Start Now or Postpone Your MRA+10 Pension
Average of your highest 3 consecutive years of basic pay, including locality pay.
At the date you leave. MRA+10 needs 10 years; 30 years means no reduction.
| Pension starts at | Reduction | Per year | Per month | Beats starting at MRA after age |
|---|
The age 62 row is the latest allowed start: the first day of a month at least 2 days before your 62nd birthday (OPM).
- If you postpone, your FEHB health coverage stops when you leave. You can keep it up to 18 months under temporary continuation by paying the full premium plus 2%, and you can re-enroll when the pension starts only if you had FEHB for the 5 years before you left (OPM).
- An MRA+10 pension, started now or postponed, does not include the FERS annuity supplement. See who gets it in the FERS supplement calculator.
- Figures are before tax and cost-of-living adjustments, with no survivor-annuity reduction.
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MRA+10 is the Federal Employees Retirement System (FERS) option that lets you retire at your minimum retirement age (MRA) with 10 to 29 years of service. At Rank and Pay, we publish free pay and benefits tools.
The pension is cut 5% for each year you are under 62 when it starts, and you can postpone the start to shrink or remove that cut. This FERS MRA+10 calculator applies the Office of Personnel Management (OPM) rules to your birth year, high-3 salary and years of service.
For a $95,000 high-3 and 15 years, a start at 57 pays $10,687.50 a year and a start at 62 pays $14,250. The later start only comes out ahead in total after age 77.
How MRA+10 Is Calculated
An MRA+10 pension equals 1% of your high-3 average salary for each year of service, reduced by 5/12 of 1% for every full month you are under 62 when payments begin. Your high-3 is the average of your highest 3 consecutive years of basic pay, including locality pay. The OPM FERS computation page sets the rules the calculator follows:
- Multiplier. You get 1% per year of service if you are under 62 when you leave. The 1.1% multiplier applies only if you are 62 or older at separation with 20 or more years.
- Age reduction. The pension drops 5/12 of 1% for each full month you are under 62 on the date it begins. That works out to 5% a year.
- 30-year exception. With 30 or more years, there is no reduction.
- 20-year exception. With 20 or more years, there is no reduction if the pension begins at 60 or later.
OPM also says postponing the start date reduces or removes the age reduction. Each month you wait is one less month under 62.
In our internal modeling, we compared every start age from 57 to 62 under OPM's MRA+10 rules for a $95,000 high-3 and 15 years of service. The employee was born in 1970, so the MRA is 57. A start at 57 cuts the pension by 25%. Waiting to 62 removes the cut but only pays more in total after age 77.0.
- $95,000 × 15 × 1.0% = $14,250 a year before any reduction.
- A start at 57 is 60 full months under 62, and 60 × 5/12 of 1% = 25%.
- $14,250 × 75% = $10,687.50 a year, or $891 a month.
- A start at 62 has no reduction, so the pension is $14,250 a year, or $1,188 a month.
| Start age | Reduction | Per year | Per month | Beats starting at 57 after age |
|---|---|---|---|---|
| 57 (MRA) | 25% | $10,687.50 | $891 | n/a |
| 58 | 20% | $11,400.00 | $950 | 73.0 |
| 59 | 15% | $12,112.50 | $1,009 | 74.0 |
| 60 | 10% | $12,825.00 | $1,069 | 75.0 |
| 61 | 5% | $13,537.50 | $1,128 | 76.0 |
| 62 | 0% | $14,250.00 | $1,188 | 77.0 |
You can match each row against the table and the step-by-step block under the calculator. An MRA that is not a whole year is counted by the month. Born in 1966, your MRA is 56 and 4 months. With an $80,000 high-3 and 12 years, the unreduced pension is $9,600. A start at the MRA is 68 full months under 62, a 28.3% reduction that leaves $6,880 a year. Waiting to 62 pays $9,600 and pulls ahead after age 76.3.
When Postponing Pays Off
With 10 to 19 years, waiting until 62 pays more each year but only beats a start at your MRA in total if you live past about age 77. The arithmetic for the 15-year example shows why:
- The 57 start collects 5 years of payments before the 62 start pays anything: 5 × $10,687.50 = $53,437.50.
