FERS Annuity,
calculated clearly.
Your FERS retirement annuity is based on three things: your high-3 average salary, your years of creditable service, and your age at retirement. Understanding the formula — and your options — puts you in control of your retirement date.
How your FERS annuity
is calculated.
The FERS retirement annuity is computed from your length of service and your high-3 average pay — the average of your highest salary over any three consecutive years of federal service, usually your last three years.
Your high-3 average pay includes locality pay and annual premiums for standby duty and availability, if applicable. Differentials, overtime, allowances, and similar payments are not included in the high-3 calculation.
To determine your length of service, add all periods of creditable service and eliminate any fractional part of a month — meaning any period of less than 30 days is dropped from the total. The formula then applies a multiplier based on your age and years of service at retirement.
1% multiplier
Applies to all FERS retirees who do not meet the enhanced multiplier requirements. Also used for those under 62 with any years of service, and those 62+ with fewer than 20 years.
1.1% multiplier
Only applies if you retire at age 62 or later and have at least 20 years of creditable service. Both conditions must be met — age alone or service alone is not sufficient.
Estimate your FERS annuity.
Enter your information below to calculate your estimated annual and monthly benefit based on the FERS formula, your retirement age, and MRA+10 timing choices.
Federal Retirement
FERS Annuity Calculator
Estimate your FERS retirement annuity based on your high-3 average salary, creditable service, retirement age, and MRA+10 timing choices. This calculator helps you see how the standard formula and any age reduction could affect your estimated annual and monthly benefit. Enter your information below to get started.
Complete the quick lead form to unlock your personalized FERS annuity estimate.
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MRA+10 retirement
& the age reduction.
FERS employees can retire at their Minimum Retirement Age (MRA) with as few as 10 years of service. However, retiring before 30 years of service at the MRA triggers an age reduction that reduces your benefit permanently — unless you choose to postpone your annuity start date.
The age reduction formula
5% per full year (or 5/12 of 1% per month) that your retirement date precedes your 62nd birthday. A retiree at MRA with 10 years who is 6 full years away from 62 would see a 30% permanent reduction in their annuity if they start collecting immediately.
MRA+10 computation: (1% × high-3 × years of service) − age reduction = MRA annuity
| Years under 62 at retirement | Reduction applied | Example: $40,000 annuity becomes |
|---|---|---|
| 1 year | 5% | $38,000 |
| 2 years | 10% | $36,000 |
| 3 years | 15% | $34,000 |
| 4 years | 20% | $32,000 |
| 5 years | 25% | $30,000 |
| 6 years | 30% | $28,000 |
Postponed vs. deferred retirement
These two terms are often confused but they mean very different things — and the distinction has major consequences for your health and life insurance coverage.
Deferred Retirement
You leave federal service before meeting age and service requirements for an immediate annuity. You apply for benefits later, when you become eligible. Example: Age 50 with 18 years of service — you apply at MRA (57) when you qualify.
FEHB and FEGLI coverage terminate on separation. You are not eligible to reinstate them when your deferred annuity begins.
Postponed Retirement
You are fully eligible for an MRA+10 annuity, but elect to delay the start date to reduce or eliminate the age reduction. Example: At MRA 56 with 20 years, you postpone to age 60 — avoiding the 20% reduction entirely.
FEHB and FEGLI also terminate, but you may reinstate them when your postponed annuity begins — if you met eligibility to carry coverage into retirement when you left.
Special Retirement Supplement
The Special Retirement Supplement (SRS) is an additional payment that bridges the gap between your FERS retirement and age 62, when Social Security benefits can begin. It approximates the Social Security benefit you earned during your federal service years.
How the supplement is calculated
Because the SS formula assumes a 40-year working life, each year of FERS service is worth 1/40th of your estimated Social Security benefit. The supplement is often significantly less than your eventual Social Security payment.
Formula: Estimated SS benefit × (years of FERS service ÷ 40)
You may be eligible for the SRS if you retire:
- After the MRA with 30 years of service
- At age 60 with 20 years of service
- Upon involuntary or early voluntary retirement (VERA) — age 50 with 20 years, or any age with 25 years
CSRS transfer rule
If you transferred to FERS from CSRS, you must have at least one full calendar year of FERS-covered service to qualify for the Special Retirement Supplement.
Redeposit of refunded service
Under Section 1904 of the National Defense Authorization Act (NDAA), FERS employees who were reemployed on or after October 28, 2009, may make a redeposit of previously refunded retirement deductions — plus interest — to restore retirement credit for that service.
Prior to NDAA, FERS employees who received a refund of their deductions permanently forfeited all retirement credit for that service and could not repay it upon reemployment. The NDAA changed that, allowing the service credit — and survivor annuity credit — to be reinstated through redeposit.
How to apply for a FERS redeposit
Complete SF 3108 (Application to Make a Deposit / FERS) and indicate that the period of service was refunded. Submit through your agency for certification. Do not include payment with the application — OPM will send a bill once the service credit account is established.
Mail completed application to: Office of Personnel Management, Retirement Operations Center, PO Box 45, Boyers, PA 16025 — or fax to 724-794-1351.
Additional
resources.
Annuity calculators, OPM estimates, leave tracking tools, and official guidance for planning your FERS retirement.