The Federal Employees Retirement System (FERS) is the newer of the two retirement systems for U.S. federal government employees, Created in Congress by 1986, It generally covers all federal employees hired after January 1, 1987.
Overview
[3 legged stool – graphic]
FERS Retirement contains 3 Parts:
Basic Benefit Plan [desribe, defined, contribute, etc.)
Thrift Savings Plan (TSP)
Social Security
FERS is a retirement plan that provides benefits from three different sources: a Basic Benefit Plan, Social Security and the Thrift Savings Plan (TSP). Two of the three parts of FERS (Social Security and the TSP) can go with you to your next job if you leave the Federal Government before retirement. The Basic Benefit and Social Security parts of FERS require you to pay your share each pay period. Your agency withholds the cost of the Basic Benefit and Social Security from your pay as payroll deductions. Your agency pays its part too. Then, after you retire, you receive annuity payments each month for the rest of your life.
The TSP part of FERS is an account that your agency automatically sets up for you. Each pay period your agency deposits into your account amount equal to 1% of the basic pay you earn for the pay period. You can also make your own contributions to your TSP account and your agency will also make a matching contribution. These contributions are tax-deferred. The Thrift Savings Plan is administered by the Federal Retirement Thrift Investment Board.
For more information about TSP, see their website (external link). See the SSA website (external link) for more information about the Social Security portion of your retirement benefit. This website covers the Federal Employees Retirement System. Through the menu links on the left, you can find information about the following FERS retirement topics:
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FERS Eligibity
4 Types of FERS Retirement Benefits
There are four types of benefits in the Federal Employees Retirement System (FERS) Basic Benefit Plan:
Immediate
Early
Deferred
Disability
For complete FERS
Immediate Retirement
An immediate retirement benefit is one that starts within 30 days from the date you stop working. If you meet one of the following sets of age and service requirements, you are entitled to an immediate retirement benefit:
| Age | Years of Service |
|---|---|
| 62 | 5 |
| 60 | 20 |
| MRA | 30 |
| MRA | 10 |
If you retire at the MRA with at least 10, but less than 30 years of service, your benefit will be reduced by 5 percent a year for each year you are under 62, unless you have 20 years of service and your benefit starts when you reach age 60 or later.
Early Retirement
The early retirement benefit is available in certain involuntary separation cases and in cases of voluntary separations during a major reorganization or reduction in force. To be eligible, you must meet the following requirements:
| Age | Years of Service |
|---|---|
| 50 | 20 |
| Any Age | 25 |
Deferred Retirement
Refers to delayed payment of benefit until criteria are met, as follows:
If you leave Federal service before you meet the age and service requirements for an immediate retirement benefit, you may be eligible for deferred retirement benefits. To be eligible, you must have completed at least 5 years of creditable civilian service. You may receive benefits when you reach one of the following ages:
| Age | Years of Service |
|---|---|
| 62 | 5 |
| MRA | 30 |
| MRA | 10 |
If you retire at the MRA with at least 10, but less than 30 years of service, your benefit will be reduced by 5 percent a year for each year you are under 62, unless you have 20 years of service and your benefit starts when you reach age 60 or later.
Disability Retirement
Disability Federal Employees Retirement System (FERS) Annuity Requirements:
| Age | Years of Service |
|---|---|
| Any Age | 18 months |
Special Requirements
You must have become disabled, while employed in a position subject to FERS, because of a disease or injury, for useful and efficient service in your current position. The disability must be expected to last at least one year. Your agency must certify that it is unable to accommodate your disabling medical condition in your present position and that it has considered you for any vacant position in the same agency at the same grade/pay level, within the same commuting area, for which you are qualified for reassignment.