The FERS formula
| When you leave | Annuity per year of service |
|---|---|
| Under 62, or 62+ with less than 20 years | 1% of high-3 |
| 62 or older with 20+ years | 1.1% of high-3 |
Your high-3 is your highest average basic pay over any 3 consecutive years, usually the last 3. Overtime and bonuses don't count. Fractions of a month of service are dropped.
When you can retire
| Age | Service | Annuity |
|---|---|---|
| 62 | 5 years | Full |
| 60 | 20 years | Full |
| Minimum retirement age | 30 years | Full |
| Minimum retirement age | 10 years | Cut 5% a year under 62, unless 20 years and it starts at 60+ |
Your minimum retirement age (MRA) is 55 if you were born before 1948, 56 if born 1953 to 1964, and 57 if born 1970 or later, rising by 2 months a year in between.
Sick leave and survivor benefits
Sick leave: all unused sick leave is added to your service for the computation, at 2,087 hours per year. It doesn't count toward eligibility or your high-3, but it does count toward the 20 years for the 1.1% multiplier once you're 62.
Survivor benefit: if you're married, a full survivor annuity (50% of your unreduced annuity) costs 10% of your annuity; a partial one (25%) costs 5%. Your spouse must consent in writing to less than full.
What this leaves out
Special provisions for law enforcement, firefighters and air traffic controllers, part-time service, CSRS components, military buy-backs, the FERS supplement before 62, COLAs, and federal and state income tax. For your official estimate, use your agency's retirement calculator or ask your HR office.
Questions
How is a FERS pension calculated?
1% of your high-3 average salary for each year of service. If you are 62 or older when you leave and have at least 20 years of service, it is 1.1%. Your high-3 is the highest average basic pay over any 3 consecutive years.
What is the MRA+10 reduction?
If you retire at your minimum retirement age with 10 to 29 years of service, your annuity is cut by 5/12 of 1% for each month you are under 62, which is 5% a year. There is no cut if you have 20 years and your annuity starts at 60 or later.
Does unused sick leave count for FERS?
Yes. All unused sick leave is added to your service when the annuity is computed, at 2,087 hours per year. It can't be used to qualify for retirement or to raise your high-3, but it can help you reach the 20 years needed for the 1.1% multiplier at 62.
Updated November 6, 2026. Sources: OPM, FERS Computation; OPM, FERS Eligibility; 5 U.S.C. 8415; 5 U.S.C. 8419 and 8442 (survivor benefits); OPM Benefits Administration Letter 18-103. Estimates, not financial, tax or legal advice. Not affiliated with OPM.