Federal Employees’ Retirement System (FERS) FAQ’s
To retire under FERS and receive and immediate annuity, you must separate from a position subject to retirement deductions and meet the requirements in the following chart.
What is my minimum retirement age (MRA)?
Minimum retirement age is between age 55 and 57, depending on when you were born as shown in the following chart.
Your basic annuity is computed by multiplying 1% of the highest 3 consecutive years’ salary times years of creditable service. If you retire at age 62 or later with at least 20 years of service, a factor of 1.1% is used rather than 1%.
Example: A 62-year old employee with 25 years of service and High 3 of $56,000
1.1% * $56,000 = $616 * 25 yrs = Basic Annuity of $15,400/yr
Note: For employees retiring under Firefighter or Law Enforcement provisions, the percentage factors for special service are 1.7% for the first 20 years plus 1% for years over 20. Annuities can be adversely impacted by withdrawals of retirement funds and periods of temporary service.
I transferred to FERS after several years of service under CSRS. How is my annuity computed?
Service prior to the effective date of your FERS transfer is computed under CSRS rules. All service following the transfer is computer under FERS rules. The two computations are added together.
This answer depends on whether you retire under FERS rules alone or will have a CSRS component to your annuity (see above question). If you retire under FERS rules at age 50 with 20 years of service, or at any age with 25 years of service, your annuity will NOT be reduced. If your retirement has a CSRS component, that portion of your annuity will be reduced by 1/6 of 1% for each full month you are under the age of 55 (2% for each full year). The reduction is permanent.
Your enrollment will continue with benefits and costs the same as a working employee if you have been continuously enrolled in the FEHB program for the 5 years of service immediately prior to retirement; or if fewer than 5 years, all service since your first opportunity to enroll.
Note: Although you must be enrolled in the FEHB program for 5 years, there is no requirement to remain with the same health company for 5 years.
Many retirement questions are complex with answers varying depending on when events occurred within your career. The answers to some of the questions listed below can have a severe impact on Federal retirement annuities. In some cases, what you don’t know about Federal retirement can affect your eligibility to retire and/or severely decrease your monthly annuity. Featured article addresses some of these questions. Our seminars provide detailed responses and reference materials to these, as well as other retirement questions you may have.
Q. I am retiring much earlier than I originally planned. WIll I receive the FERS special retirement supplement?
Q. I’ve been offered another career opportunity and have decided to leave Federal service under the MRA + 10 rules. I’m thinking of postponing my annuity to avoid the penalty. What happens to by FEHB coverage?
Q. Is unused sick leave used in my retirement computation?
Q. I previously quit Federal service and withdrew money from my retirement fund. Can I pay this money back? How will my annuity be affected?
Q. I was a temporary employee for a short time. Does this affect my annuity?
Q. I have active military service but did not retire from the military. Can I use my military time for retirement purposes? Should I make a deposit for my military service?
Q. I’m retired military and want to retire on my civilian service only. Can I use the service computation date (SCD) shown on my SF-50 to determine when I can retire?
Q. I would like to provide a survivor annuity for my spouse when I retire. What choices do I have? Can I change my mind later?
Q. What if I’m not married when I retire? Can I provide a survivor benefit for someone who is not my spouse?
Q. What type of survivor benefits are my children entitled to?
Q. Does the 5-year FEHB rule apply to employees who are retired military or dependents of retired military members?
Q. How does Medicare work with FEHB? Do I need both?
Q. I’m enrolled in the Federal Employees’ Group Life Insurance (FEGLI) program. Does this continue when I retire, and if so, what will it cost me?
Civil Service Retirement System (CSRS) FAQ’s
When can I retire under CSRS or CSRS Offset?
The following chart gives age and service requirements.
To retire under CSRS or CSRS Offset, and receive an immediate annuity, you must separate from a position subject to retirement deductions and meet the requirements shown in the chart. Additionally, you must be covered by CSRS or CSRS Offset for at least 1 year out of the last 2 years immediately preceding your separation.
