Special Career Retirement
LEO, Firefighter, ATC & Other SCE Provisions
The complete guide to enhanced retirement benefits for hazardous positions
If you're a federal Law Enforcement Officer (LEO), Firefighter (FF), Air Traffic Controller (ATC), or other Special Category Employee, your retirement rules are powerful — but complex. They were designed to recognize the unusually rigorous and hazardous nature of your career. This is your full walkthrough, built specifically for covered employees.
🔍 Who Qualifies as an SCE?
SCE coverage applies to roles that are hazardous, physically demanding, or operationally critical. This is not an exhaustive list, but common covered positions include:
- Federal Law Enforcement Officers (e.g., FBI, DEA, ATF, U.S. Marshals, BOP, CBP, Secret Service)
- Federal Firefighters (e.g., DoD, Forest Service, National Parks Service)
- Air Traffic Controllers (ATCs)
- Nuclear Materials Couriers
- Certain Customs and Border Protection Officers
✅ How to Verify Your Coverage
Do not rely on your job title. The only legal proof of your status is your SF-50 (Notification of Personnel Action). In Box 30 ("Retirement Plan"), you should see a code of 6, L, M, or K for FERS-covered SCEs. If you see a different code (like 'K' for regular FERS), you are not covered under special provisions, regardless of your duties.
💰 Your Five Big Financial Advantages
SCE retirement offers five major benefits regular FERS employees don't get. Understanding these is key to appreciating the value of your service.
✅ Advantage 1: Early, Unreduced Retirement
You can retire much earlier than standard employees with a full, unreduced pension if you meet either of these requirements:
- After becoming Age 50 with 20 years of SCE-covered service
- At Any age with 25 years of SCE-covered service
Clarification: The "Year of 50" Rule for TSP vs. Retirement
This is a frequent point of confusion. For TSP and IRA catch-up contributions, you are eligible for the entire calendar year in which you turn 50. However, for FERS SCE retirement eligibility, the rule is strict: you must have actually attained age 50 (i.e., reached your 50th birthday) to retire under the 20-year provision.
Mandatory Retirement:
Because of the demanding nature of the work, most SCEs face mandatory retirement at Age 57 (LEOs/FFs) or Age 56 (ATCs), ensuring you can retire while still able to enjoy it.
✅ Advantage 2: Enhanced Pension Formula
You earn a higher pension percentage for your first 20 years of service, accelerating your annuity's value.
| Service Period | SCE Multiplier | Regular FERS Multiplier |
|---|---|---|
| First 20 Years of SCE Service | 1.7% per year | 1.0% per year |
| All Years Over 20 | 1.0% per year | 1.0% per year |
Real-World Impact: A 25-year SCE with a $100,000 High-3 salary gets a pension of $39,000/year. A regular FERS employee with the same service and salary would get only $25,000/year. That's a $14,000 annual difference for the same time served.
✅ Advantage 3: No Penalties for Retiring Early
Regular FERS employees who retire before age 62 often have their benefits delayed or reduced. You do not.
- Immediate COLAs: Your annuity gets cost-of-living adjustments starting the very next year after you retire, protecting your purchasing power from day one.
- FERS Supplement Exemption: You can work a second career after retiring and earn unlimited outside income without reducing your FERS Supplement payment, until you reach your MRA (usually 57). A regular FERS retiree would lose $1 of their supplement for every $2 earned over the annual limit (e.g., $22,320 in 2024).
- Penalty-Free TSP Access: You can make withdrawals from your TSP account without the 10% early withdrawal penalty.
✅ Advantage 4: Unused Sick Leave Credit
Your unused sick leave balance at retirement is converted into additional creditable service, which directly increases your pension payment for life. OPM uses a 2,087-hour work year to convert hours into months and days of service. Roughly every 174 hours of sick leave adds one month to your service time.
✅ Advantage 5: Health Insurance Premium Tax Deduction
Eligible retired public safety officers can exclude up to $3,000 of their health insurance premiums (including FEHB) from their gross income for federal tax purposes each year. The premiums must be paid directly from the retirement annuity (which OPM does automatically). This is an "above-the-line" deduction, meaning you don't have to itemize to claim it.
🧭 Primary vs. Secondary Coverage — And The 3-Year Trap
This is one of the most misunderstood aspects of SCE retirement. Your eligibility can depend on the type of position you hold.
- Primary ("Rigorous"): Hands-on, front-line jobs directly involved in law enforcement or firefighting.
- Secondary ("Supervisory/Administrative"): Supervisory or administrative jobs that require prior primary SCE experience (e.g., moving from a field agent to a management role).
⚠️ The "Retire From a Covered Position" Rule
To receive SCE benefits, you must separate for retirement from a covered SCE position. Transferring to a non-covered administrative job late in your career—even within the same agency—could inadvertently forfeit your SCE eligibility and all its advantages, even if you have 20+ years of prior service. This is a common and devastating mistake.
🛡️ Survivor Annuity Options (SBSA)
At retirement, you must decide whether to provide a survivor annuity for your spouse. This decision is critical because it is the only way a surviving spouse can continue FEHB health insurance after your death.
| Option | What Your Spouse Gets | Cost (Reduction to Your Pension) |
|---|---|---|
| Full Survivor Annuity | 50% of your unreduced pension | 10% |
| Partial Survivor Annuity | 25% of your unreduced pension | 5% |
| No Survivor Annuity | Nothing (and no FEHB) | None |
Spousal Consent is Required
If you are married, you cannot waive or reduce the survivor benefit without the notarized written consent of your spouse. This is a legal safeguard to ensure they understand that this decision will terminate their right to continue FEHB coverage after your death.
🪙 Military Buyback and SCE Retirement
Military time that you "buy back" can help you meet retirement eligibility, but with a key distinction:
- Military time CAN be used to help you reach the 25 years of service requirement for retiring at any age.
- Military time CANNOT be used to help you reach the 20 years of SCE-covered service requirement for retiring at age 50. That time must be actual SCE service.
💸 What Happens If You Leave Before Eligible?
If you leave your SCE position before meeting the 20/50 or 25/any age requirements, you generally lose all special provisions. Your retirement will be processed under regular FERS rules, meaning:
- You lose the 1.7% pension multiplier for all your SCE years; it reverts to 1.0% or 1.1%.
- You lose access to immediate COLAs and the FERS supplement earnings test exemption.
- You will be subject to standard MRA+10 or MRA+30 eligibility rules, potentially delaying your pension for years.
🧠 Frequently Asked Questions
Only your basic pay counts toward your High-3 salary. For LEOs, Law Enforcement Availability Pay (LEAP) does count as it is considered a form of premium pay treated as basic pay. However, Administratively Uncontrollable Overtime (AUO) and other forms of overtime or holiday pay do not.
No. You must separate from service on or after the date you turn 50 to qualify under the 20-year rule. Leaving before then would cause you to fall under regular FERS rules, likely for a deferred or postponed retirement with no SCE enhancements.
No. This is a savvy strategy for dual-fed couples, but the IRS rule states the premiums must be paid directly from the retiree's annuity to qualify for the deduction. If your active spouse covers you, the premiums are paid pre-tax from their salary, not post-tax from your pension. While you lose the $3,000 deduction, your family gains the much larger financial benefit of paying for health insurance with pre-tax dollars.
📋 Your SCE Retirement Readiness Checklist
Use this checklist to ensure you haven't missed any critical steps as you approach retirement.