It all depends on how much time in service you have and your age and your viability for employment in the private sector.

Let's say you have skills that make you employable in the private sector and you have 20 years under FERS and you're (what's the early retirement cut-off -- 58?) 58. Retire from FERS but don't take social security. You get about 20% of your current pay grade without drawing down TSP. You take a job at equivalent salary in the private secot plus you get the 20% from your retirement on top of your salary, from which you can continue to pay for the medical coverage and have a greater income than the equivalent salaried person in the private sector.

It looks like the gov is going to continue the freeze on COLA's and inhibition on advancement for the near future. Also, the gov is looking at adjusting the COLA computation and may reduce its 401K match. Finally, they appear to be going to a high 5 rather than high 3 annual income for retirement computation. Thus, remaining in the fed will not offer the same retirement possibilities as are currently available.

It may be to your long term advantage to retire under those circumstances. Work until you're 65 (or whatever your Social Security retirement age is), then retire again at full SS, FERS and begin drawing down your 401K.

Not that I've been thinking about it or anything.