Learn about the Federal Employees Retirement System (FERS)
Do you have questions about the benefits and eligibility criteria of the Federal Employees Retirement System (FERS)? Below we have listed the main characteristics and details of the FERS program, which can help you determine the best course of action for your retirement planning needs.
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Components Of The FERS Plan
The Federal Employees Retirement System is a three tiered system which consists of:
1.   FERS annuity
2.   Social Security
3.   Thrift Savings Plan
The FERS benefits includes the FERS annuity, along with eligible participation in Social Security, and a defined contribution plan, the Thrift Savings Plan (TSP) designed to be similar to the benefits offered in private market 401(k) plans.
Federal Employees Retirement System Annuity Eligibility Criteria
The eligibility criteria for FERS employees, In order to become eligible for a FERS annuity, are as follows;
1.   A federal employee needs to conform to the minimum age requirements, along with
2.   The required number of years of credible service, to derive benefit from the plan.
The FERS age requirements and the specified number of years of credible service, are based on a sliding scale and both are equally important. The rules provide convenience to employees in case of a voluntary or involuntary separation from the service, and an employee can qualify for early retirement based on reduced benefits. Federal and postal employees who qualify for a full retirement package under FERS will likely have either of the following two criteria;
a)Â Â Â 25 years of service to their credit with any age, or
b)   A 20 years’ service record with the age of 50.
If any employee suffers from a physical disability and can no longer continue with their job, then a disability retirement is available for them. Employees with a medical disability need to have at least 18 months of service to their credit.
Additional Information
Employees become automatically eligible for the Federal Employees Retirement System at their first day on the job. According to the rules the employees who were hired or rehired before the introduction of FERS, were automatically provided coverage under the new retirement plan.
The rules stipulate that if a federal employee covered by FERS leaves their job before retirement, they can still easily have their Thrift Savings Plan transferred to their new job or IRA and of course continue their Social Security benefits that were earned while working within the Federal Employees Retirement System (FERS).
