Key Takeaways:

• Preparing for federal retirement requires a clear timeline, accurate completion of official forms, and understanding how FEHB and other benefits continue post-separation.
• Unused sick leave, TSP options, and coordinating FEHB with other coverage are essential topics for a smooth retirement transition.

Federal Retirement Planning Checklist Before Separation: Forms, Timeline, and FEHB

Preparing to retire from federal service involves more than just submitting a resignation. A comprehensive retirement planning checklist helps ensure you meet all requirements, submit the right forms, and understand what happens to your benefits—especially your Federal Employees Health Benefits (FEHB) coverage. Use this guide to navigate the process with confidence, from the initial decision-making phase through submitting documentation and understanding what comes next.

What Is Federal Retirement Planning?

Overview of Federal Retirement Systems

Federal retirement planning is the process by which federal employees evaluate their eligibility, review benefits, and complete the necessary steps to receive annuity and other retirement-related benefits upon separation from service. This planning covers several core federal programs, each with its unique rules and procedures.

Most current federal employees fall under the Federal Employees Retirement System (FERS), introduced in 1987, which integrates a basic annuity, Social Security, and the Thrift Savings Plan (TSP). Employees hired before 1984 may belong to the Civil Service Retirement System (CSRS), which operates with a different benefit structure and is generally closed to new entrants.

Key Programs Involved (FERS, CSRS, TSP)

• FERS (Federal Employees Retirement System): Offers a basic annuity, Social Security benefit, and TSP participation. Most federal employees hired after 1984 are under FERS.
• CSRS (Civil Service Retirement System): Provides a pension based primarily on length of service and salary. This system generally excludes Social Security coverage through federal employment.
• TSP (Thrift Savings Plan): A defined contribution plan similar to private-sector 401(k)s, offering retirement savings and investment options for both FERS and CSRS employees.

Understanding how these systems interact is crucial for accurate benefit estimation and retirement readiness.

When Should Federal Employees Prepare?

Typical Retirement Planning Timeline

Starting retirement planning early allows you to gather documentation, make informed decisions, and avoid common pitfalls. Experts recommend beginning serious preparation three to five years before retirement and finalizing all requirements around one year before your intended separation date.

Key milestones typically include:

• Three to five years prior: Verify service history, estimate benefits, review personal and health information.
• One year out: Request service transcripts (SF-50s), begin attending agency retirement seminars, and review insurance options.
• Six months before separation: Complete retirement application forms, gather supporting documents, and confirm TSP and FEHB status.

MRA, Eligibility Age, and Years of Service

Two main factors determine your eligibility for a full, unreduced retirement benefit:

• Minimum Retirement Age (MRA): This ranges from age 55 to 57, depending on your year of birth.
• Years of Creditable Service: For immediate retirement, FERS typically requires reaching MRA with at least 30 years of service, age 60 with 20 years, or age 62 with at least 5 years. CSRS rules differ slightly but emphasize similar concepts of service length and age.

Meeting both the MRA and service requirements positions you for a smoother retirement transition.

Which Forms Are Required Before Separation?

Standard Application Forms

Federal retirement begins with standardized applications:

• FERS (OPM Form SF 3107): Application for Immediate Retirement under FERS.
• CSRS (OPM Form SF 2801): Application for Immediate Retirement under CSRS.

These forms must be completed accurately and submitted to your agency’s human resources office or personnel processing center. Mistakes or omissions can delay benefits.

Supporting Documentation Checklist

Supporting documentation to provide with your application typically includes:

• Certified copies of all SF-50s (Notification of Personnel Action) showing federal service history.
• Marriage certificate (if selecting a survivor benefit for a spouse).
• Military service records (such as DD Form 214), if applicable.
• Court documents for divorce or survivor benefits, if relevant.
• Proof of insurance coverage for FEHB and Federal Employees’ Group Life Insurance (FEGLI).

Advance preparation ensures all required paperwork is complete for your last day of federal employment.

How Does the Federal Retirement Timeline Work?

Steps from Application to Annuity Start

The retirement timeline officially begins upon your separation from service and submission of completed retirement forms.

