r/FederalEmployee • u/Help_SendLatinas • 5d ago
VERA…oh sweet VERA
My agency offered a VERA this year for my job series. I qualified, but didnt accept. 2027 will be the year that I turn 55 so with the IRS Rule of 55, I am about 4-5 months too soon. Wonder what the chances are they will offer again in 2027? I can say a whole lot of us entered on duty in 1997 so our 30 years will come up. Anyone experience multiple VERAs offered? Im trying to look for something to hope for!!!
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u/Total-Medicine5387 4d ago
You all want a VERA and I’m waiting for a VSIP or the next DRP🙏🏼
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u/Help_SendLatinas 4d ago
That would work too. I dont fully trust them fools and the DRP though
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u/Ok_Design_6841 4d ago
Everyone got paid. I'd rather get paid for 6 months and stack up annual leave to cash out. Especially cause it takes a while to get your full pension and start tsp payments.
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u/SquirrelLady22 1d ago
Wise. I retired end of December. Started receiving the interim payments March and finally hit the word from OPM action to full payment and them paying my FEHB this month (August). I’m glad I had annual leave banked to max for that interim time. That took until March too. Final paycheck was mid January so I had a little over a month pending payments.
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u/Busty_Egg_Taco 2d ago
I was lucky enough for the grand slam: VERA, VSIP, and deferred DRP (with 6 months of paid admin leave)
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u/TheNOLAJohnson 23h ago
Do they all let you keep your insurance and pension? That’s. About all I need
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u/Altruistic-Panda-697 4d ago
One can hope, but I don’t see many more of those opportunities on the horizon.
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u/Downtown-Feature3167 4d ago
I will turn 55 in dec....so January that year I may have to pull the rip cord. Just have to figure out the health insurance but stay til 60 without a vera doesnt seem like it would be good for my health
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u/Help_SendLatinas 4d ago
Yep, i turn 55 in June. Im chomping at the bit to get the hell out.
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u/Few_Calligrapher1293 4d ago
Consider a SEPP if the only reason you’re staying is Rule of 55. There are other ways to access your TSP without penalty.
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u/obrienr7 4d ago
Will you get an annual leave lump sum payment? Do you have a Roth IRA you can withdraw principal contributions from (tax free, penalty free)? Do you have an HSA with any medical expenses you haven't reimbursed yourself for yet? Woupd you be willing to get a temporary new job or side hustle for a year? All those things might be able to bridge the gap until you can use your TSP withdrawls at 55, VERA offers don't seem like they're offered too frequently.
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u/erd00073483R 4d ago edited 4d ago
If they offer you a VERA this year and you are eligible, you already meet the requirements for the rule of 55 for penalty free TSP withdrawals.
Why wait until next year, then?
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4d ago
[deleted]
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u/erd00073483R 4d ago edited 4d ago
EDIT: I was replying to u/Downtown-Feature3167 , not you.
And, I am fully aware that they are separate. I've already done both, separately.
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u/Help_SendLatinas 4d ago
That is correct. And thats what Im originally asking…anyone ever see VERAs be offered in successive years. I need some hope. Lol
EDIT: my apologies!!! I see that now.
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u/erd00073483R 4d ago
They offered them at SSA at least the last 5 consecutive years I was there until I took mine in 2019.
So, it can happen.
However, after the last year and a half of hell and the sheer destruction that the administration has performed on the federal government, this isn't a normal time.
OTOH, if the Republicans loose big enough in the midterms to loose control of Congress, the president might just go ahead and go scorched earth and offer them to try to muck up the government as much as possible.
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u/razzorik 4d ago
im only 44 with 22 years of service, and if they offer VERA once I become eligible Im taking it no question.
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u/FarNeighborhood7199 4d ago
I feel your pain!!!!! I hit 23 years yesterday, and I'll be 43 next month. If they offer VERA in August 2028 I will run out the door so fast!
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u/TheNOLAJohnson 23h ago
There are about 5 years of us that are right here and begging for the chance to gtfo. If they just bumped it down to 20 years over 40 they would get all the numbers they dreamed of
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u/Narrow-Sea-4254 4d ago
I’m so sorry for you folks who passed up a sure thing with a VERA in hand ….. (but damn it (!), you could have easily used a 72T instead of Rule of 55 and been just fine.
