How your retirement annuity is computed
Your basic annuity is computed based on your length of service and “high-3” average salary. To determine your length of service for computation, add all your periods of creditable service, then eliminate any fractional part of a month from the total.
High-3 Average Salary
Your “high-3” average pay is the highest average basic pay you earned during any 3 consecutive years of service. These three years are usually your final three years of service, but can be an earlier period, if your basic pay was higher during that period. Your basic pay is the basic salary you earn for your position. It includes increases to your salary for which retirement deductions are withheld, such as shift rates. It does not include payments for overtime, bonuses, etc. (If your total service was less than 3 years, your average salary was figured by averaging your basic pay during all of your periods of creditable Federal service).
Computation for Non-Disability Retirements
Age 62 or Older With Less Than 20 Years of Service
Your benefit was computed differently, if you retired under one of the provisions below
- 1.7% of your high-3 average salary multiplied by your years of service which do not exceed 20,
- PLUS
- 1% of your high-3 average salary multiplied by your service exceeding 20 years
Member of Congress or Congressional Employee (or any combination of the two) must have at least 5 years of service as a Member of Congress and/or Congressional Employee - 1.7% of your high-3 average salary multiplied by your years of service as a Member of Congress or Congressional Employee which do not exceed 20,
- PLUS
- 1% of your high-3 average salary multiplied by your years of other service
Transferred to the Federal Employees Retirement System (FERS)
At time of transfer, had at least 5 years of creditable civilian service covered by either:
- Civil Service Retirement System (CSRS)
- Social Security
(but not both-excludes service during which partial CSRS deductions were withheld)
Annuity will have 2 components:
- FERS Component
- CSRS Component
Computation of FERS Component
Age 62 or Older With Less Than 20 Years of Service
salary for each year of service
salary for each year of service
for each year of service