Your FERS pension is one of the core pieces of a federal retirement plan. The key inputs are your high-3 average salary, years of creditable service, and the applicable pension multiplier.
The basic formula
For many FERS employees, the basic annuity formula is high-3 average salary multiplied by years of service multiplied by 1%. Under OPM rules, the 1.1% multiplier can apply when an employee retires at age 62 or older with at least 20 years of service.
Why your retirement date matters
Your age and years of service can affect eligibility, the multiplier, reductions, and how your pension begins. Before retiring, verify your specific eligibility and computation with your agency HR and OPM.
Planner tip
Do not only ask, “What is my pension?” Ask, “How does my pension combine with TSP, Social Security, military retirement, and other income sources?” That is where the full retirement picture becomes clearer.
Official reference: OPM FERS computation and OPM FERS eligibility pages.