- The 62 start then pays $14,250 − $10,687.50 = $3,562.50 more each year.
- $53,437.50 ÷ $3,562.50 = 15 years, so the later start catches up at 62 + 15 = 77.
The reduction shrinks 5 percentage points for each year you wait. That means for any high-3 and any 10 to 19 years, a 62 start catches up with a 57 start at age 77. A 60 start catches up at 75, and shorter waits break even sooner.
With 20 or more years, postponing to 60 is the clearer case for waiting, because a start at 60 removes the reduction completely. Born in 1970 with a $95,000 high-3 and 20 years, the unreduced pension is $19,000. A start at 57 pays $14,250 after the 25% reduction. A start at 60 pays the full $19,000 and moves ahead of the 57 start after age 69.0. The 57 start's 3-year head start is $42,750, and the $4,750 yearly gap closes it in 9 years. Waiting past 60 adds nothing with 20 years. A start at 62 still pays $19,000, and it only passes the 57 start after age 77.0.
Postponing never earns the 1.1% multiplier. OPM ties the 1.1% to your age at separation, and under MRA+10 you separated before 62. Someone who leaves at 57 with 20 years and starts the pension at 62 still gets 1% per year. That is 20% of high-3. Staying on the job until 62 with 20 years would earn 22%.
With 30 years, there is nothing to wait for. The same 1970 employee with a $95,000 high-3 and 30 years gets $28,500 a year from 57 with no reduction, so postponing gains nothing. At the other edge, 10 years and a $95,000 high-3 gives $9,500 unreduced and $7,125 at 57. With 9 years, you are not eligible for MRA+10.
How to Use the FERS MRA+10 Calculator
The calculator is headed "Start Now or Postpone Your MRA+10 Pension," and it needs three inputs:
- Birth Year. Select a year from 1960 to 1980. The default is 1970. Under the field, the calculator prints "Your minimum retirement age (MRA): ..." for the year you pick.
- High-3 Average Salary ($ per year). Enter the average of your highest 3 consecutive years of basic pay, including locality pay. The default is 95,000.
- Years of Creditable Service. Enter your service at the date you leave, in steps of 0.5. The default is 15. MRA+10 needs 10 years, and 30 years means no reduction.
The MRA for each birth year comes from the OPM FERS eligibility page. Our federal retirement age guide covers the other age rules.
| Birth year | MRA |
|---|---|
| 1960 to 1964 | 56 |
| 1965 | 56 and 2 months |
| 1966 | 56 and 4 months |
| 1967 | 56 and 6 months |
| 1968 | 56 and 8 months |
| 1969 | 56 and 10 months |
| 1970 and after | 57 |
The results open with a summary sentence and then show a table with one row per start age. The rows run from your MRA through each birthday up to 62. A note says the latest allowed start is the first day of a month at least 2 days before your 62nd birthday. Each row shows the Reduction, the pension Per year and Per month, and "Beats starting at MRA after age," which is the break-even age.
Below the table, a step-by-step block shows the formulas. Three notes cover FEHB if you postpone, the missing FERS annuity supplement for MRA+10, and the fact that the figures are before tax and cost-of-living adjustments with no survivor reduction. Click "Copy result" to save the numbers, and book picks follow. With fewer than 10 years, the calculator says MRA+10 needs 10 years. With 30 or more years, it says there is no reduction and postponing gains nothing.
If you plan to choose a survivor benefit, take it off the figures yourself. OPM reduces your annuity by 10% for a 50% survivor benefit and by 5% for a 25% survivor benefit. The $10,687.50 start at 57 becomes $10,687.50 × 90% = $9,618.75 with a 50% survivor benefit. To compare MRA+10 with retiring later under the full FERS rules, use our FERS pension calculator.
What You Give Up by Postponing
Postponing your MRA+10 pension affects your health and life insurance, and neither a postponed nor an immediate MRA+10 pension brings the FERS annuity supplement. The OPM types of retirement page lists these rules for a FERS postponed retirement:
- Federal Employees Health Benefits (FEHB). If you postpone, you can keep coverage through temporary continuation for 18 months from separation. You must contact your former agency within 60 days and pay the employee share, the government share and a 2% administrative charge. A wait from 57 to 62 is 60 months, which runs well past the 18 months.
