VERA: Voluntary Early Retirement Authority for Federal Employees
What is VERA and how can it help you retire early from federal service? Eligibility, benefits, and how agencies use it.
Key Takeaways
- 1VERA allows federal employees to retire early without age/service penalties
- 2Requires agency authorization - not always available
- 3Minimum: Age 50 with 20 years OR any age with 25 years
- 4Receive immediate, unreduced FERS annuity
- 5May qualify for FERS Supplement if 20+ years
- 6Often offered during restructuring or RIFs
- 7Can be combined with VSIP for additional incentive
What Is VERA?
Voluntary Early Retirement Authority (VERA) allows federal agencies to offer early retirement to employees during restructuring, without the usual age penalties.
- VERA is granted by OPM to agencies facing restructuring
- Allows retirement earlier than normal FERS eligibility
- No reduction to annuity for early retirement
- Must be authorized - not a standing employee right
- Time-limited offers (usually 30-90 days to decide)
- Often combined with VSIP (buyout) for added incentive
Agency-Specific
VERA is not available to all federal employees at all times. It must be requested by your agency and approved by OPM, typically during reorganization or budget cuts.
VERA Eligibility Requirements
To qualify for VERA early retirement, you must meet specific age and service requirements.
- Both civilian and creditable military service count
- Part-time service prorated
- Must be on agency rolls when VERA is offered
- Cannot be under investigation or facing removal
| Requirement | Details |
|---|---|
| Age 50 + 20 years service | Most common path to VERA |
| Any age + 25 years service | No minimum age required |
| FERS or CSRS employee | Both systems eligible |
| In affected position | Must be in covered organization |
| Voluntary | Employee chooses to accept |
VERA Example
A 52-year-old FERS employee with 22 years of service normally couldn't retire until 57 (MRA with 30) or 60 (with 20). With VERA, they can retire immediately with full annuity.
Benefits of VERA Retirement
VERA provides several advantages over regular early retirement options.
- **No age reduction**: Unlike MRA+10, no 5% per year penalty
- **Immediate annuity**: Starts first of month after retirement
- **FERS Supplement eligible**: If 20+ years, get supplement until 62
- **FEHB continuation**: Keep health insurance if 5-year rule met
- **FEGLI continuation**: Keep life insurance coverage
- **TSP access**: Full access to Thrift Savings Plan
FERS Supplement
With VERA and 20+ years of service, you receive the FERS Supplement - a Social Security bridge payment until age 62. This can be worth $1,000-$2,000/month.
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How Agencies Use VERA
Agencies request VERA authority from OPM under specific circumstances.
- **Reorganization**: Restructuring requires workforce changes
- **Budget cuts**: Reducing personnel costs
- **RIF avoidance**: Offering early out before layoffs
- **Skill rebalancing**: Bringing in new skill sets
- **Downsizing**: Reducing agency size
- **Base closures**: Military and civilian facility closures
Limited Time Offers
VERA windows are typically open for 30-90 days. Missing the deadline means losing the opportunity. Decide quickly but carefully.
Should You Accept VERA?
VERA can be attractive, but consider all factors before accepting.
- 1Calculate your annuity - is it enough to live on?
- 2Will you receive FERS Supplement? (20+ years required)
- 3Is VSIP also offered? (up to $25,000 additional)
- 4What's your health insurance situation?
- 5How close are you to regular retirement eligibility?
- 6What are your other income sources?
- 7Is a RIF coming if you don't accept?
- 8What will you do in retirement?
Financial Planning
Run the numbers carefully. VERA is great if you're ready to retire, but accepting too early with insufficient savings can create financial stress.
Planning After VERA Retirement
VERA gives you an earlier retirement, but your TSP and other savings become even more important with more years to fund.
- Longer retirement means more years to fund
- TSP becomes critical income source after VERA
- Can roll TSP to IRA for more investment options
- Gold IRA provides inflation protection over long retirement
- Diversify beyond FERS annuity and TSP funds
- Augusta Precious Metals specializes in TSP-to-Gold rollovers
Frequently Asked Questions
1Can I ask for VERA if my agency doesn't offer it?
No. VERA must be authorized by OPM at the agency's request. Individual employees cannot request VERA - it's an agency-wide decision.
2What if I'm not in a VERA-covered position?
VERA offers are often limited to specific organizations or job series. If your position isn't covered, you won't be eligible even if your agency has VERA authority.
3Can I decline VERA and stay?
Yes, VERA is voluntary. However, if the agency is restructuring, staying may mean reassignment, different duties, or eventually a RIF (layoff).
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