HR Myths & Mistakes

While your agency's HR office plays a key role in processing retirement paperwork, they are not your retirement advisor. This module helps you become your own best advocate.

❌ Common Myths That Can Hurt Your Retirement

1. "You Can't Retire Until You're 62"

Wrong. Many HR staff (and even federal trainers) mistakenly believe age 62 is the minimum retirement age. It's not. Under FERS, the most common retirement types include:

• MRA + 30 (Minimum Retirement Age and 30 years of creditable service)
• Age 60 + 20 years
• Age 62 + 5 years
• MRA + 10 (with reduced pension)

Your Minimum Retirement AgeYour MRA varies by birth year, ranging from 55 to 57. It is not a fixed number like 62. ranges between 55 and 57 depending on your birth year — not 62. That confusion alone has caused many employees to delay retirement unnecessarily.

2. "You Can't Get the FERS Supplement If You Take MRA + 10 Retirement"

This one's technically true — but misleading if they don't explain your other option. MRA + 10 is reduced, yes. But many employees with 20+ years of service simply postpone their pension until age 60, which restores full pension value and qualifies them for the FERS Supplement.

3. "Your Unused Sick Leave Can Be Paid Out"

Nope. Unused sick leave is not paid out. It's only used to increase your retirement service credit (i.e., time-in-service). Annual leave, on the other hand, is paid out in a lump sum, usually on your final paycheck or shortly after. Misunderstanding this can cause you to overestimate your final payout.

4. "You Have to Submit Retirement Paperwork at the Start of the Month"

False. You can submit your retirement application whenever you want, but OPM only makes annuities effective on the first day of the month. That's why most people retire on the last day of the month — so their annuity starts the very next day.

🧠 Missteps That Delay Your Pension

1. Wrong or Missing RSCD: Your RSCD (Retirement Service Computation Date) determines how much pension service you've earned. But this date is often wrong in HR systems due to missing military buyback records, undocumented temp service, or redeposit time. You need to verify your RSCD before you retire — not after.

2. Incomplete Retirement Packet: Some HR offices submit incomplete packets to OPM, which can delay your processing by months. Watch out for missing Military Earnings Deposit letters, incomplete spousal consent forms, or missing proof of FEHB enrollment.

3. Failure to Flag Your Postponement: If you're postponing your retirement (not deferring), HR must annotate your retirement type properly. If they don't, OPM may deny you FEHB reinstatement — even though you're eligible. Postponed retirement allows FEHB reinstatement later. Deferred retirement does not.With postponed retirement, you can restart FEHB when your annuity begins. Deferred retirement permanently ends FEHB eligibility.

🛑 Quotes You Should Watch Out For

These are real quotes from HR professionals that federal employees have reported:

"You can't retire until you're 62. That's the rule."

"There's no benefit to buying back your military time. It doesn't count for anything."

"If you retire at MRA + 10, your spouse still gets health insurance."

"Sick leave is part of your lump-sum payout."

If you hear something like this — fact check it immediately. These errors are common, and they can cost you thousands of dollars or delay your retirement by months.

✅ Final Checklist: Avoiding HR Traps