1. What is the Federal Retirement Calculation?

The Federal Employees Retirement System (FERS) pension is calculated using your high-3 average salary, years of creditable service, and a 1% multiplier. This provides the foundation of your federal retirement benefits.

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 (in dollars)
• Years of Service — Your total creditable federal service (can include partial years)
• 1% — Standard FERS multiplier (1.1% if retiring at age 62+ with 20+ years)

Explanation: The formula calculates your basic annuity, which forms one part of your complete FERS retirement package (along with TSP and Social Security).

3. Importance of Retirement Planning

Details: Understanding your projected pension helps with retirement planning, budgeting, and determining when you can afford to retire. The FERS pension provides a stable, lifetime income stream.

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). For more accurate results, use actual salary history if available.

5. Frequently Asked Questions (FAQ)

Q1: What counts toward the high-3 average salary?
A: Your basic pay (before deductions) for any 36 consecutive months of federal service, typically your last 3 years but can be earlier if your pay was higher then.

Q2: How is the multiplier different for special cases?
A: The multiplier increases to 1.1% if you retire at age 62 or older with at least 20 years of service. Law enforcement and other special categories may have different calculations.

Q3: What's not included in this calculation?
A: This doesn't account for FERS Supplement (if eligible), TSP withdrawals, Social Security, or potential reductions for survivor benefits or early retirement.

Q4: How accurate is this estimate?
A: This provides a basic estimate. Your actual pension may differ based on specific circumstances, unused sick leave, part-time service, or other factors.

Q5: When should I get a formal estimate?
A: Request a retirement estimate from your HR office 12-18 months before planned retirement for precise figures.