VERA Decision Worksheet 2026
Quantify the accept vs. wait trade-off: eligibility check, pension math, FERS supplement gap, VSIP after-tax, and decision deadlines.
Updated June 2026 • For FERS employees considering VERA/VSIP • 5 sections with fill-in-the-blank math rows
No penalty under VERA: FERS employees who meet age and service thresholds face zero annuity reduction — unlike MRA+10 retirement which reduces your pension 5% per year under age 62. The trade-off is years of foregone salary and, if you retire before your MRA, years without the FERS Supplement.
Run both scenarios before deciding
Model your VERA pension and your "wait" pension side by side, then calculate the gap.
VERA Decision Worksheet 2026
FedTools.com • Updated June 2026 • Voluntary Early Retirement Authority
Name: _______________________
VERA Decision Deadline: _______
Section 1: VERA Eligibility Check
VERA eligibility has two paths — either qualifies. Both require your agency to have active OPM-approved VERA authority for your specific position.
Eligibility Paths (Either Qualifies)
- Path 1: Age 50 or older + at least 20 years of creditable service
- Path 2: Any age + at least 25 years of creditable service (at least 5 years must be civilian service)
- Your agency must have current OPM-approved VERA authority — there is no self-initiated option
- Your specific position must be covered by the VERA window — confirm with HR
- You must retire within the authorized window dates
- Creditable service includes civilian FERS service + military service if deposit was paid
Section 2: Pension Math — Fill In Using the FERS Calculator
This is the core calculation. Run your VERA scenario AND a "wait" scenario side by side. The gap between them, multiplied over years, is the financial cost of accepting VERA early.
Your VERA Annuity (Accept Now)
- High-3 Average Salary (use fedtools.com/calculators/high3-calculator): $______________
- Total creditable service including military deposit-paid years: ______ years ______ months
- Sick leave balance conversion (2,087 hours = 1 year): ______ hours = ______ extra months of service credit
- Multiplier: 1.0% for most VERA cases. 1.1% ONLY if you are age 62 or older AND have 20+ years — both required
- Estimated annual VERA annuity (High-3 × service years × multiplier): $______________ /year
- Estimated monthly VERA annuity: $______________ /month
Annuity If You Wait (Enter Your Alternative Scenario)
- Number of additional years you would work before regular retirement: ______ years
- Total service years at regular retirement date: ______ years ______ months
- Projected High-3 at regular retirement: $______________
- Estimated annual annuity if you wait: $______________ /year
- Monthly difference (wait annuity − VERA annuity): $______________ /month
- Annual difference (monthly × 12): $______________ /year
- Cumulative cost of early retirement over 25 years (annual diff × 25): $______________ total
Section 3: FERS Supplement Gap
The FERS Special Retirement Supplement bridges income to Social Security at age 62. Under VERA, it does NOT start until your Minimum Retirement Age — which may be years away. This gap is the most underestimated cost of VERA.
Supplement Gap Calculation
- Your MRA (Minimum Retirement Age): age 55 if born before 1953 / age 56 if born 1953–1964 / age 57 if born 1970+
- Your age at VERA separation: ______
- Years until supplement begins (MRA − VERA age): ______ years without supplement
- Estimated monthly FERS Supplement amount (from HR estimate — typical range: $500–$900/month): $______ /month
- Total supplement income you forgo by retiring before MRA (monthly × 12 × years gap): $______________ total
- Earnings test: if you work after VERA and earn more than ~$23,400/year, your supplement is reduced $1 for every $2 over the limit
- After age 62: Social Security COLAs begin; VERA pension COLAs do NOT start until age 62 — no inflation protection before then
Section 4: VSIP Cash and Benefits Check
VSIP is a separate program from VERA. You can receive one, both, or neither. The after-tax number is often much smaller than the headline.
VSIP Cash Incentive (If Offered)
- VSIP maximum: $25,000 (most agencies) OR $40,000 (DOD components only under congressional authority)
- After-tax estimate: approximately $17,000–$19,000 net (non-DOD) or $27,000–$30,000 (DOD) — varies by tax bracket
- Repayment rule: must repay the full GROSS VSIP amount if you return to federal service within 5 years
- Plan to return to federal service in the next 5 years? If yes, do NOT accept VSIP
- VSIP gross offered: $__________ Estimated after-tax: $__________
FEHB, TSP, and PSHB Checklist
- FEHB 5-year rule: enrolled continuously in FEHB for 5 years immediately before retirement? Yes / No (check with HR for waiver)
- TSP access: will you be 55 or older in the calendar year of your VERA separation? Yes = no 10% penalty. No = penalty applies until 59½
- Emergency fund: at least 6 months of expenses in cash to cover the OPM processing gap and any income interruptions
- USPS employees only: PSHB requires Medicare Part B enrollment at age 65 — 2026 standard premium is approximately $203/month per person, plus IRMAA surcharges for higher incomes. For early VERA at age 50, this cost begins ~15 years from now
- No-COLA period: VERA pension receives NO cost-of-living adjustments until age 62 — model inflation impact over ______ years
Section 5: Decision Dates and Action Log
VERA windows are typically 30–60 days and rarely extended. Track every deadline here.
Key Dates
- Official VERA/VSIP offer received from HR: ________________
- VERA/VSIP decision deadline (firm — confirm with HR): ________________
- Official annuity estimate requested from HR: ________________
- FERS Retirement Calculator run with both scenarios: ________________
- FEHB 5-year enrollment confirmed with benefits office: ________________
- Spouse discussion and survivor benefit election decision: ________________
- Final decision submitted to HR: ________________
Pre-Decision Checklist
- Got official annuity estimate from HR in writing
- Ran FERS calculator for both VERA and wait scenarios at fedtools.com/calculators/fers-retirement-calculator
- Calculated FERS supplement gap — years without supplement × monthly amount
- Verified FEHB 5-year enrollment rule is satisfied
- Modeled post-VERA income: pension + supplement (when eligible) + Social Security at 62 + TSP
- Confirmed VSIP repayment risk if returning to federal service within 5 years
- USPS employees: priced in PSHB Medicare Part B at fedtools.com/blog/pshb-medicare-part-b-trap-2026