FERS Retirement
Congress created the Federal Employees Retirement System (FERS) in 1986, and
it became effective on January 1, 1987. Since that time, new Federal civilian
employees who have retirement coverage are covered by FERS.
FERS is a retirement plan that provides benefits from three different sources:
a Basic Benefit Plan, Social Security, and the Thrift
Savings Plan (TSP). Two of the three parts of FERS (Social Security and
the TSP) can go with you to your next job if you leave the Federal Government
before retirement. The Basic Benefit and Social Security parts of FERS
require you to pay your share each pay period. Your agency withholds the
cost of the Basic Benefit and Social Security from your pay as payroll deductions.
Your agency pays its part too. Then, after you retire, you receive annuity
payments each month for the rest of your life.
The TSP part of FERS is an account that your agency automatically sets up for
you. Each pay period your agency deposits into your account amount equal
to 1% of the basic pay you earn for the pay period. You can also make
your own contributions to your TSP account and your agency will also make a
matching contribution. These contributions are tax-deferred. The
Thrift Savings Plan is administered by the Federal Retirement Thrift Investment
Board.
For more information about TSP, see their website.
See the SSA website for more information about
the Social Security portion of your retirement benefit. This website
covers the Federal Employees Retirement System. Through the menu links
on the left, you can find information about the following FERS retirement topics:
Eligibility – The main
eligibility requirements for the common types of retirements.
Creditable Service – Rules
showing the civilian and military service that can be used to compute your FERS
retirement benefits.
Computation – How your
retirement benefit is computed.
Disability – Special rules
governing Disability retirement.
Early Retirement - Explanation
of the minimum retirement age and early retirement if you agency under goes
a “reduction in force” or you are involuntarily separated other
than for cause.
Voluntary – Requirements
for the most common type of retirement.
Deferred - If you are a former
Federal employee who was covered by the Federal Employees Retirement System
(FERS), you may be eligible for a deferred annuity at age 62 or the Minimum
Retirement Age (MRA).
FERS Annuity Supplement –
The additional annuity retirees may be eligible for until they are eligible
to receive the Social Security portion of their retirement benefits.
Service Credit – Payment
to increase your annuity for civilian service when no FERS retirement deductions
were withheld or were refunded or for military service after 1956.
Former Employees – Options
if you leave your Government job before becoming eligible for retirement.