1. What is Federal Service Retirement?

Federal Service Retirement is a defined benefit pension plan for eligible federal employees. The calculation is based on your high-3 average salary, years of creditable service, and a retirement factor determined by your retirement system and age at retirement.

2. How Does the Calculator Work?

The calculator uses the federal retirement formula:

Where:

• \( high3 \) — Average of highest 3 consecutive years of salary
• \( factor \) — Percentage determined by retirement system (e.g., 1% for FERS, 1.1% for FERS with 20+ years at age 62+)
• \( years \) — Total years of creditable service

Explanation: The formula calculates your estimated annual retirement benefit under the Federal Employees Retirement System (FERS) or Civil Service Retirement System (CSRS).

3. Importance of Retirement Planning

Details: Understanding your potential retirement benefits helps with financial planning and decision-making about when to retire. Federal retirement is just one component of your retirement income, which may also include TSP, Social Security, and other savings.

4. Using the Calculator

Tips: Enter your high-3 average salary in USD/year, the applicable retirement factor as a percentage, and your total years of service. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is considered in the high-3 average salary?
A: Your highest 3 consecutive years of basic pay (before deductions). This typically includes your final 3 working years but could be earlier if you had higher pay earlier in your career.

Q2: How is the retirement factor determined?
A: For FERS employees, it's typically 1% of your high-3 average salary for each year of service (1.1% if retiring at age 62+ with 20+ years of service). CSRS employees use 1.5-2.5% depending on years of service.

Q3: What's the maximum retirement benefit?
A: For FERS, the maximum is 80% of your high-3 average salary. CSRS has different limits depending on your years of service.

Q4: Does this include FERS annuity supplement?
A: No, this calculator only estimates your basic annuity. The FERS annuity supplement for those retiring before age 62 is calculated separately.

Q5: How accurate is this estimate?
A: This provides a basic estimate. Your actual benefit may vary based on specific circumstances, unused sick leave, and other factors.