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FERS Pension Formula:
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The Federal Employees Retirement System (FERS) is a retirement plan for U.S. federal civilian employees. It consists of three components: Basic Benefit Plan, Social Security, and Thrift Savings Plan (TSP).
The calculator uses the FERS pension formula:
Where:
Explanation: The formula calculates the total annual retirement benefit by combining the basic annuity (1% of high-3 salary per year of service) with TSP distributions and Social Security benefits.
Details: Accurate pension calculation helps federal employees plan for retirement, understand their expected income, and make informed decisions about retirement timing and financial planning.
Tips: Enter years of service, high-3 average salary, TSP balance, and estimated Social Security benefits. All values must be valid (years > 0, salary > 0, TSP and SS ≥ 0).
Q1: What is the High-3 average salary?
A: The average of your highest 3 consecutive years of base pay, typically your last 3 years before retirement.
Q2: How does years of service affect the pension?
A: Each year of service adds 1% of your high-3 salary to your basic annuity. For 20+ years, the percentage increases to 1.1% for years over 20.
Q3: When can I retire under FERS?
A: Minimum retirement age varies from 55-57 depending on birth year, with different requirements for immediate vs. deferred retirement.
Q4: Are there special provisions for law enforcement?
A: Yes, special category employees like law enforcement officers have different retirement rules and earlier retirement eligibility.
Q5: How is the TSP component calculated?
A: The TSP amount represents annual distributions from your Thrift Savings Plan balance, typically calculated using a 4% withdrawal rate or annuity payments.