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Information for FERS Annuitants
Generally, your FERS benefit is 1 percent of your "high-3" average salary multiplied
by your years and months of service. If you were at least age 62 at separation
and had at least 20 years of service, your annuity is 1.1 percent of your "high-3" average salary multiplied by your years and months of service.
Your benefit was computed differently if:
- You retired on disability:
- If at disability retirement you were already 62 years old, or you met the age and service requirements for immediate voluntary retirement, you received your "earned" annuity based on the general FERS annuity computation outlined above.
- If at disability retirement you were under age 62 and not eligible for voluntary retirement, you received the following benefit:
- For the first 12 months-
60 percent of your "high-3" average salary minus 100 percent of your Social Security benefit for
any month in which you are entitled to Social Security disability benefits.
- After the first 12 months-
40 percent of your "high-3" average salary minus 60 percent of your Social Security benefit for
any month in which you are entitled to Social Security disability benefits.
However, you are entitled to your "earned" annuity (1 percent of your "high-3" average salary multiplied by your years and months of service), if it is larger than your
disability annuity computed above.
Important Information
Federal Employees' Retirement System (FERS) disability benefits usually begin before
the claim for Social Security benefits is fully processed. Because the FERS disability
benefit must be reduced by 100 percent of any Social Security benefit payable for the first
12 months, Social Security checks should not be negotiated until the FERS benefit has
been reduced. The Social Security checks will be needed to pay the Office of Personnel
Management (OPM) for the reduction which should have been made in the FERS annuity.
- When you reach age 62 -
Your annuity will be recomputed using an amount that essentially represents the annuity
you would have received if you had continued working until the day before your
sixty-second birthday and then retired under the FERS non-disability provisions. The
total service used in the computation is increased by the amount of time you received a
disability annuity, and your average salary is increased by all FERS cost-of-living
increases paid during the time you received a disability annuity. The FERS basic annuity
formula (1 percent of your "high-3" average salary multiplied by your total years and months of
service) is then applied, using the adjusted time base and average salary. If your actual
service plus the credit for time as a disability annuitant equals 20 or more years, this
formula is 1.1 percent of your "high-3" average salary.
- You retired under the special provision for air traffic controllers, firefighters, or
law enforcement officers:
Your annuity is 1.7 percent of your "high-3" average salary multiplied by your years of
service which do not exceed 20, plus 1 percent of your "high-3" average salary multiplied by
your service exceeding 20 years.
- You retired and had at least 5 years of service as a Member of Congress or as a
congressional employee (or any combination of the two):
Your annuity is 1.7 percent of your "high-3"average salary multiplied by your years of
service as a Member of Congress or a congressional employee which do not exceed 20,
plus 1 percent of your "high-3" average salary multiplied by your years of other service.
- You transferred to the Federal Employees' Retirement System (FERS) and had at
least 5 years of creditable civilian service covered by either social security or the
Civil Service Retirement System (CSRS), but not both (excludes service during which
partial CSRS deductions were withheld) when you transferred:
Your annuity has both a FERS and a CSRS component. The FERS component was computed using
the formula outlined above. The CSRS component was computed using the CSRS formula which is:
First 5 years of CSRS Service
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1.5% of your "high-3" average salary for each year of service
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Second 5 years of CSRS Service
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1.75% of your "high-3" average salary for each year of service
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All years of CSRS Service over 10
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2% of your "high-3" average salary for each year of service
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If you retired under the special provision for firefighters or law enforcement officers
Your Civil Service Retirement System (CSRS) component is 2.5% of your "high-3" average salary,
multiplied by up to 20 years of law enforcement officer and/or firefighter service,
plus 2 percent of
your "high-3" average salary multiplied by all service over 20 years.
If you retired under the special provision for Members of Congress or congressional employees
Your CSRS component is 2.5 percent of your "high-3" average salary multiplied by your years
and months of service as a Member of Congress and/or congressional employee, your military
service while on a leave of absence as a Member and up to 5 years of other military service,
plus 1.75 percent of your "high-3" average salary multiplied by your years of other service
which, when added to your years of 2.5 percent service, do not exceed 10 years,
plus 2 percent of your
"high-3" average salary multiplied by your years of other service in excess of 10 years.
Reductions in Annuity Computation
- Age
If you had 10 or more years of service and retired at the Minimum
Retirement Age (MRA), your benefit was reduced by 5/12 of 1 percent for
each full month (5 percent per year) that you were under age 62 on the date
your annuity began. However, your annuity was not reduced if you
completed at least 30 years of service, or if you completed at least
20 years of service and your annuity began when you reached age 60.
You could have reduced or eliminated this age reduction by postponing
the beginning date of your annuity.
The age reduction applies to both the Civil Service Retirement System
and the Federal Employees' Retirement System components of your annuity.
- Survivor Benefits
Your benefit may have been reduced to provide survivor benefits after
your death. If you are married, this survivor reduction was automatic
under the law, unless your spouse consented to your election of less
than a full survivor annuity. If the total of the survivor benefit(s)
you elected equals 50 percent of your benefit, your annuity is reduced by 10 percent.
If the total equals 25 percent, the reduction is 5 percent.
- Alternative Annuity
Your benefit may be reduced if you elected a lump sum payment equal to
your retirement contributions and a reduced monthly annuity, commonly
called an alternative annuity. Only non-disability annuitants who have
a life-threatening affliction or other critical medical condition can
elect this option.
Computation of "High-3" Average Salary
Your "high-3" average salary was figured by
averaging your highest basic pay over any three years of consecutive service.
These three years are usually your final three years of service, but can be
an earlier period, if your basic pay was higher during that period. Your basic
pay is the basic salary you earn for your position. It includes increases to
your salary for which retirement deductions are withheld, such as for shift
rates, night shift differential, etc. It does not include payments for
overtime, bonuses, etc. (If
your total service was less than 3 years, your average salary was figured
by averaging your basic pay during all of your periods of creditable Federal service.)
Minimum Retirement Age
The Minimum Retirement Age (MRA) is your age at the
earliest date you were eligible to retire
and is based on the year of your birth. To determine your MRA, refer to the following table:
Before 1948
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55 years
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1948
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55 years, 2 months
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1949
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55 years, 4 months
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1950
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55 years, 6 months
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1951
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55 years, 8 months
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1952
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55 years, 10 months
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1953 to 1964
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56 years
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1965
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56 years, 2 months
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1966
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56 years, 4 months
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1967
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56 years, 6 months
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1968
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56 years, 8 months
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1969
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56 years, 10 months
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After 1969
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57 years
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RI 90-8
Revised January 2000
Previous edition is not usable
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