1. What is the Federal Retirement Benefit?

The Federal Employees Retirement System (FERS) pension is a defined benefit calculated using your high-3 average salary, years of service, and a 1% multiplier. This provides a guaranteed lifetime annuity for federal employees upon retirement.

2. How Does the Calculator Work?

The calculator uses the FERS pension formula:

Where:

• high-3 salary — Your highest average basic pay over any 3 consecutive years
• years of service — Total creditable federal service (can include partial years)
• 1% — Standard multiplier for most FERS employees

Note: The multiplier increases to 1.1% if you retire at age 62 or older with 20+ years of service.

3. Importance of Retirement Planning

Details: Understanding your projected pension helps with retirement planning, as the FERS pension is one component of your retirement income along with TSP and Social Security.

4. Using the Calculator

Tips: Enter your estimated high-3 average salary in dollars and your total years of federal service (including partial years as decimals). The calculator provides an estimate of your annual pension benefit.

5. Frequently Asked Questions (FAQ)

Q1: What counts toward the high-3 salary?
A: Your basic pay (before deductions) for any 36 consecutive months of service, typically your last 3 years but not always.

Q2: Can I include part-time service?
A: Yes, but part-time service is prorated based on your work schedule.

Q3: What's the minimum service requirement?
A: Generally 5 years for immediate retirement, though exceptions exist.

Q4: Are there cost-of-living adjustments?
A: Yes, FERS pensions receive COLAs, but only after age 62 (with exceptions for special categories).

Q5: How does early retirement affect the pension?
A: Early retirement may result in a reduction unless you meet specific age and service combinations.