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Discontinued Service Retirement Eligibility Rules for POStPlan Impacted Postmasters

If an employee is eligible for a discontinued service retirement (DSR) with 20 years of service and age 50; or 25 years of service regardless of age, they would be provided with this retirement following their RIF separation in 2014. The response to this question is on the Organization Redesign website which can be reached at:

https://liteblue.usps.gov/humanresources/organizationalchanges/pdf/oc_faq.pdf

OPM requirements for receiving a discontinued service annuity are discussed below.

To qualify for a discontinued service annuity, which may be reduced, as a CSRS or CSRS Offset employee you must meet the following requirements:

  • at least age 50 with at least 20 years of creditable service, or
  • any age with at least 25 years of creditable service as of the effective date of your involuntary separation, and
  • “reasonable offer” requirement.

If you are impacted by the RIF and refuse a reasonable offer of another position, you will not qualify for a DSR annuity. For DSR annuity purposes, a job offer is considered reasonable if the following requirements are met:

  • The offer is made in writing.
  • You meet the qualifications for the position being offered.
  • The position offered is:
    - within your local commuting area, unless geographic mobility is a condition of the employee’s employment;
    - another career position;
    - with the same work schedule, that is, part-time or full-time;
    - not more than the equivalent of two grade or pay levels below your current grade or pay level; and
    - within the employee’s agency.

Other requirements:

  • Your creditable service must include at least five (5) years of civilian service.
  • You must separate from a position subject to CSRS coverage
  • An employee must be covered by CSRS for at least one (1) year within the two-year period immediately preceding the separation on which the annuity is based.
  • Your accrued and unused annual leave or donated leave may be used to meet either the age or service years requirement to qualify for a discontinued service retirement.
  • You may request to be placed on approved annual leave beyond the effective date of the involuntary separation notice so that you may use enough leave to satisfy the age or service years requirement.
  • Your remaining annual leave balance, if any, will be paid in a terminal leave payment.
  • You may not use sick leave to meet minimum age and service requirements.

FERS Discontinued Service Retirement (DSR)

You may be eligible for an immediate FERS discontinued service annuity if you meet the following requirements:

  • at least age 50 with at least 20 years of creditable service, or
  • any age with at least 25 years of creditable service as of the effective date of your involuntary separation, and
  • “reasonable offer” requirement.

If you are impacted by the RIF and refuse a reasonable offer of another position, you will not qualify for a DSR annuity. For DSR annuity purposes, a job offer is considered reasonable if the following requirements are met:

  • The offer is made in writing.
  • You meet the qualifications for the position being offered.
  • The position offered is:
    - within your local commuting area, unless geographic mobility is a condition of the employee’s employment;
    - another career position;
    - with the same work schedule, that is., part-time or full-time;
    - not more than the equivalent of two grade or pay levels below your current grade or pay level; and
    - within the employee’s agency.

Other requirements:

  • Your creditable service must include at least five (5) years of civilian service.
  • You must separate from a position subject to FERS coverage.
  • There is no “1 out of 2” requirement under FERS as there is under CSRS. Thus, the employee who elects to transfer to FERS does not have to be under FERS for one (1) year to be eligible to retire.
  • Your accrued and unused annual leave or donated leave may be used to meet either the age or service years requirement to qualify for a discontinued service retirement.
  • You may request to be placed on approved annual leave beyond the effective date of the involuntary separation notice so that you may use enough leave to satisfy the age or service years requirement.
  • Your remaining annual leave balance, if any, will be paid in a terminal leave payment.
  • You may not use sick leave to meet minimum age and service requirements.

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