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FERS Annuity Formula:
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The FERS (Federal Employees Retirement System) annuity calculation determines the retirement benefit for federal employees based on their high-3 average salary, years of service, and age at retirement. It provides a foundational retirement income for federal workers.
The calculator uses the FERS annuity formula:
Where:
Explanation: The formula calculates your basic annuity amount, which forms the foundation of your FERS retirement benefit.
Details: Accurate annuity estimation is crucial for retirement planning, helping federal 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 is included in 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 are partial years of service calculated?
A: Partial years are converted to decimals (e.g., 6 months = 0.5 years). The calculator accepts decimal values for more precise calculations.
Q3: Are there other factors that affect my actual annuity?
A: Yes, factors such as retirement plan (immediate vs. deferred), survivor benefits elections, and any applicable reductions will affect your final annuity amount.
Q4: What's the difference between the 1% and 1.1% multipliers?
A: The 1.1% multiplier applies only if you retire at age 62 or older with at least 20 years of service. This enhanced benefit rewards longer-serving employees who work until at least age 62.
Q5: Does this calculator include the FERS Supplement?
A: No, this calculator only estimates the basic annuity. The FERS Supplement (Special Retirement Supplement) is an additional amount for those who retire before age 62 with at least 30 years of service.