Resources for SBA employees affected by a Reduction in Force

Traditional retirement

Eligibility is based on your age and the number of years of creditable service.

Read more about voluntary retirement.

Early retirement option when you have been involuntarily separated

A discontinued service retirement provides an immediate annuity for employees who are separated involuntarily. Discontinued service retirement has the same age and service requirements as VERA.

Read more about discontinued service retirement.

Delay your retirement until you are eligible.

If you are a former Federal employee who was covered by the Federal Employees Retirement System (FERS), you may be eligible for a deferred annuity at age 62 or at your Minimum Retirement Age (MRA). Deferred retirement is for former federal employees who were not entitled to an annuity upon separating from Federal service but will become entitled to an annuity after reaching a certain age.

Read more about deferred retirement

Will I receive severance pay?

If you are not eligible for an immediate retirement through traditional retirement or Discontinued Service Retirement you may be eligible to receive severance pay.

Read more about severance pay or see the Frequently Asked Questions.

• What happens to my health insurance when I separate? 
  Your FEHB coverage will terminate effective the last day of the pay period in which you separate. You then have a 31-day temporary extension of coverage during which the insurance continues at no cost to you. During the 31-day period, you may apply to convert to a non-group contract or apply for Temporary Continuation of Coverage (TCC).
   
• What is Temporary Continuation of Coverage (TCC)? 
  TCC allows you to continue the same level of health benefits coverage enjoyed while employed. The TCC family enrollment covers the same family members as were covered under your plan while employed. Enrollment under TCC is limited to a maximum of 18 months and you will pay both the employee and government shares of the premium, plus an additional 2% administrative fee.
   
• Am I eligible for TCC regardless of the reason for separation from employment? 
  You are not entitled to TCC if your separation from Federal service is involuntary due to gross misconduct. Your servicing HR office will determine if conduct that leads to an involuntary separation is “gross” misconduct. Employees who have lost FEHB coverage after 12 months in a leave without pay status are also not eligible for TCC.
   
• Is there a way to continue health coverage when TCC expires after 18 months? 
  When TCC expires, you will be given another 31-day extension of coverage in the same enrollment category, at no cost. During this 31-day period, you may apply to convert to a non-group contract. 
   
• If I cancel my coverage under TCC, may I convert to a non-group contract? 
  No. Cancellation of coverage prior to expiration at 18 months results in a loss of conversion privilege.

• Can I continue FEDVIP coverage if I leave Federal service? 
  No. Under the Federal Employees Dental and Vision Insurance Program (FEDVIP), there is no extension of coverage, temporary continuation of coverage (TCC), spouse equity coverage, or right to convert to an individual policy (conversion policy).
   
• Who do I contact if I have questions regarding FEDVIP? 
  If you have questions regarding FEDVIP, please contact BENEFEDS at (1-877-888-3337) or visit FEDVIP frequently asked questions at Frequently Asked Questions | ABO | BENEFEDS.

• Who do I contact if I have questions regarding FSA? 
  If you have questions on how separation will affect your FSA account(s) you should contact an FSA Benefits Counselor at 1-877-FSAFEDS (372-3337) TTY: 1-800-952-0450, Monday through Friday, 9am - 9pm, Eastern Time for assistance.

• What happens if I separate or retire before the end of the plan year?
  The balances in your Health Care FSA (HCFSA), Limited Expense Health Care FSA (LEX HCFSA) and Dependent Care FSA (DCFSA) are treated differently if you separate or retire before the end of the calendar year.

  Your HCFSA or LEX HCFSA will terminate as of the date of your separation or retirement. There are no extensions. Any eligible health care expenses incurred prior to the date of separation will still be reimbursed but those incurred after the separation date are not reimbursable, even if you accelerated your allotments. If you used your entire elected amount before FSAFEDS has deducted it from your pay, you will not be responsible for the remaining allotments.

  Your DCFSA remaining balance can continue to be used to pay for eligible dependent care expenses until your account balance is depleted or the end of the calendar year, whichever comes first.

  Please note: In order to take advantage of the grace period for your DCFSA, you must be actively employed and making allotments through December 31 of the benefit period (plan year).

• Who do I contact if I have questions regarding FLTCI? 
  If you have questions on how separation will affect your FLTCI you should contact the Long Term Care Partners, administrators of the Federal Program, at:1-800-LTC-FEDS (1-800-582-3337) (TTY: 1-800-843-3557). LTCP regular hours of operation are Monday - Friday, 9 a.m. to 9 p.m., Eastern Time. 

