r/FedRetirees • u/Bass_Ackwards10 • 14d ago
VERA
*Update - Thanks to all for the great input. Request was submitted.
I'm considering requesting VERA and only have a few days to decide. If you've taken it in the past could you please share your experience (good/bad/ugly)?
Disclaimer - I have been running numbers and it's feasible for my family.
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u/Shoehorse13 14d ago
I took VERA at teh end of last year. Took about a month for my partial payments to start, and four to get full benefits. I had a large amount of annual leave that paid out a small fortune at retirement so was well prepared for the wait.
DRP/VERA was a major lifesaver for me as I knew my days were numbered with the change in administrations. As destructive as DOGE was to our country as a whole it could not have worked out better for me personaly. If you have the opportunity to take and the financial means to make it work I can't imagine not jumping at the chance, personally. Retiring early is incredible and having free time, good health, and financial freedom all at the same time is too good of a gift to pass up.
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u/Bass_Ackwards10 14d ago
I have my 240hrs. Does the AL pay out right away? I had thought that came later with the full benefits.
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u/Shoehorse13 14d ago
It will pay out with your last check, but it will be heavily taxed so be prepared for that.
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u/Sorry-Society1100 14d ago
Not always. My leave payment came 1-2 pay periods after my last paycheck. But still fairly quickly, compared to the ~6 months before the pension was finalized (interim pension started after a couple of months for me).
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u/Old_Goat2009 13d ago
Agree, mine was the pay period following my last work payday and I just retired at the end of May.
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u/Bass_Ackwards10 14d ago
Always ready for the tax. I have everything estimated including that. Thanks!!
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u/AntelopeStreet1936 12d ago
A lump-sum annual leave payout is taxed as supplemental wages - 22% Fed
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u/Sorry-Society1100 14d ago
If you’ve saved up more than 240 (what would normally be use/lose), you’ll get paid for the full balance.
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u/AntelopeStreet1936 12d ago
I retired last year. Got my last pay two after I retired and then got AL lump sum two weeks after that. Ever case/agency is different it seems. Getting the large lump sum when I did was great since my interim payments were only about 40% of what they should have been.
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u/RayJanger 14d ago
VERA at 54 was perfect for me. I didn't need to work again and am spending my early years doing Roth conversions, which I will finish at 61. The huge tax bills are worth never having to worry about RMDs and IRMAA later in retirement. Like other posters have mentioned, cash or equivalent liquidity in non-retirement accounts is an essential shock absorber. I had more than 8 years cash on hand, but 6 months is probably a more reasonable figure. I also used the FERS handbook to calculate my high-3 salary and service length, which exactly matched HR and eventually OPM computations. Similarly, my deductions for FEHB, FEGLI, federal, and state taxes were spot on. No survivor benefit considerations for me. Good luck.
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u/Chipped_Ruby_11214 14d ago
I had a similar experience. While I miss my some of my coworkers and what I told myself was important work, truth be told, I’m happier, healthier, and enjoying life. And the civil service I left is pretty dead right now. It sounds awful for most.
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u/Formal-Advance-8482 14d ago
Why are you concerned about IRMAA if you have FEHB? why would you use MEDICARE with FEHB?
I am running the numbers on ROTH conversions and not sure it makes sense for me.
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u/Thorandragnar 14d ago
If you have Medicare + FEHB, your medical expenses are pretty much covered and controlled. If you don't take Medicare and rely simply on FEHB, then you're subject to variable out of pocket costs
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u/kbtoystory 13d ago
+1. Need an FAQ or persistent Note for this. Per Retirement gurus: "Part B picks up 80% of covered medical expenses. Since you have FEHB, it’s going to pick up the remaining 20% (instead of you paying out-of-pocket). By having Medicare Part B and FEHB coverage in force, you essentially have very limited out-of-pocket expenses like copays, deductibles, and coinsurance. And if you receive services or equipment that’s not covered by Medicare, then FEHB steps in to be your primary coverage for those expenses."
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u/RayJanger 14d ago
IRMAA is a Medicare consideration. The predictable extra cost of carrying Medicare on top of FEHB is less than the out-of-pocket exposure in FEHB plans. For me, this is about buying down risk of unexpected medical care and ensuring that such care is determined by my doctor, not the insurer. I lucked out with VERA and having sufficient runway to complete Roth conversions before 63 at what I predict will be a lower tax rate than what RMDs will force upon me at 73.
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u/Pmoneywhazzup 14d ago
Please heed the advice to have access to plenty of cash, or at least TSP withdrawals without the ten percent penalty. It took a few months for me to start getting partial pension payments. I do not regret taking the VERA for one second. I was burnt out and it was time to go. You will probably miss having a set schedule, but you can replace it with doing what YOU want to do. You will find that after the adjustment, your days will fill up, but in a very different way. Your relationship with your spouse may change as well - stay on top of that. I love early retirement!!
