As the federal workforce continues changing, it can be difficult to stay informed and know what the best plan of action is. One thing that can be confusing is Voluntary Early Retirement Authority or VERA. Here’s a list of some of the most common questions we’re seeing about this.
Q: What is VERA?
A: Voluntary Early Retirement Authority lets agencies offer employees the chance to retire early and start getting retirement benefits right away. This is a voluntary option for employees, meaning they do not have to accept it.
Q: Who can take a VERA?
A: It’s up to your agency to offer VERA to you.
If offered, you must be at least 50 with at least 20 years creditable service, or any age with at least 25 years creditable service
Q: My agency hasn’t offered me a VERA. Is there a way I can still retire early?
A: You can only take a VERA if your agency offers it, but if your job is eliminated because of a RIF, you can apply for a Discontinued Service Retirement or Federal Disability Retirement.
Q: Can I accept a VERA offer and then apply for Federal Disability Retirement?
A: It’s sometimes possible to take VERA and then take Federal Disability Retirement, but it depends on your specific VERA offer. VERA offers tend to vary by agency, but they can even vary within an agency. In some cases, accepting a VERA offer explicitly removes your option for pursuing Federal Disability Retirement. That’s why it’s important to consider your specific offer closely before making any decisions. And if you have to choose one or the other, it’s best to weigh the pros and cons to see which would offer you better long-term support. Call us today for a free consultation if you’re trying to figure this out.
Q: Is VERA or Federal Disability Retirement a better option?
A: Each person is a little different, so the answer may vary.
Federal Disability Retirement offers 4 main benefits:
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- You’ll receive monthly annuity payments until you reach 62.
- You’ll keep gaining years of service until your regular retirement age.
- You’ll have the option to continue working in the private sector.
- You get to keep your health and life insurance.
VERA allows you to:
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- Get an immediate annuity, but you won’t continue to gain years of service, which lowers your long-term payments.
- Keep your FEHB health insurance and FEGLI life insurance if you’ve been enrolled for at least 5 consecutive years and retire without a break in service. In rare cases, agencies can request a waiver if you don’t qualify, but most people would need to find private health and life insurance.
Since each person has a different set of circumstances, it’s a great idea to seek advice. We can help you figure out what’s best for you based on your specific needs. Call us at (877) 226-2723 to set up a free consultation.
Q: If I take a VERA, when can I access my FERS pension?
A: If you take VERA and you have 20+ years of service at age 50, or 25 years at any age, you can access your pension immediately.
Q: Does VERA let you keep health and life insurance benefits?
A: You can keep your FEHB health insurance and FEGLI life insurance only if you’ve been enrolled for at least 5 consecutive years and retire without a break in service. In rare cases, agencies can request a waiver, but if you don’t qualify for it you’ll need to find private health or life insurance.
Q: What will happen with my Thrift Savings Plan (TSP) if I accept a VERA?
A: When you can access your TSP funds depends on your age at retirement:
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- If you’re under the age of 55, you’ll have to wait until 59 ½ to access your funds without penalty
- If you accept the VERA at age 55 or older, you can access your TSP funds without penalty
Q: Will I still get cost-of-living adjustments (COLAs) if I take a VERA offer?
A: No, not unless you retire due to a disability. Regular FERS retirees, including those who take VERA, don’t get COLAs until age 62.
Q: If I accept VERA, can I return to federal employment later?
A: Yes, but there are a couple of restrictions:
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- If you return to a federal job, your annuity payments may stop or be reduced depending on your new role
- If you accepted a VSIP (buyout incentive), you may have to repay it if you return within 5 years
Q: What happens if I accept VERA but then change my mind?
A: Once you submit retirement paperwork and the process is finalized, it’s usually irreversible. Some agencies may let you rescind your retirement before the effective date, but it’s not guaranteed.
If you still have questions about how VERA or other new federal changes might affect you, check out our regularly updated federal guide page and our new federal changes webinar.
Reach out today for a 100% free 1-on-1 consultation, and we’ll help get started on the right path.
