# What will my FERS retirement pay?

Estimates the FERS basic annuity for a federal employee from the high-3 salary, years of service, unused sick leave, age at retirement and survivor election, with the MRA+10 reduction.

- Page: https://www.acalculator.org/finance/fers-retirement-calculator
- JSON spec: https://www.acalculator.org/finance/fers-retirement-calculator.json
- Version: 74ac4278baa7

## Default answer

Example with the default inputs (High-3 average salary $100,000.00, Years of service 30, Plus months 0, Unused sick leave (hours) 0, Age at retirement 62, Plus months of age 0, Year you were born 1966, Survivor benefit None): Retiring at 62 with 30 years of service on a $100,000.00 high-3 pays about $2,750.00 a month ($33,000.00 a year).

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| high3 | High-3 average salary | Your highest average basic pay over any 3 years in a row, per year. |
| years | Years of service | Whole years of creditable federal service when you retire. |
| months | Plus months | Extra whole months of service beyond the years. |
| sick | Unused sick leave (hours) | Your unused sick leave hours at retirement. They add to service for the amount, not for eligibility. |
| age | Age at retirement | Your age in whole years on the day you retire. |
| agemonths | Plus months of age | Whole months of age beyond the years on the day you retire. |
| born | Year you were born | Your year of birth. It sets your minimum retirement age (MRA), from 55 to 57. |
| survivor | Survivor benefit | The survivor annuity you elect for a spouse: none, partial (25% of your annuity, costs 5%) or full (50%, costs 10%). |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| monthly | Your FERS annuity per month | The yearly annuity ÷ 12, before tax and cost-of-living increases. |
| yearly | Per year | The basic annuity after the age and survivor reductions. |
| basic | Basic annuity before reductions | High-3 × multiplier × service counted (in years and months). |
| multiplier | Multiplier | 1.1% if you retire at 62 or older with 20 or more years counted, else 1%. |
| service | Service counted | Your service plus unused sick leave, in years and whole months. |
| ageReduction | Age reduction | 5/12% for each full month under 62, for an MRA+10 retirement only. |
| survivorCost | Survivor reduction | The cut for the survivor benefit: 5% partial, 10% full, 0% none. |
| mra | Your MRA | Your minimum retirement age from your year of birth. |
| kind | Retirement type | Which immediate retirement rule you meet. |

## Method

yearly annuity = high-3 × multiplier × (service months counted ÷ 12) × (1 − age reduction) × (1 − survivor reduction); multiplier 1.1% at 62 or older with 20 years counted, else 1%; age reduction 5/12% per month under 62 for MRA+10 only; survivor reduction 10% full, 5% partial.

## Assumptions

- Regular FERS employees only: special provisions (law enforcement, firefighters, air traffic controllers), disability and deferred retirement are not included.
- Unused sick leave converts at 2,087 hours a year (hours × 12 ÷ 2,087 months) and is added to service before the fractional month is dropped. OPM’s chart works in days, so it can differ by a month.
- The FERS supplement, cost-of-living adjustments, taxes and health insurance premiums are not included.
- Arithmetic is exact on the typed decimals; money shows to the cent, halves up.

## Worked examples

1. high3 = $100,000.00, years = 30, age = 62, born = 1966, survivor = none gives multiplier = 1.1%, basic = $33,000.00, yearly = $33,000.00, monthly = $2,750.00. Source: OPM, FERS computation (https://www.opm.gov/retirement-center/fers-information/computation/): 1.1% × 100,000 × 30 = 33,000.
2. high3 = $80,000.00, years = 25, months = 6, age = 57, born = 1970, survivor = none gives multiplier = 1%, basic = $20,400.00, ageReduction = 25%, yearly = $15,300.00. Source: OPM, FERS computation (https://www.opm.gov/retirement-center/fers-information/computation/) and OPM, FERS eligibility and MRA table (https://www.opm.gov/retirement-center/fers-information/eligibility/): MRA 57 for 1970.
3. high3 = $90,000.00, years = 19, sick = 2,087, age = 63, born = 1962, survivor = full gives multiplier = 1.1%, basic = $19,800.00, yearly = $17,820.00, monthly = $1,485.00. Source: OPM, FERS computation (https://www.opm.gov/retirement-center/fers-information/computation/); OPM BAL 18-103, unused sick leave counts toward 20 years for the 1.1% multiplier (https://www.opm.gov/retirement-center/publications-forms/benefits-administration-letters/2018/18-103.pdf): 2,087 hours = 1 year, so 19 + 1 = 20 years.
4. high3 = $70,000.00, years = 32, age = 57, born = 1968, survivor = partial gives basic = $22,400.00, ageReduction = 0%, yearly = $21,280.00. Source: OPM, FERS eligibility and MRA table (https://www.opm.gov/retirement-center/fers-information/eligibility/): MRA 56 and 8 months for 1968, so 32 years at 57 is MRA+30 with no age reduction.

## FAQ

### How is a FERS pension calculated?

Multiply your high-3 average salary by your years of service and by 1%. If you retire at 62 or older with at least 20 years, use 1.1% instead. 30 years at 62 on a $100,000 high-3 is 1.1% × 100,000 × 30 = $33,000 a year, or $2,750 a month.

### What is the high-3?

Your highest average basic pay over any 3 consecutive years of service, usually your last 3 years. Overtime, bonuses and most allowances do not count; locality pay does.

### When can I retire with an immediate FERS annuity?

At 62 with 5 years of service, at 60 with 20 years, at your minimum retirement age (MRA) with 30 years, or at your MRA with 10 to 29 years (MRA+10) with a reduction. Your MRA is 55 to 57, set by your year of birth.

### How much does retiring at MRA+10 cost?

The annuity is cut by 5/12 of 1% for each full month you are under 62, which is 5% a year. Retiring at 57 cuts it by 25%. There is no cut with 30 years, or with 20 years at 60 or older.

### Does unused sick leave count?

Yes, for the amount but not for eligibility. OPM adds it to your service at 2,087 hours a year. It can also help you reach the 20 years needed for the 1.1% multiplier if you retire at 62 or older.

### What does the survivor benefit cost?

A full survivor annuity (50% of your annuity for your spouse) cuts your annuity by 10%. A partial one (25%) cuts it by 5%. With no survivor benefit there is no cut, but your spouse must agree to that in writing.

### Does this include the FERS supplement or Social Security?

No. The FERS supplement (paid to some retirees under 62), Social Security, the Thrift Savings Plan, cost-of-living adjustments, taxes and health insurance premiums are not included. The result is the basic annuity only.

## Sources

- U.S. Office of Personnel Management, FERS computation (1% and 1.1% formulas, MRA+10 reduction, survivor reductions). https://www.opm.gov/retirement-center/fers-information/computation/
- U.S. Office of Personnel Management, FERS eligibility (immediate retirement rules and the minimum retirement age table). https://www.opm.gov/retirement-center/fers-information/eligibility/
- U.S. Office of Personnel Management, Benefits Administration Letter 18-103, FERS unused sick leave and the 1.1% annuity formula. https://www.opm.gov/retirement-center/publications-forms/benefits-administration-letters/2018/18-103.pdf
- U.S. Office of Personnel Management, CSRS/FERS Handbook, chapter 50, Computation of annuity (2,087-hour sick leave chart). https://www.opm.gov/retirement-center/publications-forms/csrsfers-handbook/c050.pdf
- 5 U.S.C. 8415, Computation of basic annuity. https://www.law.cornell.edu/uscode/text/5/8415