1. What is the Federal Retirement Calculator 2025?

Definition: This calculator estimates the annual pension for Federal Employees Retirement System (FERS) participants based on years of service and high-3 average salary.

Purpose: It helps federal employees plan for retirement by providing an estimate of their FERS pension benefits.

2. How Does the Calculator Work?

The calculator uses the standard FERS formula:

Where:

• \( P \) — Annual pension amount ($)
• \( Y \) — Years of creditable service
• \( H3 \) — High-3 average salary ($)

Explanation: The formula calculates 1% of the high-3 average salary for each year of service. For those retiring at age 62 or later with 20+ years of service, the percentage increases to 1.1%.

3. Importance of FERS Pension Calculation

Details: Understanding your potential pension helps with retirement planning, budgeting, and determining when you can afford to retire.

4. Using the Calculator

Tips: Enter your total years of federal service (including partial years) and your estimated high-3 average salary (the average of your highest 3 consecutive years of pay).

5. Frequently Asked Questions (FAQ)

Q1: What's included in the high-3 average salary?
A: It includes base pay plus locality pay, but not bonuses, overtime, or allowances.

Q2: How is part-time service calculated?
A: Part-time service counts, but the pension calculation is prorated based on your part-time schedule.

Q3: What about sick leave?
A: Unused sick leave is converted into additional service time in the calculation.

Q4: Does this include FERS supplement?
A: No, this calculates only the basic pension amount. The FERS supplement for those under age 62 is separate.

Q5: How accurate is this estimate?
A: This provides a basic estimate. For exact figures, consult your HR office or official retirement counselor.