1. What is FERS Basic Annuity?

The FERS (Federal Employees Retirement System) Basic Annuity is a pension benefit calculated based on your high-3 average salary, years of creditable service, and a percentage multiplier. It forms one part of the three-component FERS retirement system.

2. How Does the Calculator Work?

The calculator uses the basic FERS annuity formula:

Where:

• \( \text{high-3} \) — Average of highest 3 consecutive years of salary (USD/year)
• \( 1\% \) — Standard multiplier for most FERS employees
• \( \text{years} \) — Years of creditable service

Note: For employees retiring at age 62 or later with 20+ years of service, the multiplier increases to 1.1%.

3. Importance of Basic Annuity Calculation

Details: Understanding your potential basic annuity helps in retirement planning and determining when you can afford to retire. It represents the foundation of your FERS retirement benefits.

4. Using the Calculator

Tips: Enter your high-3 average salary in USD/year and your total years of creditable service. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is included in the high-3 salary?
A: The high-3 average is based on your highest 3 consecutive years of basic pay, which includes locality pay but not bonuses or overtime.

Q2: How is part-time service calculated?
A: Part-time service is counted as full-time for eligibility but prorated for computation (e.g., 20 years half-time = 10 years credit).

Q3: Are there different multipliers for different situations?
A: Yes, law enforcement and other special categories use 1.7% for first 20 years and 1% thereafter. Age 62+ with 20+ years uses 1.1%.

Q4: How does unused sick leave affect the calculation?
A: Unused sick leave is converted into additional service time (1,744 hours = 1 year) but can't be used to meet minimum retirement requirements.

Q5: Is there a maximum annuity amount?
A: The maximum annuity is generally 80% of your high-3 average salary, though this is rare under FERS.