Federal Pension Calculator 2025 — FERS & CSRS Monthly Annuity Estimator

Federal Retirement Benefit Calculator

High-3 Average Salary ($) Average of highest 3 consecutive years of base pay

Years of Creditable Service Include any military service bought back

Retirement Age FERS MRA is 56–57 depending on birth year

Survivor Benefit Election

Expected Years in Retirement Average federal employee at 62 lives ~22 more years (OPM)

Your Estimated Monthly Annuity

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Annual Annuity

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Lifetime Value

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Replacement Rate

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FERS vs CSRS in 2025: Which Federal Pension System Are You Under?

The vast majority of federal employees hired after January 1, 1984 are covered by the Federal Employees Retirement System (FERS). Employees hired before that date may still be under the older Civil Service Retirement System (CSRS). FERS is a three-part system — a defined benefit annuity, Social Security, and the Thrift Savings Plan (TSP). CSRS provides a more generous annuity but no Social Security coverage.

FERS Benefit Formula

FERS uses a 1% accrual rate for most employees (1.1% if you retire at age 62 or older with 20+ years of service). Multiply your high-3 average salary by 1% (or 1.1%) by your years of service. A 25-year FERS employee with an $85,000 high-3 retiring at 62 receives: $85,000 × 1.1% × 25 = $23,375/year, or $1,948/month — before any Social Security benefit.

CSRS Benefit Formula

CSRS uses a tiered multiplier: 1.5% per year for the first 5 years, 1.75% for years 6–10, and 2% for every year beyond 10. Over a 30-year career this produces a significantly higher replacement rate than FERS. You can explore the full tradeoff on our pension vs 401k comparison page.

The FERS Supplement: Extra Income Before Social Security at 62

FERS employees who retire before age 62 with an immediate, unreduced annuity may receive a Special Retirement Supplement (SRS) that bridges the gap until Social Security eligibility. The SRS roughly equals the Social Security benefit you earned during your federal service. It stops at age 62 regardless. This benefit is reduced dollar-for-dollar if you earn more than the Social Security earnings test limit from post-retirement employment. For early retirement planning, also review our early retirement pension calculator.

For broader retirement income planning, the full pension calculator on our homepage lets you combine your federal annuity with Social Security and other income sources to project total monthly retirement income.

Federal Pension FAQs — FERS & CSRS 2025

What is the FERS high-3 average salary?

Your high-3 is the average of your highest 36 consecutive months of base pay during your federal career — typically your last 3 years if your salary has been increasing. It includes base salary only, not overtime, bonuses, or locality pay in most cases. OPM calculates this automatically when you retire, but you can estimate it by averaging your last three years of W-2 base wages. Locality pay is included in the base pay calculation for FERS, which is an important distinction for employees in high-cost areas like Washington DC or San Francisco.

Can I retire before age 62 under FERS?

Yes. FERS allows retirement at your Minimum Retirement Age (MRA) — between 55 and 57 depending on your birth year — with at least 10 years of service. However, retiring at MRA with fewer than 30 years of service results in a benefit reduction of 5% per year under age 62. You can avoid the penalty with 30+ years at MRA, or with 20 years at age 60. Special category employees (law enforcement, firefighters, air traffic controllers) can retire at 50 with 20 years. Use our early retirement pension calculator to model your reduction.

How does the FERS survivor benefit work?

The FERS survivor benefit provides a continuing annuity to an eligible surviving spouse or other insurable interest after your death. The full survivor benefit costs 10% of your annuity — you receive 90% of the full annuity during your lifetime, and your survivor receives 50% of your full annuity after you die. A partial election (any amount from $1 to the full base annuity) costs 5%. Electing no survivor benefit requires written spousal consent and means your annuity ends at your death. The FERS survivor benefit is generally more cost-effective than purchasing life insurance for the same coverage amount.

Is a FERS or CSRS pension taxable at the federal level?

Federal pension annuities are generally taxable as ordinary income at the federal level because employee contributions are made pre-tax. If you made any after-tax contributions (which is more common for CSRS employees), a small portion of each payment may be excludable using the IRS Simplified Method. OPM will provide a tax statement (1099-R) each year showing the taxable amount. Most states tax federal pensions, but several — including Alabama, Illinois, Kansas, Louisiana, Michigan, Mississippi, New York, and Pennsylvania — provide full or partial exemptions for federal retirement income. Consult a tax advisor for your specific state's treatment.