The question of loss of retirement benefits due to involuntary termination has been asked of me about once or twice a year, however, recently, I have been asked at least 6 times this past month. This is occurring in many agencies. It seems the supervisors are restless.
“I may be fired. Will I lose my retirement benefits?”
There are any number of reasons a federal employee may be terminated, some may also terminate your retirement benefits, others may not. You may, under most circumstances retain your retirement benefits if you are terminated for the following:
- poor performance
- questionable moral judgement and visiting questionable websites.
- not reporting conflicts of interest.
- padding a job for when you retire.
- credit card abuse.
- engaging in political activity while on duty.
- abusing your position.
- gift violations.
If you have earned the retirement credits, you may not have lost your retirement benefits, unless you have committed any of the following offenses:
- Gathering transmitting or losing defense information
- Gaining employment to serve against the United States.
- Aiding the enemy
- Disclosure of classified information
- Perjury under federal law
- Fleeing the United States to avoid prosecution
- Refusing to testify before a federal grand jury about
- Foreign interference with national security
- Falsifying information on an employment application about
- Previous association with groups advocating the overthrow
- Of the government
- And, other treasonous acts…..
If termination results in an early retirement a reduction in your immediate annuity at 5% for each year you are under the age of 62, even if you are at MRA (age 57) that is a reduction of 25%., unless you defer your retirement annuity until age 62, wherein, you will draw fully the annuity you have earned.
Do you fit into one of these categories?
- You must have at least 5 years of creditable civilian service.
- MRA + 10
- MRA with 30 years
- Age 62 with 20 years.
- Any age with 25 years.
- Special Provision:
- Age 50 with 20 years
- Any Age with 25 Years.
To reiterate: when you are fired, whether for poor performance, reduction in force, or otherwise—you may still be entitled to any vested retirement benefits.