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Federal Benefits Question of the Week: FERS Basic Benefit

Q.: Does the 1.1% for the FERS Basic Benefit apply for a deferred retirement?

A.: Generally, your FERS benefit is 1% of your high-three average salary multiplied by your years and months of service. If you are at least 62 at separation and have at least 20 years of service, your annuity will be computed at 1.1% of your “high-3” average salary multiplied by your years and months of service. This more generous formula is used for those who retire on an immediate annuity at 62 or older with at least 20 years of service. Deferred FERS benefits are always computed using the 1.0% factor. An immediate annuity is one that begins within 30 days of the date of your separation. Under FERS, an immediate MRA + 10 annuity may be “postponed” avoiding the 5% age reduction for retiring under 62 with less than 20 years of service or under 60 with less than 30 years.