Federal Employee Retirement Planning in Columbus, Ohio: A Fiduciary's Guide to FERS, VERA/VSIP, TSP and Military Buyback for DSCC, DFAS and DLA Employees

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If you work at the Defense Supply Center Columbus, DFAS Columbus or DLA Weapons Support and retirement is within five to ten years, the decisions you make in the next few years will shape your income for decades. ClearMind Capital is a fiduciary financial planning firm in Columbus, Ohio, and we love working with federal pre-retirees. It's the stage where good planning adds the most value, because pension elections, TSP choices and benefit decisions are hard or impossible to undo. It's also where we get to see the impact up close.

The past two years have been unusual for federal employees. Early-retirement offers, separation incentives, deferred resignation and a record OPM retirement backlog have pushed many people into decisions on short deadlines. Our job is to replace that pressure with a clear plan, so you can make each choice with confidence.

This guide walks through the FERS decisions we help Columbus federal employees make most often. It is written for general education. Your own numbers will differ.

Who we work with: DSCC, DFAS, DLA and veterans in central Ohio

Central Ohio is a major hub for Defense Department civilians. The Defense Supply Center Columbus in Whitehall has a workforce of about 8,000 across 26 tenant organizations, according to DLA. DFAS Columbus is one of its major tenants. In July 2026 the base also became headquarters of DLA Weapons Support, the new command that combined DLA Land and Maritime with DLA Aviation.

We work with federal employees and retirees from:

• DLA Weapons Support (Columbus), formerly DLA Land and Maritime
• DFAS Columbus, including accounting, payroll and customer care teams
• Other DSCC tenants, the Chalmers P. Wylie VA Ambulatory Care Center and Rickenbacker Air National Guard Base
• Federal employees living in Whitehall, Bexley, Reynoldsburg, Gahanna, Pickerington, Canal Winchester, Blacklick, Westerville and greater Columbus

Working with vets is close to home for us. I'm a partner at ClearMind Capital and a Marine Corps veteran. When I sit down with another vet, we're not starting from scratch. We already have a shared experience at the foundation, so it's much easier to earn and build trust, and that lets us get straight to what matters: your family and your future. Plenty of folks at DSCC and DFAS served before their civilian careers, and their planning comes with extra layers: military buyback, VA disability, retired pay waivers, CRDP and CRSC. We know these inside and out.

Never wore the uniform? There's more than one way to serve your country. For a lot of folks at DSCC, DFAS and DLA, it's a whole career spent supporting our military, keeping parts moving to the warfighter and making sure service members get paid right. That's service too, and you're in exactly the right place. Almost everything in this guide applies to every FERS employee, and helping federal employees retire with confidence is what we do every day.

ClearMind Capital is independent. We are not affiliated with or endorsed by DLA, DFAS, OPM, the Department of Defense or the VA.

FERS retirement explained: the three parts of your federal retirement

The Federal Employees Retirement System (FERS) has three parts. Good planning coordinates all three rather than treating each on its own.

1. FERS basic annuity: your pension, based on your High-3 salary and years of service.
2. Social Security: earned through your federal career and any private-sector work.
3. Thrift Savings Plan (TSP): your savings plan, including agency matching contributions.

How the FERS annuity is calculated

The basic formula is 1% of your High-3 average salary for each year of service. If you retire at 62 or later with at least 20 years, the multiplier rises to 1.1%.

Example: a DFAS employee with a $90,000 High-3 and 30 years of service earns about $27,000 a year at 1%. At 62 with the 1.1% multiplier, the same career pays about $29,700.

When you can retire under FERS

Your Minimum Retirement Age (MRA) is between 55 and 57, depending on birth year. It is 57 for anyone born in 1970 or later.

The right date is rarely just the first eligible one. One more year can mean a higher High-3, a larger multiplier, more sick leave credit, or a better fit with Social Security and the TSP.

VERA, VSIP and deferred resignation: making an early-out decision

When an agency restructures, it may offer one or more of three things. Each works differently, and they can sometimes be combined.

• VERA (Voluntary Early Retirement Authority) lets you retire early, at 50 with 20 years or at any age with 25 years. Your annuity is not reduced for age. The FERS supplement does not start until you reach your MRA.
• VSIP (Voluntary Separation Incentive Payment) is a lump-sum buyout. Most agencies cap it at $25,000. Defense Department agencies, including DLA and DFAS, can offer up to $40,000. It is taxable, and you may have to repay it if you return to federal work within five years.
• Deferred resignation offers keep you on the payroll for a set period before you resign. Resignation is not retirement. It does not by itself give you an annuity or let you carry FEHB into retirement.

Questions we work through before you sign

1. Does the early annuity, plus TSP withdrawals, cover your spending until the supplement and Social Security start?
2. How much of a VSIP is left after federal, Ohio and local taxes, and should it go toward bridging the income gap or into savings?
3. Will you keep FEHB and FEGLI? That requires retiring on an immediate annuity, not resigning.
4. Do you plan to work again? Wages can reduce the FERS supplement, and returning to federal work can trigger VSIP repayment.
5. How long can you cover the months before OPM finalizes your annuity?

