1. What is the FERS Annuity?

The FERS (Federal Employees Retirement System) annuity is a pension benefit for federal employees calculated based on years of service and the high-3 average salary. It provides retirement income for eligible federal workers.

2. How Does the Calculator Work?

The calculator uses the FERS annuity formula:

Where:

• \( YS \) — Years of service
• \( H3 \) — High-3 average salary (USD)

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 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 (can include decimal values for partial 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, typically your last 3 years of federal service.

Q2: Are there different percentages for longer service?
A: Yes, for employees with 20+ years of service, the percentage increases to 1.1% for years over 20.

Q3: What age can I retire with full benefits?
A: Full retirement age varies by birth year and years of service. Minimum retirement age is typically 55-57 with 30 years of service.

Q4: Is the annuity adjusted for inflation?
A: FERS annuities receive cost-of-living adjustments (COLAs) based on the Consumer Price Index.

Q5: What other benefits are included in FERS?
A: FERS includes three components: Basic Benefit Plan, Social Security, and Thrift Savings Plan (TSP).