Federal Employees’ Retirement System (FERS) FAQ’s

Click on the question of interest to learn more information about FERS.

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.

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.

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?