Question 1

What is the FERS pension formula?

Accepted Answer

The FERS basic annuity formula is: High-3 average salary × years of creditable service × multiplier. The standard multiplier is 1.0%. If you retire at age 62 or later with at least 20 years of service, the multiplier increases to 1.1%. For example, a federal employee with a $100,000 High-3 and 30 years retiring at age 62 would receive $100,000 × 30 × 1.1% = $33,000/year, or $2,750/month.

Question 2

How does the FERS 1.1% multiplier work?

Accepted Answer

The 1.1% multiplier (versus the standard 1.0%) applies only if you retire at age 62 or older AND have at least 20 years of creditable service at retirement. Both conditions must be met simultaneously. Retiring at 61 with 25 years gets you 1.0%; retiring at 63 with 19 years also gets 1.0%. The upgrade to 1.1% is permanent — it applies to your pension for life. Over a 20-year retirement, the difference between 1.0% and 1.1% on a $100,000 High-3 with 30 years of service equals roughly $60,000 in additional lifetime income.

Question 3

What is the High-3 average salary?

Accepted Answer

Your High-3 is the average of your highest three consecutive years of basic pay during your federal career. It is almost always your final three years of employment, since federal salaries generally increase over time. Basic pay includes locality pay but excludes bonuses, overtime, allowances, and other supplements. The High-3 is the single largest lever in your pension calculation — a $10,000 increase in your High-3 adds $100–$110 per year to your pension for every year of service.

Question 4

How much does FERS pay per year of service?

Accepted Answer

FERS pays 1.0% of your High-3 salary for each year of creditable service (or 1.1% if you retire at 62+ with 20+ years). On a $100,000 High-3, each additional year of service adds $1,000/year ($83/month) to your pension. This is why the decision between retiring at year 28 versus year 30 can meaningfully change your retirement income — two additional years adds $2,000/year to your pension in perpetuity, plus the FERS Supplement may become available.

Question 5

Is there a maximum FERS pension?

Accepted Answer

Yes. The FERS basic annuity cannot exceed 80% of your High-3 average salary. In practice this limit only applies to employees with very long careers — reaching 80% at the standard 1.0% multiplier requires 80 years of service, which is unreachable. At the 1.1% multiplier it would require about 73 years. However, the cap can come into play for special-provision employees (LEO, firefighters, ATC) who earn a 1.7% multiplier for their first 20 covered years. A LEO with 30 years would earn 1.7% × 20 + 1.0% × 10 = 44% — well under the cap — but careers over 45 covered years could theoretically approach it.

Question 6

What is the FERS pension for a GS-13 federal employee?

Accepted Answer

A GS-13 Step 10 in the Rest of U.S. locality area earns approximately $113,000 in 2026. With 30 years of service and retirement at age 57 (MRA), the FERS pension would be $113,000 × 30 × 1.0% = $33,900/year ($2,825/month). If that same employee waited until 62, the 1.1% multiplier would raise the pension to $113,000 × 30 × 1.1% = $37,290/year ($3,108/month) — an additional $283/month for the rest of their life. Higher locality areas (DC Metro, San Francisco, New York) carry higher base salaries and proportionally higher pensions.

FERS Pension Calculator

The FERS pension formula

What the High-3 actually is

How retiring at 57 vs. 62 changes the number

The FERS Supplement: the bridge to age 62

What the pension doesn't include