Fers Calculator

FERS Retirement Annuity Calculator

The highest average basic pay earned during any 3 consecutive years of service.

Used to determine if you qualify for the 1.1% multiplier (Age 62+ with 20+ years).

Your Estimated FERS Annuity

Annual Gross Annuity: $0.00

Monthly Gross Annuity: $0.00

Effective Multiplier: 1.0%

*This estimate does NOT include deductions for survivor benefits, health insurance (FEHB), life insurance (FEGLI), or taxes.

Understanding the FERS Pension Calculation

The Federal Employees Retirement System (FERS) is a retirement plan that provides benefits from three different sources: a Basic Benefit Plan (pension), Social Security, and the Thrift Savings Plan (TSP). This calculator focuses specifically on the Basic Benefit Plan, often referred to as the FERS Annuity.

The FERS Formula

For most federal employees, the formula for calculating your annual gross annuity is straightforward:

High-3 Average Salary × Years of Service × Multiplier = Annual Basic Annuity

1. What is the High-3 Average?

Your High-3 average is the highest average basic pay you earned during any three consecutive years of service. Usually, these are your last three years, but they can be any three-year period. It includes locality pay but excludes overtime, bonuses, or travel pay.

2. Years of Service

This includes all your years and months of creditable civilian service. Any unused sick leave at the time of retirement is also converted into months and days and added to your total service time for calculation purposes.

3. The Pension Multiplier

The multiplier is determined by your age and years of service at the time of retirement:

• 1.0%: The standard multiplier for most employees.
• 1.1%: If you are age 62 or older at retirement and have at least 20 years of service.
• Special Categories: Law Enforcement Officers, Firefighters, and Air Traffic Controllers use a different formula (typically 1.7% for the first 20 years and 1% for every year thereafter).

Example FERS Calculation

Let's look at a realistic example for a federal employee retiring under the standard FERS rules:

• High-3 Salary: $95,000
• Years of Service: 25 years
• Retirement Age: 63

Since this employee is over 62 and has more than 20 years of service, they qualify for the 1.1% multiplier.

Calculation: $95,000 × 25 × 0.011 = $26,125 per year.

This results in a monthly pension of $2,177.08 before deductions.

Common Deductions to Consider

While the calculator gives you the "Gross" annuity, your "Net" take-home pay will be lower due to:

1. Survivor Benefit Election: Typically reduces your pension by 10% to provide a 50% benefit to a spouse.
2. Federal and State Taxes: FERS pensions are subject to federal income tax.
3. FEHB Premiums: If you continue health insurance into retirement.
4. FEGLI: Life insurance premiums.