FERS Retirement Annuity Calculator
Estimate your potential annual and monthly FERS (Federal Employees Retirement System) annuity based on your years of service, high-3 average salary, and retirement age.
Understanding Your FERS Retirement Annuity
The Federal Employees Retirement System (FERS) is a three-tiered retirement plan for federal civilian employees. It consists of a Basic Benefit Plan, Social Security, and the Thrift Savings Plan (TSP). This calculator focuses on estimating your Basic Benefit Plan annuity.
Key Factors in Your FERS Annuity Calculation:
- Years of Creditable Service: This is the total number of years and months you have worked in a position subject to FERS deductions. More years generally mean a higher annuity.
- High-3 Average Salary: This is the highest average basic pay you earned during any 3 consecutive years of service. This period is typically at the end of your career when your salary is highest. It does not include bonuses, overtime, or allowances.
- Age at Retirement: Your age at retirement, combined with your years of service, determines the multiplier used in your annuity calculation.
- Special Category Employee (SCE): Certain occupations, such as Law Enforcement Officers (LEO), Firefighters, and Air Traffic Controllers (ATC), are considered Special Category Employees. They often have different mandatory retirement ages and a higher annuity multiplier due to the demanding nature of their work.
How the FERS Annuity is Calculated (Basic Benefit Plan):
The general formula for the FERS Basic Benefit Plan annuity is:
Years of Creditable Service × Multiplier × High-3 Average Salary
The multiplier typically depends on your age and years of service:
- Standard Multiplier: 1.0% (0.01) for each year of service.
- Enhanced Multiplier (Age 62+ with 20+ Years): If you retire at age 62 or older with at least 20 years of service, your multiplier increases to 1.1% (0.011) for each year of service.
- Special Category Employee Multiplier: For Special Category Employees, the multiplier is 1.7% (0.017) for each year of service. This calculator assumes all your service is under the SCE rules if selected.
Important Considerations (Not included in this basic calculator):
- FERS Annuity Supplement: If you retire before age 62 and meet certain criteria, you may be eligible for a FERS Annuity Supplement until you reach age 62. This supplement approximates the Social Security benefit you earned while a FERS employee.
- Survivor Benefits: Electing to provide a survivor annuity for your spouse will reduce your own monthly annuity.
- Cost of Living Adjustments (COLAs): FERS annuities are subject to annual COLAs, which typically begin at age 62 (or immediately for disability retirees and survivor annuitants).
- Taxes: Your FERS annuity is subject to federal income tax and potentially state income tax.
- Health and Life Insurance: Continuing your FEHB and FEGLI benefits into retirement has specific requirements.
This calculator provides an estimate and should not be considered a guarantee of your actual FERS annuity. For precise figures, consult with a financial advisor or OPM (Office of Personnel Management).
Example Calculation:
Let's consider a FERS employee with the following details:
- Years of Creditable Service: 30 years
- High-3 Average Salary: $90,000
- Age at Retirement: 62 years old
- Not a Special Category Employee
Since the employee is 62 years old with 30 years of service (20+ years), the enhanced multiplier of 1.1% (0.011) applies.
Annual Annuity = 30 years × 0.011 × $90,000 = $29,700
Monthly Annuity = $29,700 / 12 = $2,475
Now, let's consider a Special Category Employee:
- Years of Creditable Service: 25 years
- High-3 Average Salary: $100,000
- Age at Retirement: 50 years old
- Is a Special Category Employee
For a Special Category Employee, the multiplier is 1.7% (0.017).
Annual Annuity = 25 years × 0.017 × $100,000 = $42,500
Monthly Annuity = $42,500 / 12 = $3,541.67