When Can You Retire?
Four paths to an immediate pension — find which one you hit first.
SCE Employees (Law Enforcement, Firefighters, CBP)
Special Category Employees have two paths to an immediate, unreduced pension:
Path 1: 25 years of service at any age
Path 2: 20 years of service + age 50
Example: A CBP officer who started at 25 hits Path 1 at age 50 with 25 years of service. If they started at 35, they hit Path 2 at age 55 with 20 years of service. Either way, the pension rate is 34% for the first 20 years plus 1% for each additional year.
Non-SCE Employees (Standard FERS)
Three paths to an immediate, unreduced pension:
Path 1: MRA + 30 years of service — immediate unreduced
Path 2: Age 60 + 20 years of service — immediate unreduced
Path 3: Age 62 + 5 years of service — immediate unreduced + the 1.1% bonus rate
The 1.1% bonus: If you retire at 62 or later with 20+ years of service, your pension rate jumps from 1.0% to 1.1% per year. On a $100,000 high-3 salary with 25 years, that's $27,500/year instead of $25,000 — an extra $2,500 every year for life.
The Reduced Option (MRA + 10)
Non-SCE employees can retire at their Minimum Retirement Age with just 10 years of service — but your annuity is permanently reduced.
The penalty: 5% reduction for each year you're under age 62. This is permanent — it never goes away, even after you turn 62.
Retiring at MRA of 57 means a 25% permanent cut. Whether that's worth it depends on the math.
Deferred Benefit (The Safety Net)
If you leave federal service after 5 or more years without meeting any of the above, you're still entitled to a deferred annuity starting at age 62.
The rate is 1% of your high-3 salary per year of service. Ten years on a $90,000 salary means $9,000/year starting at 62.
Don't withdraw your contributions. If you take a refund of your retirement contributions when you leave, you forfeit the deferred annuity entirely.
Example Scenarios
Early Career (Age 28, 3 years of service)
Earliest unreduced: MRA + 30 at age 55 (with 30 years). That's 27 more years. Alternatively, age 60 + 20 at age 45 (17 more years) — whichever comes first. In this case, the age 60 + 20 path wins at age 48 with 23 years.
Mid-Career (Age 42, 15 years of service)
MRA + 30 at age 57 (15 more years). Age 60 + 20 at age 47 (5 more years). The age 60 path wins — eligible at age 47 with 20 years, but must wait until 60. Practical answer: retire at 60 with 33 years.
Late Starter (Age 50, 6 years of service)
Won't hit 20 years until age 64, won't hit 30 until age 74. Best path: age 62 + 5 years — eligible at 62 with the 1.1% bonus rate. Could also go MRA + 10 (reduced) as early as age 57 with 13 years.