These offers often come with deadlines of only a few weeks. A planner who already knows FERS can run the numbers quickly, so you are not deciding on a guess.

Bridging the gap before your full FERS annuity starts

Most new retirees wait several months for OPM to finalize their annuity. In the meantime, OPM usually pays an interim amount that is less than the final figure.

In 2026 the OPM retirement backlog peaked at 65,237 pending claims in February. By the end of August it had fallen to 15,427, close to OPM's normal level. Even so, in August immediate retirements still averaged 79 days from start to finish.

We plan for a gap of three to six months:

• Cash reserve: keep several months of expenses in cash before your last day.
• Annual leave payout: your lump-sum payment for unused annual leave arrives soon after separation and can fund the gap.
• TSP access: if you separate in or after the year you turn 55, you can take TSP withdrawals without the 10% early-withdrawal penalty. Moving the money to an IRA first can give up that advantage.
• Timing: retiring on the last day of a month means your annuity starts the next day. A complete, accurate package avoids extra delays.

The FERS supplement: income from your MRA to age 62

The FERS Special Retirement Supplement stands in for the Social Security you can't collect yet. It is paid if you retire on an immediate, unreduced annuity before 62, and it stops at 62. VERA retirees start receiving it at their MRA.

A rough estimate is your age-62 Social Security estimate × (years of FERS service ÷ 40). Someone with 30 years and a $2,000 monthly estimate would receive about $1,500 a month.

Three details catch people off guard:

• No cost-of-living increases. The supplement stays the same until it ends.
• The earnings test. If you work after retiring, wages above Social Security's limit reduce it by $1 for every $2. The limit is $24,480 for 2026 and $25,560 for 2027. Your annuity, TSP withdrawals and VA disability payments are not wages.
• It stops at 62. Your income drops on your 62nd birthday unless Social Security, the TSP or other savings is ready to take over.

Military time you buy back increases your annuity but generally not your supplement. MRA+10 and deferred retirees do not receive the supplement.

TSP rollovers and withdrawals: keep it, move it, or both?

The right answer depends on your situation. As fiduciaries, we start with the TSP's strengths and only recommend a change when it clearly serves you.

Reasons to leave money in the TSP:

• Very low expense ratios.
• The G Fund, a government-backed fund that is not available anywhere else.
• Penalty-free access if you separate in or after the year you turn 55, or 50 for special-category employees.

Reasons some retirees roll part or all of it to an IRA:

• More investment choices and more control over which account each withdrawal comes from.
• More flexibility for Roth conversions, charitable giving and estate planning.
• Easier coordination with a spouse's accounts and other savings.

Other items we review: traditional versus Roth TSP balances, required minimum distributions, the TSP's installment and annuity options, and how withdrawals affect Ohio income tax and Medicare premiums. Ohio does not tax Social Security benefits, but it does tax FERS annuities and TSP withdrawals.

FEHB and FEGLI decisions in retirement

FEHB: keeping federal health insurance

To keep Federal Employees Health Benefits in retirement, you generally must have been enrolled for the five years right before you retire, or continuously since your first chance to enroll. You also must retire on an immediate annuity. Retirees pay the same share of the premium as active employees.

We plan these points with you:

• Whether you meet the five-year rule, especially if you joined a spouse's plan at some point.
• Medicare at 65: whether to enroll in Part B along with FEHB. It costs more each month but can lower your out-of-pocket costs.
• For veterans, how FEHB works with VA health care and, for military retirees, TRICARE.
• Protecting your spouse's coverage. A spouse can keep FEHB after your death only if you elect a survivor annuity.

FEGLI: life insurance after you retire

Federal Employees' Group Life Insurance follows a similar five-year rule. In retirement you choose how much Basic coverage reduces after 65: 75%, 50% or no reduction. Less reduction costs more. The cost of Option B (multiples of salary) rises sharply with age.

Many retirees keep more FEGLI than they need, or drop it when they still need it. We compare your coverage against what you need, such as income for a survivor, debts and estate costs, and against private insurance.

Military buyback: turning service years into FERS credit

If you served on active duty before your civilian career, you can usually pay a deposit so those years count toward your FERS annuity. The deposit is generally 3% of your military basic pay, plus interest if you pay it after the interest-free window early in your civilian career.

The value can be large. A veteran with four years of service and a $90,000 High-3 adds about $3,600 a year to the annuity at the 1% multiplier, for every year of retirement. The deposit for those four years is often a few thousand dollars.

Rules to get right:

• Pay it in full before you retire. You cannot make the deposit after you separate.
• Military retirees usually must waive retired pay to count the same years under FERS. Exceptions are retired pay based on a combat-related disability and Reserve retired pay under Chapter 67.
• VA disability compensation is separate. You do not waive it, and the buyback does not reduce it.
• Buyback years can change your eligibility date, for example reaching MRA with 30 years sooner, but they generally do not increase the FERS supplement.

The process runs through your HR office and the military pay center and can take months. Start well before your retirement date.

Combining VA disability compensation with a FERS annuity

You can receive VA disability compensation and a FERS annuity at the same time. The VA payment does not reduce your annuity, and it is free of federal and Ohio income tax.

