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CSRS Deferred Retirement

You may be eligible for a CSRS Deferred Retirement pension if...

  • You have at least 5 years in service under CSRS
  • You are at least 62 years old when you file for your pension
  • You did not take a refund of your CSRS contributions when you separated from service
  • You must have served at least one of your last two years in service as a CSRS.

Computation of Deferred Pension

Your pension will be calculated using your years of creditable service and your actual High-3 Salary during your years under CSRS.

Your High-3 will not be adjusted for inflation even if you worked under CSRS 30 years ago.

To see how CSRS Pensions are calculated, visit our main CSRS Retirement Page.

Disadvantages of CSRS Deferred Retirement

A couple of the disadvantages you should know about a Deferred Retirement are...

  • You are not eligible for any FEHB Health Insurance, or FEGLI Insurance in retirement
  • Any unused sick leave you had will *not* be counted towards your annuity or eligibility.

These can be pretty big disadvantages.

So, if you're 61, and have 5 years of service, it might be worth it stick it out until you're 62 in order to take a normal CSRS Optional Retirement.

Or, if you separated from service years ago, you might consider finding another Federal job. Even if it's only for 6 months - you might be able to retire under the normal CSRS Optional Retirement rules.

And if you retire under CSRS Optional rules - you generally are eligible to receive health insurance benefits in retirement.

That being said - if the choice is between taking a Deferred Retirement and getting a refund of your contributions - it usually makes sense to take the Deferred Retirement.

Is Deferred CSRS Retirement Right for Me?

Wondering if a Deferred CSRS Retirement might be right for you?

If you're looking for someone to help you get the most out of your Federal benefits and help you manage your personal and retirement finances - consider finding a financial planner who is also experienced in Federal benefits.

Learn more about how a Federal Retirement Planner can help you.


Return from CSRS Deferred Retirement to CSRS Retirement Page




Micah Shilanski - Financial Planner for Federal Employees

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