FERS Retirement Annuity Calculator
Use this calculator to estimate your basic FERS (Federal Employees Retirement System) immediate retirement annuity. This calculator provides an estimate based on your years of creditable service, your high-3 average salary, and your age at retirement. It does not account for special provisions, survivor benefits, or reductions for retiring before your MRA with less than 30 years of service.
Understanding Your FERS Retirement Annuity
The Federal Employees Retirement System (FERS) is a three-tiered retirement plan for federal employees, consisting of Social Security, the FERS Basic Benefit Plan, and the Thrift Savings Plan (TSP). This calculator focuses specifically on estimating your FERS Basic Benefit Plan annuity.
Key Components of the FERS Annuity Calculation:
- Years of Creditable Service: This is the total number of years and months you have worked under FERS, including any creditable military service or refunded service deposits. The more years you serve, the higher your annuity will be.
- High-3 Average Salary: This is the highest average basic pay you earned during any 3 consecutive years of service. This period is typically at the end of your career when your salary is highest. It includes basic pay, but generally excludes overtime, bonuses, and allowances.
- Multiplier: The multiplier used in the FERS annuity formula depends on your age and years of service at retirement:
- 1.0% Multiplier: This is the standard multiplier for most FERS retirees.
- 1.1% Multiplier: You qualify for this higher multiplier if you retire at age 62 or older AND have at least 20 years of creditable service. This can significantly increase your annual annuity.
The Basic FERS Annuity Formula:
The formula for calculating your immediate FERS annuity is:
High-3 Average Salary × Years of Creditable Service × Multiplier
Example Calculation:
Let's consider an example:
- Years of Creditable Service: 30 years
- High-3 Average Salary: $80,000
- Age at Retirement: 58 years old
In this scenario, since the retiree is under 62, the 1.0% multiplier applies.
Annuity = $80,000 × 30 × 0.01 = $24,000 per year
Monthly Annuity = $24,000 / 12 = $2,000 per month
Now, let's consider another example where the 1.1% multiplier applies:
- Years of Creditable Service: 25 years
- High-3 Average Salary: $100,000
- Age at Retirement: 62 years old
Here, the retiree is 62 or older AND has at least 20 years of service, so the 1.1% multiplier applies.
Annuity = $100,000 × 25 × 0.011 = $27,500 per year
Monthly Annuity = $27,500 / 12 ≈ $2,291.67 per month
Important Considerations:
- This calculator provides an estimate for an immediate, unreduced FERS annuity.
- It does not include the FERS Supplement (for those retiring before age 62 with certain eligibility), survivor benefit reductions, or special retirement provisions for law enforcement officers, firefighters, or air traffic controllers.
- Your actual annuity may vary based on specific OPM (Office of Personnel Management) calculations and other factors.
- The Thrift Savings Plan (TSP) and Social Security are separate components of your FERS retirement and are not included in this basic annuity calculation.