For disabled veterans, this changes the plan in three ways:

1. A tax-free income floor. VA compensation covers part of your fixed costs, so you may need to draw less from the TSP and can choose when to claim Social Security more freely.
2. Military retirees. If you retired from the military with 20 or more years and are rated 50% or higher, CRDP lets you receive military retired pay and VA compensation together. If your disability is combat-related, CRSC may apply. These interact with the buyback waiver decision, so the order of steps matters.
3. The supplement earnings test. VA compensation is not wages, so it does not count toward the FERS supplement limit.

Survivor planning is different too. VA compensation ends at the veteran's death. Survivors qualify for VA Dependency and Indemnity Compensation only in certain cases, such as a service-connected death. Your survivor annuity election and life insurance need to account for that.

Survivor benefits and other decisions you only make once

• Survivor annuity. A full survivor benefit (50% of your annuity) reduces your annuity by 10%. A partial benefit (25%) reduces it by 5%. Choosing less than the full benefit requires your spouse's written consent. The election also decides whether your spouse can keep FEHB.
• Sick leave. Unused sick leave adds to your service time in the annuity calculation, but not to your eligibility.
• Social Security timing. Claiming at 62, at full retirement age or at 70 can shift lifetime household income significantly, especially with a survivor.
• Part-time or second careers. Some retirees return as contractors or take private jobs. We check the effect on the supplement, taxes and VSIP repayment rules.

Federal retirement planning timeline

1. Five or more years out: confirm your MRA and earliest dates. Complete any military buyback. Check FEHB and FEGLI enrollment against the five-year rules. Review your TSP contributions and investments.
2. Two to three years out: request an annuity estimate from HR. Build a full income plan covering the annuity, supplement, Social Security, TSP and VA compensation. Decide on your target date.
3. One year out: settle the survivor annuity choice, the FEGLI reduction and a TSP withdrawal strategy. Build a cash reserve for the OPM processing gap.
4. 90 to 120 days out: submit your retirement package and, if needed, the military retired pay waiver. Confirm your FEHB enrollment.
5. First year of retirement: track interim payments and check the finalized annuity for errors. Prepare for the FERS supplement earnings survey if you are working.

Frequently asked questions from Columbus federal employees

Is there a financial advisor in Columbus, Ohio who specializes in federal employees?

Yes. ClearMind Capital is a fiduciary financial planning firm in Columbus that focuses on FERS retirement planning for federal employees and veterans, including those at DSCC, DFAS Columbus and DLA Weapons Support.

What does a fiduciary financial advisor mean for a federal employee?

A fiduciary is required to act in your best interest. For federal employees, that includes an honest look at keeping money in the low-cost TSP rather than assuming a rollover.

Should I take VERA or VSIP at DLA or DFAS?

It depends on whether your annuity, TSP and savings cover the years before the FERS supplement and Social Security begin, and on whether you plan to work again. Run the numbers before the deadline.

How much is the VSIP at DoD agencies?

DoD agencies can offer up to $40,000. Most other agencies are capped at $25,000. VSIP is taxable.

What is the FERS supplement earnings limit for 2026?

$24,480. Wages above it reduce the supplement by $1 for every $2. The limit rises to $25,560 in 2027.

Can I collect VA disability and a FERS pension at the same time?

Yes. VA disability compensation does not reduce your FERS annuity and is tax-free.

Should I buy back my military time under FERS?

For most veterans who don't receive military retired pay, the deposit of 3% of basic pay is small compared with the lifetime increase in the annuity. It must be paid before you retire.

Can I keep FEHB if I take deferred resignation?

Resigning does not carry FEHB into retirement. You generally need to retire on an immediate annuity and meet the five-year enrollment rule.

How long does OPM take to process a federal retirement in 2026?

Immediate retirements averaged 79 days in August 2026. Plan for three to six months of interim payments.

Why Columbus federal employees work with ClearMind Capital

• Fiduciary advice. We are a registered investment adviser and act in your best interest.
• FERS focus. VERA and VSIP decisions, the FERS supplement, TSP strategy, FEHB, FEGLI, survivor elections and military buyback are the core of what we do.
• A vet in your corner. As a Marine Corps vet, I know VA compensation, CRDP, CRSC and military buyback from both sides of the table.
• Local. We are based in Columbus and work with federal employees across central Ohio.
• Confidence, not guesswork. We run the numbers on your own situation, so each decision is made with confidence.

Thinking about retiring from DSCC, DFAS or DLA in the next five years? Schedule a conversation with ClearMind Capital and bring your latest annuity estimate and TSP statement. You can get in touch here.

This content is for informational purposes only and does not constitute investment, tax, or legal advice. ClearMind Capital LLC is a registered investment adviser. Registration does not imply a certain level of skill or training. Past performance is not indicative of future results.

ClearMind Capital LLC is not affiliated with or endorsed by the Office of Personnel Management, the Department of Defense, DLA, DFAS or the Department of Veterans Affairs. Figures reflect rules as of November 2026 and can change.

Written byShane DuckworthPartner | Private WealthView bio →

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