Your basic annuity is computed by multiplying the highest 3 years’ average salary by the years of service using a percentage factor 1.5% for the first 5 years, 1.75% for the next 5 years, and 2% for the remaining years.
Example: An employee with 32 years of service and High 3 of $56,000
1.5% * $56,000 = $840 * 5 yrs = $4,200
+ 1.75% * $56,000 = $980 * 5yrs = $ 4,900
+ 2% * $56,000 = $1,120 * 22 yrs = $24,640
Basic Annuity = 33,740/yr or $2,812/month
Note: For employees retiring under Firefighter or Law Enforcement provisions, the percentage factor for special service is 2.5% for the first 20 years plus 2% for years over 20. Unpaid deposits, redeposits and early retirement penalties impact annuities.
I am a CSRS Offset employee. How is my annuity computed?
Your annuity is computed just as if you were covered by CSRS alone, except that the annuity will be reduced (or offset) when you become eligible for Social Security at age 62. Many employees mistakenly believe the civil service annuity is reduced dollar for dollar by the Social Security benefit -- this is not true. The CSRS annuity offset is the lesser of:
1) The Social Security benefit you earned while covered by CSRS Offset
or
2) The entire Social Security benefit (earned over your Social Security covered work lifetime) multiplied by a fraction obtained by placing the number of years in CSRS Offset, over the number 40. The number 40 represents the potential work lifetime--every year from age 22 to 62. The “Lesser of” rule guarantees the amount of the Social Security benefit used to reduce your Civil Service benefit will be related to the number of years you were in CSRS Offset.
Example: A 55-year old employee retires with 8 years of Offset service and an earned Social Security benefit at age 62 of $600 per month.
8/40=20% * $600= $120 Offset to CSRS
The full CSRS benefit is received for 7 years (until age 62). At 62, the Social Security benefit begins and the CSRS annuity is reduced by $120. The offset would not apply if the employee never becomes eligible for Social Security. The offset is made when the basic requirements for Social Security are met, usually at age 62. The amount of the offset is the amount of Social Security directly attributable to your federal service after 1983, which was covered by both CSRS and Social Security. Unpaid deposits, redeposits, and early retirement penalties impact annuities.
Yes, Your basic annuity is reduced by 1/6 of 1% for each full month you are under the age of 55 (2% for each full year). The reduction is permanent.
Your enrollment will continue with benefits and costs the same as a working employee if you have been continuously enrolled in the FEHB program for the 5 years of service immediately prior to retirement; or if fewer than 5 years, all service since your first opportunity to enroll.
Note: Although you must be enrolled in the FEHB program for 5 years, there is no requirement to remain with the same health company for 5 years.
Many retirement questions are complex with answers varying depending on when events occurred within your career. The answers to some of the questions listed below can have a severe impact on Federal retirement annuities. In some cases, what you don’t know about Federal retirement can decrease your monthly annuity by hundreds of dollars per month. Featured article addresses some of these questions. Our seminars provide detailed responses and reference materials to these, as well as other retirement questions you may have.
Q: I previously quit Federal service and withdrew month from my retirement fund. How will my annuity be affected if I don’t pay the money back? How long do I have the pay the money back?
Q: I was a temporary employee for a short time. Does this affect my annuity?
Q: I have active duty military service but did not retire from the military. Can I use my military time for retirement purposes? Should I make a deposit for my military service?
Q: I’m retired military and what to retire on my civilian service only. Can I use the service computation date (SCD) show on my SF-50 to determine when I can retire?
Q: Are alternative annuities still available and if so, under what conditions?
Q: I would like to provide a survivor annuity for my spouse when I retire. What choices do I have? Can I change my mind later?
Q: What if I’m not married when I retire? Can I provide a survivor benefit for someone who is not my spouse?
Q: What type of survivor benefits are my children entitled to?
Q: Does the 5-year FEHB rule apply to employees who are retired military or dependents of retired military members?
Q: How does Medicare worth with FEHB? Do I need both?
Q: I’m enrolled in the Federal Employees’ Group Life Insurance (FEGLI) program. Does this continue when I retire and if so, what will it cost me?