1. What is the 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 salary history.

2. How the Pension is Calculated

The basic FERS pension formula is:

Where:

• High-3 Salary — Average of your highest 3 consecutive years of basic pay
• Years of Service — Total federal service (can include partial years)
• Multiplier — Typically 1% (0.01) or 1.1% (0.011) if retiring at age 62+ with 20+ years

3. Understanding the Components

High-3 Salary: This is the average of your highest 3 consecutive years of basic pay (before deductions). Bonuses and overtime are not included.

Multiplier: The standard multiplier is 1% (0.01). For employees retiring at age 62 or older with at least 20 years of service, the multiplier increases to 1.1% (0.011).

4. Using the Calculator

Tips: Enter your estimated high-3 average salary in dollars, years of service (can include decimal for partial years), and the appropriate multiplier (typically 0.01 or 0.011).

5. Frequently Asked Questions (FAQ)

Q1: What's included in the High-3 salary?
A: Only basic pay is included - not bonuses, overtime, or allowances. It's the average of your highest 36 consecutive months of pay.

Q2: How does retirement age affect the pension?
A: Retiring at age 62+ with 20+ years increases your multiplier from 1% to 1.1%.

Q3: Can I estimate my pension before retiring?
A: Yes, this calculator helps estimate based on current information, but your actual pension may differ based on future salary changes.

Q4: What's the minimum service requirement?
A: Generally 5 years for immediate retirement, though exceptions exist for special categories.

Q5: How is part-time service calculated?
A: Part-time service is prorated based on the percentage of full-time hours worked.