1. What is the FERS Annuity Calculation?

The FERS (Federal Employees Retirement System) annuity calculation determines the retirement benefit for federal employees based on their highest three years of salary and years of service.

2. How Does the Calculator Work?

The calculator uses the FERS annuity formula:

Where:

• \( High-3 \) — Average of highest three consecutive years of salary (USD)
• \( Years \) — Total years of creditable service

Explanation: The formula calculates 1% of the high-3 average salary for each year of service, providing the basic annuity amount.

3. Importance of FERS Annuity Calculation

Details: Accurate annuity calculation is essential for federal employees to plan their retirement income and understand their expected benefits from the FERS system.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is included in the High-3 calculation?
A: The High-3 includes basic pay plus any locality pay, but excludes bonuses, overtime, and other special payments.

Q2: Are there different percentages for different service periods?
A: For employees with 20+ years of service, the percentage increases to 1.1% for years beyond 20.

Q3: How is part-time service calculated?
A: Part-time service is prorated based on the number of hours worked compared to full-time employment.

Q4: When can I start receiving FERS annuity?
A: Minimum retirement age varies from 55 to 57 depending on your year of birth, with reduced benefits for early retirement.

Q5: Are there cost-of-living adjustments?
A: Yes, FERS annuities receive cost-of-living adjustments, though the amount varies based on your age and retirement date.