Resources/Downloads/Federal Retirement Readiness Checklist

Federal Retirement Readiness Checklist

A comprehensive FERS retirement checklist organized by timeline — from 5 years out through separation day.

Updated March 2026 • For FERS employees • 40+ action items across 5 phases

Ready to run the numbers?

Use the FedTools calculators to complete the financial items in this checklist.

FERS Calculator TSP Calculator High-3 Calculator

5 Years Out

The five-year window is when strategic decisions have the biggest payoff. Mistakes made here are hard to reverse.

FERS Eligibility Verification

Confirm your FERS retirement eligibility scenario: MRA+30 (full, no reduction), 60+20 (full, no reduction), 62+5 (full), or MRA+10 (reduced 5% per year under age 62)
Locate your birth year on the MRA chart — MRA ranges from 55 (born 1948–1952) to 57 (born 1970+)
Request and review your Official Personnel Folder (OPF) to verify all creditable service dates are accurate
Confirm any prior federal service breaks are documented and will be credited
If you had military service, verify military buyback status (see below)

High-3 Salary Strategy

Identify your likely High-3 period — the highest 36 consecutive months of basic pay
Review recent SF-50s for your current and past salary figures
Use the FedTools High-3 Calculator to project your High-3 under different retirement scenarios
Consider whether a promotion or locality change in the next 5 years would boost your High-3
Note: overtime, bonuses, and awards do NOT count toward High-3 — only base pay and locality pay

TSP Portfolio Review

Review current TSP allocation — are you appropriately positioned for a 5-year horizon?
Confirm beneficiary designations are current (spouse, contingent) at tsp.gov
Verify agency automatic (1%) and matching contributions (up to 4% more) are being captured
Increase contributions toward the 2026 IRS limit: $23,500 base; $31,000 if age 50+; $34,750 if age 60–63
Decide Traditional vs. Roth TSP split based on projected retirement tax bracket
Review L Fund target date or fund allocation relative to your planned retirement date

Military Buyback

Obtain your military DD-214 and Request for Earnings and Leave Statement (RELS) from your branch
Contact OPM or your agency HR to get a military deposit estimate
Calculate break-even: the deposit cost vs. lifetime pension increase from additional service years
Note: military buyback MUST be completed before retirement — it cannot be done retroactively
If paying by installment, confirm the deposit account is active and auto-deducting

Social Security Coordination

Create or log into your my Social Security account at ssa.gov/myaccount
Review your Social Security statement for estimated benefits at ages 62, 67, and 70
Check for Windfall Elimination Provision (WEP) impact — FERS employees generally are NOT affected (CSRS employees may be)
Check for Government Pension Offset (GPO) if your spouse receives Social Security — GPO primarily affects CSRS retirees
Decide tentative Social Security start age (62 vs. FRA vs. 70) as part of overall income plan

1 Year Out

Twelve months out, decisions shift from strategic to concrete. Lock in numbers and start official processes.

FEHB Continuation Requirements

Verify you have been continuously enrolled in FEHB for at least 5 years before retirement — this is required to keep coverage in retirement
If you have been in the military or had a break in FEHB, confirm whether that period satisfies the 5-year rule
Review 2026 FEHB plan options — Open Season is typically November/December
Compare your current plan vs. alternatives during Open Season with the retirement premium in mind
Note: FEHB premiums in retirement are paid from your pension before direct deposit — factor this into income planning

FEGLI Life Insurance Decisions

Review your current FEGLI coverage: Basic, Option A (Standard), Option B (Additional), Option C (Family)
Understand post-retirement FEGLI reduction elections: you choose a reduction schedule at retirement
Basic: 75% reduction (free), 50% reduction (2% of basic monthly), no reduction (full cost)
Option B and C: you keep the coverage level but pay post-retirement premiums (can be substantial)
Evaluate whether term life insurance purchased privately is more cost-effective than post-retirement FEGLI
Check your FEGLI designation of beneficiary form (SF-2823) is current

Unused Sick Leave Documentation

Request your current sick leave balance from HR or WebTA/time-keeping system
Calculate approximate pension credit: 2,087 hours = 1 year of additional service credit
Do NOT use sick leave strategically before retirement — every hour used reduces your lifetime pension value
Plan retirement date to align sick leave balance with a full 30-day block (fractional months are lost)
Confirm HR will provide your exact sick leave balance on your separation date

TSP Withdrawal Strategy Planning

Research the four TSP withdrawal options: installments, annuity purchase, full withdrawal, or leave in TSP
Determine whether rolling to an IRA provides more flexibility than staying in TSP
Review TSP annuity rates if considering an annuity (rates change monthly)
Understand the 10% early withdrawal penalty — does not apply if retiring in the year you turn 55 or later (Rule of 55)
Meet with a fee-only financial advisor to model TSP drawdown vs. pension income sequencing

6 Months Out

Six months is when you start the official OPM process and make irrevocable elections. Don't wait until the last minute.

