Classification

Generally, all federal and postal employees hired after January 1, 1984 (or CSRS-covered employees that opted for FERS coverage in one of the open seasons in 1987 or 1998)

Benefits

Annuity offering guaranteed lifetime retirement income with a survivor benefit annuity option
Regular employees:
0.8% to FERS Retirement & Disability Trust Fund
1.45% to Medicare
6.2% of first $106,800 of wages (in 2010) to Social Security

Employee contributions

Special employee groups:
(law enforcement, firefighters, air traffic controllers)
1.30% to FERS Retirement & Disablity Trust Fund
1.45% to Medicare
6.2% of first $106,800 of wages (in 2010) to Social Security

Thrift Savings Plan

FERS employees can contribute up to $16,500 (in 2011) of basic pay per year. The government automatically contributes 1% of employee’s basic pay to the TSP; up to 5% of basic pay depending on the amount of the employee’s contribution.

FERS Retirement Eligibility: Regular Employees

Types of FERS Retirements – Regular Employees

FERS MRA (Minimum Retirement Age)

The FERS MRA (Minimum Retirement Age) is the earliest age in which you can retire without an age reduction penalty if your have at least 30 years of service.

The MRA is determined by your year of birth as follows:

Calculating your FERS Retirement Annuity

Things you will need:

• Government employment start date and annual earning history
• Determine the total length of your service to Uncle Sam by adding together your creditable civilian and military service and any unused sick leave credit. This can include up to six months of leave without pay and also Workers’ Compensation.
• Calculate your high-three average salary by using the 30 day month factor table (your supervisor or HR department can give this to you). Go through your earnings history to determine the three year period in which you earned the most. In most cases, this will be the last three years of your career.
• Use these numbers to calculate your actual annuity. The basic FERS formula gives you one percent of your high-three average salary for all your years of creditable service under FERS. If you have at least 20 years of service and age 62 or older, then your annuity is computed using a 1.1 percent accrual factor multiplied by the high-three average salary and the years of creditable service.
• Check with your agency payroll office for rules regarding payment for other types of leave (e.g., compensatory leave, credit hours). You can also find out from your agency payroll office what deductions will be taken from this lump sum payment (i.e., Federal, State, City taxes, Medicare taxes, etc.).
• Check to see if you are eligible for the Special Retirement Supplement. A special retirement supplement is available under the FERS system until age 62. This benefit is subject to the same earnings test that is applied to Social Security for recipients, age 62 — 65.