FERS

Federal Employees Retirement System – a three‑part retirement plan for federal workers hired after 1983

What is FERS?

The Federal Employees Retirement System (FERS) is the retirement program for most civilian federal employees hired on or after January 1, 1984. It was created in 1986 and provides benefits from three sources: a defined‑benefit pension called the Basic Benefit Plan, Social Security, and the Thrift Savings Plan (TSP). Employees and agencies share the cost of the Basic Benefit and Social Security through payroll deductions, and agencies automatically contribute 1 % of basic pay to each FERS employee’s TSP account with additional matching if you contribute.

The Three Parts of FERS

Basic Benefit Plan

A defined‑benefit pension paid for life based on your high‑3 average salary and years of service. You contribute a percentage of your salary and your agency pays its share.

Social Security

Most FERS employees participate fully in Social Security and earn retirement, disability and survivor benefits through their payroll taxes.

Thrift Savings Plan (TSP)

A tax‑advantaged retirement savings plan. Your agency automatically contributes 1 % of your basic pay and matches up to 4 % more if you contribute.

FERS Benefits and Eligibility

A closer look at retirement eligibility, benefits and calculations

Retirement Eligibility

Immediate Retirement

  • • Age 62 with at least 5 years of service
  • • Age 60 with at least 20 years of service
  • • Minimum Retirement Age (MRA) with at least 30 years of service

Early or MRA + 10 Retirement

  • • MRA with at least 10 years of service (benefit reduced 5 % for each year under age 62)
  • • Age 50 with 20 years or any age with 25 years during major reorganization/downsizing
  • • Deferred retirement: at least 5 years of service; you can start your annuity at age 62 or at your MRA (reduced)

Disability Retirement

Available if you have at least 18 months of service and cannot perform your position because of medical conditions.

Minimum Retirement Age (MRA): The MRA depends on your year of birth. It ranges from 55 (born before 1948) to 57 (born in 1970 or later).

Benefit Calculation

Standard Formula

1 % × High‑3 average salary × years of creditable service

Enhanced Formula

1.1 % × High‑3 × service for employees age 62 or older with at least 20 years of service

Special Provisions

Law enforcement officers, firefighters and air‑traffic controllers receive 1.7 % of high‑3 for the first 20 years and 1 % for additional service.

High‑3: The average of your highest paid three consecutive years of basic pay; unused sick leave is added to your service time at retirement.

Survivor Benefits

  • Spouse: You may elect a survivor annuity equal to 50 % of your unreduced benefit; the cost is a 10 % reduction in your annuity. A partial election provides 25 % of your annuity at a cost of 5 %.
  • Children: Unmarried dependent children under age 18 (or up to 22 for full‑time students) may receive monthly survivor benefits.
  • COLA Eligibility: FERS annuitants become eligible for cost‑of‑living adjustments at age 62; survivor annuities receive COLAs regardless of the retiree’s age.

Cost‑of‑Living Adjustments (COLAs)

  • Annual Adjustments: Based on the Consumer Price Index; full COLAs apply to disability, survivor and retirees age 62 or older.
  • Prorated for Younger Retirees: If you retire before age 62, your annuity is not increased until you reach 62, except for disability or special‑provision retirees.

Who Is Covered and Important Decisions

Understanding FERS coverage and key choices before retirement

Who Is Covered by FERS?

  • Most federal employees hired after December 31, 1983
  • CSRS employees who elected to transfer to FERS
  • Members of Congress and certain other federal employees
  • Temporary employees with appointments of one year or less and certain other excluded groups are not covered

Critical Pre‑Retirement Decisions

Survivor Annuity Election

Choose between full, partial or no survivor annuity at retirement. This decision is permanent and affects your monthly benefit.

TSP Contribution & Withdrawal Strategy

Maximize your agency match by contributing at least 5 % of your salary. Plan how you will withdraw TSP funds in coordination with your annuity and Social Security.

Optimize Your FERS Retirement

FERS offers a comprehensive retirement package, but the choices you make about when to retire, how much to contribute to the TSP and whether to elect survivor benefits will determine your future security. Let us help you make the best decisions for your situation.

Schedule Consultation Back to Overview

1 General information about the FERS three‑part system and agency contributions is from OPM’s FERS information page.

2 Eligibility rules, MRA table and early/deferred/disability retirement descriptions are taken from OPM’s FERS eligibility guidance.

3 Annuity calculation formulas and special provisions for law enforcement and firefighters are sourced from OPM’s FERS computation guidance.

4 Agency matching information comes from OPM’s FERS election options (TSP) page.