FERS Annuity
FERS Annuity High-3 Average Salary
FERS Annuity Computation for Non-Disability Retirements
- 1.7% of your high-3 average salary multiplied by your years of service which do not exceed 20, plus
- 1% of your high-3 average salary multiplied by your service exceeding 20 years
- 1.7% of your high-3 average salary multiplied by your years of service as a Member of Congress or Congressional Employee which do not exceed 20, plus
- 1% of your high-3 average salary multiplied by your years of other service
- Civil Service Retirement System (CSRS) or
- Social Security
- FERS Component
- CSRS Component
Calculation of FERS Component:
TSP Annuity Worksheet
For the first 5 years of CSRS service | Your annuity is 1.5% of your high-3 average salary for each year of service |
For the second 5 years of CSRS service | Your annuity is 1.75% of your high-3 average salary for each year of service; |
For all years of CSRS service over 10 | Your annuity is 2.0% of your high-3 average salary for each year of service. |
- 2.5% of the years and months of CSRS law enforcement officer, firefighter or nuclear material courier service up to 20 years multiplied times your high-3 average salary, plus
- 2% of the remaining years of service times your high-3 average salary.
- 2.5% of your high-3 average salary multiplied by your years and months of service as a Member of Congress and/or Congressional Employee, your military service while on a leave of absence as a Member and up to 5 years of other military service, plus
- 1.75% of your high-3 average salary multiplied by your years of other service, which when added to your years of 2.5% service, do not exceed 10 years, plus
- 2% of your high-3 average salary multiplied by your years of other service in excess of 10
Reductions in Non-Disability FERS Annuity
- If you have 10 or more years of service and retire at the Minimum Retirement Age (MRA), your benefit will be reduced by 5/12 of 1% for each full month (5% per year) that you were under age 62 on the date your annuity began. However, your FERS annuity will not be reduced if you complete at least 30 years of service, or if you complete at least 20 years of service and your annuity begins when you reach age 60.
- If you postpone the beginning date of your annuity, the age reduction will be reduced or eliminated.
- If you retire on a discontinued service retirement or early optional retirement because your agency was undergoing a major reorganization, reduction-in-force or transfer of function, and part of your benefit was computed under CSRS rules, the CSRS portion will be reduced if you are under age 55. The reduction is 1/6 of 1% (2% per year) for every month that you are under age 55 at the time of retirement.
FERS Annuity Survivor Benefits
If you are married, your FERS Annuity benefit will be reduced as a survivor benefit, unless your spouse consented to your election of less than a full survivor annuity. If the total of the survivor benefit(s) you elect equals 50% or more of your benefit, your annuity is reduced by 10%. If the total equals 25%, the reduction is 5%.
Unpaid or Refunded Service
- The CSRS portion of your benefit will be reduced by 10% of any deposit owed for CSRS non-deduction service performed before October 1, 1982, unless the deposit was paid before retirement.
- The CSRS portion of your non-disability benefit will be reduced by an actuarial factor for any CSRS refunded service performed before October 1, 1990, if you do not repay the refund before retirement and your annuity commences after December 2, 1990.
Alternative Annuity
FERS Annuity Disability Retirement Computation
FERS disability benefits are computed in different ways depending on the annuitant’s age and amount of service at retirement. In addition, FERS disability retirement benefits are recomputed after the first twelve months and again at age 62, if the annuitant is under age 62 at the time of disability retirement.
If you are age 62 or older with less than 20 years of service, or are under 62 and meet the age and service requirements for immediate voluntary retirement, you receive your “earned” annuity based on the general FERS annuity computation, as follows: 1% of your high-3 average salary for each year of service.
If you are 62 or older at retirement with 20 or more years of service, you are entitled to 1.1% of your high-3 average salary for each year of service.
FERS Disability Computation
Under age 62 at retirement, and
Not eligible for voluntary immediate retirement
For the first 12 months:
60% of your high-3 average salary less 100% of your Social Security benefit for any month in which you were entitled to such benefits. However, you are entitled to your “earned” annuity if it is larger than this amount.
After the first 12 months
40% of your high-3 average salary minus 60% of your Social Security benefit for any month in which you are entitled to Social Security disability benefits. However, you are entitled to your “earned” annuity if it is larger than this amount.
When you reach age 62, your annuity will be recomputed using an amount that essentially represents the annuity you would have received if you had continued working until the day before your 62nd birthday and then retired under FERS.
Reductions in FERS Disability Annuity
Survivor Benefits
- If the total of the survivor benefit(s) you elect equals 50% of your benefit, your annuity is reduced by 10%.
- If the total equals 25%, the reduction is 5%.
FERS Annuity Cost of Living Adjustments
- You are over age 62; or
- You retired under the special provision for air traffic controllers, law enforcement personnel, or firefighters; or
- You retired on disability, except when you are receiving a disability annuity based on 60% of your high-3 average salary. This is generally during the first year of receiving disability benefits; or
- Your retirement includes a portion computed under Civil Service Retirement System (CSRS) rules.
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