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I know there are several retired Federal employees here and I thought they might know the answer. If you are a FERS employee and take retirement at the minimum retirement age (MRA), do you get retirement healthcare when you retire (right away) or do you get it later at a certain age? I've heard several different answers and thought some of you might know. Thx.
If eligible for retirement and you get a pension, I don't see why there would be a problem. I did. You do have to pay whatever the retiree amount is though.
A co-worker went to a retirement seminar and was told (she at least claims this) that you can take the MRA but healthcare is deferred until a certain age. I never heard this and don't believe it to be true. The agency hires contractors to facilitate these retirement seminars, and some are not well-versed on OPM rules, regs, etc
If you meet the MRA I believe you are eligible for healthcare, but you have had to have coverage for 5 years to be vested to take it into retirement.
There are exceptions but that is absolutely true.
Quote:
Originally Posted by MtMtnMan
A co-worker went to a retirement seminar and was told (she at least claims this) that you can take the MRA but healthcare is deferred until a certain age. I never heard this and don't believe it to be true. The agency hires contractors to facilitate these retirement seminars, and some are not well-versed on OPM rules, regs, etc
The healthcare is continued until there is a change in status like a veteran who can take Tricare. This is usually only with guard and reservists. Once you reach age 60 you can suspend federal healthcare and try out Tricare. If you cancel then you would lose it entirely. I am not sure if these answers those questions. If you have specific questions I can answer out here in the forum or in private message.
It sounds like the co-worker is talking about someone who meets the MRA but does not have enough years for immediate retirement (e.g., MRA with 30 years of service, age 60 with 20 years, or age 62 with 5 years). If one has at least 10 years of service and wants to retire or leave the government at MRA, they can take Postponed Retirement. There are 2 options: 1) take the FERS pension now but it is reduced 5% for each year under age 62 and they get no FEHB in retirement; or, 2) postpone the FERS pension until age 62 with no reduction and they can then elect to re-enroll in FEHB assuming that they were enrolled in FEHB for at least 5 years prior to their separation from the government.
I suspect she is talking about the second option.
And yes, you can also suspend your FEHB upon immediate retirement and then re-enroll at a later date if desired.
Note: If the person "retiring" at MRA has at least 20 years of service, I think the numbers above change to 60 (e.g., option 1 has the pension reduced 5% for each year under 60). But don't quote me on that.
It sounds like the co-worker is talking about someone who meets the MRA but does not have enough years for immediate retirement (e.g., MRA with 30 years of service, age 60 with 20 years, or age 62 with 5 years). If one has at least 10 years of service and wants to retire or leave the government at MRA, they can take Postponed Retirement. There are 2 options: 1) take the FERS pension now but it is reduced 5% for each year under age 62 and they get no FEHB in retirement; or, 2) postpone the FERS pension until age 62 with no reduction and they can then elect to re-enroll in FEHB assuming that they were enrolled in FEHB for at least 5 years prior to their separation from the government.
I suspect she is talking about the second option.
And yes, you can also suspend your FEHB upon immediate retirement and then re-enroll at a later date if desired.
Note: If the person "retiring" at MRA has at least 20 years of service, I think the numbers above change to 60 (e.g., option 1 has the pension reduced 5% for each year under 60). But don't quote me on that.
After reading the OP I agree that you are probably right that they are looking at an MRA+10 retirement. If that is the case they can pick up healthcare as you said in your two scenarios.
OP here is the link to the information that should answer those questions.
These OPM rules are complicated and the OPM website explanation is not that good in my opinion. You generally have to go to FedSmith or other online sources to get examples. In my above posting I may be incorrect on Postponed Retirement. If you retire at MRA +10, you can continue FEHB in retirement if you take the 5% a year reduction. If you postpone getting your pension until 62 (or 60 if you have at least 20 years of service) with no reduction, your FEHB can start up again once you start taking your pension at 60 or 62 but will not have FEHB in the interim.
There is another retirement where you forfeit your FEHB called Deferred Retirement (e.g., have less than 10 years of service). The differences between Deferred Retirement and Postponed Retirement can be complicated. But Postponed Retirement is a better deal.
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