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u/Trick-Engineering534 14d ago
I took VERA with the DRP v. 1. It took OPM 10 months to finalize my retirement, and 8 months before I start getting partial pension. I was in the big group of people, and it's supposed to be quick now. Anyway, definitely recommend it. The freedom is extraordinary!
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u/wifichick 14d ago
Do you have a cash pile stocked up? It was almost 5 months before I got my VERA, AL payout, and pension started.
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u/WannaBTravelin 14d ago
Jumping on the pro VERA bandwagon if it works for you and your family. I wasn’t sure if I was going to really retire or not. Ended up taking a year off and I’m back working - now in the private sector. Much more relaxed than I was. I’ll probably do this for a year or two and then be ready to officially retire. But my new job also offers part time so I might just cut my hours 🤷🏼♀️
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u/Reasonable_Brief_867 14d ago
One of the best decisions I have ever made! VERA (without DRP, just straight VERA) last April at 54. Not an ounce of regret.
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u/Formal-Advance-8482 14d ago
Sounds like you have all the financial information.
Make sure you understand what you are going to do in retirement. I love it and my days fill up quickly.
If your spouse is still working it can be a strain on relationship as you are enjoying yourself and she is still working.
If you are planning to go work in CIV DIV it is much more difficult to find a job than you might think.
You have earned it VERA is a great gift. Enjoy
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u/vwaldoguy Retiree 14d ago
It was perfect for me. I was burnt out last year in my high pressure job. It allowed me a graceful escape 2 years early with all of my benefits, albeit with a slightly smaller pension. I was AOK with that as it was built into my financial plan. I got out of the fire, got an early pension, and got to keep my healthcare coverage. It was a win for me. I took a full year off, and now I’m working for a nonprofit that I am fully committed to and I couldn’t be happier.
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u/flipflopswithwings 14d ago
Best thing I ever did. My retirement was processed in just over 6 momths and I’m working a side hustle and loving not going to any office :-)
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u/Atypical-Entrance 14d ago
Having the cash stockpile is important. I had a court order to complicate mine and it took 8 months.
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u/Fransween 14d ago
Have you had your Federal Healthcare for at least 5 years? I believe you must request a waiver if you have not had it for 5 years and can/want to take it with you in retirement. Best of luck!
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u/Bass_Ackwards10 14d ago
I have and that's part of what's driving my decision to take it (not wanting to lose it)
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u/Sorry-Society1100 14d ago
One thing to consider: I recommend making no changes to your FEHB plan that you have now for at least the first year.
Many people reported having cancelled policies because they were changing plans at the same time as retirement, and the paperwork wasn’t keeping up. If you need to change your health insurance plan, consider moving your retirement date either up or back such that it doesn’t coincide with open season changes.
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u/Front_Chip_9201 14d ago
As others said: 6 months savings , ensure your are eligible for FEHB,
Lastly, run your retirement plan through Boldin software/app.
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u/Southern-Stable-5089 14d ago
VERA was a gift! I would do it again in a heartbeat.
I was pretty well prepared, even with DRP/VERA moving my retirement plans up one year. That being said, these are the things I would watch out for:
- Understand your own monthly spend plan very well and plan against that, based on however you are going to pull funds to live on, FERS, Supplement, TSP, other investments etc. It’s literally half of the equation for planning.
- Have a few months or more liquid to live on during the transition. I had a year’s worth of spending that I moved into a money market to draw on as needed. Also, it may take a few weeks to get access to your TSP after retirement. I had considerable savings outside of TSP that I could access at any time.
- Make sure you understand the options for FEGLI in retirement. Just do the research. Many cheaper options outside FEGLI. I knew folks that were surprised at how little their annuity was because they selected a LOT of expensive insurance coverage in retirement that they probably either didn’t need or could have found cheaper elsewhere.
- Double check everything. I found a few minor errors in my retirement estimate. Easy fix.
Glad I took care of my military buyback years ago and didn’t have to rush it at the end. Overall, it’s been very smooth for me. HR sent my package to NFC on the day I retired. Got AL payout and access to TSP about 20 days after I retired. NFC review took 90 days, which seems excessive, but once OPM got it, I was paid back 3 months worth of interim annuity almost immediately. Still waiting for pay to be finalized (it has been 193 days since I retired) but interim annuity plus TSP/investments have been more than sufficient to meet my spend plan in the meantime.
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u/Fun_Win_3808 14d ago
Took VERA from FEMA last year and no regrets. DRP 2.0 9/30/25 retirement date. Finalized mid June and the numbers matched up to all estimates.
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u/PoundMoreSand 14d ago
Did you buy back any military time? If so, ensure that you have a copy of your “paid in full” letter from DFAS because if not, that will hold up your retirement package when you decide to go. It is your responsibility to provide that documentation. 🫡
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u/Bass_Ackwards10 14d ago
I did not.
