Allan Aprea

The issue regarding early retirement is much more complex for FERS employees. Their pension is about half of what CSRS employees get, and even reduced social security benefits do not kick in until age 62. If FERS employees have another job on the horizon, they can roll their TSPs into a 401(K) plan with their new employer. Unless the FERS employee was very good at timing the market, their TSPs are probably quite a bit smaller than they envisioned at this point.

Bottom line is $25K is only an incentive to FERS employees who already had decided to retire.