Calculate Your Federal Retirement Annuity

The FERS basic annuity is calculated as 1% of your high-3 average salary multiplied by your years of creditable service. If you retire at age 62 or older with at least 20 years of service, the multiplier increases to 1.1%. For example, 30 years of service with a high-3 of $100,000 would yield an annuity of 1% x $100,000 x 30 = $30,000 per year, or $2,500 per month. Unused sick leave is converted to additional service credit to further increase the computation.

The high-3 average salary is the highest average basic pay you earned during any 3 consecutive years of federal service. For most employees, this is the last 3 years before retirement, since pay typically increases over a career. It includes your basic pay and locality pay, but does not include overtime, bonuses, cash awards, or allowances. Both FERS and CSRS use the high-3 as the salary base in their annuity computation formulas.

The FERS Special Retirement Supplement is a temporary benefit paid to FERS employees who retire before age 62 with an immediate, unreduced annuity (typically MRA + 30 years, or age 60 + 20 years). It approximates the Social Security benefit you earned during your years of FERS-covered federal service. The supplement is paid from your retirement date until age 62, when you become eligible for actual Social Security. It is subject to the Social Security earnings test if you have income from other employment. The approximate formula is: (years of FERS service / 40) multiplied by your estimated Social Security benefit at age 62.

Electing a survivor benefit reduces your monthly annuity during your lifetime to provide continuing income for your eligible spouse after your death. Under FERS, a full survivor benefit costs a 10% reduction to your annuity and pays your spouse 50% of your unreduced annuity amount. A partial survivor benefit costs a 5% reduction and pays your spouse 25%. Under CSRS, a full survivor benefit costs approximately 10% and pays 55% of your annuity. Married employees are required to elect at least a partial survivor benefit unless their spouse provides written consent to waive it.

Yes. Both FERS and CSRS employees receive credit for their unused sick leave balance at retirement. Sick leave is converted to additional service credit using the standard conversion rate of 2,087 hours per year of service (approximately 174 hours per month). For example, 1,000 hours of unused sick leave adds about 5.75 months of service credit to your annuity computation. While sick leave credit does not count toward meeting retirement eligibility requirements, it directly increases the service years used in your annuity formula, which increases your monthly payment for life.

FERS employees have four main retirement eligibility options: (1) MRA + 30 years -- immediate, unreduced annuity with FERS supplement; (2) MRA + 10 years -- immediate annuity, but reduced by 5% for each year you are under age 62 (you can delay the annuity start to reduce or eliminate the penalty); (3) Age 60 + 20 years -- immediate, unreduced annuity with FERS supplement; (4) Age 62 + 5 years -- immediate, unreduced annuity with the enhanced 1.1% multiplier. The Minimum Retirement Age (MRA) ranges from 55 to 57 depending on your birth year. Special provisions apply to law enforcement officers, firefighters, and air traffic controllers.