Updated: August 28, 2026

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Federal employees who separate face two overlapping timelines. The Office of Personnel Management processes the FERS annuity file. The Thrift Savings Plan recordkeeper handles the TSP account. These files never touch each other, but the type of FERS retirement drives income sequencing decisions that many separated employees make about the TSP.

This page documents the three main FERS retirement paths defined by OPM: immediate, MRA+10, and deferred. It also covers Discontinued Service Retirement for involuntary separations. Each pathway is described with its OPM eligibility rules, its annuity commencing date, and how TSP timing interacts. No advice on which pathway to elect, and no advice on when to start TSP distributions.

Table of contents show

The MRA table and why it matters for every pathway

The Minimum Retirement Age is the first number to fix. Every FERS pathway except age-62-with-5-years is anchored to the MRA. Per the OPM MRA table, the MRA slides by birth year.

Employees born before 1948 have an MRA of 55. Employees born 1953 through 1964 have an MRA of 56. The scale continues in two-month increments for later birth years. Employees born in 1970 or later have an MRA of 57. Everyone else falls somewhere on the sliding scale between 55 and 57.

The MRA fixes two things. First, it sets the earliest date you can elect an immediate annuity under the MRA+30 or MRA+10 rules. Second, it sets the earliest date the FERS Special Retirement Supplement can begin paying if you retired involuntarily before your MRA.

Immediate retirement: annuity starts within 30 days

OPM defines an immediate annuity as one that begins within 30 days of separation from federal service. Three age and service combinations qualify for a voluntary immediate FERS annuity with no age reduction.

Age 62 with 5 years of creditable civilian service
Age 60 with 20 years of creditable service
MRA with 30 years of creditable service (called MRA+30)

All three produce an unreduced FERS annuity. The basic FERS annuity formula is 1 percent of high-3 average salary per year of service. If the employee is age 62 or older at separation with 20 or more years of service, the multiplier rises to 1.1 percent per year of service. These formulas are documented in the OPM FERS computation guidance.

The Special Retirement Supplement is available under immediate retirement, subject to reaching MRA. The supplement bridges the FERS annuity to Social Security age 62, and it stops when the retiree turns 62 whether or not they file for Social Security. Coverage of the SRS mechanics lives on our page on the FERS Special Retirement Supplement and TSP coordination.

TSP interaction under an immediate FERS retirement is a separate decision. The separated participant can leave the TSP balance in place if it is $200 or more, elect one of the four documented distribution methods, or roll over to another eligible retirement plan or IRA. Nothing in the FERS annuity election gates the TSP menu.

MRA+10 retirement: annuity starts now, with an age reduction

An employee who reaches MRA with at least 10 years but fewer than 30 years of service can elect MRA+10 retirement. This is an immediate annuity, but it comes with an age reduction. Per OPM, the annuity is reduced by 5/12 of 1 percent for each month the annuitant is under age 62 on the commencing date. That works out to 5 percent per year under 62.

The reduction stacks fast. An employee with an MRA of 57 who elects MRA+10 at 57 faces 60 months under 62, which produces a 25 percent permanent annuity reduction. The same employee waiting to age 60 faces 24 months under 62, or a 10 percent reduction. Waiting to 62 eliminates the reduction entirely.

The figure below plots the MRA+10 age reduction against the commencing age, assuming an MRA of 57 (the modern MRA for employees born 1970 or later).

Bar chart showing FERS MRA+10 permanent annuity reduction by annuity commencing age. Starting at MRA 57 the reduction is 25 percent. At age 58 it is 20 percent. At age 59 it is 15 percent. At age 60 it is 10 percent unless the annuitant has 20 or more years of service in which case the reduction is 0. At age 61 the reduction is 5 percent. At age 62 the reduction is 0. — Figure 1. FERS MRA+10 permanent annuity reduction by commencing age, assuming MRA of 57. Source: OPM FERS types-of-retirement, MRA+10 age reduction rule of 5 percent per year under age 62.

OPM allows the employee to postpone the MRA+10 commencing date. The retirement itself is filed at separation, but the annuity payments start later, chosen by the annuitant. The commencing date can be any date between MRA and two days before the 62nd birthday.

One special provision waives the age reduction. If the employee has 20 or more years of creditable service and elects a commencing date at age 60 or later, the age reduction is eliminated entirely. This is the classic MRA+10 postponement play for employees with 20 to 29 years of service.

Two carryover consequences apply during any postponement gap. First, life insurance under FEGLI terminates at separation and can only reinstate when the postponed annuity begins. Second, the Special Retirement Supplement is not payable under MRA+10 in any form, whether the annuity starts immediately at MRA or is postponed to age 60 or 61.

TSP timing under MRA+10 is not tied to the annuity commencing date. A 57-year-old who separates and postpones the FERS annuity to age 60 can still access the TSP account the day separation lands at the recordkeeper. The TSP menu opens on the SF-50 separation code, not on any OPM decision.

Deferred retirement: no annuity now, no health carryover

A former federal employee who separates before being eligible for any immediate FERS annuity may still qualify for a deferred annuity. Per OPM, three deferred pathways apply.

