Who is covered under FERS?
On pay stud it will say Retire 8 or Retire A this is a frozen component of CSRS and FERS combined very rare!
Any Employee Hired after or on January 1,1984 and any other CSRS Employee that switched to the system.
Why was it Created?
The government will never give you a direct answer, but this question is to hard to ignore.
The government wanted to save money and Social Security was having financial problems.
CSRS: after 30 years of service get 56.25%.
FERS after 30 years gets around 33%.
This one change is going to save the government and Postal Service Billions of dollars in the future.
HOW DOES FERS WORK?
THREE PIECES OF THE PIE FOR FERS EMPLOYEES
FERS was designed to provide lifetime income only
- Pension-Retire 8 on pay stub 30% PAY.
- Social Security 25 to 30% PAY.
- TSP Thrift Savings Plan all the extra missing from our pay?
YOU GOT TO SAVE!!!
The calculation for FERS is pretty simple
- FERS Employees earns 1% per year of Service – 1.1% after 20 years served (and 62 yrs. or older).
- Same Basis as CSRS High 3 Salary Years
The 3 requirements are:
- 1 Minimum Retirement Age with 30 Years
- 2 Age 60 with At Least 20 Years
- 3 Age 62 with At Least 5 Years
Minimum Retirement Ages Based on Your Year of Birth
|If you were born||Your MRA is|
|In 1948||55 and 2 months|
|In 1949||55 and 4 months|
|In 1950||55 and 6 months|
|In 1951||55 and 8 months|
|In 1952||55 and 10 months|
|In 1953 through 1964||56|
|In 1965||56 and 2 months|
|In 1966||56 and 4 months|
|In 1967||56 and 6 months|
|In 1968||56 and 8 months|
|In 1969||56 and 10 months|
|In 1970 and after||57|
FERS SPECIAL SUPPLEMENT
Very few FERS employees know about this supplement
In almost every case FERS employees are eligible to retire before age 62.
Almost everyone knows you don’t get SSI until age 62.
Social Security is a major part of FERS, so what are you supposed to do between their minimum retirement age and when they turn 62?
Answer: FERS Special Supplement
FERS SPECIAL SUPPLEMENT – BRIDGING THE GAP TO SSI BEFORE AGE 62
- Minimum Retirement Age with 30 years of service
- Age 60 with 20 years of service
The exception is during an EARLY OUT. In this instance, if you are retiring under early out the two requirements are waived. This only applies to FERS time Not Military Time.