Voluntary Early Retirement (VERA): Questions to Ask Before You Decide

What is VERA (Voluntary Early Retirement Authority)?

VERA allows eligible federal employees to retire early without the usual FERS early retirement penalty. However, it’s not a one-size-fits-all solution.

? Biggest Benefit? Unlike standard early retirement under FERS, VERA retirees do not face the 5% per year penalty for retiring before age 62.

However, before accepting VERA, employees should evaluate how staying in federal service aligns with their career, mission, and impact goals.

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Who is Eligible for VERA?

To qualify for VERA, you must: ? Have at least 20 years of service at age 50 OR 25 years of service at any age. ? Hold a position within an agency offering VERA due to downsizing, restructuring, or reorganization. Not all agencies are offering VERA. ? Leave federal service while VERA is in effect.

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Questions to Ask Before Accepting VERA

Financial & Retirement Considerations

?? What is the required effective date for my agency’s VERA offer, and by what date must I be off the agency’s rolls to be eligible?

??How will my pension compare if I take VERA now vs. working a few more years?

?? Will I qualify for the FERS Annuity Supplement, or will I have to wait until my MRA?

?? How much will my supplement be, and will it be reduced by outside earnings?

?? Do I need a Voluntary Separation Incentive Payment (VSIP) to make this financially viable?

?? What happens to my income once the supplement stops at age 62?

?? Am I financially prepared for the transition from the supplement to Social Security?

?? Should I delay taking Social Security until after age 62 to maximize by benefits?

?? How will early retirement impact my Federal Employees Health Benefits (FEHB) and life insurance?

?? What are my post-retirement employment plans, and how will the earnings test affect me?

?? Should I withdraw from my TSP immediately, or delay withdrawals to avoid penalties?

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Mission, Impact & Personal Fulfillment Questions

?? Does my current work align with my personal mission and purpose?

?? What impact am I making on the American people through my agency’s work?

?? Would retiring now feel like leaving unfinished business, or is it the right time to transition

?? How would my knowledge, expertise, and mentorship contribute to my agency if I stayed

?? Would I miss the daily sense of purpose and structure that federal service provides?

?? Would staying longer allow me to complete a project or initiative that matters to me?

?? Am I walking away from a leadership or mentorship role that could inspire future leaders?

How Does the FERS Supplement (Social Security Bridge) Work for VERA Retirees?

If you retire under VERA and have reached your MRA, you are eligible for the FERS Annuity Supplement (often called the Social Security Bridge).

However:

• Employees who retire before their MRA must wait until reaching MRA to receive the supplement.
• The supplement stops at age 62, whether or not you claim Social Security.
• An earnings test applies—if you earn more than $22,320 (2024 limit) in non-federal wages, the supplement is reduced by $1 for every $2 earned over the limit.

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Additional Considerations for VERA Retirees

1. Voluntary Separation Incentive Payment (VSIP): Some VERA retirements come with a buyout (VSIP), typically up to $25,000, providing extra financial security.
2. Federal Employees Health Benefits (FEHB): If you’ve been covered for at least 5 years, you can continue FEHB in retirement.
3. COLAs (Cost-of-Living Adjustments): Like standard FERS retirement, VERA retirees do not receive COLAs until age 62.
4. Thrift Savings Plan (TSP) Withdrawals: If retiring at 55 or older, you can withdraw from TSP penalty-free. Retiring before age 55 may trigger an early withdrawal penalty.

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Resources for More Information

?? Office of Personnel Management (OPM) Retirement Services ?? https://www.opm.gov/retirement-services/

?? Social Security Administration (SSA) ?? https://www.ssa.gov/

?? FERS Supplement Calculation Guide ?? https://www.opm.gov/retirement-services/fers-information/types-of-retirement/

?? Thrift Savings Plan (TSP) Withdrawal Options ?? https://www.tsp.gov/

?? Tip: Employees should consult their HR department, a federal retirement specialist, and a financial advisor to get a personalized retirement estimate.

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Final Thoughts: Should You Take a VERA?

A VERA retirement can be a great opportunity to leave federal service early without the 5% per year penalty, but it's essential to consider long-term financial impacts.

More importantly, it’s not just about financial security—it’s about personal mission, purpose, and professional fulfillment.

?? Are you considering VERA? What concerns do you have? Drop your questions in the comments!

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#FERS #FederalRetirement #RetirementPlanning #PublicService #CareerDecisions #FinancialPlanning #GovernmentJobs #Leadership #WorkLifeBalance #MissionDrivenLeadership

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GovExec Article: OPM Will Grant VERA Authority: https://www.govexec.com/workforce/2025/01/opm-will-grant-vera-authority-all-agencies-confusion-around-deferred-resignation-program-continues/402662/?oref=govexec_news_alert_nl&utm_source=Sailthru&utm_medium=email&utm_campaign=GovExec%20Alert:%20Jan.%2031%2C%202025&utm_term=newsletter_ge_alert