FERS FAQs: How do I compute the FERS basic annuity?

1.7% x high-3 average salary x 20; plus

1% x high-3 average salary x an additional creditable service. (Note: in computing an annuity, all creditable service, including non-law enforcement or firefighter civilian service and military service is considered in the computation, after the 20 years of special retirement is met.)

FERS - BASIC ANNUITY COMPUTATION FORMULA

Sample Annuity Computation For Federal Employees Retirement System (FERS)

Employee B

Full-time schedule
Age 51

Work History:

23 years, 6 months covered Firefighter service (including 3 years for which a refund of retirement contributions was received)
4 years military service
2 years non-fire Federal service

Total service creditable for annuity = 26 years, 6 months (Note: the 3 years service with refunded contributions are not creditable for retirement eligibility or annuity computation.)

High-3 average salary =

1.7% x $28,000 =

1.0% x $28,000 =

TOTAL =

$28,000

$476 x 20 years = $ 9,520

280 x 6.5 years = 1,820

$11,340

Note: The FERS annuity will also include an "annuity supplement" up to age 62 (5 CFR 842 subpart E). Conditions of annuity supplement: Service credited under FERS must include at least one calendar year of civilian service beginning January 1, and ending December 31. Subject to "earnings test" upon reaching minimum retirement age (MRA).