1. What is the FERS Retirement Benefit?

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

2. How Does the Calculator Work?

The calculator uses the basic FERS retirement formula:

Where:

• \( YS \) — Years of service
• \( H3 \) — High-3 average salary (average of highest 3 consecutive years of basic pay)
• \( 0.01 \) — 1% multiplier for basic FERS calculation

Explanation: The formula calculates 1% of the high-3 average salary for each year of service. For employees with 20+ years of service at age 62 or older, the multiplier increases to 1.1%.

3. Importance of Retirement Planning

Details: Accurate retirement benefit calculation helps federal employees plan for retirement, understand their pension income, 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 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 (excluding bonuses, overtime, and allowances).

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% per year of service.

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 are included in FERS?
A: FERS includes Basic Benefit, Social Security, and Thrift Savings Plan (TSP) with government matching.

Q5: When can I retire under FERS?
A: Minimum retirement age varies from 55 to 57 depending on birth year, with different requirements for immediate vs. deferred retirement.