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      Federal Retirement — Eligibility

      When can you
      retire?

      There are two federal retirement systems — CSRS and FERS — each with their own eligibility rules, annuity commencement dates, and planning considerations. This section helps you determine when you first become eligible, how to choose the best retirement date, and what creditable service counts toward your annuity.

      CSRS & FERS eligibility Best date to retire
      < 2%
      Federal civilian non-postal employees still under CSRS — the vast majority are in FERS
      6 factors
      Key considerations when selecting your most advantageous retirement date
      6 months
      Maximum nonpay status (furlough) creditable toward retirement in any calendar year
      448 hours
      Maximum possible annual leave lump-sum payout at retirement with optimal timing
      Retirement Systems

      CSRS & FERS —
      which applies to you?

      There are two primary federal retirement systems. Which one applies to you determines your eligibility date, annuity calculation method, Social Security participation, and the rules for everything from survivor benefits to COLA adjustments.

      Currently less than 2% of federal civilian non-postal employees are under the CSRS plan — the vast majority were hired after 1983 and are in FERS. Both retirement systems are fully covered on this site, and your eligibility date, benefit options, and planning considerations differ significantly between the two.

      You may or may not be financially, emotionally, or physically prepared to retire on your eligibility date — and that date is only the starting point. Each person must evaluate their own unique personal situation before making this critical, irreversible decision. Use the cost analysis spreadsheet and the planning tools on this site to determine whether you are truly ready to leave.

      Early Retirement Offers — understanding VERA and VSIP programs Deferred annuity — FERS eligibility and application process Deferred annuity — CSRS eligibility and application process Creditable service — what time counts toward retirement Part-time work — how it impacts your annuity FERS disability retirement options CSRS disability retirement options Applying for retirement — required forms SF-2801 and SF-3107
      Planning

      The best date
      to retire.

      Any day can be a retirement date — but some days are significantly more financially advantageous than others. The right date depends on your retirement system, pay period, leave balances, and several other factors that can meaningfully affect your first-year income.

      Each year federal employees ask what the best retirement date is. There isn't one stock answer — the significant differences between CSRS and FERS law, your personal leave balances, TSP contribution timing, and COLA eligibility all factor in. But understanding the six considerations below will help you choose the date that is most financially advantageous for your specific situation.

      "Retirement is wonderful if you have two essentials — much to live on and much to live for."

      1

      Annuity commencement — minimize days without pay

      Annuities only begin on specific days depending on your system. Choose a retirement date that minimizes the gap between your last day of work and your first annuity payment.

      FERS: Voluntary retirement annuities always begin on the first of the month following your last day. Retire on the last working day of the month to minimize days without pay. Retiring on September 3rd means your first payment isn't until November 1st — retiring on August 31st moves that to October 1st, a full month sooner.

      CSRS: A CSRS annuity may begin on the 1st, 2nd, 3rd, or 4th of the month. Many CSRS employees retire on the 3rd so the annuity begins on the 4th. If you retire on the 1st through 3rd, your annuity is reduced for that first month by the number of days worked — then the full annuity resumes from the following month.
      2

      End of pay period — maximize leave accrual

      Retiring at the end of a pay period earns you an additional four hours of sick leave and eight hours of annual leave (if you earn eight hours per pay period). The annual leave is paid in a lump sum; the sick leave may increase your creditable service. For compressed schedule employees, retiring at the end of your 80-hour tour on Thursday — rather than Friday — still counts as end of pay period.

      3

      End of leave year — maximize the annual leave lump-sum

      If you've accumulated the maximum annual leave carryover (typically 240 hours) and added leave in your final year without taking it (up to 208 hours at 8 hours per pay period), you could receive up to 448 hours of annual leave in a lump-sum payout. Two additional benefits apply:

      Pay raise timing: If a federal pay increase takes effect in January and you retire December 31st, the lump-sum annual leave is calculated using the new (higher) pay rate for any days that fall after the increase date.

      Tax advantage: Retiring at year-end means your lump-sum payment falls in the next tax year — when your taxable income as a retiree is typically lower, potentially reducing the tax owed on that payment.
      4

      Creditable service — maximize whole months

      Your annuity is computed using only whole months of service — additional days are not counted. If you have 30 years, 8 months, and 29 days of service, your annuity uses only 30 years and 8 months. Working one additional month adds two months of computed service: the extra month worked plus one month from combining the sick leave with the 29 days that would otherwise be lost.

      5

      TSP contributions — maximize before you leave

      You can contribute up to 100% of your bi-weekly earnings to the TSP before retiring (subject to the annual IRS limit). Since TSP contributions can only come from earned income — not your retirement annuity — this may be your last opportunity to add to this tax-deferred account. Maximize contributions in your final pay periods if you have the cash flow to do so.