At least 5 years but fewer than 10 years of creditable service: deferred annuity payable at age 62
At least 10 years but fewer than 30 years of service: deferred annuity payable at MRA under the MRA+10 rule, with the 5 percent per year reduction under 62 (postponement to age 60 with 20 years waives the reduction)
30 or more years of service: deferred annuity payable at MRA with no age reduction (this is the MRA+30 rule for former employees who did not file an immediate annuity at separation)

Deferred retirement is filed later, when the former employee is ready to claim the annuity. OPM asks for the application through the Online Retirement Application platform at least 60 days before the desired commencing date. The FERS annuity for a deferred retiree is computed on the length of service and the high-3 average salary in effect at separation, with no COLA adjustment during the deferral period.

Two carryover losses apply to deferred retirement. First, unused sick leave at separation is not creditable for eligibility or computation. Second, the former employee cannot reinstate FEHB health coverage or FEGLI life insurance under a deferred annuity. Both carryover options require an immediate or postponed retirement.

The Special Retirement Supplement is not payable under deferred retirement in any form. This is a common surprise for former federal employees who left service in their 40s or early 50s and later realize the SRS was never on the table.

TSP timing under deferred FERS is again independent. A former employee who left federal service at 45 with 15 years of service can begin TSP distributions the moment the SF-50 lands at the recordkeeper. The general 10 percent early-distribution tax under IRC 72(t) still applies to withdrawals before age 59 and a half. The deferred FERS annuity waiting until MRA or age 62 does not push the TSP clock.

Discontinued Service Retirement: involuntary separation, immediate annuity

DSR is an OPM designation for employees separated involuntarily. The most common trigger is a reduction in force. Another qualifying event is a mandatory geographic reassignment declined by the employee. DSR provides an immediate FERS annuity if age and service tests are met.

Age 50 with 20 years of creditable service
Any age with 25 years of creditable service (at least 5 years must be civilian)

The pure FERS portion of the DSR annuity is unreduced. Employees with no CSRS component face no age reduction under DSR. If the annuitant has a CSRS component from earlier service, that CSRS portion carries a reduction of 1/6 of 1 percent per month. The CSRS reduction applies for every month the commencing date precedes age 55.

The Special Retirement Supplement is available under DSR, but not until the annuitant reaches MRA. A 50-year-old with 20 years of service who takes DSR receives the FERS basic annuity immediately, then the SRS layer switches on at MRA and continues until age 62.

An illustrative example: a 58-year-old with 25 years of service separated in an agency reduction in force elects DSR. The immediate FERS annuity starts within 30 days. The FERS SRS begins at MRA. The TSP account is available for distribution decisions the moment the SF-50 hits the recordkeeper, independent of the DSR paperwork at OPM.

The TSP track runs in parallel to the FERS annuity track

The core doctrine to grasp: the FERS annuity and the TSP account are separate income streams. OPM calculates and pays the FERS annuity. The TSP recordkeeper calculates and pays TSP distributions. Neither system asks the other for permission.

What this means in practice: the type of FERS retirement drives when the FERS annuity income begins, not when TSP distributions can begin. A separated participant with a $200 or greater TSP balance can leave the account in place indefinitely, take one of the four documented distribution methods, or roll over to another eligible retirement plan or IRA. Under IRC 408(m)(3), a self-directed IRA holding IRS-approved precious metals is one of the documented rollover destinations for a retirement plan participant.

The one narrow point of coordination is income sequencing. A separated federal employee electing MRA+10 with a postponed commencing date has no FERS income during the gap years. Some retirees in that gap draw from the TSP to bridge the years until the postponed annuity starts. Others draw down IRAs, personal savings, or (if RIF-eligible) DSR pathways. The choice is the participant’s, and OPRS does not recommend one drawdown order over another.

Quick reference by pathway

Pathway	Eligibility	Annuity start	Age reduction	SRS eligible
Immediate 62+5	Age 62 with 5 yrs	Within 30 days	None	No (already 62)
Immediate 60+20	Age 60 with 20 yrs	Within 30 days	None	Yes, until 62
Immediate MRA+30	MRA with 30 yrs	Within 30 days	None	Yes at MRA, until 62
MRA+10	MRA with 10 to 29 yrs	Now or postponed	5% per year under 62	No
Deferred (5-9 yrs)	Separated pre-eligibility	Age 62	None	No
Deferred (10-29 yrs)	Separated pre-eligibility	MRA (reduced)	5% per year under 62	No
DSR	Age 50+20 or Any+25 (involuntary)	Within 30 days	FERS portion none	Yes at MRA

Where the FERS pathway does interact with TSP planning

The FERS pathway and TSP decisions do not touch each other operationally. But the FERS pathway sets the FERS income profile, which is one of the inputs a separated employee considers when thinking about TSP timing.

An MRA+30 retiree at 57 has full FERS annuity plus SRS from day one. A deferred retiree at 45 with 15 years has no FERS income until MRA at the earliest. A DSR retiree at 52 with 22 years has FERS basic annuity now and SRS from MRA. These three profiles have very different income trajectories, and each shapes the reader’s TSP decision differently.

The mechanics of TSP loans, direct versus indirect rollovers, RMD triggers, and the four documented TSP distribution methods live on their own pages. This page has stayed on the OPM annuity side. Do not use anything here as advice on when to take a FERS annuity or when to start TSP distributions. Confirm every specific eligibility question with OPM directly or with a fee-only fiduciary who works with federal employees.

Updated August 28, 2026.

FERS Immediate, MRA+10, and Deferred Annuities: How Each Interacts With Your TSP Timing