A federal employee considering Voluntary Early Retirement Authority (VERA) must first verify that they meet the individual eligibility requirements. The authority to offer this type of early retirement must be granted by the Office of Personnel Management (OPM) to the employing agency, which, in turn, must include the employee’s position in its implementation plan.
Once the agency has received this approval and opened an application window, the employee seeking to anticipate their retirement must meet the age and service criteria: be at least 50 years old and have completed a minimum of 20 years of federal service credit, or be of any age with 25 years of service credit.
Eligibility: How to Activate the VERA Retirement Plan
Beyond these fundamental criteria, there are additional conditions that determine eligibility. The employee must have been continuously employed by the agency for at least 31 days prior to the date the agency formally requested VERA authorization from the OPM.
Furthermore, the position held must not be temporary or a limited-term appointment, and the employee must not be subject to a final decision of removal for misconduct or unacceptable performance.
The employee’s specific position must be covered by the agency’s VERA plan, and the separation from service must occur within the window period established by the agency for this purpose.
Documentation and Procedure for Formal Application
The application process begins once the agency announces the availability of the VERA and establishes the corresponding deadlines. The employee must express their interest to their agency’s human resources office, which, according to internal procedures, may require a prior expression of interest before issuing personalized annuity estimates.
Formal submission requires completing specific retirement application forms: SF 3107 for employees covered by the Federal Employees Retirement System (FERS), and SF 2801 for those under the Civil Service Retirement System (CSRS).
It is indispensable to accurately complete these documents, as errors in the paperwork are the most common cause of delays in processing applications by the Office of Retirement Planning (OPM). Along with the main forms, the employee must submit documentation verifying their service history, direct deposit information, tax withholding election forms, and, where applicable, spousal consent.
Additionally, Form SF 2818 must be completed to determine the continuation of Federal Employees Group Life Insurance (FEGLI) coverage in retirement. With the implementation of the Retirement Services Online platform starting in July 2025, the OPM no longer accepts paper applications; therefore, employees must submit their documents through this platform or via the electronic mechanisms established by their agency.
Financial and Benefit Implications Post-Approval of the Retirement
Accepting a retirement offer under VERA has specific effects on annuity, insurance, and the possibility of re-entry into federal service. For FERS employees, there is no reduction in the annuity calculation for retiring before age 55, unlike for CSRS employees, whose annuity is reduced by 2% for each year they are under 55.
FERS employees who retire under VERA before reaching their Minimum Retirement Age (MRA) may be eligible for the FERS Annuity Supplement, a payment that supplements the annuity until age 62, at which point it ceases. This supplement, however, is subject to an income limit.
Health Benefits, and TSP Considerations
Continuity of health benefits under the Federal Employees Health Benefits (FEHB) program in retirement is contingent upon the employee having been enrolled in the program for the five years immediately preceding their retirement date, or from the date they first had the opportunity to enroll if their service is less than five years.
The Office of Management and Prevention (OPM) grants pre-approved waivers for employees who retire during the Vera Retirement Authorization (VERA) period and have been continuously covered since the inception of that authority. Regarding the Thrift Savings Plan (TSP), an employee who retires under VERA before age 55 will not be able to make withdrawals without a 10% penalty until age 59.5, unless they choose a TSP annuity or life expectancy-based distributions.
Post-Retirement: the Option to Re-entry
Employees who opt for VERA should be aware of the regulations governing post-retirement employment. If the beneficiary accepts non-federal employment, there are no restrictions on the payment of their annuity, except that the FERS Annuity Supplement may be reduced or suspended if the established income limit is exceeded.
If a VERA retiree is rehired by the federal government, their status will be that of a “reemployed annuitant,” meaning their annuity will continue, but their new federal salary will be offset by the annuity amount, unless the hiring agency obtains an exemption from the Office of the President (OPM).