1. What is Federal Retirement Annuity?

Federal Retirement Annuity is a pension benefit for federal employees calculated based on their highest three years of salary (High-3) and years of service. It provides a guaranteed income stream during retirement.

2. How Does the Calculator Work?

The calculator uses the federal retirement annuity formula:

Where:

• \( High-3 \) — Average of highest three consecutive years of salary (USD)
• \( Years \) — Total years of federal service
• \( 1\% \) — Standard multiplier for federal retirement

Explanation: The formula calculates the basic annuity amount by multiplying the High-3 average salary by 1% for each year of service.

3. Importance of Annuity Calculation

Details: Accurate annuity calculation helps federal employees plan for retirement, understand their expected pension benefits, and make informed decisions about retirement timing and financial planning.

4. Using the Calculator

Tips: Enter your High-3 average salary in USD and your total years of federal service. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What exactly is the High-3 salary?
A: The High-3 salary is the average of your highest three consecutive years of basic pay as a federal employee.

Q2: Are there different multipliers for different retirement systems?
A: Yes, some retirement systems use 1.1% instead of 1% if you retire at age 62 or later with at least 20 years of service.

Q3: Does this calculation include other retirement benefits?
A: No, this calculates only the basic annuity. Other benefits like Social Security, TSP, or survivor benefits are separate.

Q4: How accurate is this calculator?
A: This provides a basic estimate. Actual annuity amounts may vary based on specific retirement plan, unused sick leave, and other factors.

Q5: When should I calculate my federal retirement annuity?
A: It's recommended to calculate your annuity periodically as you approach retirement to help with financial planning.