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FERS Retirement Formula:
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The FERS (Federal Employees Retirement System) annuity calculation determines the annual retirement benefit for VA employees based on years of service and the high-3 average salary. This basic benefit forms the foundation of federal retirement planning.
The calculator uses the standard FERS formula:
Where:
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%.
Details: Accurate retirement calculation helps VA employees plan for their financial future, understand their expected benefits, and make informed decisions about retirement timing and supplemental savings.
Tips: Enter years of service (including partial years as decimals) and your high-3 average salary. The high-3 is the average of your highest 3 consecutive years of basic pay.
Q1: What is included in the high-3 average salary?
A: The high-3 average includes basic pay only - it does not include bonuses, overtime, or allowances. It's based on your highest 3 consecutive years of basic pay.
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 to law enforcement and firefighters.
Q3: How is part-time service calculated?
A: Part-time service is prorated based on the number of hours worked compared to full-time employment.
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.