FERS Pension Estimator
Calculate your Federal Employees Retirement System (FERS) basic annuity.
Estimated FERS Basic Annuity
*Note: This is a gross estimate. It does not account for taxes, health insurance premiums (FEHB), or survivor benefit elections.
Understanding the Federal Employee Retirement System (FERS)
Planning for retirement as a federal employee requires a clear understanding of the FERS benefit structure. Unlike private sector plans that often rely solely on a 401(k), the federal retirement package is built on a "three-legged stool": the FERS Basic Annuity (Pension), Social Security, and the Thrift Savings Plan (TSP).
How the FERS Pension is Calculated
The FERS Basic Annuity is a defined benefit plan. The amount you receive is based on your length of service and your salary history. The core formula is:
1. The High-3 Average Salary
Your "High-3" is the highest average basic pay you earned during any three consecutive years of service. This is usually your last three years before retirement. It includes locality pay but generally excludes overtime, bonuses, or travel pay.
2. Creditable Years of Service
This includes all time spent as a federal employee under FERS. It can also include "bought back" military service and unused sick leave. Note that sick leave is converted into additional months/days of service but cannot be used to meet eligibility requirements (e.g., you can't use sick leave to reach the 30-year mark early).
3. The Multiplier (Standard vs. Enhanced)
The multiplier used depends on your age and total years of service at the time of retirement:
- 1.0%: The standard multiplier for most employees.
- 1.1%: If you retire at age 62 or older with at least 20 years of service.
- 1.7%: Special provisions for law enforcement officers, firefighters, and air traffic controllers (for the first 20 years of service).
FERS Eligibility and MRA
To receive an immediate unreduced annuity, you must meet one of the following criteria:
- Reach your Minimum Retirement Age (MRA) with at least 30 years of service.
- Be age 60 with at least 20 years of service.
- Be age 62 with at least 5 years of service.
MRA varies based on your year of birth, ranging from age 55 to 57. If you retire at your MRA with at least 10 but fewer than 30 years of service, your benefit may be reduced by 5% for every year you are under age 62.
Maximizing Your Federal Retirement
While the pension provides a guaranteed "floor" of income, the Thrift Savings Plan (TSP) is often the largest component of a federal retiree's wealth. Experts recommend contributing at least 5% to receive the full agency match. Additionally, remember that federal pensions are subject to Federal Income Tax, and in many states, State Income Tax as well.