MRA+10 Explained: Retiring From FERS Early Without Wrecking Your Annuity
MRA+10 is the FERS provision most people discover twice: first as "wait, I can retire at 57?" and later as "wait, how much is the reduction?" Both reactions are justified. Used carelessly, MRA+10 permanently shrinks your annuity by up to 25–30%. Used deliberately — usually with the postponement option — it's a legitimate early-exit ramp.
What MRA+10 actually is
FERS lets you retire on an immediate annuity at your Minimum Retirement Age (MRA) with as few as 10 years of creditable service. Your MRA depends on birth year: 55 if you were born before 1948, sliding up to 57 for anyone born in 1970 or later.
Compare the unreduced immediate-retirement combos: MRA + 30 years, age 60 + 20, or age 62 + 5. MRA+10 sits below all of those — that's why it comes with a penalty.
The penalty: 5% per year under 62
Take the annuity before 62 under MRA+10 and it's reduced by 5% for every year you're under 62 (technically 5/12 of 1% per month). Retire at 57 and start payments immediately: 5 years × 5% = a 25% permanent reduction. On a $30,000 computed annuity, that's $7,500 a year, forever — and FERS COLAs then compound on the smaller base.
The fix most people miss: postpone, don't start
Under MRA+10 you can separate now and postpone the start of your annuity to reduce or eliminate the penalty. Postpone to 62 (or to 60 if you have 20 years) and the reduction disappears entirely. You worked the years, you just delay the checks.
The crucial distinction is postponed vs deferred:
- Postponed (MRA+10): you were eligible for an immediate annuity when you left. When payments begin, you can reinstate FEHB and FEGLI if you'd been enrolled for the 5 years before separating. This is the good door.
- Deferred: you left before reaching any immediate-eligibility combo and later claim at 62 (or 60/20). FEHB is gone for good. For most federal families, losing FEHB in retirement is a five-figure-per-year problem — this distinction alone justifies careful planning.
What MRA+10 costs you beyond the reduction
Two quieter losses: the FERS Special Retirement Supplement never applies to MRA+10 retirements (it's only for unreduced immediate retirements), and there are no COLAs on your annuity until 62 in any case. Your TSP and any bridge income have to carry the gap years.
When MRA+10 makes sense
It's rarely about the math being good — it's about the math being known. Common sensible uses: a second career or spouse's income bridges you to 62 while you postpone; health or burnout makes the remaining years to 60/20 unrealistic; or you're a few months short of a better combo and MRA+10 postponed beats a straight deferred retirement because it preserves FEHB.
FAQ
Can I work after taking MRA+10?
Yes. Unlike the FERS supplement (which MRA+10 doesn't get anyway), the annuity itself has no earnings test.
Does sick leave help me reach the 10 years?
No — unused sick leave counts toward the computation, never toward eligibility.
If I postpone, is the annuity computed on today's high-3 or the future one?
Your high-3 and service are frozen at separation. Postponing avoids the age reduction; it doesn't grow the base.
Model it before you decide. The FERS Report calculator estimates the immediate MRA+10 reduction and shows the earliest unreduced retirement date. Review the postponed and deferred retirement rules, then confirm FEHB and start-date details with your agency.
Educational content only — not financial, tax, or legal advice. Confirm eligibility details with OPM and your HR retirement specialist.