Understanding Your Federal Retirement
Whether you’re under FERS, CSRS, or a Special Category Employee, each system has unique rules that affect your eligibility, pension calculation, and retirement benefits. Here’s a breakdown to help you understand the basics:
FERS Pension
Based on your Civilian service time, salary and a multiplier.
Social Security
Full participation, with standard eligibility.
Thrift Savings Plan
Agency match (up to 5%) with early distribution options for eligible roles.
Eligibility
- Age 60 with 20 years
- Age 62 with 5 years
- MRA (Minimum Retirement Age) with 30 years
- MRA with 10 years (reduced benefit)
Minimum Retirement Age
Between age 55 and 57 depending on birth year.
Survivor Benefits
You can choose to leave your spouse:
- 50% of your pension (full survivor benefit)
- 25% (partial survivor benefit)
- Or no survivor benefit (requires spousal consent)
Choosing a survivor benefit reduces your monthly pension, but it ensures your spouse has income for life — and keeps access to FEHB health coverage.
CSRS Pension
Based on years of service, high-3 average salary.
No Social Security
Employees typically don’t pay Social Security taxes (except for Offset).
TSP Participation
Optional, no government match.
Eligibility
- Age 55 with 30 years
- Age 60 with 20 years
- Age 62 with 5 years
CSRS – Offset
- Covered by both CSRS and Social Security.
- Pay into Social Security and CSRS while working.
- Receive a CSRS pension that is offset (reduced) by the amount of Social Security earned from federal service when they become eligible for Social Security (usually at age 62 or retirement, whichever is later).
CSRS to FERS Transfers (FERS Transferees)
Some federal employees had the option to transfer from CSRS to FERS, typically during open seasons in 1987 and 1998. These employees are known as FERS Transferees and are covered by a combination of both systems.
FERS Transferees often have complex pension calculations and need personalized analysis to understand how the two systems will work together — including potential WEP impacts on Social Security.
Enhanced Pension
Based on your Civilian service time, salary and a multiplier (different than regular fers).
Social Security
Full participation, with early eligibility under special provisions.
Thrift Savings Plan
Employee contributions + agency match (up to 5%).
Eligibility
Early Retirement: Eligible at age 50 with 20 years or any age with 25 years of qualifying service.
Mandatory Retirement
Often required at age 57.
Considerations
- Higher retirement deductions from paycheck.
- TSP and FEHB rules are the same, but timing of separation is critical.
Our Agents know how to maximize each part specifically for your situation
Don’t go into retirement without knowing how each piece affects you!
Frequently Asked Questions
How is my High-3 Calculated?
Your High-3 salary is the average of your highest-paid 36 consecutive months of basic pay — usually your last three years of service, but not always
– It includes your base salary and certain pay types like LEAP (for law enforcement)
– It does not include overtime, bonuses, awards, or differentials
Example:
If your basic pay (plus LEAP, if applicable) was:
$120,000 one year
$118,000 the next
$122,000 the third year
Your High-3 = ($120,000 + $118,000 + $122,000) ÷ 3 = $120,000
This number is used to calculate your pension — so the higher your High-3, the higher your retirement benefit.
What is the Minimum Retirement Age?
Your MRA is the youngest age you can retire under FERS with certain combinations of service.
It depends on your year of birth:
Year of Birth
MRA
Before 1948
55
1953–1964
56
1970 or later
57
You can retire at your MRA with:
30 years of service (full pension)
10+ years of service (reduced pension)
Knowing your MRA helps you plan when you’re eligible to retire and how your benefits may be affected.
What is MRA + 10 Retirement?
If you reach your Minimum Retirement Age (MRA) with at least 10 years of service, you can retire under the MRA + 10 rule.
However, your pension will be permanently reduced by 5% for each year you’re under age 62 — unless you postpone receiving your pension.
Postponing your pension until age 62 (or 60 with 20 years) can eliminate or reduce the penalty.