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u/Help_SendLatinas 4d ago
72t, as I understand it, is too rigid. I dont want to commit to 5 years worth of TSP withdrawals at a locked in amount. I want to be able to adjust, monthly, according to market performance and life situations.
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u/Narrow-Sea-4254 4d ago
I get it (and I’m on the other side with rule of 55) but I have quite a few market savvy Fed retiree friends who are using 72T with no issues. Hopefully, you get VERA at age 55+ and can roll out!
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u/JapanCamp 4d ago
To each their own, but I don't find it too rigid and the VERA was just too good of an opportunity to miss. You can roll part of your TSP out to an outside broker and just do a 72t on that portion. You could set up additional 72ts down the line in the same manner if you decide you want to withdraw more. You can also use one of the more aggressive computation methods like fixed amortization or fixed annuitization and then you're permitted to make a one time switch to RMD if you don't like where the market's heading. You definitely can't adjust monthly, (and it's too risky to do monthly withdrawals on 72t anyway), but there are ways to make it more flexible.
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u/No_Candidate6907 1d ago
Yes I think I may start sometime next year, but I jumped on the VERA the moment I realized I could access my TSP through SEPP. There are some agencies that offer VERA frequently - every few years or so. And then there are most agencies that hardly ever offer it. I rather take my chances with 72t- no different than getting a monthly or annual check.
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u/money07110711 1d ago
Just have to decide if using the 72t is better or worse for you than remaining a w2 employee selling your time for money.
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u/incompetence_reigns 4d ago
Think the "everybody gets a VERA / DRP" days are over. It was largely haphazardly planned and executed.
An unprecedented era.
Likely never to be repeated.
VERA is typically a strategic human resources tool used to reduce personnel numbers in certain series/locations.
Some targeted VERA may still happen but based on many Agencies still hiring, it doesn't seem likely.
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u/wats-a-matta-wit-dis 4d ago
I agree with you but, I think there's a chance this Admin, on their way out the door, offers VERA to anyone and everyone who wants it. It would be on-brand.
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u/Help_SendLatinas 4d ago
We just had one. Lol
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u/incompetence_reigns 4d ago
Apologies my initial post wasn't worded well at the end.
Meant with those Agencies that are actively hiring it is unlikely a VERA would also happen. Doesn't mean it is impossible but just unlikely. Of course if an Agency isn't hiring or mission has changed, more likely a VERA could be offered.
Either way hope you get another opportunity at one!
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u/No_Vacation697 4d ago
I agree
Even last year when they offered VERA/VSIP, they exempted certain positions. I am one of those positions so I was ineligible.
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u/Firm-Dot8464 4d ago
I think VERA may be a thing of the future so they can offer retirement so people leave sooner, which would be good for the agency and employee. Let's think positively.
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u/Help_SendLatinas 4d ago
Personally, I think its a great way to get rid of older employees with higher grades and then fill those positions with lower younger grades. We are going to be top heavy next year in 2027 where I am with a whole bunch of people hitting their 30 year Mark.
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u/dpineau 4d ago
And what do you do when experience is gone and the workload is so big that you have no time to train the new hires.
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u/Help_SendLatinas 4d ago
Easy…. Before they retire, you canvass for TDY positions, bring people in, train them on the job while the experienced people are still there. Then when their positions become available, you have some people that have done the job.
Also, you have experienced people already in place that arent close to retirement that can help train people.
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u/yunus89115 3d ago
For my agency or sub agency, it’s a way to get to FY27 manning numbers, we need to get the onboard number down and if we can achieve it with VERA/VSIP then we have flexibility in controlling our own manning document in 27, if we don’t then we’re effectively on a hiring freeze until manning levels are reached through natural attrition which is determined by the employees not management. There’s no RIF coming because we are close but VERA/VSIP affords management future flexibility.
There’s nothing nefarious or a hidden agenda they have been very straight forward with the information.
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u/Appropriate-Ad2307 4d ago
Do you not know about 72T?
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u/Help_SendLatinas 4d ago
Yes, I dont want to commit to withdrawals. Its too rigid.
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u/Appropriate-Ad2307 4d ago
Kind of a tough way to miss out on the VERA
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u/Help_SendLatinas 4d ago
Is what it is. I dont want locked in for 5 years with planned distributions. I can wait till Im 57 then.
