Calculate your FERS pension annuity using High-3 average salary, years of creditable service, and sick leave balance. Uses the official OPM formula. Includes the Special Retirement Supplement estimate for employees retiring before age 62 and a TSP projection at retirement.
Three variables determine your FERS pension: High-3 average salary, years of creditable service, and the benefit multiplier. The multiplier is 1.0% for most retirements and increases to 1.1% when you retire at age 62 or older with at least 20 years of service. That 10% bonus adds $2,700 per year on a $90,000 High-3 with 30 years, permanently.
High-3 average salary is the mean of your three consecutive highest-earning years of basic pay, typically your final three years. It includes locality pay and regular step increases but excludes overtime, bonuses, and one-time awards.
Unused sick leave converts to service credit at 2,087 hours per year with no maximum. 1,500 hours of accumulated sick leave adds 0.72 years to your service total and increases your pension proportionally. Many federal employees also maximize a Roth IRA alongside their TSP to build tax-free income alongside the pension.
James is a GS-13 with a $112,000 High-3, 28 years of service, retiring at 58 with a full survivor benefit and 1,000 hours of unused sick leave.
James draws $3,372/month from pension and SRS until 62, then transitions to Social Security and TSP distributions. The survivor election costs $266/month and protects his spouse permanently. The Coast FIRE Calculator can model how much TSP James needs at 62 to replace the SRS income. The FERS Supplement Calculator estimates the SRS using his actual Social Security earnings record.
FERS annuities receive Cost of Living Adjustments tied to CPI-W, but COLAs do not begin until age 62. A retirement at 57 with 30 years means 5 years of a frozen pension while inflation erodes its real value. The FERS COLA formula also caps the adjustment in high-inflation years.
| CPI-W Increase | FERS COLA | CSRS COLA |
|---|---|---|
| 2% or less | Full CPI amount | Full CPI amount |
| Between 2% and 3% | 2.0% (capped) | Full CPI amount |
| Above 3% | CPI minus 1% | Full CPI amount |
| 2026 example (CPI 2.5%) | 2.0% | 2.5% |
Social Security also uses CPI-W but without the cap. FERS retirees who receive Social Security after 62 get full CPI adjustments on that portion while the FERS pension COLA is capped. Over a 20-year retirement at 3.5% average CPI, the cap formula produces roughly 15% less purchasing power than an uncapped adjustment.
Employees hired before January 1, 1984 are under CSRS. Those hired after are under FERS. Some who switched from CSRS to FERS in 1987 have CSRS-Offset coverage, where both systems apply to different portions of their career.
| Feature | FERS | CSRS |
|---|---|---|
| Pension multiplier | 1.0% (1.1% at 62+/20 yrs) | 1.5–2.0%, tiered |
| 30-year pension | ~30% of High-3 | ~56% of High-3 |
| Employee contribution | 0.8–4.4% of salary | 7–8% of salary |
| Social Security | Included | Not included (most) |
| TSP employer match | Up to 5% | 1% automatic only |
| COLA before age 62 | None | Full CPI adjustment |
| Sick leave credit | Yes | Yes |
The higher CSRS multiplier is offset by no TSP matching and no Social Security. A 30-year FERS employee combining pension (30% of High-3), Social Security (roughly 30–40% of pre-retirement pay), and TSP distributions typically replaces more total income than the CSRS pension alone at the same salary. The gap narrows for careers of 35 or more years under CSRS.
The MRA+10 provision lets you retire at your Minimum Retirement Age with at least 10 years of service. The pension is permanently reduced 5% for each year under age 62 at the time payments begin. This reduction never goes away.
One way to avoid the penalty: postpone the pension start date. You can separate from federal service at MRA+10 eligibility and delay receiving payments until 62. The pension starts at full value, but you receive nothing during the gap years and lose FEHB coverage unless you have other health insurance.
Immediate unreduced retirement requires MRA with 30 years, age 60 with 20 years, or age 62 with 5 years. If you qualify under any of these, MRA+10 with its penalty is never the better path. The Savings Duration Calculator can model how long TSP needs to cover the income gap if you postpone pension receipt.
Researches and verifies the formulas, methodology, and source data behind each calculator on CalculatorFlux. All tools are built and checked against the cited references before publication.