Preparing for a well-deserved departure from active work life

Retiring from a federal job can be an exciting yet complex process. Here's a breakdown of the key aspects to consider when planning your retirement.

Firstly, eligible employees may participate in the Deferred Resignation Program (DRP) 1.0 or 2.0, the Voluntary Early Retirement Authority (VERA), or even the Discontinued Service Retirement (DSR) for Reduction in Force (RIF) employees.

When it comes to health and life insurance benefits, it's important to note that Federal Employees Health Benefits (FEHB) coverage can be transferred into retirement if you meet certain requirements. If you're not eligible for FEHB, you can opt for Temporary Continuation of Coverage. In such a case, you'll need to elect continuation of Federal Employees Group Life Insurance (FEGLI) coverage in retirement using SF 2818.

Flexible Spending Accounts (FSA), including Health Care FSAs, Limited Expense HCFSAs, and Dependent Care FSAs, will terminate upon separation or retirement. However, eligible health care expenses incurred prior to the date of separation will be reimbursed, and the Dependent Care FSA balance can be used until depleted or end of the calendar year.

To learn more about reductions that can affect your taxable income and after-tax withholdings, it's recommended to review old resources. Additionally, retirement training offered by agencies is highly recommended.

Potential reductions to your retirement include age reduction for a FERS MRA + 10 retirement, survivor benefit elections, court-ordered apportionment of your retirement, pro-ration of your retirement for periods of part-time federal employment, and a possible reduction for the Alternative Form of Annuity if retiring with a life-threatening illness.

To apply for retirement, request a retirement application package from your benefits office or learn how to submit electronically. As a reminder, effective June 2, 2025, all retirement cases must be submitted electronically via OPM's Online Retirement Application (ORA).

It's crucial to compute your estimated retirement income, which requires understanding the math involved and documenting your service history. Missing records can cause delays in retirement processing and may result in service not being credited for eligibility or computation of Civil Service Retirement System (CSRS) or Federal Employees Retirement System (FERS) retirement benefit.

Lastly, for FERS, use SF 3107, and for CSRS, use SF 2801. If you're seeking additional resources, visit www.opm.gov/retire for more information.

For those in Germany, various organisations offer retirement training, such as HELP Akademie and local courses via the DigitalAgenda Age map for digital skills training for seniors.