Early Outs and Your FEHB Benefits

View this article online at https://www.fedsmith.com/2015/03/10/early-outs-and-your-fehb-benefits/ and visit FedSmith.com to sign up for free news updates
By on March 10, 2015 in Q&A, Retirement with 1 Comment

Q: I am 55 yrs old and work for the VA with a service comp date of 11/3/1982, but have only had FEHB since 1/1/11. So the last “piece” of my requirement for retirement (and still have FEHB) is to complete my 5 yrs of FEHB coverage which I will have as on 1/1/2016. If the FED are offered “early outs” or “buy outs,” do they ever also “waive” the 5 yr of FEHB coverage requirement?

A: Waivers are usually granted if agencies are offering “buy-outs”, or as we feds call them, “VSIPs.” The following language is from the OPM website and indicates that you would not have to contact OPM for the waiver, but contact you agency instead.

If your agency has buyout authority, you may not need to write to the OPM. If you think you might qualify for a waiver of the 5-year coverage requirement, contact your Human Resources Office for information. If you meet the requirements, your agency will attach a memorandum to your retirement application stating that you meet the requirements for waiver by the OPM.

Agencies can request to have John Grobe, or another of Federal Career Experts' qualified instructors, deliver a retirement or transition seminar to their employees. FCE instructors are not financial advisers and will not sell or recommend financial products to class participants. Agency Benefits Officers can contact John Grobe at [email protected] to discuss schedules and costs.

© 2017 John Grobe. All rights reserved. This article may not be reproduced without express written consent from John Grobe.

Tags:

About the Author

John Grobe is President of Federal Career Experts, a consulting firm that specializes in federal retirement and career transition issues. He is also affiliated with TSP Safety Net. John retired from federal service after 25 years of progressively more responsible human resources positions. He is the author of Understanding the Federal Retirement Systems and Career Transition: A Guide for Federal Employees, both published by the Federal Management Institute. Federal Career Experts provides pre-retirement seminars for a wide variety of federal agencies.

Top