      6

      COLA — consider the December timing

      COLAs are effective December 1st each year and appear in the January annuity payment. If you retire during the year rather than at year-end, your first COLA is prorated — you receive one-twelfth of the full COLA for each complete month you received benefits that year. This is a one-time consideration that only affects your first COLA; from the second year onward you receive the full adjustment regardless of when you retired.

      Don't confuse your annuity start date with your date of final separation

      Your "Date of Final Separation" is the date you list in Block 2, Section B of your retirement application (SF-2801 for CSRS, SF-3107 for FERS). Your annuity start date is different — it's determined by your retirement system's rules as described above. Retirements are always effective at the close of business on the Date of Final Separation. If you retire on a Friday, the retirement is effective after your scheduled hours that day.

      Additional resources — selecting the best retirement date

      Caution — Do This Before You Retire (article by Dennis Damp) Avoid Retirement Processing Delays — updated procedures Best Dates to Retire 2025 — by Tammy Flanagan, Government Executive Consulting services by Tammy Flanagan — one-on-one retirement planning PARCO — complimentary retirement planning session Free report — How to be Financially Prepared When You Retire (PDF) Free report — How to be Emotionally and Physically Prepared When You Retire (PDF)
      Creditable Service

      Furloughed employees —
      what counts?

      CSRS and FERS both allow service credit for nonpay status — but only up to a specific limit. Understanding how furlough periods are treated is important for employees affected by government shutdowns or agency-specific furloughs.

      The amount of your CSRS or FERS annuity is based primarily on your total creditable service and your high-3 average salary. Both CSRS and FERS allow service credit for up to 6 months of nonpay status in any calendar year. If a furlough period does not cause you to exceed 6 months of nonpay status in a calendar year, that furlough period is included as creditable service in your annuity computation.

      If the total amount of time you spend in nonpay status in a calendar year exceeds 6 months, the amount over 6 months in that calendar year will not be creditable for retirement purposes. Furlough periods that span two calendar years are evaluated separately for each year.

      OPM guidance on furloughed creditable service

      OPM publishes an official addendum covering leave accrual and retirement annuity benefits for employees affected by administrative furloughs. This is the authoritative source for how your specific furlough situation affects your creditable service calculation.

      OPM Furlough Addendum — leave accrual and retirement annuity benefits (PDF) →

      Leave Year Dates

      Leave year beginning
      & ending dates.

      The beginning and ending dates shown below apply to most federal employees. However, some agency payroll systems use a different pay period schedule — contact your agency to verify the dates for your specific situation.

      Why this matters for retirement planning: Retiring at the end of a leave year maximizes your annual leave lump-sum payout. The "Deadline to Schedule Use or Lose Annual Leave" column shows the last date to schedule leave that would otherwise be forfeited at the end of the leave year.
      Leave Year Leave Year Beginning Leave Year Ending Deadline — Schedule Use or Lose Annual Leave
      2018January 07, 2018January 05, 2019November 24, 2018
      2019January 06, 2019January 04, 2020November 23, 2019
      2020January 05, 2020January 02, 2021November 21, 2020
      2021January 03, 2021January 01, 2022November 20, 2021
      2022January 02, 2022December 31, 2022November 19, 2022
      2023January 01, 2023January 13, 2024December 02, 2023
      2024January 14, 2024January 11, 2025November 30, 2024
      2025January 12, 2025January 10, 2026November 29, 2025
      2026January 11, 2026January 09, 2027November 28, 2026
      2027January 10, 2027January 08, 2028November 27, 2027
      2028January 09, 2028January 06, 2029November 25, 2028
      2029January 07, 2029January 05, 2030November 24, 2029
      2030January 06, 2030January 04, 2031November 23, 2030

      2026 highlighted as current year. Source: OPM leave year schedule. Some agency payroll systems may use different pay period schedules — verify with your agency.

      Related Pages

      Eligibility
      related resources.

      Pages on this site that connect directly to eligibility, annuity computation, and pre-retirement planning.

      FERS Retirement Eligibility — MRA, age and service requirements, MRA+10 CSRS Retirement Eligibility — age/service combinations, CSRS Offset rules Early Retirement — VERA and VSIP programs explained Creditable Service — what counts and how military service credit applies FERS Annuity Computation — how your monthly annuity is calculated CSRS Annuity Computation — formula, sick leave conversion, and the 80% cap Retirement Cost Analysis — pre and post retirement income vs. expense spreadsheet Retirement Forms — SF-2801 (CSRS) and SF-3107 (FERS) applications Sick Leave Conversion — how sick leave adds to your creditable service Part-Time Work — how part-time service prorates your annuity