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 years of salary.

2. How Does the Calculator Work?

The calculator uses the basic FERS pension formula:

Where:

• High-3 Salary — Your average highest salary over any 3 consecutive years
• Years of Service — Your total federal service in years (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 later with at least 20 years of service.

3. Importance of Pension Calculation

Details: Understanding your potential FERS pension helps with retirement planning, budgeting, and determining when you can afford to retire. It's one of three components of FERS retirement (along with TSP and Social Security).

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). The calculator will estimate your annual pension amount.

5. Frequently Asked Questions (FAQ)

Q1: What counts toward the high-3 salary?
A: Your basic pay (before deductions) averaged over any 3 consecutive years of highest earnings.

Q2: How is part-time service calculated?
A: Part-time service counts fully but your high-3 salary is adjusted to full-time equivalent.

Q3: Are there reductions for early retirement?
A: Yes, if you retire before age 62 with less than 20 years, or before your MRA with less than 30 years.

Q4: How does the 1.1% multiplier work?
A: If you retire at 62+ with 20+ years, the multiplier increases to 1.1% for each year of service.

Q5: What about unused sick leave?
A: Unused sick leave converts to additional service time in the calculation (1 day = 1/2087 of a year).