Basic Benefit
One of the main parts of your Federal Employee Retirement System is called your Basic Benefit, or in layman terms, your Pension. Below Is a way to calculate the TAXABLE amount you will receive from your Basic Benefit upon retirement.
High-3 Average Salary
Your “high-3” average pay is the highest average basic pay you earned during any 3 consecutive years of service. These three years are usually your final three years of service, but can be an earlier period, if your basic pay was higher during that period. Your basic pay is the basic salary you earn for your position. It includes increases to your salary for which retirement deductions are withheld, such as shift rates. It does not include payments for overtime, bonuses, etc. ‘
(If your total service was less than 3 years, your average salary was figured by averaging your basic pay during all of your periods of creditable Federal service).
Computation for Non-Disability Retirements
FERS Basic Annuity Age Formula
Under Age 62 at Separation for Retirement, OR
Age 62 or Older With Less Than 20 Years of Service-1 percent of your high-3 average salary for each year of service
Age 62 or Older at Separation With 20 or More Years of Service-
1.1 percent of your high-3 average salary for each year of service
Your benefit was computed differently, if you retired under one of the provisions below.
Special Provision for Air Traffic Controllers, Firefighters, Law Enforcement Officers, Capitol Police, Supreme Court Police, or Nuclear Materials Couriers
1.7% of your high-3 average salary multiplied by your years of service which do not exceed 20,
PLUS
1% of your high-3 average salary multiplied by your service exceeding 20 years
Member of Congress or Congressional Employee (or any combination of the two) must have at least 5 years of service as a Member of Congress and/or Congressional Employee
1.7% of your high-3 average salary multiplied by your years of service as a Member of Congress or Congressional Employee which do not exceed 20,
PLUS
1% of your high-3 average salary multiplied by your years of other service
Transferred to the Federal Employees Retirement System (FERS)
At time of transfer, had at least 5 years of creditable civilian service covered by either:
Civil Service Retirement System (CSRS)
Social Security
(but not both-excludes service during which partial CSRS deductions were withheld)
Annuity will have 2 components:
FERS Component
CSRS Component
Computation of FERS Component Age Formula
Under Age 62 at Separation for Retirement, OR–
Age 62 or Older With Less Than 20 Years of Service
1 percent of your high-3 average salary for each year of service Age 62 or Older at Separation With 20 or More Years of Service
1.1 percent of your high-3 average salary for each year of service
Computation of CSRS Component Duration Formula
First 5 years of CSRS service
1.5% of your high-3 average salary for each year of service
Second 5 years of CSRS service.
1.75% of your high-3 average salary for each year of serviceAll years of CSRS service over 102% of your high-3 average salary for each year of service
If retired under the special provision for firefighters, law enforcement officers, or nuclear material couriers
2.5% of the years and months of CSRS law enforcement officer, firefighter or nuclear material courier service up to 20 years multiplied times the high-3 average salary.
PLUS
2% of the remaining years of service times the high 3 average salary.
If retired under the special provision for Members of Congress or Congressional Employees
2.5% of your high-3 average salary multiplied by your years and months of service as a Member of Congress and/or Congressional Employee, your military service while on a leave of absence as a Member and up to 5 years of other military service
PLUS
1.75% of your high-3 average salary multiplied by your years of other service, which when added to your years of 2.5% service, do not exceed 10 years
PLUS
2% of your high-3 average salary multiplied by your years of other service in excess of 10 years