What happens to the retirement contributions I have paid into the retirement fund? 
You may leave the money in the retirement fund, or apply for a refund if you meet the following criteria: must be separated from Federal service for at least 31 consecutive days; must not be reemployed in a position subject to retirement deductions at the time of application; must not be eligible to receive an immediate retirement annuity within 31 days of separation; must not be prohibited from receiving a refund due to a court order; and must notify your current and/or former spouse(s) of the refund request, as applicable.

If I take a refund and later become reemployed, may I redeposit the amount refunded? 
If you are covered by the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS), you may redeposit the refund, with interest to the Office of Personnel Management upon rehire to Federal service.

How do I apply for a refund? 
You may apply for a refund by completing the applicable retirement refund application. For employees who are covered under the Federal Employees Retirement System (FERS), you would complete a SF 3106, Application for Refund of Retirement Deductions (Federal Employees Retirement System), (SF 3106A, Current/Former Spouse’s Notification for Refund of Retirement Deductions is also included with the SF 3106) SF3106andSF3106A.pdf .

Where do I obtain the refund form? 
You may contact your servicing HR office for the appropriate forms and guidance. Also, refund forms are available from the OPM Web site at Forms

If I separate from federal service can I defer my retirement until I’m eligible? 
Yes. This type of retirement is called Deferred Retirement. In order to qualify for a deferred retirement, you must be 62 with 5 years of service, and you must have not withdrawn your retirement contributions when you separated Pamphlet-RI92-19A.

• What happens to my TSP account on separation from employment? 
  Upon separation, you have several options for handling your TSP account. You may leave your money in TSP; transfer all or part of your TSP balance into an Individual Retirement Account (IRA) or other eligible retirement plan; receive your TSP account balance in a lump sum or partial payment; receive your TSP account balance in equal monthly installments; purchase a life annuity through TSP, if you have at least $3500 in your account; or, if you also have a uniformed services TSP account, you may transfer your civilian TSP account into the uniformed services account TSP Fact Sheet. 
   
• Is there a penalty for early withdrawal? 
  Yes. If you separate before the year in which you reach age 55 and withdraw your account balance in a single payment or series of equal payments, you will be subject to a 10% penalty as well as income tax on all amounts you receive before age 59 1/2. However, if you separate during or after the year in which you reach age 55, you will only be subject to income tax and not the 10% penalty on the withdrawal. The Internal Revenue Service (IRS) requires employees to receive payments from their account by April 1st of the year following the one in which they become age 73.
   
• What if I have an outstanding TSP loan? 
  You must repay the loan in full, including interest, on the outstanding balance. A delay in repaying your loan may affect the processing of your withdrawal. If you do not repay the loan within the required timeframe specified by TSP, a taxable distribution will be declared to the IRS in the amount of the unpaid loan balance and any unpaid interest. The distribution will be subject to income tax and the 10% penalty as described above. For more information on TSP loan TSP Loans | The Thrift Savings Plan (TSP).

You can contact TSP at 1-877-968-3778 or by accessing your TSP account Log Into Your TSP Account | The Thrift Savings Plan (TSP).

If you paid into Social Security and Medicare, you earned credits in the same manner as the private industry. These credits will be added to any past or future credits earned to establish future benefits Plan for retirement | SSA.

For additional information you can call SSA at 1-800-772-1213 between 8:00 a.m.-7:00 p.m. local time, Monday through Friday. Wait times to speak to a representative are typically shorter in the morning, later in the week, and later in the month. SSA’s automated telephone services are available 24 hours a day and do not require you to wait to speak with a representative.

You are eligible to be placed on the Reemployment Priority List (RPL) for up to two years, which provides you with the first opportunity for positions that are available and in which you qualify, within the SBA, in the local commuting area of Washington, DC.

How to apply:

• You must submit your resume, a copy of your RIF letter, your most recent SF-50 and your most recent performance appraisal on or before your RIF separation date. You can use the link above to apply or you can send an email to RPL@sba.gov. Please title the subject line as Reemployment Priority List Application.

Eligible displaced employees receive priority placement for jobs in SBA or other agencies.

See the Employee's Guide to Career Transition (CTAP, ICTAP, RPL).

 

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