FERS Early Retirement Calculator

FERS Early Retirement Formula:

\[ \text{Annuity} = 1\% \times \text{High-3 Average Salary} \times \text{Years of Service} \] \[ \text{Reduction} = 5\% \text{ per year under age 62 if less than 20 years service} \]

Estimated Annual Pension:

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1. What is FERS Early Retirement?

The Federal Employees Retirement System (FERS) provides retirement benefits for federal employees. Early retirement is available under certain conditions with potential reductions for retiring before age 62 with less than 20 years of service.

2. How Does the Calculator Work?

The calculator uses the FERS annuity formula:

\[ \text{Basic Annuity} = 1\% \times \text{High-3 Salary} \times \text{Years of Service} \] \[ \text{Early Reduction} = 5\% \text{ per year under age 62 (if service < 20 years)} \]

Where:

High-3 Salary — Average of highest 3 consecutive years of basic pay
Years of Service — Total creditable federal service
Age — Your age at retirement
5% Reduction — Applied for each year under age 62 when service is less than 20 years

Explanation: The basic annuity is calculated first, then reduced by 5% for each year under age 62 if you have less than 20 years of service.

3. Importance of FERS Pension Calculation

Details: Understanding your potential FERS pension helps in retirement planning, especially when considering early retirement options and the impact of reductions.

4. Using the Calculator

Tips: Enter your High-3 average salary in USD, years of creditable service, and current age. All values must be valid (salary > 0, service years > 0, age between 40-80).

5. Frequently Asked Questions (FAQ)

Q1: What's included in High-3 Salary?
A: Basic pay includes your regular salary but excludes bonuses, overtime, allowances or special pay.

Q2: How is the reduction calculated?
A: The reduction is 5% for each full year you are under age 62 at retirement, but only if you have less than 20 years of service.

Q3: What if I have more than 20 years service?
A: If you have 20+ years of service, the 5% per year reduction only applies if you retire before age 60.

Q4: Are there exceptions to the reduction?
A: Special provisions apply for law enforcement officers, firefighters, and air traffic controllers.

Q5: Does this include FERS Supplement?
A: No, this calculator only estimates the basic annuity. The FERS Supplement for those retiring before age 62 is calculated separately.