1. What is the OPM FERS Retirement Annuity?

The FERS (Federal Employees Retirement System) annuity is a pension benefit for federal employees. It's calculated based on the employee's highest three years of salary (High-3) and years of creditable 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)
• \( Years \) — Years of creditable service

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

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.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

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

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

Q3: When is the best time to calculate my FERS annuity?
A: It's recommended to calculate your annuity periodically as you approach retirement to better plan your financial future.

Q4: Does this calculator account for early retirement reductions?
A: No, this calculator provides the basic annuity calculation. Early retirement may involve reduction factors not included here.

Q5: Where can I get official FERS annuity information?
A: The Office of Personnel Management (OPM) provides official guidance and calculators for FERS retirement benefits.