1. What is FERS Retirement?

The Federal Employees Retirement System (FERS) is a retirement plan for U.S. federal civilian employees. It consists of three components: Basic Benefit Plan (pension), Social Security, and the Thrift Savings Plan (TSP).

2. How the FERS Pension is Calculated

The basic FERS pension formula is:

Where:

• High-3 salary — The average of your highest 3 consecutive years of basic pay
• Years of service — Your total federal service time (can include partial years)
• 1% multiplier — Standard multiplier (1.1% if retiring at age 62+ with 20+ years)

Example: If your high-3 average is $80,000 and you have 30 years of service, your annual pension would be $80,000 × 30 × 0.01 = $24,000.

3. Importance of Retirement Planning

Details: Understanding your FERS pension helps with retirement planning. Remember this is just one component of your retirement income, which also includes Social Security and TSP.

4. Using the Calculator

Tips: Enter your estimated high-3 average salary (in dollars) and your total years of federal service (can include fractions like 30.5 years). The calculator will estimate your annual FERS pension.

5. Frequently Asked Questions (FAQ)

Q1: What counts toward the high-3 average?
A: Only basic pay counts - not bonuses, overtime, or allowances. The average is based on your highest 3 consecutive years.

Q2: How is service time calculated?
A: All creditable federal service counts, including part-time (converted to full-time equivalent).

Q3: Are there different multipliers?
A: Yes - 1.1% if retiring at age 62+ with 20+ years, and special provisions for law enforcement/firefighters.

Q4: What about FERS supplements?
A: Those retiring before age 62 may qualify for a Special Retirement Supplement until Social Security begins.

Q5: How does early retirement affect the pension?
A: Early retirement (before minimum retirement age) may result in permanent reductions to your pension.