The colon should be placed outside quotation marks. When the quoted matter ends with a colon, the colon is dropped.
The employee has two objections to the practice of "early retirement": He wants to continue working, and the policy manual does not require it. (Colon goes outside.)
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"Colon Goes Outside." Grammar.com. STANDS4 LLC, 2021. Web. 26 Jan. 2021. <https://www.grammar.com/colon-goes-outside>.
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