Pension formula, High-3 calculation, TSP strategy, and Social Security timing — with worked examples for GS-12 through GS-15.
The Federal Employees Retirement System (FERS) is the retirement plan for most federal employees hired after 1984 — and it's one of the most powerful pension structures available to any American worker. Your FERS pension is calculated with a simple formula: High-3 average salary × Years of creditable service × Multiplier (either 1% or 1.1%). With 25 years of service, a GS-13 step 5 employee earns ~$2,450/month from the pension alone, plus TSP (with 5% agency match = free money) and Social Security. FERS Supplement bridges the gap to age 62.
Your monthly FERS pension = High-3 × Years of Service × Multiplier. Two multiplier scenarios:
| Scenario | Multiplier | When It Applies | Example: 25 Years, $120K High-3 |
|---|---|---|---|
| Standard | 1.0% | Any immediate annuity retirement (MRA+10, 60+20, etc.) | $2,500/month ($120K × 25 × 0.01) |
| Enhanced | 1.1% | Age 62+ with 20+ years of service (or certain disability retirements) | $2,750/month ($120K × 25 × 0.011) |
| Grade / Step | Step 5 Salary | Step 7 Salary | 1% × 25yr (Monthly) | 1.1% × 25yr (Monthly) |
|---|---|---|---|---|
| GS-12 | $113,000 | $119,000 | $2,354 | $2,590 |
| GS-13 | $134,000 | $141,000 | $2,792 | $3,071 |
| GS-14 | $159,000 | $166,000 | $3,313 | $3,644 |
| GS-15 | $187,000 | $191,000 | $3,896 | $4,286 |
Salaries are Washington-Baltington area 2026 locality rates. Your actual High-3 depends on your step, locality, and years at top step. Check opm.gov for your specific figures.
Your High-3 is the average of your highest 3 consecutive years of basic pay. It excludes bonuses, overtime, and allowances — only base salary counts.
| What IS Included | What Is NOT Included |
|---|---|
| Base pay (locality-adjusted) | Bonuses, awards, incentives |
| Scheduled overtime (part of basic pay) | Travel reimbursements |
| Night differential (if part of basic rate) | Uniform allowances |
| Promotions (count from effective date) | Non-foreign cost-of-living allowances |
| Path | Requirements | Annuitant Type | Pension Reduction |
|---|---|---|---|
| MRA + 10 | Minimum Retirement Age (56-57 depending on birth year) + 10 years of service | Immediate (you get pension right away) | Yes — reduced by 5%/year under age 62 (unless you have 20+ years and delay until age 60) |
| 60 + 20 | Age 60 + 20 years of creditable service | Immediate, unreduced | No reduction |
| 62 + 5 | Age 62 + 5 years of service (but fewer than 20) | Immediate, unreduced | No reduction (but 1% multiplier vs 1.1%) |
MRA by birth year: 1955=56, 1956=56, 1957=56, 1958=57, 1959=57, 1960+=57. The FERS Supplement (bridge income from retirement to age 62) applies to all three paths if you retire before 62.
| Contribution Type | 2026 Limit | Notes |
|---|---|---|
| Regular employee contribution | $23,500 | IRS annual limit for 2026 |
| Catch-up (age 50+) | +$7,500 | Total $31,000 if 50+ |
| Agency automatic (1%) | 1% of salary | Automatic after 3 years (or immediately if hired pre-2014) |
| Agency matching (up to 4%) | Match 100% of first 3%, 50% of next 2% | Requires you contribute ≥5% to get full 4% match |
| Total free money | 5% of salary | Agency contribution = 5% of your salary just for contributing ≥5% |
Traditional TSP: contributions reduce taxable income now, taxed at withdrawal. Roth TSP: contributions are post-tax, qualified withdrawals are tax-free — including decades of growth. Best strategy for most federal employees: Contribute enough to get the full 5% agency match (Traditional for the immediate tax savings), then add additional contributions to Roth if you're in a lower tax bracket now than you expect to be in retirement.
The FERS Supplement acts as a bridge — you retire, get your FERS pension immediately, and also receive the Supplement until age 62 when your own Social Security kicks in. At 62, your SS begins and the Supplement ends.
| Claiming Age | Benefit vs Age 70 | SS at 62 (avg earner) | Recommendation |
|---|---|---|---|
| Age 62 | –30% | ~$1,700/mo | Only if health or financial necessity |
| Age 67 (FRA) | –13.3% | ~$2,200/mo | Balanced — good if SS is primary income after 62 |
| Age 70 | +32% | ~$2,800/mo | Best for most federal employees — maximize own benefit |
Enter your High-3 average salary, years of service, and retirement age to estimate your monthly FERS pension.
Your FERS pension is calculated using the formula: High-3 average salary × Years of creditable service × Multiplier (either 1% or 1.1%). The multiplier is 1% for most retirements, and 1.1% only if you retire at age 62+ with 20+ years of service. The High-3 is your average basic pay over your highest 3 consecutive years of service — typically your last 3 years before retirement.
Your High-3 is the average of your basic pay (excluding bonuses, overtime, allowances) over your highest 3 consecutive years of federal service. You can find it on your SF-50 (Notice of Personnel Action) in Block 12A (Time-In-Grade), or by logging into opm.gov and checking your earnings and leave statements. Most employees can access their full service history through their agency's HR system or the USDA's HR portal.
Three main paths: (1) MRA+10: Minimum Retirement Age (MRA, which ranges from 56-57 depending on birth year) plus 10+ years of service — immediate annuity but reduced if under 62. (2) Age 60+20: Age 60 with 20+ years of service — unreduced annuity. (3) Age 62+5: Age 62 with 5+ years of service — unreduced annuity with 1% multiplier. FERS Supplement ends at age 62 (when SS kicks in).
If you contribute at least 5% of your basic pay to TSP, your agency automatically adds a 4% agency contribution (no action needed on your part) plus a 1% agency contribution (automatically added after 3 years of service, or immediately if you were hired before 2014). In 2026, you can contribute up to $23,500, plus $7,500 catch-up if you're 50 or older, for a total of $31,000. The 5% match is essentially free money — don't leave it on the table.
For FERS employees with the GPO (Government Pension Offset), your SS spousal benefit will be reduced by 2/3 of your FERS pension — making the SS spouse benefit largely irrelevant. Your own SS benefit (based on your own earnings, not your spouse's) is not subject to GPO. Claim at 70 to maximize your own SS benefit if you have 30+ years of SS-covered employment. The FERS Supplement provides income from your retirement date until age 62, filling the gap until SS begins. If you have fewer than 30 SS-covered years, the WEP reduces your SS benefit by up to $600/month.