563 Annuities — Requirements and Procedures

563.1 General Requirements

 

Reference Note: For additional material concerning the subject matter found in 563.1, refer to: CSRS and FERS Handbook for Personnel and Payroll Offices, Chapter 41.

563.11 Conduct

An annuity may not be paid to any employee who has ever been convicted of an offense involving the national security of the United States.

563.12 Time

To be eligible for an annuity an employee must:

1. Have a minimum of 5 years of creditable civilian service.
2. Complete, within the last 2–year period before separation on which retirement is based, at least 1 year in employment covered by the CSRS, except when an annuity is payable because of total disability.

563.13 Age and Service

Employees separated for any reason, except as stated in 563.11, are eligible for optional retirement and an immediate annuity if they meet one of the following combinations of age and service:

1. Age 62 with 5 years of creditable civilian service.
2. Age 60 with 20 years of creditable service, including 5 years of creditable civilian service.
3. Age 55 with 30 years of creditable service, including 5 years of creditable civilian service.

563.2 Requirements and Procedures by Type of Separation

563.21 Involuntary Separation

 

Reference Note: For additional material concerning the subject matter found in 563.21, refer to: CSRS and FERS Handbook for Personnel and Payroll Offices, Chapter 44.

563.211 Additional Requirements

An employee who is involuntarily separated from the service (not for cause) may apply for an immediate annuity if the employee meets the general requirements in 563.1 and:

1. Has 20 years of creditable service, including 5 years of creditable civilian service, and is 50 years of age or over; or
2. Has 25 years of creditable service, including 5 years of creditable civilian service, regardless of age.

563.212 Reduced Annuity

If the retiring employee is under age 55, the basic life annuity rate is reduced by one–sixth of 1 percent for each full month (2 percent a year) that the employee is under age 55.

563.22 Mandatory Retirement

 

Reference Note: For additional material concerning the subject matter found in 563.22, refer to: CSRS and FERS Handbook for Personnel and Payroll Offices, Chapters 43 and 46.

Law enforcement officers (e.g., Postal Inspectors) are the only postal employees subject to mandatory retirement because of age. Information on mandatory retirement for these employees can be obtained from the:

CHIEF POSTAL INSPECTOR
US POSTAL SERVICE
475 L’ENFANT PLZ SW
WASHINGTON DC 20260–2100

563.23 Disability Retirement Requirements

 

Reference Note: For additional material concerning the subject matter found in 563.23, refer to: CSRS and FERS Handbook for Personnel and Payroll Offices, Chapter 60.

563.231 Service

The employee must have completed at least 5 years of creditable civilian service.

563.232 Total Disability

An employee must, while employed under the CSRS, become totally disabled because of disease or injury, to render useful and efficient service in the position occupied and all vacant positions in the employing agency and commuting area at the same grade or pay level and tenure to which the employee is qualified for reassignment. The Civil Service Retirement (CSR) law governing the disability retirement program provides that an employee of the United States Postal Service is not qualified for reassignment if:

1. The reassignment is to a position in a different craft; or
2. The reassignment is inconsistent with terms of the collective bargaining agreement covering the employee.

563.233 Conduct

The disease or injury which caused the disability must not be the result of vicious habits, intemperance, or willful misconduct on the employee’s part within the 5–year period immediately prior to becoming disabled.

563.3 Deferred Annuity

 

Reference Note: For additional material concerning the subject matter found in 563.3, refer to: CSRS and FERS Handbook for Personnel and Payroll Offices, Chapter 45.

An employee is eligible for a deferred annuity at age 62 if the employee:

1. Leaves the CSRS before qualifying for an immediate annuity;
2. Has at least 5 years of creditable civilian service;
3. Has worked at least 1 year under the CSRS within the 2 years immediately preceding the separation on which the deferred annuity is based; and
4. Leaves his or her retirement contributions in the Civil Service Retirement and Disability Fund.