1. What is 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 FERS Pension Calculation Works

The basic FERS pension formula is:

Where:

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

Note: Employees retiring at age 62 or later with 20+ years of service get a 1.1% multiplier.

3. Importance of FERS Calculation

Details: Understanding your FERS pension helps with retirement planning, as it forms one of the three pillars of FERS (along with TSP and Social Security).

4. Using the Calculator

Tips: Enter your highest 3-year average salary in dollars and your total years of federal service (can include fractions of years, like 20.5).

5. Frequently Asked Questions (FAQ)

Q1: What counts toward my high-3 salary?
A: Your basic pay (before deductions) for any 3 consecutive years of highest earnings, including locality pay but not bonuses or overtime.

Q2: Can I include part-time service?
A: Yes, but part-time service is prorated based on hours worked compared to full-time.

Q3: What if I retire before age 62?
A: The standard 1% multiplier applies unless you have 20+ years of service and retire at age 62 or older.

Q4: Are there reductions for early retirement?
A: Yes, if you retire under the MRA+10 provision (Minimum Retirement Age with 10-30 years of service), your pension is reduced by 5% per year under age 62.

Q5: How is the pension paid out?
A: As a monthly annuity for life, with options for survivor benefits that may reduce the amount.