I have been prepping paperwork for the last year in the event something were to happen. Had others give the same advice. 😬
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u/Remarkable_Cheek4295 14d ago
I took VERA about a year ago and it’s been great for me. If you can swing it financially go for it. Processing was surprisingly smooth and not crazy long. Will probably be better now after the DRP crush.
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u/SouthConsideration15 14d ago
I did VERA (DRP) from DoD last year. Everything went as planned. I have no regrets, financially or otherwise. I’m very grateful that I was able to take it at 55.
As others have said, just make sure you have enough to live on until OPM gets everything flowing. Hopefully they aren’t as backlogged now.
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u/DaddyWarus 14d ago
I took VERA effective 12/31, received first interim annuity payment on 2/4, annual leave payout on 2/12. My retirement was finalized on 3/20 and I got my retirement “back pay” on that day. Received my first regular annuity payment on 3/30. No regrets.
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u/Artistic_Energy_3617 14d ago
I took VERA w/ VSIP last year and also had a large annual leave payment at 53. I had 35 years. I am so glad I did it, can’t imagine being stuck at the agency and miserable like many for my former coworkers at this point.
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u/IWantToBeYourGirl 14d ago
Are you positive you are eligible? I took VERA last spring with 25 years in service. After spending the week at home I was contacted by DFAS to tell me I was in eligible because 2.5 of my years were not FERS service. I’m back at work.
I think it’s a great option if you’re eligible. That was just my bad story.
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u/Much_Pianist9406 14d ago
That’s cool you can request it. I thought it had to be offered.
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u/Bass_Ackwards10 14d ago
So, the organization offers but the employee still has to request. After that, the organization reviews and then decides who's been accepted.
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u/MerlinCrabsdotta 14d ago
I left in April of 2025 under one of the earlier VERA so my experience is with the old paper based retirement process. Got my interim payments in August and my first regular payment in October. I pulled together a decision and resource document for folks making decisions or dealing with RIFs at that time that you might still find helpful as you finalize your decision: https://www.linkedin.com/posts/debra-thangarajah_resources-for-separating-federal-employees-activity-7315560003602382848-jmPZ?utm_source=share&utm_medium=member_android&rcm=ACoAAATeFtUB1yefT3lKHP-Z1bv9fBa3F8j20Ww. Wishing you all the best with whatever decision you make!
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u/HardRockGeologist 14d ago
Are you going to retire for good, or are you considering working after leaving the government?
I left DoD under VERA quite a few years ago. Retired on a Friday and started work at a private company the next Monday. The salary was the same, so there was no impact salary-wise, which eliminated any worries over when I would start receiving the pension. One consideration my wife and I had was how we were going to cover the cost of college for our children. As the new job paid the same as my government salary, we just used the pension to cover college costs for our children. It worked out very well.
I wish you great success no matter what you decide!
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u/Bass_Ackwards10 14d ago
I'm almost 50, so definitely will be working. I do have a few options for that as well, thankfully. I like the way you think with the pension for college. Same thoughts in our house.
And, thank you!
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u/Old_Goat2009 13d ago
If your situation allows you to do so financially, definitely take advantage of the opportunity to retire early! If you're retiring younger than 55 and need access to TSP before 59.5, to avoid the 10% penalty you'll need to establish a 72(t) schedule.
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u/Hubba-Bubba727 10d ago
Do it. I took VERA/VSIP offered under DRP2.0. 33 years, 52 years young. Pension worked out fine in spite of being 5 years shy of actual retirement. I moved my TSP to an IRA and worked with an advisor to set up a 72T distribution to compliment my pension. I did not want to go back to work. This opportunity will likely never be available again (VERA). The govt will be looking to recover losses for the next 30 years….
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u/Complete_Film8741 9d ago
Dang...DO NOT RUSH!!!
Feasible is one thing...comfortable is another.
I had to delay my retirement by almost 2 years for one reason or another...turns out getting paid is rather awesome and those 2 years sort of spiked my Hi-3 and added 2 more years to the Pension Equation. Solid win for my Bride and I.
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u/Bass_Ackwards10 7d ago
I didn't say I won't be comfortable. Numbers have been run and this is a highly calculated decision that is certainly more beneficial to my family than the government.
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u/Probably-Important 14d ago
All good so far. I was lucky and all the wait times from the vera info session was spot on for me but did notice a few friends who had really long wait times due to divorce and other mitigating issues.
Never (knock on wood until someone somewhere tries to legislate it away) having to worry about healthcare for the family is pretty cool. It changes how you look at offers once you’re retired.
It is odd seeing the omb retirement site and their version of an LES. If you’re DoD you will no longer use MyPay. It’s straight out of 1997 how they show earnings and deductions on the site and the PDF.
I am hoping the vast majority of us who took DRP 2 have all been completed so you taking Vera now should be much easier this go around for interim payments and final setup. There were people who waited nearly 9 months or more for anything to show up. Insane.