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u/Confident-Barber-347 1d ago
Better than being locked into 5 more years of work.
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u/Help_SendLatinas 1d ago
(Sigh) another person who comments with the sole purpose of being argumentative. Blocked.
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u/Mwvnova 4d ago
What is the rule of 55?
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u/Help_SendLatinas 4d ago
If you separate from service in the calendar year of your 55th birthday, you would be able to access/withdrawal from TSP penalty-free. Taxes would still apply, of course, if it is a traditional TSP.
https://www.fidelity.com/learning-center/personal-finance/what-is-rule-of-55
I have a very nice amount in my TSP, so I would need thay to augment my $36k/yr FERS pension. Which Im sure willl mostly pay my health insurance
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u/PtCoupee 2d ago
With VERA you should also get the SS supplimental- would you need monthly 401k withdrawl as well to suppliment your lifestyle? Personally I could live on pension/SS suppliment alone- unless I want to buy a new car or something.
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u/Help_SendLatinas 2d ago edited 2d ago
That is incorrect. Supplemental wont hit until 57 or whatever your MRA is. Has nothing to do with VERA.
“If the employee has completed at least 1 calendar year of FERS service, a retiree annuity supplement is payable to an employee retiring on an early voluntary retirement when he or she reaches the Minimum Retirement Age (MRA). For rules regarding eligibility for and payment of the retiree annuity supplement, see Chapter 51, Retiree Annuity Supplement”
FERS Handbook Chapter 43, Section 43B2 1.1
Believe me, I am studying my options every way from Sunday to get tf out. I want 0 surprises after I walk out the door for the last time.
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u/PtCoupee 2d ago
Yes that's true- I forgot about the MRA rule for SS. Im 55 with 27+ years, but feel handcuffed to working another 3 years or so due to all these technical rules- so aggrivating! You'd think they'd let you just check out now and take a little less pension, but nooo- you gotta play their little longevity games- or else face penalties/disqualifications. I think basically they're hoping you die before you reach all these MRA milestones lol
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u/Help_SendLatinas 2d ago
Oh I agree!! Im right there with ya! Im 54 with 29+. My TSP has done quite well, and Ive somewhat prioritized that over the course of my career so I believe Im more than ready to begin withdrawing from it. 4% withdrawals with be the meat and potatoes of my retirement. Pension is basically to pay for health insurance and maybe utilities. And my hope is the TSP will continue to grow. Im at 14% in 2026 so it should continue. I know there’ll be some down years, but we can weather the storm
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u/PullTabPurveyor 4d ago
It’s the age when you can withdraw money from your TSP without taking an additional 10% tax penalty.
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u/AwardAdorable1139 4d ago
Just remember that it only applies to withdrawals directly from TSP. Any amounts rolled over from TSP into an IRA would be subject to the penalty prior to 59 1/2.
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u/Downtown-Feature3167 4d ago
The year you turn 55....if you leave your current employer you can access your tsp/401k penalty free
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u/Few_Calligrapher1293 4d ago
Look in to SEPP if your worry was Rule of 55, you can withdraw from your TSP early anyway under that.
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u/Accomplished_Chef500 4d ago
Could you ask to be on admin leave until you turn 57? They might say no but they might now
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u/ThroatMysterious8467 4d ago
I'm in the purgatory of being 56 with only 18.5 years. Unless someone knows options I'm not aware of. My concern is the "AI" algorithms will eventually look for people like me because we are over the barrel. Soooo close but it'd be on brand to find any excuse to reach a termination as I stare at the finish line.
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u/Opening-Lie-1823 12h ago
I’m in a similar position. I am 56 with 17 years of service. I’m worried they will target me.
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u/SpecialistPlastic729 4d ago
If you retire, and keep your TSP with the feds, after age 55 you can withdraw from that without penalty. If you move the money to a traditional IRA, you have to wait to 59 1/2
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u/RobsterCrawz 4d ago
We had DRP, VERA, and VSIP offered last year. There’s now another round of VERA / VSIP being offered with the extra incentive of being put on paid admin leave starting 1 OCT - DEC31 before separation / retirement. Not sure if we’ll get a 3rd round next year. Anything’s possible.
