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Enrolling in FERS

New Employees Most new employees hired after December 31, 1983, are automatically covered by the Federal Employees Retirement System (FERS). The exceptions are employees in appointments that are limited to 1 year or less, most intermittent employees, anyone who is not eligible for Social Security coverage, or certain persons with non-Federal service which is creditable under the Civil Service Retirement System (CSRS). Rehires and Conversions  The general rules on whether you are covered by CSRS, CSRS Offset, or FERS...

Reader Question: How Do I Calculate My Federal Retirement Benefits?

A: Your benefits are calculated as follows... Your benefit is based on your “high-3 average pay.” This is figured by averaging your highest basic pay over any 3 consecutive years of creditable service. Generally, your benefit is calculated according to this formula: 1% of your high-3 average pay  X  years of creditable service If you retire at age 62 or later with at least 20 years of service, a factor of 1.1% is used rather than 1%. To determine your length of service for computation, add all of your...

Federal Employee Thrift Savings Plan

The Thrift Savings Plan is a retirement and savings investment plan for federal employees. Congress established the TSP in 1986 for the purpose of providing federal employees with retirement income. The TSP offers federal employees the same type of savings and tax benefits that many private corporations offer their employees under so-called “401(k)” plans. You can participate in the TSP if you are covered by the Federal Employees’ Retirement System (FERS), the Civil Service Retirement System (CSRS), or an equivalent...

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