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FERS Annuity Formula:
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The Federal Employees Retirement System (FERS) annuity calculation determines the basic retirement benefit for federal employees. It's based on your highest 3-year average salary, years of creditable service, and a multiplier that increases if you retire at age 62 or older with at least 20 years of service.
The calculator uses the FERS annuity formula:
Where:
Explanation: The formula provides a basic annuity amount before any deductions for survivor benefits, taxes, or other adjustments.
Details: Accurate annuity estimation is crucial for federal retirement planning, helping employees understand their expected retirement income and make informed decisions about retirement timing and financial preparation.
Tips: Enter your High-3 average salary in dollars, years of service (including partial years as decimals), and your current age. All values must be valid positive numbers.
Q1: What counts toward the High-3 average salary?
A: The High-3 average includes your basic pay from your highest 3 consecutive years of federal service. It does not include bonuses, overtime, or allowances.
Q2: How is part-time service calculated?
A: Part-time service is prorated based on the number of hours worked compared to full-time employment.
Q3: Are there reductions for early retirement?
A: Yes, if you retire before your Minimum Retirement Age (MRA) with less than 30 years of service, your annuity may be reduced by 5% for each year you are under age 62.
Q4: How does military service affect the calculation?
A: Military service can be credited if you make a deposit for that service time, which would then count toward your total years of service.
Q5: What other benefits complement the FERS annuity?
A: FERS retirement includes three components: the Basic Benefit Plan (annuity), Social Security, and the Thrift Savings Plan (TSP).