1. What is the FERS Pension?

The Federal Employees Retirement System (FERS) pension is a defined benefit plan for federal employees. It's calculated based on your high-3 average salary, years of creditable service, and a multiplier that depends on your age and years of service.

2. How Does the Calculator Work?

The calculator uses the FERS pension formula:

Where:

• \( High\text{-}3\ Average \) — Average of highest 3 consecutive years of basic pay
• \( Years\ of\ Service \) — Total creditable federal service
• \( Multiplier \) — 1% (standard) or 1.1% (if age 62+ with 20+ years service)

Explanation: The formula rewards longer service and higher salaries, with an enhanced multiplier for those who retire at age 62 or older with at least 20 years of service.

3. Importance of FERS Pension Calculation

Details: Accurate pension estimation helps federal employees plan for retirement, understand their benefits, and make informed decisions about retirement timing.

4. Using the Calculator

Tips: Enter your high-3 average salary in dollars, years of service (including partial years), and select the appropriate multiplier. All values must be valid (salary > 0, service > 0).

5. Frequently Asked Questions (FAQ)

Q1: What counts toward the high-3 average?
A: Basic pay only - does not include bonuses, overtime, or allowances. Can be any 3 consecutive years, not necessarily the last 3.

Q2: How is part-time service calculated?
A: Part-time service counts but is prorated based on hours worked compared to full-time.

Q3: What's the minimum service requirement?
A: 5 years for immediate annuity (except for MRA+10 retirement which has different rules).

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

Q5: How does this work with Social Security and TSP?
A: FERS is a three-part system: pension, Social Security, and Thrift Savings Plan (TSP).