A discontinued service retirement provides an immediate annuity for employees
who are involuntarily separated, other than those who are separated for cause on
charges of misconduct or delinquency. For discontinued service retirement
purposes, involuntary separations include, but are not limited to:
- Abolishment of position.
- Unacceptable performance (unless due to employee’s
- Transfer of function outside commuting area.
- Directed reassignment outside commuting area when no
mobility agreement exists.
A resignation qualifies for discontinued service retirement if you:
- Receive notice that you will be involuntarily separated;
- Have not received a reasonable offer of a position; and
- Resign before the scheduled separation date.
- You must meet the following eligibility requirements:
- Age and length of service:
- Have 5 years of creditable civilian service.
- Separate from a position subject to FERS coverage
- Do not decline a reasonable offer of another position.
- Read the Information for Prospective FERS
Retirees and select your retirement date.
- View the retirement
- A discontinued service retirement annuity begins on the earlier of the day after separation, or on the day after pay ceases and the applicant meets the age
and service requirements for the annuity.
- Request an estimate of your retirement annuity if you
have not previously received one. A discontinued service retirement annuity is computed using the FERS general formula.
- Complete the SF 3107, Application for Immediate Retirement.
- If you are waiving retired military pay to receive credit for military service under FERS, complete the Waiver of Retired Military Pay and send it to the military component 60–90 days before your planned
If you have active military service and have not made a deposit for post-1956 military service, complete
OPM (Office of Personnel Management)
Form 1515, Military Service Deposit Election. If you have made a deposit, you are not required to complete this form,
but you should attach the receipt that shows your deposit has been paid in full. The receipt can be a copy of a Leave and Earnings Statement or payroll letter
showing the deposit has been paid.
If you have not made a deposit for your
post-1956 active military service, you still have the
opportunity to do so, but it must be paid in full to your payroll office prior to your retirement.
If you are retired from active military duty, made a deposit for your military service, and have decided that you will not combine your military and civilian
service for FERS retirement, you must apply for a refund of your military deposit by completing an
SF 3106, Application for Refund of Retirement
- If you are enrolled in the Federal Employees’ Group Life Insurance (FEGLI) program and meet the 5-year requirement for continuing coverage after retirement,
complete the SF 2818, Continuation of Life Insurance Coverage as an Annuitant or Compensationer. If you are not enrolled in Option A, B, or C, check the
"I do not have” block. The FEGLI Calculator helps you determine the current value and cost of your life insurance and
how it will change after you retire. The premiums shown on the SF 2818 have not been updated by OPM. Correct premiums are available on the
OPM Web site.
If you do not meet the 5-year requirement to continue your life insurance, your retirement specialist will provide information about converting to a private
- If you are enrolled in the Federal Employees Health Benefits (FEHB) program, your coverage will automatically continue if you meet the 5-year requirement; no
additional action is required. If you do not meet the 5-year requirement, your retirement specialist will provide information about electing Temporary Continuation
If you want to make a Benefits Open Season election and will retire before the effective date (the first day of the first pay period in January), you cannot make
your election using the Employee Benefits Information System. You must complete an SF 2809, Health Benefits Election between Monday of the second full work week in November and the Monday of the second full work week in
December and send it to your retirement specialist.
- If you are enrolled in the Federal Dental and Vision Insurance Program, your coverage will automatically continue. It may take a few annuity cycles before
dental and/or vision premiums are withheld. After the first successful deduction from your annuity, BENEFEDS will adjust your deduction to catch up for the
payments that were missed during the transition. You will receive a letter from BENEFEDS informing you of the amount of the adjusted deduction.
- If you are currently enrolled in the Federal Flexible Spending Account Program (FSAFEDS), your eligibility automatically terminates when you retire. You
should contact an FSAFEDS benefits counselor
for information about your account.
- If you are enrolled in the Federal Long Term Care Insurance Program, you must contact
Long Term Care Partners to notify
them that you are retiring so they can coordinate with OPM to set up deductions from your annuity.
- If you participate in the Thrift Savings Plan (TSP), no action is required if you want to leave your money in TSP. If you want to withdraw your money from
TSP, you should wait 30 days from the effective date of your retirement before submitting your request. You should contact a
ThriftLine service representative if you have questions
about your withdrawal options.
- If you have a life threatening condition and are applying for an alternative form of annuity, complete
RI 38-122, Alternative Annuity and Rollover
Election and attach a doctor’s certification of your medical condition. You should read
RI 38-123, Alternative Annuity Election Information for Employees and
RI 37-22, Special Tax Information for Employees. You may also request an alternative form of
annuity and complete the RI 38-122 after OPM provides you with specific annuity information.
- Your retirement annuity payments will be directly deposited to the same financial institution that currently receives your salary deposits. If you want to
make a change, complete an SF 1199A, Direct Deposit Sign-Up
Form and attach it to your retirement application or make the change after you retire using
Retirement Services Online.
- Federal tax will be withheld from your retirement annuity in the amount currently withheld from your salary. If you want to change the amount of Federal tax
withheld, complete a W4-P, Withholding
Certificate for Pension or Annuity Payments and attach it to your retirement application or make the change after you retire using
Retirement Services Online. You can calculate how
much Federal income tax should be withheld from your retirement annuity by using the
Federal Tax Withholding Calculator.
Part of the retirement annuity you receive is a tax-free recovery of your contributions to FERS; the remainder of your annuity is taxable. You can figure the
tax-free portion using the OPM calculator. Information about taxation
of your annuity is explained in IRS Publication 721, Tax Guide to U.S. Civil
- State tax is not automatically withheld from your annuity. OPM has agreements with
some States to allow the withholding
of State income tax, but you must specify the dollar amount ($5 or more) you want withheld. After your retirement has been finalized, you can use
Retirement Services Online to start, change, or
stop the State tax withholdings. If your State does not participate, you should contact your State tax office for information or assistance.
- You should review your designation of beneficiary
for FEGLI, FERS, and TSP and update if necessary.
- Ensure all retirement application forms are signed and dated.
- Make a copy of all forms for your records.
Mail the original retirement application to:
OCHR Norfolk Operations Center
ATTN: Civilian Benefits Center
NNSY, Building 17
Portsmouth, VA 23709
Since original signatures are required, faxed or e-mailed forms are not accepted.
- Your activity must complete an OPM Form 1510, Certification of Agency Offer of Position and Required Documentation certifying that you have not declined a reasonable offer
of another position.