Federal Retirement Pay (FERS) Calculator

FERS Pension Formula:

\[ \text{Pension} = \text{High-3 Salary} \times \text{Years of Service} \times 1\% \]

Estimated Annual Pension:

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1. What is FERS Retirement?

The Federal Employees Retirement System (FERS) is a three-part retirement plan for U.S. federal employees that includes the FERS Basic Benefit Plan, Social Security, and the Thrift Savings Plan (TSP). The Basic Benefit is a pension calculated based on your length of service and highest three years of salary.

2. How the FERS Pension is Calculated

The standard FERS pension formula is:

\[ \text{Pension} = \text{High-3 Salary} \times \text{Years of Service} \times 1\% \]

For those retiring at age 62 or older with 20+ years of service, the multiplier increases to 1.1%:

\[ \text{Pension} = \text{High-3 Salary} \times \text{Years of Service} \times 1.1\% \]

Example: A federal employee with a high-3 average salary of $80,000 and 30 years of service retiring at age 62 would receive:

Standard calculation: $80,000 × 30 × 1% = $24,000/year
Enhanced calculation: $80,000 × 30 × 1.1% = $26,400/year

3. Understanding the High-3 Salary

Details: Your "high-3" average pay is the highest average basic pay you earned during any 3 consecutive years of service. This typically includes your base pay plus locality pay, but excludes bonuses, overtime, and allowances.

4. Early Retirement Considerations

Important: If you retire before age 62 with less than 30 years of service, your pension may be reduced by 5% for each year you are under age 62 (minimum 10% reduction for those with 20+ years of service).

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between FERS and FERS-RAE/FERS-FRAE?
A: FERS-RAE and FERS-FRAE have higher employee contributions (3.1% and 4.4% respectively) but the same pension calculation as regular FERS (0.8%).

Q2: Can I increase my FERS pension?
A: You can increase your pension by working more years, earning promotions/salary increases (which raise your high-3), or delaying retirement until after age 62 if you have 20+ years.

Q3: Is the FERS pension adjusted for inflation?
A: Yes, FERS pensions receive Cost of Living Adjustments (COLAs), but these begin only at age 62 (with some exceptions for disability/survivor benefits).

Q4: What's the minimum retirement age for FERS?
A: It depends on your year of birth, ranging from 55 to 57 for those born after 1970. Special provisions apply for law enforcement and other special categories.

Q5: How does sick leave affect my pension?
A: Unused sick leave is converted into additional service time (1 day = 1/2087 of a year) which can slightly increase your total years of service.