Everything FERS and CSRS employees need to know before making irrevocable retirement elections.
How is a FERS annuity calculated?
FERS annuity = 1% × High-3 average salary × years of service. If you retire at age 62 or older with 20+ years, the multiplier increases to 1.1%. Example: a GS-13 with a $130,000 High-3 and 25 years receives $32,500/year ($2,708/month). Your FERS pension typically covers 30-40% of pre-retirement income — Social Security and TSP complete the three-legged stool.
How is a CSRS annuity calculated?
CSRS uses a tiered formula: 1.5% for the first 5 years + 1.75% for years 6-10 + 2.0% for each year over 10, capped at 80% of High-3 (reached at 41 years 11 months). CSRS retirees typically receive 60-80% of High-3 — significantly more than FERS because CSRS employees don't earn Social Security from federal service.
Should I elect the full, partial, or no survivor benefit?
The full survivor annuity reduces your monthly benefit by 10% but provides your spouse 50% of your pre-reduction annuity for life after your death. Partial (5% reduction) pays the spouse 25%. The break-even question: how many years must your spouse live after your death to recoup the cost of the reduction? For most married couples with a younger spouse, full survivor annuity is the lower-risk choice — the alternative (no election + commercial life insurance) requires disciplined follow-through that often doesn't happen.
What is the FERS Special Retirement Supplement?
The FERS SRS bridges the income gap between retiring before age 62 (your MRA with 30 years) and Social Security eligibility. It approximates the Social Security benefit earned during federal service — typically around $800-$1,500/month. It's subject to the Social Security earnings test: if you earn more than $22,320/year in other employment (2025), the SRS is reduced $1 for every $2 earned above the limit. It ends completely at age 62.
When should I start Social Security if I have a FERS pension?
Most FERS retirees with a spouse benefit from delaying SS to age 70 to maximize the survivor benefit. The FERS SRS covers the bridge period (MRA to 62) and TSP withdrawals can bridge ages 62-70. Delaying SS to 70 vs 62 increases the benefit by approximately 76% — the break-even with a healthy life expectancy is typically around age 80. CSRS retirees face WEP (Windfall Elimination Provision) which reduces SS benefits earned in private-sector work.
Can I roll over my TSP to a commercial annuity?
Yes. You can roll TSP funds to an IRA and purchase a commercial annuity, or use the TSP's built-in annuity (administered by MetLife). Commercial annuities often offer better payout rates, more flexibility (joint and survivor options, inflation riders), and competitive market pricing. Current SPIA rates produce approximately $4,500-$5,700/month per $100,000 at age 65, depending on gender and joint/single life options. Your Federal Retire Stack analysis above calculates your specific options.