1. What is the FERS Annuity Calculation?

The FERS (Federal Employees Retirement System) annuity calculation determines the retirement benefit for federal government employees based on their high-3 average salary, years of service, and age at retirement.

2. How Does the Calculator Work?

The calculator uses the FERS annuity formula:

Where:

• High-3 Average Salary — The average of the highest 3 consecutive years of basic pay
• Years of Service — Total years of federal service
• Multiplier — 1% (1.1% if age 62 or older with 20+ years of service)

Explanation: The formula provides the basic annuity amount before any deductions or additional benefits.

3. Importance of Annuity Calculation

Details: Accurate annuity calculation is crucial for federal employees to plan their retirement, understand their expected benefits, and make informed decisions about retirement timing.

4. Using the Calculator

Tips: Enter your high-3 average salary in dollars, years of service (including partial years), and your current age. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is included in the High-3 Average Salary?
A: The High-3 Average Salary includes basic pay only - it does not include bonuses, overtime, or allowances.

Q2: How are partial years of service calculated?
A: Partial years are converted to decimal (e.g., 6 months = 0.5 years) and included in the calculation.

Q3: Are there other factors that affect the annuity amount?
A: Yes, factors such as retirement type (optional, discontinued, early), survivor benefits, and other deductions may affect the final amount.

Q4: What is the minimum service requirement for FERS annuity?
A: Generally, 5 years of civilian service is required to be eligible for an immediate annuity.

Q5: How often are annuity payments made?
A: Annuity payments are typically made monthly for the rest of the retiree's life.