If you are retiring soon, you should have submitted your retirement application, usually through the Online Retirement Application (ORA) system. Retirement involves important, sometimes irreversible decisions. Here’s a reminder of decisions that cannot be changed once you leave your agency.
Date of final separation
Your retirement date is your final separation date.
Changing your mind after filing
An employee who recently retired discovered her agency overestimated her retirement and wanted to “cancel” it. While agencies provide estimates, OPM determines the actual annuity based on law and certified service history.
According to chapter 41 of the CSRS and FERS handbook, filing a retirement application is like submitting a resignation. Employees may withdraw an application before the effective date unless the agency provides a valid written reason.
If not reinstated, an employee can return as a “reemployed annuitant.” Working at least five more years may qualify them for recomputed retirement based on total service and high-three average salary.
Returning to federal employment
If receiving a regular retirement, payments continue and salary is reduced accordingly. Retirement due to disability or job elimination may affect eligibility. Provide OPM details about the new position (title, grade, salary, tour, retirement coverage) to confirm impact.
If retirement ends, health benefits and life insurance stop. You may enroll for benefits in your new employment. Life insurance eligibility follows rules for new employees.
Lump sum leave payments
Unused annual leave above 240 hours is forfeited unless restored for administrative error, exigency of public business, or sickness. The federal leave year ends Jan. 10, 2026, but most employees’ last date to schedule “use or lose” leave was Nov. 29.
Many employees plan to retire Dec. 31, 2025, to receive a lump sum payout of unused 2025 leave.
Annuity election / survivor benefits
You must make an annuity election to provide a survivor benefit for a spouse, former spouse, or person with an insurable interest.
Election changes can be made within 30 days after the first annuity payment.
Certain changes allowed within 18 months of retirement carry a 24.5% charge plus interest.
Insurable interest elections usually cannot be canceled.
All married retirees must elect a spousal survivor benefit unless the spouse consents to a lesser or no benefit. Single retirees with no financial dependents generally elect a lifetime annuity with no survivor benefit.
If married retirees fail to elect, applications default to maximum spousal benefits. Changes after divorce or death follow court orders or employee election.
Military service credit
Pay your military service deposit in full before retirement and keep documentation. Agencies must provide accurate counseling. Consider two retirement estimates: with and without military service credit. Interest accrues on deposits after three years of civilian service.
Health insurance continuation
Eligibility requires:
Canceling coverage after retirement limits reinstatement. MRA+10 retirees may temporarily continue coverage up to 18 months, paying full premium plus 2% admin fee. Post-annuity, coverage resumes if requirements are met. Choose a start date carefully, no later than the month you turn 62.
Life insurance continuation
Eligibility requires:
Immediate annuity under a civilian retirement system
Five years of coverage before annuity
Enrollment in FEGLI at retirement
No conversion to individual policy
Basic insurance choices after 65:
75% reduction: reduces 2% per month to 25%, free after retirement
50% reduction: reduces 1% per month to 50%, extra premium after 65
No reduction: no reduction, 100% payable, extra premium after 65
Option A automatically reduces 2% per month after 65. Option B and C multiples require election for Full Reduction or No Reduction. MRA+10 postponed annuities terminate life insurance temporarily; coverage resumes when annuity begins.
Thrift Savings Plan (TSP)
Accounts with $200+ remain active after separation. Transfers allowed post-retirement. Withdrawals can begin later, subject to required minimum distributions (age 73 if born 1951–1959; 75 if born after 1959).
TSP annuity election
Purchase through MetLife. Factors affecting payments: amount used, your age, joint annuitant age, chosen option, and interest rate index. Purchases are irrevocable.
Social Security
After filing, benefits can be canceled within 12 months (once) or suspended after full retirement age (67 for those born 1960 or later). Suspended payments earn delayed retirement credits.