CSRS Basic Annuity Calculation
for Regular Employees
The basic CSRS annuity is expressed as a percentage of your high-3 average
salary.
Your high 3 percentage is determined by a three-part formula based on
your length of creditable service. You earn:
- 1.5% x High-3 x first five years of service
- plus 1.75% x High-3 x next five years of service
- plus 2.0% x High-3 x all years of service over 10
Thus, after 10 years of service you have earned 16.25% of your "high three"
and after 30 years you have earned 56.25% (16.25% + 2% x 20 = 56.25%).
By law, the percentage is limited to 80% (reached after 41 years and 11
months of service)however, unused sick leave can
be used in the formula to produce a greater result.
Your unused sick leave is converted into
months and days and added to your other service. Credit is given for whole
months only, (30 days). However, the time representing days of unused sick leave
is not counted toward your "high 3" years average salary or for establishing
eligibility for retirement.
| Example 1: |
|
| Age |
55 |
| High-3 |
$60,000 |
| Years of Service |
30 years |
|
.015 x 5 x $60,000 |
= $4,500 |
|
.0175 x 5 x $60,000 |
= $5.250 |
|
.02 x 20 x $60,000 |
= $24,000 |
|
$33,750 (56.25% of
High-3) |
| Example 2: |
|
| Age |
60 |
| High-3 |
$50,000 |
| Years of Service |
20 years |
|
.015 x 5 x $50,000 |
= $3,750 |
|
.0175 x 5 x $50,000 |
= $4,375 |
|
.02 x 10 x $50,000 |
= $10,000 |
|
$18,125 (36.25% of
High-3) |
Source: OPM RI 83-7
|
Overview - CSRS
