1. What is the Federal Employee Pension?

The Federal Employee Pension is a retirement benefit calculated based on years of service and the high-3 average salary. It provides federal employees with a guaranteed lifetime income upon retirement.

2. How Does the Calculator Work?

The calculator uses the federal employee pension formula:

Where:

• \( YS \) — Years of Service (years)
• \( H3 \) — High-3 Average Salary (USD)
• \( 0.01 \) — 1% multiplier factor

Explanation: The formula calculates 1% of the high-3 average salary multiplied by years of service to determine the annual pension amount.

3. Importance of Pension Calculation

Details: Accurate pension calculation helps federal employees plan for retirement, understand their expected income, and make informed decisions about retirement timing and financial planning.

4. Using the Calculator

Tips: Enter years of service (including partial years as decimals) and high-3 average salary in USD. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the high-3 average salary?
A: The high-3 average salary is the average of your highest 3 consecutive years of basic pay during your federal service.

Q2: Are there different multipliers for different service lengths?
A: For standard federal employees, it's 1% per year. For those with 20+ years of service at age 62 or older, it's 1.1% per year.

Q3: What types of service count toward years of service?
A: Creditable service includes full-time employment, part-time service (prorated), and certain types of military service.

Q4: Are there early retirement reductions?
A: Yes, retiring before age 62 with less than 20 years of service, or before minimum retirement age, may result in reductions.

Q5: How does the FERS supplement work?
A: The FERS supplement provides additional benefits until Social Security eligibility age for those who retire before age 62.