CSRS Annuity Calculation: Early Retirement (Reduction for Age)
If you are a CSRS or CSRS Offset employee and retire before reaching age 55 due to an involuntary separation, such as in a reduction-in-force situation, your basic CSRS annuity will be reduced by one-sixth of 1 percent for each full month you were under 55 (2% per year).
There is no age reduction if you retire under the disability provision or under the special provisions for air traffic controllers, law enforcement officers, and firefighters
| Example: |
|
| Age |
52 years, 6 months |
| Years of Service |
20 years |
|
Months from 55th Birthday |
26 months |
|
26 x 1/6th of 1% (0.166667) |
= 4.33% reduction in annuity |
In this example, because the employee has served 20 years and is over 50, is eligible for early retirement, but will receive a reduction in their CSRS basic annuity by 4.33% if they retire at age 52 years and 6 months.
Source: OPM 83-7
| 
Overview - CSRS
