1. What is a Retirement Calculator with Pension?

Definition: This calculator estimates the annual pension benefit based on years of service and high-3 average salary.

Purpose: It helps employees plan for retirement by projecting their potential pension benefits under the 2023 federal retirement system.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

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

Explanation: The formula calculates 2.5% of the high-3 average salary for each year of service.

3. Importance of Pension Calculation

Details: Accurate pension estimation helps with retirement planning, budgeting, and determining the optimal retirement date.

4. Using the Calculator

Tips: Enter your total years of service (including partial years as decimals) and your high-3 average salary. All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What is the high-3 average salary?
A: It's the average of your highest 3 consecutive years of basic pay (typically your last 3 years before retirement).

Q2: Does this include FERS annuity supplement?
A: No, this calculates only the basic annuity. The FERS supplement is calculated separately.

Q3: What's the maximum pension percentage?
A: Generally 80% of your high-3 average salary (requiring 32 years of service at 2.5% per year).

Q4: How is part-time service calculated?
A: Part-time service is prorated based on the actual hours worked compared to full-time.

Q5: Are there reductions for early retirement?
A: Yes, if retiring before age 62 with less than 20 years, or before age 60 with less than 30 years.