Key steps:

1. Final Agency Processing: The HR office certifies your service history and forwards your application packet to the Office of Personnel Management (OPM).
2. OPM Review: OPM examines your application, verifies service, and calculates annuity benefits.
3. Interim Payments: While your full annuity is adjudicated, OPM may provide interim payments—partial monthly amounts based on preliminary calculations.
4. Final Adjudication: Once OPM completes the review, you receive your final annuity payment, retroactive to your official retirement date.

Key Processing Milestones

• Submission of application and exit paperwork (at least 60-90 days before separation is recommended).
• Agency processing and transfer of retirement packet to OPM (within two to four weeks of separation).
• OPM interim payments typically begin within four to six weeks after separation, but finalization of your retirement case may take up to several months depending on the complexity and completeness of documentation.

What Happens to FEHB After Retirement?

FEHB Eligibility and Continuity Rules

Most federal employees who retire with an immediate annuity can continue FEHB coverage into retirement. To qualify, you must:

• Have been continuously enrolled in FEHB (or covered as a family member) for the five years immediately before retirement, or—for shorter careers—since your first opportunity.
• Be eligible for and actually receive an immediate retirement annuity from a federal retirement plan.

Role and premium costs for FEHB are similar in retirement, with the federal government continuing to pay part of the premium. Coverage remains largely unchanged, including options for switching plans during Open Season.

Options for Dependents and Survivors

• Spouses and Family Members: You may continue family coverage into retirement. Survivor annuitants (spouses or eligible children) can also keep FEHB if you elected at least a partial survivor benefit.
• If You Die After Retirement: Survivor FEHB eligibility is contingent on the survivor benefit election. Without it, dependents generally cannot maintain FEHB.

How Do Unused Sick Leave and TSP Affect Retirement?

Impact of Unused Sick Leave on Pension Calculation

Unused sick leave can increase your retirement benefit. For FERS and CSRS employees, unused sick leave is converted into additional service credit at retirement, increasing your annuity calculation, though the leave itself is not paid out in cash. Accumulating more sick leave before retirement can make a modest difference in your final pension.

TSP Withdrawal Options in Retirement

Retiring employees have access to several TSP withdrawal choices:

• Leaving the funds in TSP, where they continue to be managed under your account, subject to required minimum distributions (RMDs) after age 73 (as of 2026).
• Taking a partial or full distribution, either as a lump sum, a series of monthly payments, or through annuity purchase (subject to TSP rules and government guidelines).

It is important to review current TSP guidance and federal publications before deciding on any TSP withdrawal approach.

Frequently Asked Questions about Federal Separation

Questions on Early Retirement Implications

Taking early retirement (before reaching full eligibility age or service years) can significantly reduce your monthly annuity and may affect eligibility for FEHB and other benefits. Make sure to review the impact of reduced annuity rates and delayed cost-of-living adjustments, as well as any penalties associated with early retirement rules.

Clarifications on Annuity Start Dates

A common question is when the annuity actually begins. Your retirement annuity typically starts the first day of the month following your separation date, provided all necessary paperwork is complete and you meet eligibility requirements. Delays may occur if documents are missing or require additional verification.

Considerations Beyond the Checklist

Social Security and Medicare Coordination

FERS retirees may qualify for Social Security benefits as well as federal annuity payments, while CSRS retirees may qualify based on separate Social Security-covered work. Coordinating Social Security claims with your federal annuity can maximize income over retirement.

Medicare becomes available at age 65, whether or not you continue FEHB. Many retirees choose to retain both, using FEHB as their primary or secondary coverage, depending on circumstances and coordination rules.

Other Benefits and Post-Retirement Steps

Other considerations include:

• Reviewing FEGLI (Federal Employees’ Group Life Insurance) continuation options.
• Confirming tax withholding choices for federal and state income taxes.
• Keeping personal records updated with OPM, TSP, and other benefits administrators to ensure timely correspondence and accurate benefit payments.

Advance organization and proactive review of official government resources help ensure a smooth transition into federal retirement.