The FERS pension, explained

The FERS basic annuity is High-3 average salary × years of creditable service × 1%. If you retire at 62 or older with at least 20 years, the multiplier is 1.1%, a 10% larger pension. Law enforcement officers, firefighters and air traffic controllers get 1.7% for their first 20 years of covered service and 1% after that. The FERS pension is one of three parts of federal retirement, along with Social Security and the TSP.

Try your own numbers in the FERS pension calculator.

What counts as High-3

Your highest three consecutive years of basic pay, usually your last three. It includes locality pay (or a special rate supplement), but not overtime, bonuses, awards or allowances.

When you can retire

Age	Years of service	Annuity
Minimum retirement age (MRA)	30	Immediate, unreduced
60	20	Immediate, unreduced
62	5	Immediate, unreduced
MRA	10 to 29	Immediate, reduced 5% a year under 62 (MRA+10)

Your minimum retirement age

Year of birth	MRA
Before 1948	55
1948 to 1952	55 and 2 to 10 months
1953 to 1964	56
1965 to 1969	56 and 2 to 10 months
1970 and after	57

Examples

These are estimates, before taxes, survivor benefit reductions and cost-of-living adjustments.

Retire at 60 with 25 years, High-3 of $95,000: $95,000 × 25 × 1% = $23,750 a year (about $1,979 a month), unreduced.
Same person, waiting until 62: the 1.1% multiplier applies, so $95,000 × 25 × 1.1% = $26,125 a year (about $2,177 a month).
MRA+10 at 57 with 15 years, High-3 of $80,000: $80,000 × 15 × 1% = $12,000, reduced 25% for being 5 years under 62, so $9,000 a year. Postponing the annuity's start reduces or removes the reduction.
Law enforcement, 20 years at 50, High-3 of $110,000: $110,000 × 20 × 1.7% = $37,400 a year.

The MRA+10 reduction

If you retire at your MRA with 10 to 29 years of service, your annuity is reduced 5% for each year you're under 62. There's no reduction if you have 20 or more years and your annuity starts at 60 or later. You can leave at your MRA and postpone the start date to shrink or avoid the reduction.

The FERS supplement

If you retire on an immediate, unreduced annuity before 62, you may also receive the FERS supplement until 62. It approximates the Social Security benefit you earned under FERS and is subject to an earnings limit. It isn't paid to MRA+10 retirees. The calculator above doesn't include it.

Military service and FERS

Military service can count toward your FERS annuity if you make a military deposit (generally 3% of your military basic pay, plus any interest) before you retire. If you receive military retired pay, you usually have to waive it to count the same years, except in limited cases. See military retirement pay, BRS vs High-3 for the military side.

See the whole picture

The Retirement Planner combines your FERS estimate with a TSP projection and key dates. For how the TSP match compares, see BRS vs FERS TSP match.

Common questions

How is the FERS pension calculated?

High-3 average salary × years of creditable service × 1%, or 1.1% if you retire at 62 or older with at least 20 years. Special-provision employees get 1.7% for their first 20 years and 1% after.

What is the FERS minimum retirement age?

It depends on your birth year: 55 for those born before 1948, 56 for those born 1953 to 1964, and 57 for those born in 1970 or later, with steps of 2 months in between.

How much is the MRA+10 penalty?

5% for each year you are under 62 when your annuity starts. It doesn't apply if you have 20 or more years and the annuity starts at 60 or later.

Does High-3 include locality pay?

Yes. High-3 uses basic pay including locality pay or a special rate supplement. It doesn't include overtime, bonuses or awards.

Is a FERS pension taxable?

Most of it is subject to federal income tax. The part that returns your own retirement contributions isn't taxed. State rules vary.

Sources

Educational information, not financial advice. Your agency's HR office and OPM are the authority for your situation. Not affiliated with OPM or the U.S. government.