We are continuing our discussion on the annuity computation focused specifically on LEO (Law Enforcement Officers). We never want to present too much information at once as it is our objective to provide as much clarity as humanly possible. Federal Retirement Systems for LEOs can be complex so assisting the federal workforce in planning for retirement is easier by the inch than the mile.
Many employees in the Federal Government transferred to the Federal Employees Retirement System (FERS
- Also Read: New TSP Withdrawal Rules and What They Mean for Your Federal Retirement Plans
- Also Read: TSP Investment Moves That Could Help Federal Employees Retire on Their Own Terms
- Also Read: Early Retirement Myths Federal Employees Need to Stop Believing
One of the provisions at the time of transfer required at a minimum of 5 years of creditable civilian service covered by CSRS and Social Security. With that caveat,the formula represents 1 percent of the high-3 average salary for each year of service for employees under age 62 upon retirement or age 62 with fewer than 20 years of service.
The percentage rises to 1.1 percent of the high-3 average salary for every year of service for individuals at age 62 or older at separation with 20 plus years of service-representing the calculation of the Federal Employees Retirement System (FERS) component.
Conversely, for LEOs, the Civil Service Retirement Service (CSRS) component employs what I describe as a graduated calculation. During the first 5 years of CSRS the percentage is 1.5 of the high-3 average for every year of service. 1.75% of the high-3 average salary for each year of service for the second 5 years. For all years of service over 10 years, the percentage rises to 2% of the high -3 average salary for each year of service.
Under this scenario, Law Enforcement Officers’ computation is 2.5% of time of CSRS including the years and months of service up to 20 years multiplied by the high-3 average salary added to 2% of the same beyond 20 years of service.
The explanation of computation of LEO FERS annuity benefits underscores the need to take a very serious look at integrating the retirement system to address any and all categories of individuals involved in law enforcement.
P. S. Always Remember to Share What You Know.
Related LEO Articles
Explanation of FERS Component for LEOs
LEO (Law Enforcement Officer) FERS Supplement