- FEHB when the pension starts. You can re-enroll, with OPM paying the government share, only if you had FEHB for the 5 years of service immediately before you separated.
- Federal Employees' Group Life Insurance (FEGLI). FEGLI ends at separation if you postpone. When the pension begins, you can continue eligible coverage if you had FEGLI for the 5 years of service immediately before separating.
- FERS annuity supplement. OPM does not pay the supplement to anyone receiving an immediate MRA+10 benefit, a deferred benefit or a disability benefit. Our guide to the FERS annuity supplement and our FERS supplement calculator show what other retirement types receive.
- Federal reemployment. You cannot begin the annuity while you are reemployed by the federal government.
One protection stays in place. If you postpone and die before the annuity starts, your spouse can still receive FERS survivor benefits. If you plan to live on savings while you wait, our Thrift Savings Plan (TSP) withdrawal calculator estimates withdrawals.
How to Apply for a Postponed Annuity
You apply for a postponed MRA+10 annuity through OPM's Online Retirement Application (ORA). Follow these steps from the OPM types of retirement page:
- Pick a start date between your MRA and 2 days before your 62nd birthday.
- Make sure the date is the first day of a month at least 2 days before your 62nd birthday.
- Submit your application in ORA at least 31 days before that start date.
- If you want temporary FEHB continuation while you wait, contact your former agency within 60 days of separating.
Our Takeaway
With 10 to 19 years, starting at your MRA pays less each year but more in total unless you live past about 77. Start now if you need the income or want FEHB without a gap. Postpone only if you can live without both.
With 20 or more years, postponing to 60 removes the reduction and pulls ahead at about 69, which makes the clearer case for waiting. With 30 years, the pension is unreduced at your MRA, so there is nothing to wait for.
Do not postpone if you need FEHB coverage without a gap. Do not postpone if you did not have FEHB for the 5 years before leaving, because you could not re-enroll when the pension starts. Our answer changes if you reach 20 years and can start at 60, or if you reach 30 years. A different expected lifespan or a need for continuous FEHB also changes it.
Frequently Asked Questions
What is MRA+10 retirement?
MRA+10 is a FERS retirement at your minimum retirement age with 10 or more years of service. The pension is reduced 5% for each year you are under 62 when it starts. You can postpone the start date to shrink or remove that reduction.
How much is the MRA+10 reduction?
The reduction is 5/12 of 1% for each full month you are under 62 when the pension begins, or 5% a year. A start at 57 means a 25% reduction. There is no reduction with 30 years, or with 20 years and a start at 60 or later.
Can I postpone my FERS annuity to avoid the reduction?
Yes. Under MRA+10, you can choose any start date between your MRA and 2 days before your 62nd birthday. A start at 62 removes the reduction, and with 20 years a start at 60 removes it.
Do I keep FEHB if I postpone my annuity?
Not continuously. Temporary continuation lasts 18 months from separation, and you pay both shares plus a 2% charge. You can re-enroll when the pension starts only if you had FEHB for the 5 years immediately before you separated.
Do MRA+10 retirees get the FERS supplement?
No. OPM does not pay the FERS annuity supplement to anyone receiving an immediate MRA+10 benefit or a deferred benefit. That holds whether you start at your MRA or postpone.
Can federal employees retire at age 62?
Yes, with 5 years of service. If you are 62 or older at separation with 20 or more years, your pension uses the 1.1% multiplier instead of 1%.
Do you get retirement after 10 years?
Yes. With 10 years, you can retire at your MRA under MRA+10, with the pension reduced 5% for each year you are under 62. If you leave before meeting the immediate retirement rules with at least 5 years of civilian service, you can take a deferred pension at 62.
How much is a 20 year federal pension?
A 20-year FERS pension is 20 × 1.0% = 20% of your high-3 if you leave before 62. It is 22% if you are 62 or older at separation. On a $95,000 high-3, that is $19,000 or $20,900 a year. Enter your birth year, high-3 and years in the FERS MRA+10 calculator above. Before you separate, check the FEHB rule on the OPM types of retirement page and with your agency human resources (HR) office.