"So You're Leaving the Mothership?" – A Survival Guide for the Federally Fatigued
- gmaylone
- Aug 1
- 5 min read
Updated: Sep 1
Glen Maylone’s Practical Field Notes on Early Retirement, Separation Incentives, and Not Screwing It Up
Retiring from federal service is less like walking off into the sunset and more like escaping a bureaucracy-shaped labyrinth — armed only with acronyms, signature forms, and a well-worn PIV/CAC card.
If you're going out under VERA (Voluntary Early Retirement Authority) or receiving a VSIP (Voluntary Separation Incentive Payment), congratulations: you’re navigating a maze with even more paperwork, rules, and landmines than most. Below is a field guide built from the scars of experience — to help you walk out the door prepared, paid, and proud.
🔍 Know Your Exit Flavor
Unless you're doing a straight-up, fully eligible voluntary retirement, chances are you’re exiting under one of these “flavors”:
Voluntary Retirement – Based on age and years of service. Standard full retirement eligibility.
Early Retirement (VERA) – For when agencies are downsizing or restructuring. Lower age/service thresholds.
Disability Retirement – Requires qualifying medical conditions.
Deferred Retirement – For former feds who leave before retirement eligibility but want benefits later.
Phased Retirement – Work part-time while receiving part of your annuity and still earning credit.
✳️ VERA (Voluntary Early Retirement Authority)
To qualify:
Age 50+ with at least 20 years or any age with 25 years of service.
You must be in a position covered by the agency’s VERA plan and meet OPM’s timing requirements.
✳️ VSIP (Voluntary Separation Incentive Payment)
The government’s version of: “Here’s $25K — please leave now.”
You must:
Be in a permanent appointment.
Have 3+ years of continuous service.
Be in a position covered by the agency’s VSIP plan.
Apply and be approved — and not be ineligible (see the list below).
Ineligible categories include:
Reemployed annuitants.
Pending disciplinary action.
Already received a VSIP.
Received recruitment, relocation, or retention incentives recently.
Received a student loan repayment benefit within the last 36 months.
OPM VSIP Overview https://www.opm.gov/policy-data-oversight/workforce-restructuring/voluntary-separation-incentive-payments/#url=Overview
❤️ Survivor Benefits
If you want your spouse to receive annuity after your death:
You must elect this on SF-3107.
Not electing it may kill their ability to keep FEHB.
⚠️ Important: Anything less than the full 50% survivor benefit requires your spouse’s signed consent. And yes — you’ll need the official marriage certificate, not the frilly ceremonial one.
OPM: Survivor Benefits Info https://www.opm.gov/retirement-center/fers-information/survivor-benefits/
🏥 Continuing FEHB (Federal Health Benefits)
To keep FEHB in retirement:
You must be eligible for and receiving an immediate annuity, and
You must have been enrolled in FEHB for the last 5 years or since your first opportunity.
⚠️ If you forgo survivor benefits, your spouse loses FEHB coverage when you pass.
OPM FEHB & Retirement https://www.opm.gov/healthcare-insurance/healthcare/reference-materials/reference/federal-employees-health-benefits-fehb-program/#url=Annuitants
🪦 FEGLI (Life Insurance)
You’ll have options for Basic, Option A, Option B, and Option C:
Some reduce coverage over time (to 25%), others let you maintain full coverage — with rising premiums.
Elections must be made at retirement. Miss it? It’s gone.
⚠️ Option B premiums spike dramatically after age 65 — run the math.
📌 Bonus resource: Compare FEGLI to WAEPA (non-federal, but useful for price benchmarking)
💵 W-4P and Withholding
The W-4P is how you tell the government how much tax to take from your annuity.
If you don’t file it, your default tax rate stays the same as while you were working.
Federal annuities are taxable income.
State tax depends on where you live — some states tax pensions, others don’t.
IRS Form W-4P https://www.irs.gov/forms-pubs/about-form-w-4-p
📄 Forms You Must Get Right
These are the big hitters:
SF-3107 – Application for Immediate Retirement
SF-2823 – Life Insurance Beneficiary Designation
SF-2828 – Insurable Interest Election (optional)
Marriage Certificate – Must be the recorded official version
Full OPM Form Library https://www.opm.gov/forms/
🎖️ Military Buyback (If Applicable)
If you’ve got military time:
It’s NOT automatic — you must buy it back before retirement.
Request an estimate from DFAS and pay before your separation date.
It can add years to your service credit — and boost your annuity.
DFAS Military Service BuybackBuyback Calculator
📋 Your Pre-Launch Checklist
✅ Must-Do Before You Walk Out the Door:
🔽 Download your eOPF — entire file. Do not skip this.
🧾 Save 2–3 recent pay stubs.
📂 Download training records — needed for future consulting or certifications.
💌 Back up VERA/VSIP approval emails and incentive docs.
🔐 Set up non-CAC login for Services Online, e.g., payroll or HR systems.
🔑 Turn in all property (laptop, badge, keys) — and get written confirmation.
📅 Understand last workday impacts annuity start. Retire on the 1st, not the 10th.
💰 Save cash! First checks are estimates, not finalized. And you’ll now be paid once a month.
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✅ Federal Retirement Pre-Launch Checklist
Whether you’re retiring under VERA, taking a VSIP, or simply walking into the sunset of your career — here’s a brass-tacks checklist to make sure you don’t trip at the finish line.
📥 Records & Documentation
☐ Download your full eOPF (Official Personnel File)
☐ Download all training records
☐ Download last 2–3 pay stubs
☐ Save all approval emails (VERA, VSIP, separation incentives, etc.)
📄 Forms & Elections
☐ Review and complete SF-3107 (Immediate Retirement Application)
☐ Review and complete SF-2823 (Life Insurance Beneficiary)
☐ Review and complete SF-2828 (Insurable Interest, if applicable)
☐ Obtain official marriage certificate (recorded version, not ceremonial)
☐ Complete your W-4P for tax withholding in retirement
🏥 Health & Insurance
☐ Ensure you meet the 5-year rule for FEHB (or since first eligibility)
☐ Elect Survivor Benefits to continue FEHB for spouse
☐ Review FEGLI coverage options (Basic, A, B, C) and choose wisely
🎖️ Veterans
☐ Request military service buyback estimate (via DFAS)
☐ Complete buyback payment before retirement to credit service time
🧰 Systems & Equipment
☐ Set up non-CAC login credentials for Services Online and payroll access
☐ Turn in all government property (laptops, phones, keys, ID/CAC badge)
☐ Obtain written confirmation of all returns
💡 Financial Planning
☐ Know how your retirement date affects annuity timing
☐ Understand first annuity payments are estimates
☐ Budget for once-a-month pay (not biweekly) and stash some interim cash
🧘 Final Thought
Retiring early from federal service isn’t just a milestone — it’s an operation. But if you approach it like a good mission, with your paperwork tight and your timing dialed in, you’ll glide out instead of stumble out.
Fill out the forms. Read the fine print. Download the records.
Then step into your next chapter like the seasoned professional you are — head high, binder closed, PIV/CAC card surrendered with flair.
(Okay, don’t snap it. Turn it in. Nicely. Get a receipt.)
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