Benefits Planner: Retirement | Social Security Benefits for Federal Workers (2024)

FAQs

What retirement benefits do federal employees get? ›

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.

Federal Employees Retirement System (FERS)

This is a contributory three-tier plan providing retirement income from a Federal pension, Social Security and a Thrift Savings Plan (TSP).

You are a participant in the Federal Employees Retirement System (FERS). This is one of the most important benefits you receive as a Federal employee.

If two-thirds of your government pension is more than your Social Security benefit, your benefit could be reduced to zero. If you take your government pension annuity in a lump sum, Social Security will calculate the reduction as if you chose to get monthly benefit payments from your government work.

The FERS annuity supplement is a monthly benefit for federal government employees who retire before age 62. The FERS supplement represents what the employee would receive from Social Security if they were old enough to claim those benefits.

The Social Security Act of 1935 excluded all federal, state, and local government employees from coverage because of constitutional ambiguity over the federal government's authority to impose Federal Insurance Contributions Act payroll taxes on public employers and because these employees were already covered by ...

Your Social Security benefit might be reduced if you get a pension from an employer who wasn't required to withhold Social Security taxes. This reduction is called the “Windfall Elimination Provision” (WEP). It most commonly affects government work or work in other countries.

Generally, your FERS benefit is 1% of your “high-3” average salary multiplied by your years and months of service. If you were at least age 62 at separation and had at least 20 years of service, your annuity is 1.1% of your “high-3” average salary multiplied by your years and months of service.

You must work at least 5 years with the Federal Government before you are eligible for a FERS Federal Pension, and for every year you work, you will be eligible for at least 1% of your High-3 Average Salary History.

The average civilian federal employee who retired in FY2022 was 62.3 years old and had completed 25.1 years of federal service. The average monthly annuity payment to workers who retired under CSRS in FY2022 was $5,447. Workers who retired under FERS received an average monthly annuity of $2,126.

What is the 5 year rule for Social Security? ›

The Social Security five-year rule is the time period in which you can file for an expedited reinstatement after your Social Security disability benefits have been terminated completely due to work.

Generally, your spouse is entitled to 55% of your earned annuity based on your length of service and high-three salary at the time of your death.

There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.

A newer program called the Federal Employees Retirement System (FERS) replaced CSRS. Workers who participate in FERS are eligible for Social Security. If you chose to stay in CSRS after 1983, you are not eligible for Social Security.

Regular (Immediate) Retirement

Under FERS, an employee who meets one of the following age and service requirements is entitled to an immediate retirement benefit: age 62 with five years of service, 60 with 20, minimum retirement age (MRA) with 30 or MRA with 10 (but with reduced benefits).

Retirement income for federal employees, with an average monthly annuity of $5,447 for those under the CSRS and $2,126 under the FERS in fiscal year 2022, is multifaceted and influenced by a variety of factors. These include length of service, pay grade, and the specific retirement system an employee is part of.