1. What is Federal Retirement Pension?

The Federal Employees Retirement System (FERS) pension is a defined benefit calculated using your high-3 average salary and years of creditable service. It provides a foundation of retirement income for federal employees.

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
• Years of service — Total creditable federal service (can include partial years)
• 1% multiplier — Standard FERS pension multiplier

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

3. Importance of Pension Calculation

Details: Understanding your projected FERS pension helps with retirement planning, budgeting, and determining when you can afford to retire. It's one component of the three-part FERS retirement package that also includes Social Security and the Thrift Savings Plan.

4. Using the Calculator

Tips:

• Enter your estimated high-3 average salary in dollars
• Enter your total years of service (can include fractions like 20.5 years)
• The calculator assumes standard 1% multiplier (adjust manually if eligible for 1.1%)

5. Frequently Asked Questions (FAQ)

Q1: What counts toward high-3 salary?
A: Your basic pay (before deductions) for any 36 consecutive months. Does not include bonuses, overtime, or allowances.

Q2: How is part-time service calculated?
A: Part-time service counts fully toward years of service but your high-3 will be prorated if you had part-time periods.

Q3: When can I retire with full benefits?
A: Minimum retirement age varies (55-57 depending on birth year) with 30 years service, or age 60 with 20 years, or age 62 with 5 years.

Q4: Are there reductions for early retirement?
A: Yes, if you retire under MRA+10 rules (before age 62), your pension is reduced by 5% per year under age 62.

Q5: How does the FERS supplement work?
A: Those retiring before age 62 may receive a temporary supplement until Social Security eligibility begins.