Federal Employee Retirement Checklist3 Years Out to Your Last Day

Estimate your FERS pension

Use your High-3 salary estimate and projected years of service to calculate your gross monthly pension. Build two scenarios: retire now vs. retire at your target date. The difference in pension can be substantial.

Verify your service history

Request your Official Personnel Folder (OPF) and your Civilian Personnel Records. Confirm all years of service are credited correctly, including any prior federal employment, military time you may have bought back, or temporary appointments. Errors in your record can take months to correct.

Review your TSP allocation and balance

As you approach retirement, many financial advisors recommend gradually shifting toward more conservative allocations or the Lifecycle (L) funds. Don't move entirely to the G Fund — you still need growth over a 20–30 year retirement.

Confirm FEHB eligibility (the 5-year rule)

Verify you've been continuously enrolled in FEHB for 5 years. Contact your HR Benefits Office and ask for your enrollment history. Any gap — even a brief one for a spouse's plan — could disqualify you. Fix gaps now while you still have time.

Estimate your Social Security benefit

Create a my Social Security account at my.ssa.gov. Your earnings record shows your projected benefit at 62, 67 (FRA), and 70. Review this estimate for accuracy and report any missing earnings years promptly to SSA.

Consider a military service buyback

If you have active duty military time before your FERS service, buying it back can significantly increase your pension. The buyback deadline is before retirement. If you wait until your final weeks, processing delays may mean you retire before the buyback posts to your record.

Model the 1.1% multiplier impact

If you're close to age 62 with 20+ years, calculate the difference between retiring at 61 vs. 62. The enhanced 1.1% multiplier can be worth $150–$350+/month — a permanent raise for life. It may be worth working a few extra months to qualify.

Build your detailed income plan

Map out month-by-month income from FERS pension + FERS Supplement (if applicable) + TSP withdrawals + Social Security + VA disability (if applicable). Identify any income gaps — especially the period between the supplement ending at 62 and Social Security starting, or between retirement and the supplement beginning.

Research your FEHB plan options

Compare plans during Open Season (November–December) with an eye toward your retirement healthcare needs. Consider whether you'll want a plan with strong Medicare coordination at age 65. Some plans waive deductibles for retirees who also enroll in Medicare Part B.

Estimate your total tax burden in retirement

Your taxable income in retirement includes your FERS pension, taxable TSP withdrawals, and up to 85% of Social Security. Estimate your effective rate and plan withholding accordingly. Consider whether a CPA review is worthwhile at this stage.

Begin Social Security strategy analysis

Decide in principle whether you'll claim SS at 62, FRA, or 70. Run the breakeven analysis. For married couples, coordinate both spouses' claiming ages — the higher-earner typically delays to 70 to maximize the survivor benefit.

Review your beneficiary designations

Check beneficiary designations on your TSP, FEGLI, and any IRAs or bank accounts. These documents govern who receives your assets — not your will. Update them after any life change.

Choose your retirement date

The last day of a pay period or month is typically optimal for pension calculation purposes. December retirements mean FEHB and FEGLI coverage continue to January 1 at the government's expense. Avoid January retirements when OPM processing is at its slowest (known as "January delays").

Decide on survivor benefits

This is irrevocable once submitted. Model full (50%), partial (25%), and no survivor election. Your spouse must consent in writing if you elect less than full. Consider the combined effect of pension survivor benefit + Social Security survivor benefit on your spouse's long-term income.

Review FEGLI life insurance options

Federal Employees' Group Life Insurance changes significantly at retirement. Basic coverage continues at a reduced premium; Optional A/B/C coverage premium costs can skyrocket in retirement. Review your FEGLI cost projections and decide if private life insurance is more cost-effective.

Finalize your TSP withdrawal strategy

Decide whether you'll take installment payments, leave the balance invested, or roll over to an IRA. There is no rush to make this decision — you can leave money in TSP indefinitely after retirement. Avoid large lump sum withdrawals in year one that push you into a higher bracket.

Estimate healthcare costs post-retirement

Calculate your exact FEHB premium for the plan you're carrying into retirement. Budget for Medicare Part B at age 65. Check if your projected income triggers IRMAA surcharges on Medicare premiums.

Submit your retirement application (SF-3107)

Submit to HR at least 60–90 days before your retirement date. Earlier is better — OPM adjudication can take 30–90+ days after HR forwards your case. During processing, you receive "interim" payments of approximately 80% of your estimated pension.

Confirm FEHB coverage transitions seamlessly

Verify with your HR Benefits Office that your FEHB will carry into retirement without interruption. Get written confirmation if possible. A processing error that breaks FEHB coverage is very difficult to fix retroactively.

Review tax withholding for retirement income

Set up federal and state withholding on your pension through OPM (Form W-4P). Also establish withholding on any TSP distributions. Failing to withhold properly can result in underpayment penalties at tax time.

Notify Social Security if claiming at 62

If you plan to claim Social Security at 62, apply to SSA 3–4 months before your intended start date. Social Security benefits typically start the month after you apply, but benefits cannot be paid more than 6 months retroactively. Don't miss the window.

Update your will and estate documents

Your retirement changes your financial picture significantly. Update your will, power of attorney, and healthcare directive. Ensure your trust (if any) properly handles your FERS survivor annuity and TSP beneficiary designations.