1. What is the FERS Pension?

The Federal Employees Retirement System (FERS) pension is a defined benefit plan for federal employees. It provides a monthly annuity payment based on your length of service and highest three-year average salary.

2. How Does the Calculator Work?

The calculator uses the basic FERS pension formula:

Where:

• High-3 Salary — Your highest average basic pay over any 3 consecutive years (usually the last 3 years before retirement)
• Years of Service — Your total creditable federal service (can include partial years)
• 1% — The standard multiplier for most FERS employees

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

3. Importance of Pension Calculation

Details: Understanding your projected FERS pension helps with retirement planning, budgeting, and determining when you can afford to retire. The FERS pension is one part of the three-component retirement system that also includes Social Security and the Thrift Savings Plan (TSP).

4. Using the Calculator

Tips:

• Enter your estimated high-3 average salary in dollars (without commas)
• Enter your total years of federal service (can use decimals, e.g., 20.5 for 20 years 6 months)
• The calculator assumes standard 1% multiplier (for employees retiring under age 62 or with less than 20 years)

5. Frequently Asked Questions (FAQ)

Q1: What counts toward my high-3 salary?
A: Your high-3 salary is based on your basic pay (doesn't include bonuses, overtime, or allowances) during your highest-paid 3 consecutive years.

Q2: How is part-time service calculated?
A: Part-time service counts fully toward eligibility but the pension calculation is prorated based on your part-time schedule.

Q3: Are there reductions for early retirement?
A: Yes, if you retire before your Minimum Retirement Age (MRA) with less than 30 years service, your pension may be reduced by 5% per year under age 62.

Q4: How does military service count?
A: Military service can be credited if you pay a deposit (3% of military pay plus interest). Without deposit, it may still establish eligibility but won't increase your annuity amount.

Q5: What about cost-of-living adjustments (COLAs)?
A: FERS pensions receive COLAs starting at age 62 (with some exceptions), but they're typically smaller than CSRS or Social Security COLAs.