Federal Employee Retirement Planning: A Step-by-Step Timeline

Five Years Out: The Service Record Audit

Retirement planning for federal employees doesn't start with a retirement calculator — it starts with verifying that the data going into any calculator is correct. Five years before your target separation date, pull your complete electronic Official Personnel Folder (eOPF) and print every SF-50 in your service history.

Compare the Leave SCD in Block 31 of your most recent SF-50 against your actual Retirement SCD. These dates diverge more often than most employees expect, especially when the record includes military service, temporary appointments, or breaks in service that weren't properly documented.

At this stage, you're looking for three specific problems:

Unpaid military deposits. Post-1956 military service counts toward FERS only if the deposit (3% of basic military pay plus interest) has been paid. Interest begins accruing two years after your civilian hire date and compounds annually at the Treasury variable rate — 4.25% in 2026. The deposit must be completed before your last day on the payroll.

Uncredited temporary service. Non-deduction service performed before January 1, 1989, requires a civilian deposit of 1.3% of basic pay plus interest. Post-1989 temporary service without retirement deductions is permanently non-creditable under FERS.

Refunded service. If you withdrew FERS contributions during a prior separation, you can redeposit to restore annuity credit. Without the redeposit, the service counts toward eligibility but is excluded from the pension computation.

Four Years Out: Insurance Enrollment Check

Carrying FEHB (or PSHB for postal employees) into retirement requires five consecutive years of enrollment immediately before your annuity starting date. If you're at the four-year mark and haven't been enrolled continuously, you may still have time to satisfy the requirement — but only if you act during the next Open Season or qualifying life event.

FEGLI follows the same five-year rule. If you've been enrolled in Basic and any optional coverage for the past four years, you're on track. If there's a gap, verify whether the break qualifies for one of the permissible exceptions (like non-federal employment periods that OPM skips in the calculation).

Three Years Out: Deposits and Reconciliation

This is the window to resolve outstanding deposits. Military service buy-backs require coordinating with the military finance center to get your estimated earnings statement (Form RI 20-97), then submitting SF 3108 through your agency's payroll office. The three-year runway gives you time to handle the paperwork and pay down the balance — either in a lump sum or through payroll deductions.

Civilian deposits for pre-1989 temporary service follow the same SF 3108 process. Both deposits accrue variable interest until paid, so earlier is cheaper.

One Year Out: Model Your Income

With your service record verified and deposits paid, you can model your retirement income with reasonable confidence.

Pension. Run the formula: High-3 Average Salary × Years of Creditable Service × 1.0% (or 1.1% if retiring at 62 with 20+ years). If you had part-time service, apply the proration factor. Check your unused sick leave balance — OPM converts it to additional service credit (174 hours ≈ one month) in the annuity computation but not for eligibility.

Special Retirement Supplement. If you qualify for an immediate unreduced annuity at MRA+30 or age 60 with 20 years, the SRS provides a bridge payment until age 62. In 2026, the earnings test limit is $24,480 — earn more than that from post-retirement work and OPM reduces the supplement by $1 for every $2 over the limit.

TSP. Review your allocation, contribution rate, and catch-up status. In 2026, the standard catch-up for ages 50–59 and 64+ is $8,000. SECURE 2.0's super catch-up allows $11,250 for employees turning 60–63. If your prior-year FICA wages exceeded $150,000, all catch-up contributions must go to Roth.

Social Security. The WEP and GPO were repealed by the Social Security Fairness Act, signed January 5, 2025, retroactive to benefits payable for January 2024. If you were previously affected, verify SSA has adjusted your records.

90 Days Out: The Pre-Application Step

Request your official retirement estimate and a certified copy of SF 3107-1 (Certified Summary of Federal Service) from your agency benefits specialist. Review every line of SF 3107-1 for errors before signing — incorrect service periods, missing deposit documentation, or wrong coverage codes can delay OPM adjudication.

If married and electing less than the full survivor annuity, your spouse needs to sign the consent section of SF 3107-2 in front of a notary.

Check whether your agency supports the Online Retirement Application (ORA) portal. Digital applications process in roughly 50 days versus 100 for paper submissions. Register for ORA and prepare your application materials before your separation date.

The Cash Bridge

OPM's current processing backlog means you should plan for a three-to-six-month cash bridge while your annuity is finalized. Interim payments cover roughly 60% to 80% of your estimated pension during this period. Maintain a liquid reserve of at least three months of take-home pay to cover the gap without financial strain.

The FERS Retirement Eligibility & Timing Guide structures all of these milestones into a chronological workflow with verification checklists at each phase — so the five-year audit, deposit deadlines, insurance verification, and OPM application steps are sequenced in the order you actually need to complete them.

See more United States guides →