Fers Basic Annuity

A basic benefit plan social security and the thrift savings plan tsp.

Fers basic annuity. It is usually your last 3 years of employment but could be any consecutive 3 year time period when you had the highest pay. 1 1 percent of your high 3 average salary for each year of service. Sometimes people will call your fers pension a fers annuity. Fers is a retirement plan that provides benefits from three different sources.

Fers basic annuity high 3 salary x years of service x 1 1. The latter applies to relatively few new csrs retirees since the system was closed to new entrants effective in 1984. The basic benefit plan social. For this benefit you pay 0 8 of your basic pay each pay period.

Fers basic annuity formula. Age 62 with 5 years of service age 60 with 20 or at your. The basic annuity also may be reduced to provide survivor benefits for a spouse or former spouse after the retiree s death or because of a retirement before age 55 under an early retirement offer. The fers annuity calculation formula.

What is the fers basic benefit. Click here to take a closer look at the different eligibility rules for fers retirement. How to calculate your high 3 salary. Hence the basic benefit is often known as the monthly annuity.

Two of the three parts of fers social security and the tsp can go with you to your next job if you leave the federal government before retirement. Leg 1 your basic fers pension. Even opm calls it an annuity. As a regular fers employee you can retire on an immediate unreduced annuity with one of the following age and service combinations.

Upon retirement fers will pay you a monthly benefit based upon your years of service worked under fers your income and the age you retire. The high 3 salary is the government s term for the average of your highest 3 years of base pay. Fers however does not cover military personnel or employees of state or local governments. 1 percent of your high 3 average salary for each year of service.

There are several different types of fers retirement each with their own requirements of age and years in service. This column discusses the calculation of the fers basic annuity. Your basic fers retirement annuity is computed based on your length of service and high 3 average pay. Note that once the annuity is calculated a retiring fers or trans fers employee s annuity may be reduced because of age or a survivor annuity benefit.

Under age 62 at separation for retirement or age 62 or older with less than 20 years of service.