Pension?

Amandamarie29

New member
Does anyone know how long you must be a full time carrier to qualify for your pension? I’ve heard people say both 5 and 10 years. Thanks!
 

Altoonaflyer

Active member
You can retire at your Minimum Retirement Age (MRA) w 30 years in
@ 62 with 5 years in
@ 60 with 20 years in
Your MRA depends on when you were born...
If you retire at the MRA with at least 10, but less than 30 years of service, your benefit will be reduced by 5 percent a year for each year you are under 62, unless you have 20 years of service and your benefit starts when you reach age 60 or later.

Your pension won’t amount to much at all if you don’t have at least 20 years...if you plan on working less, put all you can into the TSP and/or a Roth IRA
 

Amandamarie29

New member
I understand the MRA. I’m asking more as if I wanted to leave the post office before retirement age. How many years do you have to put in to qualify for a pension (understand that the pension wouldn’t amount to much, but you’d at least have one).
 

Charlie Brown

Well-known member
I understand the MRA. I’m asking more as if I wanted to leave the post office before retirement age. How many years do you have to put in to qualify for a pension (understand that the pension wouldn’t amount to much, but you’d at least have one).
As long as you have 5 years as a regular you could leave the USPS prior to age 62 and defer the retirement.
 

Amandamarie29

New member
As long as you have 5 years as a regular you could leave the USPS prior to age 62 and defer the retirement.
Ok thank you. The reason I ask is because I’m finishing my degree and I have 4.5 years in as a full time regular right now. I don’t want to leave the post office and then find out I was close to qualifying for a pension.
 

btdtret

Well-known member
Amandamarie29 -- The July 2016 issue of the national magazine had an article titled "Am I Ready To Retire?"

-- If a NRLCA member, you should be able to find that issue in the "archive" section of "magazine" inside the NRCLA home page.

-- If not a member, ask someone who is to get it for you.

-- Or ask someone in the office if they kept that issue or the article.

-- Or search for "retire" in RI's KNOWLEDGEBASE Section to get that article.

" I’m finishing my degree and I have 4.5 years in as a full time regular right now. "

-- Congratulations on the degree. Hopefully you use the degree to get a better paying, better treatment by manglement position elsewhere.

-- If somewhat relying on a postal pension, if you are 62, just half a year to go or depending on your MRA, you'll have about 5.5 years to go.
 
I may be wrong on this but I think , if you leave you can ask for what you paid in on your retirement ( a manager told me that, so ask for yourself) and roll over your tsp. But it is 5 years and I would advise you to count your time for yourself, if you’re off one day it can affect it. Another thing, when you get within a little while of your 5 years, your manager can run your numbers and give you an idea of what you have accumulated. Remember the number they give you is before taxes. Someone can tell you what that form is.
 

Charlie Brown

Well-known member
I may be wrong on this but I think , if you leave you can ask for what you paid in on your retirement ( a manager told me that, so ask for yourself) and roll over your tsp. But it is 5 years and I would advise you to count your time for yourself, if you’re off one day it can affect it. Another thing, when you get within a little while of your 5 years, your manager can run your numbers and give you an idea of what you have accumulated. Remember the number they give you is before taxes. Someone can tell you what that form is.
If a career employee wanted to quit and get their retirement contributions they can do that anytime. For someone close to the 5 year mark I think that in the long run that would be foolish, better to work the 5 years then quit and get the small retirement annuity at 62 than taking the small lump sum now. If anyone wants to know what that amount is just look at your pay stub on the bottom right it says "retirement" that's the amount you have contributed towards FERS so far. Now that is only updated yearly so it will not include any contributions for the current year, but that's not too hard to guesstimate. Also if you were to quit and request that money as a lump sum refund there are no taxes due on it. You already paid the tax when you earned that money.
 
The reason I said check your numbers is because 5 years pension is not very much, unless you have a really big route and if you are young, you may not want to wait a long time for such a small amount.
 

Amandamarie29

New member
Ok thank you everyone. I’m not necessarily looking to withdraw from the pension, I just want to know how long it takes to qualify for one! I’m 29 so I have a long way to go, but I’d hate to quit the post office and then find out I had a year to go before getting a pension, even if it’s a small one.
 

Voglio-il mio

Well-known member
If a career employee wanted to quit and get their retirement contributions they can do that anytime. For someone close to the 5 year mark I think that in the long run that would be foolish, better to work the 5 years then quit and get the small retirement annuity at 62 than taking the small lump sum now. If anyone wants to know what that amount is just look at your pay stub on the bottom right it says "retirement" that's the amount you have contributed towards FERS so far. Now that is only updated yearly so it will not include any contributions for the current year, but that's not too hard to guesstimate. Also if you were to quit and request that money as a lump sum refund there are no taxes due on it. You already paid the tax when you earned that money.
Charlie same subject only different topic! I bought back military time and thought that sum would also show on my pay stub but it doesn't. Do you have any knowledge on this topic? Like where did that amount go?
 

charlie

Well-known member
Ok....Old man...retired...Only had less than 10 years...Got piddly little retirement (but will take everything I can)...Never worked for a company 10 years (back in the stone age this qualified you for a pension)... So with all those mistakes, perhaps you young folks might listen... Max out everything you can with the 401K... post office is giving you free money...Take it.... If spouse can put into an IRA...especially if you are young...do a roth.. So you pay taxes this year on the little bit you put in. But the backside is that you take out for free when you are an old goat like me...
 

hockey94

Well-known member
My father told me a LONG time ago, save, save, save, social security will not be sufficient to live on when you retire. Hopefully, SS will be around for everyone when they retire.
 

eomr

Well-known member
Charlie same subject only different topic! I bought back military time and thought that sum would also show on my pay stub but it doesn't. Do you have any knowledge on this topic? Like where did that amount go?
You can check on your Form 50. The military time that you bought back increases your service time. As for the amount, I was sent a form that showed all of my payments and the total amount paid. I think that it is two separate things.
 

Voglio-il mio

Well-known member
You can check on your Form 50. The military time that you bought back increases your service time. As for the amount, I was sent a form that showed all of my payments and the total amount paid. I think that it is two separate things.
eomr - Yes thanks I see all that, I just thought that what I paid to buy back my time would show in my USPS Retirement bank column on my pay stub. Maybe OPM has it stashed in a separate account that gets pooled together at time of retirement. Don't know I guess I'll just have to wait to find out! Thanks
 

4winds

New member
If a career employee wanted to quit and get their retirement contributions they can do that anytime.
Is that correct? I have read in other places that you could request your contributions back (without earned interest) if you were quitting before 5 years but after the 5 year qualification you were locked in. If you can get it back anytime I may stay a little longer than 5.
 

Charlie Brown

Well-known member
Is that correct? I have read in other places that you could request your contributions back (without earned interest) if you were quitting before 5 years but after the 5 year qualification you were locked in. If you can get it back anytime I may stay a little longer than 5.
You know until you ask I was certain you could but now, hmm. I am 100% sure that if you quit before the 5 years you can get it and I still think you can after the 5 years but I'm not quite sure about that now. Sounds like you should do a little research at opm.gov. before you make a decision.

For you newer regulars paying 4.4% I can understand why you might want to take the cash if you leave after 5 years but before your MRA or even full retirement. That would probably be a nice chunk of money. For us old timers that were lucky enough to pay only .8% (and wanted to quit) it was a no brainer to get the 5 years then quit and defer the retirement. The annuity was way better than the cash out value.
 
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