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US Government Pension Formula:
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The US Government Pension Calculator estimates the annual annuity for federal employees based on years of service and high-3 average salary. This calculation follows the standard federal retirement formula used for Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS) benefits.
The calculator uses the standard government pension formula:
Where:
Explanation: The formula calculates 1% of the high-3 average salary for each year of service, providing the basic annuity amount for federal retirement.
Details: Accurate pension calculation helps federal employees plan for retirement, understand their expected benefits, and make informed decisions about retirement timing and financial planning.
Tips: Enter total years of service (including partial years as decimals) and the high-3 average salary in USD. Both values must be positive numbers.
Q1: What is included in the high-3 average salary?
A: The high-3 average includes basic pay for your highest 3 consecutive years of federal service. It does not include bonuses, overtime, or allowances.
Q2: How are partial years of service calculated?
A: Partial years are converted to decimals (e.g., 6 months = 0.5 years). The calculator accepts decimal values for precise calculations.
Q3: Does this formula apply to both CSRS and FERS?
A: This is the basic formula. FERS typically uses 1% per year, while CSRS may use 1.5-2% depending on years of service. This calculator uses the standard 1% multiplier.
Q4: Are there additional factors that affect the actual pension?
A: Yes, factors like retirement age, special provisions (law enforcement, firefighter), and survivor benefits can affect the final pension amount.
Q5: When should I calculate my pension?
A: Regular calculations throughout your career help with retirement planning. Calculate annually as you approach retirement eligibility.