Discontinued Service Retirement (DSR): What Is It?
A discontinued service retirement is a special type of retirement for employees who receive an involuntary separation from the federal service. In most cases, DSRs provide eligible employees with an immediate annuity payment. However, this annuity payment can be less than what an employee would normally receive. Many federal employees are unfamiliar with what Discontinued Service Retirement (DSR) is or how it differs from other types of retirement. Read on to find out whether DSR might apply to your situation. Understanding Your Discontinued Service Retirement Eligibility There are three main requirements to obtain a DSR. First, you need to have received an involuntary separation. Second, you have to meet certain age and service requirements. Third, you must not have rejected a “reasonable offer” of employment from your agency. Discontinued Service Retirement (DSR) allows federal employees facing involuntary separation to retire early with an immediate annuity, even if they do not meet standard age or service requirements. This annuity may be reduced based on service length and retirement age. Obtaining an Involuntary Separation The key feature of a DSR is that it only applies to employees with involuntary separations. The Office of Personnel Management (OPM) considers several following situations to qualify as “involuntary separations.” These are just a few situations that qualify as “involuntary separations.” Contact a federal employment attorney to learn more about whether your situation is an involuntary separation. Age and Service Requirements Discontinued service retirement (DSR) allows federal employees separated through no fault of their own to receive an immediate annuity, potentially reduced by age. Eligibility requires involuntary separation not caused by misconduct and fulfillment of age and service conditions. Assuming your separation was involuntary, you need to meet several other requirements to be eligible for a DSR annuity. First, you need to be at least 50 years old and have at least 20 years of federal service. Discontinued service retirement applies to those involuntarily separated, except for misconduct or delinquency, with at least 25 years of service or age 50 with 20 years of service. They receive an immediate annuity. Another important factor is the retirement service that covers your position. There are two primary retirement systems in the federal government. The first is the Civil Service Retirement System (CSRS), which applies to more senior federal employees. The second (and far more common) retirement system is the Federal Employee Retirement System (FERS). Both CSRS and FERS employees can receive a DSR. However, the requirements and procedures for obtaining a DSR vary between those two retirement systems. The differences are quite nuanced, so you should consult a knowledgeable federal employment lawyer for more information. The Reasonable Offer The final requirement for obtaining a DSR is that you must not have refused a “reasonable offer” from your agency. To be a reasonable offer, you must be offered a position in writing that is: The position must also have the same work schedule. If you reject an offer that meets all of these criteria, then you cannot obtain a DSR. How to Get a Discontinued Service Retirement Assuming you meet these requirements, your agency should automatically provide you with a DSR annuity. But in some cases, your agency may first ask you to provide certain kinds of information to confirm your eligibility. Receiving a DSR can reduce the amount of your retirement annuity according to your retirement age. Specifically, for employees under the CSRS system, receiving a DSR reduces your other retirement benefits by one-sixth of one percent for every month that you are under age 55 when you retire. For instance, a CSRS employee that retires at age 47 will receive only 84% of their annuity because of their early retirement. For all FERS employees with a DSR, you can calculate your FERS retirement using the typical calculation for non-disability retirements here. Want to Learn More About DSR? We Can Help DSRs are poorly understood by most federal employees. In fact, even federal human resources departments can be unfamiliar with DSRs. As a result, your agency may wrongfully deprive you of a DSR after you receive an involuntary separation. If you want to learn more about DSRs or think that you might be eligible for one, you need to contact a skilled employment attorney immediately. A qualified federal employment lawyer can review your personnel file and apply the law to your situation. They can also help you understand your options and file a claim with your agency. But for obvious reasons, you need to have the right kind of lawyer if you want to maximize your chances of prevailing in court. If you’re looking for legal representation you can trust, reach out to the Federal Employment Law Office of Aaron D. Wersing, PLLC. Our team of dedicated legal professionals is highly experienced with federal employment issues of all kinds. And we are dedicated to preserving and protecting your rights as a federal employee. Give us a call today at 866-612-5956 or contact us online today to set up your initial consultation. You can also set up an appointment with us online and read about our past results.
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