1. What is the FERS Annuity?

The FERS (Federal Employees Retirement System) annuity is the basic retirement benefit for federal employees. It provides a lifetime annuity based on years of service and the average of the highest three consecutive years of salary.

2. How Does the Calculator Work?

The calculator uses the standard FERS annuity formula:

Where:

• \( YS \) — Years of Service (in years)
• \( H3 \) — High-3 Average Salary (in 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 annuity amount.

3. Importance of Annuity Calculation

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

4. Using the Calculator

Tips: Enter years of service (can include fractional years) 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, which typically includes base pay plus locality pay.

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

Q3: What is included in Years of Service?
A: Years of Service includes all creditable federal service, including part-time service (converted to full-time equivalents) and unused sick leave.

Q4: When can I retire under FERS?
A: Minimum Retirement Age (MRA) with 30 years, age 60 with 20 years, or age 62 with 5 years of service, depending on your specific situation.

Q5: Are there reductions for early retirement?
A: Yes, if you retire under MRA+10 rules before age 62, your annuity may be reduced by 5% for each year you're under age 62.