The computation of basic annuity will vary depending on your length of service, High-3 salary, and in some cases, your position in the federal government.
Your High-3 average pay is the highest average basic pay you earned during any 3 consecutive years of service. This includes increases to your salary where retirement deductions were withheld, such as shift rates. It does not include payments for overtime, bonuses, etc. *If your total service was less than 3 years, your salary is figured by averaging your basic pay during all periods of creditable service.
Computation for Non-Disability Annuitants
FERS Basic Annuity
If you are under age 62 at the time of separation, or older than 62 with less than 20 years of service, your computation is 1% of your High-3 salary for each year of service.
If you are 62 years of age or older with more than 20 years of service, you will receive 1.1% of your High-3 salary for each year of service.
Special Provisions Computation
Air Traffic Controllers, Firefighters, Capitol Police, Supreme Court Police, and Nuclear Materials Couriers have different rules they retire under and their annuity computation is a little different. They receive 1.7% of their High-3 salary multiplied by years of service not to exceed 20 years PLUS 1% of their High-3 multiplied by the service exceeding 20 years.
Transferred to FERS
At the time of transfer, you had at least 5 years of creditable civilian service covered by either the Civilian Service Retirement System or Social Security. You cannot have been covered by both and it excludes any service during which partial CSRS deductions were withheld.
Your annuity will have 2 components:
FERS: your computation is the same as above for the basic annuity.
CSRS: the computation is as follows:
- 1st 5 years—1.5% for each year
- 2nd 5 years—1.75% for each year
- All years over 10—2% for each year
Special Provisions
If you retired under special provisions and transferred to FERS, your computation is 2.5% of years and months of your CSRS Law Enforcement Officer, Firefighter, or Nuclear Materials Courier service up to 20 years multiplied times your High-3 PLUS 2% of the remaining years multiplied by your High-3.
Disability Retirement Annuitants
You must be under age 62 and not eligible for voluntary immediate retirement.
The first 12 months, you receive 60% of your High-3 minus 100% Social Security Disability for only the months you’re entitled to SSD. After 12 months, you receive 40% of your High-3 minus 60% SSD for only the months you’re entitled to SSD. When you reach 62, your annuity will be recomputed using the amount the represents the annuity you would’ve received had you continued to work until the day before your 62nd birthday and retired under FERS. The computation then is the same as the FERS Basic Annuity computation.
Harris Federal Law Firm assists federal employees with their federal disability retirement cases. Call us at 877-226-2723 now for a FREE consultation. Or fill out this INQUIRY form.
