FERS Offset Calculator
Use this calculator to estimate your FERS annuity before and after the Social Security Offset, which typically begins at age 62 for eligible retirees.
Your Estimated FERS Annuity
Annual FERS Annuity (Before Offset):
Monthly FERS Annuity (Before Offset):
Estimated Monthly FERS Offset Amount:
Annual FERS Annuity (After Offset, from age 62):
Monthly FERS Annuity (After Offset, from age 62):
Note: The FERS Offset typically begins at age 62, assuming eligibility for Social Security benefits. Prior to age 62, you would receive the 'Before Offset' amount. This calculator provides an estimate; your actual benefits may vary.
Understanding the FERS Offset and Your Retirement
What is FERS?
The Federal Employees Retirement System (FERS) is the retirement plan for most federal civilian employees hired after December 31, 1983. It's a three-tiered system comprising a Basic Benefit Plan (annuity), Social Security, and the Thrift Savings Plan (TSP). The Basic Benefit Plan provides a defined benefit annuity, calculated based on your years of service, your "High-3" average salary, and a multiplier.
How is the Basic FERS Annuity Calculated?
Your FERS basic annuity is generally calculated using this formula:
High-3 Average Salary × Years of Creditable Service × Multiplier
- High-3 Average Salary: This is the highest average of your basic pay earned during any 3 consecutive years of service.
- Years of Creditable Service: Your total years and months of federal service.
- Multiplier:
- Most retirees use a 1.0% multiplier.
- If you retire at age 62 or older with at least 20 years of service, your multiplier increases to 1.1%.
What is the FERS Offset?
The FERS Offset is a reduction in your FERS basic annuity that occurs when you become eligible for Social Security benefits, typically at age 62. This offset is designed to prevent "double-dipping" for the portion of your Social Security benefit that was earned while you were a FERS employee. Since FERS employees contribute to Social Security throughout their careers, a portion of their Social Security benefit is attributable to their federal service. The FERS Offset ensures that the FERS annuity doesn't fully overlap with the Social Security benefit for that same period of service.
When Does the FERS Offset Apply?
The FERS Offset applies if you meet all of the following criteria:
- You are age 62 or older.
- You have completed at least 5 years of civilian service.
- You are eligible for Social Security benefits based on your federal employment.
If you retire before age 62, you will receive your full FERS basic annuity until you reach age 62 (or become eligible for Social Security, whichever is later). At that point, if you meet the criteria, the offset will be applied.
How is the FERS Offset Calculated? (Simplified for Estimation)
The exact calculation of the FERS Offset by the Social Security Administration (SSA) is complex, involving a detailed analysis of your earnings record. However, for estimation purposes, a common method is to determine the proportion of your total estimated Social Security benefit that is attributable to your FERS service. This calculator uses the following simplified formula:
Estimated Monthly FERS Offset Amount = Estimated Monthly Social Security Benefit (at age 62) × (Years of FERS Creditable Service / Total Years of Social Security Covered Earnings for AIME calculation)
The "Total Years of Social Security Covered Earnings for AIME calculation" typically refers to the 35 highest-earning years used by the SSA to calculate your Average Indexed Monthly Earnings (AIME), which determines your Social Security benefit.
It's important to note that the FERS Offset cannot reduce your FERS annuity below zero.
Example Calculation:
Let's consider a federal employee with the following details:
- High-3 Average Salary: $90,000
- Years of FERS Creditable Service: 28 years
- Age at FERS Retirement: 60
- Estimated Monthly Social Security Benefit (at age 62): $2,500
- Total Years of Social Security Covered Earnings (for AIME): 35 years
Step 1: Calculate Initial FERS Annuity (Before Offset)
Since the retirement age (60) is less than 62, the multiplier is 1.0% (0.010).
Annual FERS Annuity = $90,000 × 28 years × 0.010 = $25,200
Monthly FERS Annuity = $25,200 / 12 = $2,100
Step 2: Calculate Estimated Monthly FERS Offset Amount (Applies from age 62)
Estimated Monthly FERS Offset = $2,500 × (28 years / 35 years) = $2,500 × 0.8 = $2,000
Step 3: Calculate FERS Annuity After Offset (From age 62)
Monthly FERS Annuity After Offset = $2,100 (Before Offset) – $2,000 (Offset) = $100
Annual FERS Annuity After Offset = $100 × 12 = $1,200
In this example, the employee would receive $2,100 per month from FERS until age 62. From age 62 onwards, their FERS annuity would be reduced to $100 per month, in addition to their Social Security benefits.
Important Considerations:
- This is an Estimate: The calculator provides an estimate based on common approximations. Your actual FERS annuity and Social Security benefits are determined by OPM (Office of Personnel Management) and SSA, respectively.
- WEP and GPO are Different: The FERS Offset should not be confused with the Windfall Elimination Provision (WEP) or the Government Pension Offset (GPO), which affect Social Security benefits for individuals who also receive a non-covered pension. The FERS Offset directly reduces your FERS annuity.
- Consult OPM and SSA: For precise figures and personalized advice, always consult with OPM, the Social Security Administration, or a qualified financial advisor specializing in federal benefits.