What Is the Federal Employees♕ Retirement System (FERS)?

The Federal Employees Retirement System (FERS) is a retirement plan for U.S. federal civilian employees. FERS is a defined-benefit plan that replaced the 澳洲幸运5官方开奖结果体彩网:Civil S🌠ervice Retirement System (CSRS). Employees are automatically enrolled in the program and receive retirement benefits from three different sources. Benefit eligibility is determined by a worker's age and the number of years of service.

How the Federal Employees Retireme🐟nt System (FERS) Works

Just like the employees of 澳洲幸运5官方开奖结果体彩网:some small businesses and most large corporations, federal government workers are able to save money through 澳洲幸运5官方开奖结果体彩网:retirement savings plans under a program called the Federal Employees Retirement System (FERS). The program went into effect in 1987 for all federal employees hired by the government after Dec. 31, 1983, and replaced the Civil Service Retirement System (CSRS) program.

The FERS is a defined-benefit plan, which means retirement benefits are determined by an employee's salary and years of service. The benefits are structured as annuities and paid out to retired employees monthly. Eligibility and payment amounts are based on age, years of service, and contributions to the plan.

The program's benefits are paid out through Social Security benefits, a basic benefit plan for which the employee contributes a nominal amount, and the 澳洲幸运5官方开奖结果体彩网:Thrift Savings Plan (TSP), which is made up of automatic government contributions, voluntary employee contributions, and matching government contributions.

According to the United States Office of Personnel Management, FERS costs the government between 22.9% and 57.8% of payroll for 2025. Social Security benefits and TSP benefits can follow an employee after government service. Social Security and the basic annuity plan mandate employee contributions, whereas employee contributions to the TSP are voluntary.

The basic benefit plan has four categories of benefits when they are paid out. According to the U.S. Office of Personnel Management, they include:

1. Immediate: This benefit begins within 30 days of when you retire. You are eligible if you are 62 with five years of service, or if you are 60 with 20 years of service. If you wait until your minimum 澳洲幸运5官方开奖结果体彩网:retirement age and have between 10 and 30 years of service, your benefit drops by 5% for each year until you turn 62. Those with 20 years of service only have to wait until 60 to get the full benefit.
2. Early: This option is only "available in certain involuntary separation cases and in cases of voluntary separations during a major reorganization or reduction in the workforce." You must either have 25 years of service or, if you're over 50, 20 years of service.
3. Deferred: Eligibility for delayed benefit payments depends on how many years of service you have under your belt. You must have completed five years of service if you're 62. Your benefit is reduced by 5% in the same way as the immediate retirement option above.
4. Disability: This benefit option plan pays individuals with at least 18 months of service who become disabled while employed in a FERS-eligible position. Your disability "must be expected to last at least one year." Your employing agency must attest that it cannot accommodate your condition and that you have been considered for other similar, internal positions.
   

The table below lists the mi🌱nimum retire✅ment age based on your year of birth:

澳洲幸运5官方开奖结果体彩网: Source: .

The Bottom Line

The Federal Employee Retirement System (FERS) provides federal employees with a comprehensive retirement plan, which consists of mu🐓ltiple parts. It combines a basic federal annuity, Social Security, and the Thrift Savings Plan (TSP) to help see federal employees through retirement.

The plan offers various retirement options based on age and service, as well as portability features after leaving federal employment, giving workers a flexible and well-rounded system.