FERS, TSP and Leaving a Federal Job Before Retirement Age

Not everyone who starts a federal career will end up still being a federal employee at the time they retire. I remember when I started as a federal employee; I thought my job (city letter carrier) was going to be but a stop on my career journey. Twenty-six years later, I retired from Treasury as a federal employee. But that’s not the path all new-hires take; many of them end up leaving the federal government at some time, maybe soon after hiring on, or maybe half-way through their work life. This article is directed to those who think they will leave federal employment at some point prior to retirement and will discuss what happens to their FERS retirement and their Thrift Savings Plan.

If, when you separate from federal service, you have at least five years of civilian service, you will be entitled, at some future date, to a deferred annuity under FERS. It is almost always better to leave your FERS contributions on deposit with OPM than to withdraw them. With as little as five years of service, you will be entitled to the deferred annuity at the age of 62. Click HERE to read more.