable to the same extent as full-time service" when deciding whether you can retire (OPM: Handbook, Chapter 55).

The annuity amount is prorated. OPM computes the annuity as if you had worked full time, using the full-time rate of pay for your high-3, then multiplies it by a proration factor: the hours you actually worked divided by the hours you would have worked full time (2,087 hours a year for service after March 1, 1986), rounded to the nearest percent.

What to do next

1. Count your years. Know whether you have 5, 10, 20 or 30 years, and how much was part time.
2. Check your insurance history. Confirm five continuous years of FEHB and FEGLI before your last day.
3. Get it in writing. Ask HR for an estimate of a deferred or postponed annuity and confirmation of how insurance will work.
4. Think twice about a refund. Read the SF 3106 warnings before you sign.
5. Apply later. File RI 92-19 about 60 days before you want the annuity to begin.

General information, not advice. We aren't part of OPM. Ask your agency's HR office for a written estimate before you resign, and contact OPM about a deferred or postponed annuity after you leave.