FERS- The Federal Employee Retirement System

by | Oct 7, 2016

Last Updated April 19, 2024
FERS

FERS

If you are a federal employee who was hired after January 1, 1984, you fall under the FERS retirement system. This is different than the Civil Service Retirement System (CSRS) in that the FERS system is known as a three-tier system. The three parts are a Basic Benefit plan, or pension, Social Security, and Thrift Savings Plan.

Basic Benefit Plan

This is considered your FERS pension. You pay into this pension each pay period. Your employing agency withholds the cost as a payroll deduction and pays its portion of this benefit as well. At retirement, you receive a set amount, regardless of how much you’ve contributed. This amount depends on your years of creditable service and your High-3 average salary.

Social Security

This benefit can be taken with you if you leave federal service before retirement. It requires you to pay into just like the Basic Benefit Plan, meaning you pay a portion, deducted from your pay each pay period. This is designed, as the other two, to replace a portion of your income in retirement.

Thrift Savings Plan

This plan can also move with you if you leave federal service. However, it is different than the other two because you decide how much of your pay is put in, how to invest, and how it’s paid out to you in retirement. This plan is similar to a 401k, is tax-deferred, and is automatically set up when you are hired. Your employing agency will make a one percent of your basic pay contribution each pay period. This contribution is not taken out of your pay and is made regardless of whether or not you contribute more. It’s free money. For the first three percent of your pay you contribute, your agency will match dollar for dollar. For the next two percent you put in, the agency matches $0.50 for every dollar you contribute. You are immediately vested in your own contributions, matching contributions, and their earnings.

These three parts work together to provide you with an income after your regular FERS retirement. To learn more about these plans, check out these websites:

Message us & find out if you qualify today!

  • This field is for validation purposes and should be left unchanged.

Recent Articles

Yes, You Can Work after Federal Disability Retirement

Have you looked at your Federal Disability Retirement annuity, a knot of uncertainty coiling in your stomach as you question - will it be enough? Have you ever wondered if you could keep working after being approved for Federal Disability Retirement? You can work...

The 4 Key Benefits of Federal Disability Retirement

Imagine a lifeline, a beacon of hope for your future when you're struggling with an injury or illness that’s impacting your federal job. That lifeline is Federal Disability Retirement. If you can't perform at least one of the essential functions of your role, you...

6 Key Reasons Why Your Disability Retirement Application Was Denied

Have you recently applied for Federal Disability Retirement, only to receive a denial? The Office of Personnel Management (OPM) is denying more initial applications than ever. However, it's important to understand that a denial does not mean the end of the road for...

Federal Employee Resources

Our ever growing library of federal employee resources give you the knowledge you need to make smart choices about your future.

FAQs

Frequently Asked Questions

Get the answers you need on-demand, from a team of federal employee benefits professionals.

View FAQ
Webinars

Federal Benefit Webinars

Twice per month we host webinars to help federal employees better understand their benefits and answer their questions LIVE.

See Webinar Schedule
Guides

Benefit Guides

From guides to detailed charts, these educational resources will help clarify confusing federal employee benefits topics.

See our resources