How to Compute Your FERS Annuity




Paul: Now the next one: "how do I compute my FERS annuity?" We have people asking this question all the time.

The formula's simple, folks. Here it is. You're gonna do your years of service times your high three average annual income and you multiply that by 1%. This is if you're retiring before 62. So you have 30 years of service times $85,000, times 1%: this employee is gonna earn $25,500 a year, which is $2,125 per month.

Now if you were retiring at the age of 62, and you have at least 20 years of service, you get a 10% bonus. So the way it would work at that point, your formula would be 30 years of service times your high three, and of course our employee has $85,000 a year times 1.1%, so theirs would be $28,050 per year, which is $2,337 per month.


United Benefits has assisted thousands of federal employees on several impactful topics. We can help you, too. Ask us anything!

Click here to request a consultation and talk one-on-one with a representative about the options available to you.



Topics: Video, Budget, Federal Employees Retirement System, FERS

New call-to-action