1. What is the FERS Basic Annuity?

The FERS (Federal Employees Retirement System) Basic Annuity is a defined benefit pension for eligible federal employees. It provides lifetime retirement income based on years of service and highest three years of average salary.

2. How Does the Calculator Work?

The calculator uses the FERS basic annuity formula:

Where:

• \( YS \) — Years of service
• \( H3 \) — 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. For employees with 20+ years of service at age 62 or older, the multiplier increases to 1.1%.

3. Importance of FERS Annuity Calculation

Details: Accurate annuity calculation helps federal employees plan for retirement, understand their expected pension benefits, 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 your 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 average of your highest 3 consecutive years of basic pay, typically your last 3 years before retirement.

Q2: Are there different multipliers for different situations?
A: Yes, employees with 20+ years of service who retire at age 62 or older receive 1.1% instead of 1%. Special provisions apply for law enforcement and firefighters.

Q3: How is part-time service calculated?
A: Part-time service counts fully toward years of service, but the high-3 salary is based on full-time equivalent rates.

Q4: What other benefits complement the FERS annuity?
A: FERS includes Social Security benefits and the Thrift Savings Plan (TSP) with government matching contributions.

Q5: 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.