What Is a Federal Employee Pension?
A federal employee pension provides lifetime income to qualified civil service employees after retirement. Under FERS (Federal Employee Retirement System), your annuity is calculated from your high-3 average salary, creditable service years, and a multiplier.
2026 FERS Pension Formula
The basic FERS annuity formula is:
Annuity = High-3 Salary × Years of Service × Multiplier
For most employees, the multiplier is 1.0%. If you retire at age 62 or older with at least 20 years of service, the multiplier increases to 1.1%.
Example Calculation
- High-3 Salary: $95,000
- Years of Service: 25
- Retirement Age: 63
Multiplier = 1.1% (age ≥ 62 and years ≥ 20) Annual Pension = $95,000 × 25 × 0.011 = $26,125 per year Monthly Pension = $2,177 per month
Factors That Affect Your Pension
- High-3 Salary: Highest average basic pay over any 3 consecutive years.
- Years of Creditable Service: Includes prior service, leave, and certain other periods.
- Retirement Age: Determines multiplier eligibility.
- Unused Leave: Converted to service credit at retirement.
Using the Calculator
1. Enter your high-3 average salary. 2. Input your years of service. 3. Set your retirement age. 4. Review your estimated annual and monthly pension.