1. Removal Does Not Forfeit Vested FERS or CSRS Benefits

Once you are vested in FERS or CSRS (generally after 5 years of creditable civilian service), your earned retirement benefits remain yours even if you are removed for performance or misconduct. You retain your service credit, pension contributions, and your TSP balance. Only narrow national-security-related felony forfeiture statutes could jeopardize a vested benefit.

2. How Removal Affects Timing and Type of Retirement

Removal does not erase your pension, but it can impact:

– Immediate vs. deferred retirement eligibility

– Your ability to continue FEHB and FEGLI

– High-3 calculations

If you do not meet age and service requirements at the moment of separation, you may be pushed into deferred retirement, which eliminates FEHB and FEGLI continuation.

3. TSP Impact

Your Thrift Savings Plan remains intact. You do not lose your account balance or contributions. You simply cannot continue payroll contributions after separation.

4. MSPB Appeals Protect Retirement Rights

An MSPB appeal can:

– Reverse the removal and restore immediate retirement eligibility

– Restore FEHB/FEGLI and service credit

– Convert the removal to a lesser penalty that preserves retirement options

– Facilitate a settlement (e.g., resignation or retirement in lieu of removal) that protects benefits

5. Complete Any Military Buyback Before the Removal Effective Date

Military service credit can determine whether an employee:

– Meets the 5-year vesting requirement

– Qualifies for immediate retirement

– Qualifies to keep FEHB into retirement

OPM rules require that your military deposit must be fully paid before the effective date of separation. After removal, the buyback cannot be completed. This deadline is absolute.

Practical steps:

1. Request Estimated Earnings from DFAS immediately.

2. Submit your deposit application to HR.

3. Pay the deposit or complete payroll deductions before the separation date.

4. Document all communications.

If removal is imminent, counsel may negotiate:

– A delayed effective date

– Retirement in lieu of removal

– A hold to allow the buyback to finalize

Completing the buyback before separation can increase lifetime pension value and preserve FEHB.

6. Bottom Line

Removal does not destroy vested retirement benefits, but it can:

– Cut off FEHB and FEGLI

– Delay or reduce your annuity

– Freeze out military buyback eligibility

– Reduce high-3 calculations

Early legal intervention is critical to preserving both MSPB rights and retirement options.