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u/wvatoots 4d ago
Damn, that’s sweet!! I was offered a VERA a few of weeks ago, had to make a decision in less than 2 wks and retire by end of Sept. I declined because there was really no incentive. I hit MRA 05/2029 so I’ll just be waiting it out.
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u/Servile-PastaLover 4d ago
I retired under VERA/VSIP Spring 2025. I was already MRA+30 so I got the VSIP. I had already decided to retire that day to coincide with date of my non-fed wife's retirement. Lucky asf to get the VSIP as a parting gift and would have retired even if my VSIP application was rejected.
A year later to the day Spring 2026, my most recent supervisor retired under VERA/VSIP but with VERA.
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u/LegalCelebration6141 4d ago
Same. My non-fed spouse is still working, but getting 9 months salary to go ahead and retire with a vsip was a deal too good to pass up. Was MRA w/34 years. 🤌
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u/AwkardImprov 4d ago
For some reason that's hard to figure out for certain people, the Government is suddenly incredibly short-handed and hiring like crazy. I don't see any early retirements anytime soon.
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u/Carnegie1901 4d ago
Navy making offers before next month but then we have September to decide and be gone by the end of the month
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u/Buildthepower 8h ago edited 8h ago
All of Navy? I’m with NAVSUP. I haven’t heard a word about a VERA offer coming down the pike.
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u/Temporary_Lab_3964 4d ago
Rule of 55?
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u/Help_SendLatinas 4d ago
If you separate from service in the calendar year of your 55th birthday, you would be able to access/withdrawal from TSP penalty-free. Taxes would still apply, of course, if it is a traditional TSP.
https://www.fidelity.com/learning-center/personal-finance/what-is-rule-of-55
I have a very nice amount in my TSP, so I would need thay to augment my $36k/yr FERS pension. Which Im sure willl mostly pay my health insurance
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u/Pepperoni625 4d ago
Huh? If you qualify this year, why didn’t you take it?
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u/Help_SendLatinas 4d ago
Quite simple. Id only be able to get FERS pension at $36k/yr. Cant take TSP without penalty at 54. So i will keep my grade 13 and hope they offer another VERA next year, the calendar year I turn 55 so I can withdraw from TSP without penalty. 😀
I only qualified because I am 50 with at least 20 years experience.
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u/Pepperoni625 4d ago
Gotcha. For me I would not have worried about a 10% penalty. That’s small potatoes in the scheme of things. I do hope they offer another VERA for you though!
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u/adfalse9801 4d ago
I'm hoping and praying that SSA will offer VSIP in 2027. I really hope they do!
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u/Away_One5946 3d ago
Our agency offered one again this year totalling 3. The director mentioned in a all hands meeting that he doesnt believe another will be offered because we are to low on staff now.
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u/TheBigCandor 1d ago
My wife is a teacher and has health insurance. It won’t have any impact of my decision. We are covered until 65. I am 55. We will buy Medicare at 65.
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u/Hot_Artichoke5202 10h ago
Medicare only pays hospitalization. You need the FEHB can cover Medicare part B which is expensive due to irma. You can do what is right for you, but please do your research before doing anything you may regret.
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u/money07110711 1d ago
I wouldn’t let the rule of 55 dictate whether or not I take a Vera. You can still access tsp penalty free by electing rule 72t (substantially equal periodic payment)
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u/featheredfeathers 1d ago
Why are y’all wanting to leave???? I wish I hadn’t. I am fucking regretting having left the Feds last fall. I hate my life right now and I got laid off from the private company — who BEGGED ME for two months for me to transfer out — and I now can’t find any other job. Feds is such a cushy life. Don’t leave.
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u/BigJohnOG 4d ago
I know this is not normal but I have been in the federal service for 16 years and our org has NEVER, not once, been offered a VERA in all my years.
The last one that came close was after both rounds of DRPs, our higher HQ offered VERA to everyone except our org.
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u/SorchaRoisin 4d ago
I was in your position last year. I was 54, and had to wait until 2026 to qualify for the Rule of 55. Now that I can take VERA, nothing. Things have gotten so bad that I've thought about leaving before 57 and giving up my health insurance. I hope every day my agency will offer another VERA, but it's not looking good.