Computation
Your basic annuity is computed based on your length of service and “high-3”
average salary. To determine your length of service for computation, add all
your periods of creditable service, then eliminate any fractional part of a
month from the total.
High-3 Average Salary
Your “high-3” average pay is the highest average basic pay you
earned during any 3 consecutive years of 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 shift rates. 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.)
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Computation for Non-Disability Retirements
Here is how the basic FERS annuity formula is calculated:
Under Age 62 at Separation for Retirement
Or
Age 62 or Older With Less Than 20 Years of Service |
1 percent of your high-3 average salary for each year of service |
Age 62 or Older at Separation With 20 or More Years of Service |
1.1 percent of your high-3 average salary for each year of service |
Your benefit was computed differently, if you retired under one of the provisions
below:
1.7% of your high-3 average salary multiplied by your years
of service which do not exceed 20, plus
1% of your high-3 average salary multiplied by your service exceeding 20
years |
1.7% of your high-3 average salary multiplied by your years
of service as a Member of Congress or Congressional Employee which do not
exceed 20, plus
1% of your high-3 average salary multiplied by your years of other service
|
Transferred to the Federal Employees Retirement
System (FERS)
At time of transfer, had at least 5 years of creditable civilian service
covered by either:
- Civil Service Retirement System (CSRS)
- Social Security
(but not both-excludes service during which partial CSRS deductions were
withheld)
Annuity will have 2 components:
- FERS Component
- CSRS Component
Under Age 62 at Separation for Retirement Or
Age 62 or Older With Less Than 20 Years of Service |
1 percent of your high-3 average salary for each year of service
|
Age 62 or Older at Separation With 20 or More Years of Service |
1.1 percent of your high-3 average salary for each year of service |
First 5 years of CSRS service
|
1.5% of your high-3 average salary for each year of service |
Second 5 years of CSRS service
|
1.75% of your high-3 average salary for each year of service |
All years of CSRS service over 10
|
2% of your high-3 average salary for each year of service |
% of your high-3 average salary, multiplied by
up to 20 years of CSRS law enforcement officer, firefighter or nuclear material
courier service, plus
2% of your high-3 average salary multiplied by all remaining service in
the CSRS component |
2.5% 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% of your high-3 average salary multiplied by your years of
other service, which when added to your years of 2.5% service, do not exceed
10 years, plus
2% of your high-3 average salary multiplied by your years of other service
in excess of 10 years |
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Reductions in Non-Disability Annuity
Age
If you retire under the MRA+10 provision
- If you have 10 or more years of service and retire at the Minimum Retirement
Age (MRA), your benefit will be reduced by 5/12 of 1% for each full month
(5% per year) that you were under age 62 on the date your annuity began. However,
your annuity will not be reduced if you complete at least 30 years of service,
or if you complete at least 20 years of service and your annuity begins when
you reach age 60.
- If you postpone the beginning date of your annuity, the age reduction will
be reduced or eliminated.
The age reduction applies to both the Civil Service Retirement System and
the Federal Employees Retirement System components of your annuity, if you
transferred to FERS and part of your annuity is computed under the CSRS provision.
If you retire under the discontinued service or early optional retirement
provision with a CSRS Component
- If you retire on a discontinued service retirement or early optional retirement
because your agency was undergoing a major reorganization, reduction-in-force
or transfer of function, and part of your benefit was computed under CSRS
rules, the CSRS portion will be reduced if you are under age 55. The reduction
is 1/6 of 1% (2% per year) for every month that you are under age 55 at the
time of retirement.
Survivor Benefits
If you are married, your benefit will be reduced for a survivor benefit, unless
your spouse consented to your election of less than a full survivor annuity.
If the total of the survivor benefit(s) you elect equals 50% of your benefit,
your annuity is reduced by 10%. If the total equals 25%, the reduction is 5%.
Unpaid or Refunded Service
If you have a CSRS component in your annuity:
- The CSRS portion of your benefit will be reduced by 10% of any deposit
owed for CSRS non-deduction service performed before October 1, 1982, unless
the deposit was paid before retirement.
- The CSRS portion of your non-disability benefit will be reduced by an actuarial
factor for any CSRS refunded service performed before October 1, 1990, if
you do not repay the refund before retirement and your annuity commences after
December 2, 1990.
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.
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Disability Retirement Computation
FERS disability benefits are computed in different ways depending on the annuitant’s
age and amount of service at retirement. In addition, FERS disability retirement
benefits are recomputed after the first twelve months and again at age 62, if
the annuitant is under age 62 at the time of disability retirement.
FERS Disability Computation if-
- Age 62 or older at retirement, or
- Meet the age and service requirements for immediate voluntary retirement
You receive your “earned” annuity based on the general FERS
annuity computation, as follows--
- If age 62 or older at retirement with less than 20 years of service,
or
- under age 62 qualified for an immediate voluntary retirement
|
1 percent of your high-3 average salary for each year of service |
- If age 62 or older with 20 or more years of service
|
1.1 percent of your high-3 average salary for each year of service |
FERS Disability Computation if-
- Under age 62 at retirement, and
- Not eligible for voluntary immediate retirement
For the first 12 months
|
60% of your high-3 average salary minus 100% of your Social
security benefit for any month in which you are entitled to Social Security
benefits
However, you are entitled to your “earned” annuity,
if it is larger than this amount. |
After the first 12 months
|
40% of your high-3 average salary minus 60% 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,
if it is larger than this amount. |
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 62nd birthday and then retired under FERS. |
If your actual service, plus the credit for time as a disability annuitant
equals less than 20 years:
1 percent of your high-3 average salary
for each year of service
If your actual service, plus the credit for time as a disability annuitant
equals 20 or more years:
1.1 percent of your high-3 average salary
for each year of service
Total Service used in the computation will be increased by the amount
of time you have received a disability annuity
Average Salary used in the computation will be increased by all FERS
cost-of-living increases paid during the time you received a disability
annuity. |
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Reductions in Disability Annuity
Survivor Benefits
If you are married, your benefit will be reduced for a survivor benefit, unless
your spouse consented to your election of less than a full survivor annuity.
- If the total of the survivor benefit(s) you elect equals 50% of your benefit,
your annuity is reduced by 10%.
- If the total equals 25%, the reduction is 5%.
Unpaid Service if “earned” annuity paid
If you have a CSRS component in your annuity, the CSRS portion of
your benefit will be reduced by 10% of any deposit owed for CSRS non-deduction
service performed before October 1, 1982, unless the deposit was paid before
retirement.
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Cost of Living Adjustments
Your annuity will be increased for cost-of-living adjustments, if:
- You are over age 62; or
- You retired under the special provision for air traffic controllers, law
enforcement personnel, or firefighters; or
- You retired on disability, except when you are receiving a disability annuity
based on 60% of your high-3 average salary. This is generally during the first
year of receiving disability benefits; or
- Your retirement includes a portion computed under Civil Service Retirement
System (CSRS) rules.
FERS retirees under age 62 who do not fall into one of the categories above,
are not eligible for cost-of-living increases until they reach age 62.
If you’ve been receiving retirement benefits for less than 1 year and
are eligible for a cost-of-living adjustment, you’ll get a percentage
of the cost-of-living increase. The percentage depends on how long you were
receiving your annuity before the effective date of the increase.
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