OPM Retirement Application (SF-3107)

Download SF-3107 (FERS Application for Immediate Retirement) from OPM.gov or your agency HR portal
Begin gathering required documentation: birth certificate, marriage certificate (if electing survivor benefit), divorce decrees, military DD-214
Complete SF-3107 with your agency HR — do not mail it directly to OPM
Request your SF-3107 package from HR at least 90 days before your planned retirement date
Ask HR about agency-specific interim pay procedures while OPM processes your annuity

Survivor Benefit Election

Decide survivor benefit election: Full (50% to spouse, costs 10% of pension), Partial (25%, costs 5%), or None (requires spousal written consent)
This election is generally PERMANENT after 30 days post-retirement — choose carefully
Calculate: with a full election on a $30,000 pension, you give up $3,000/year; spouse receives $15,000/year for life
Review your spouse's independent income sources (their own pension, Social Security) when making this decision
If electing no survivor benefit, ensure spouse signs consent form — HR will provide it

SF-50 Final Verification

Request a copy of your most recent Notification of Personnel Action (SF-50) from HR
Verify: grade/step, duty station, retirement code (FERS = code K or M), service computation date
Confirm all previous agency transfers are reflected with correct effective dates
Report any discrepancies to HR immediately — corrections before retirement are much simpler than after
Request your Official Personnel Folder (OPF) for review — you have the right to review it

Financial Preparation

Model post-retirement income: pension + FERS Supplement (if eligible) + TSP distributions + Social Security
Build a 6-month emergency fund in cash before retirement — OPM processing takes 1–3 months for full annuity
Notify your bank/credit union of pending change in direct deposit amount
Review and update estate planning documents: will, healthcare proxy, power of attorney
Verify that any outstanding federal government loans (TSP loans excluded) are resolved

Final Month

The 30-day countdown. Tie up every loose end and confirm your chosen retirement date is locked in.

TSP Loan Payoff

Check TSP account at tsp.gov for any outstanding loan balance
Repay any TSP general purpose or residential loans before separation — unpaid balances become taxable distributions
If you cannot fully repay, understand the tax consequences: the balance is treated as ordinary income in the year of separation
Request a TSP loan payoff statement to confirm the exact amount needed
Confirm loan payoff is processed before your separation date with TSP recordkeeper

Beneficiary Designation Final Check

FERS Annuity beneficiary — file SF-3102 if changes needed (covers lump-sum death benefit)
TSP beneficiary — update at tsp.gov if changes needed
FEGLI beneficiary — update SF-2823 if changes needed
Social Security — no separate beneficiary; survivor benefits are set by status (spouse, dependents)
Confirm beneficiary forms are on file with the correct agencies — not just in your personal records

Leave Balance Decisions

Confirm your annual leave balance — unused annual leave is paid out as a lump sum at separation
Lump-sum annual leave payment is taxable income and may push you into a higher bracket for that year
Consider using some annual leave before retirement to spread taxable income (but balance this against optimal retirement date)
Annual leave lump sum is paid at your final pay rate, so later is generally better financially
Sick leave is NOT paid out — it converts to pension service credit (see above)

Separation Day Logistics

Confirm your last day with supervisor and HR in writing
Understand your agency's out-processing checklist: return badges, equipment, access cards
Request a copy of your final SF-50 (your separation SF-50) — you will need this for OPM records
Confirm your home address in the HR system is current for W-2 and OPM correspondence
Get contact information for your agency's retirement/benefits coordinator for post-separation questions

Separation Day

Your last day. Most of the heavy lifting is done — these are the final confirmations.

Final Actions Before You Leave

Verify your SF-3107 retirement application has been submitted to OPM by your HR office
Confirm interim pay arrangements — most agencies set up bridge pay while OPM processes your annuity
Collect copies of: final SF-50, SF-3107 submission confirmation, leave balance statement, sick leave balance
Return all government property (PIV card, laptop, cell phone, parking permit)
Complete FERS Supplement worksheet if applicable — ask HR for Form RI 25-11

What Happens Next (OPM Processing)

OPM typically takes 1–3 months to establish your full annuity — budget accordingly
You will receive interim payments (usually 80% of estimated annuity) during processing
OPM will mail you a Civil Service Annuity Number (CSA Number) — keep this number safe
You can track your retirement case status at servicesonline.opm.gov
FEHB and FEGLI coverage continues uninterrupted during the processing period

FedTools Retirement Calculators

FERS Retirement Calculator

Pension amount, survivor benefit impact, optimal retirement date

High-3 Calculator

Find your highest 36 consecutive months of basic pay

TSP Growth Calculator

Project TSP balance and model withdrawal scenarios

GS Pay Calculator

Current salary lookup for High-3 projections

FERS Retirement Guide

Deep-dive on eligibility, pension formula, survivor benefits

TSP Guide 2026

Contribution limits, fund options, withdrawal strategies