1. What is the FERS Pension?

The FERS (Federal Employees Retirement System) 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 FERS pension formula:

Where:

• High-3 Average — Your highest average salary over any 3 consecutive years
• Years of Service — Total years of federal service (can include partial years)
• Multiplier — 1% for most employees, 1.1% if retiring at age 62+ with 20+ years of service

Explanation: The formula calculates your basic annuity, which is then adjusted for factors like retirement age and survivor benefits.

3. Importance of FERS Calculation

Details: Understanding your potential FERS pension helps with retirement planning and determining how much you need to save in your TSP and other accounts to meet your retirement goals.

4. Using the Calculator

Tips: Enter your estimated High-3 average salary, years of service (including partial years as decimals), and select the appropriate multiplier. All values must be valid (salary > 0, years between 0-60).

5. Frequently Asked Questions (FAQ)

Q1: What counts toward the High-3 average?
A: Your basic pay (including locality pay) for any three consecutive years of highest earnings.

Q2: How is part-time service calculated?
A: Part-time service counts, but your High-3 is based on full-time equivalent salary.

Q3: When does the 1.1% multiplier apply?
A: Only if you retire at age 62 or older with at least 20 years of service.

Q4: Are there reductions to the pension?
A: Yes, for early retirement (before minimum retirement age) or if you elect survivor benefits.

Q5: How does FERS work with Social Security?
A: FERS is designed to work with Social Security and TSP as a three-part retirement system.