Q & A Session – Proposed Removal and Effects on TSP, Retirement


Ask the Lawyer received the following question (paraphrased for easier reading and clarity) from a reader on a legal matter that might be of interest to the entire audience.


I have a friend who may be fired from federal service. She has a total of 26 years of service and is 56 years old. If she receives a proposed removal, should she resign immediately? Also, will she lose her retirement eligibility and what happens to her TSP account?


This person could resign immediately, but if she is FERS, she would have to take a reduced annuity. If she is CSRS, she has to wait until age 62 for a deferred annuity. The TSP account is not affected, but early withdrawals from a TSP (prior to age 59 ½) are made with a 10% penalty.

Bill Bransford is managing partner of Shaw, Bransford & Roth, PC.

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