FERS- The Federal Employee Retirement System

Oct 7, 2016

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

5 Common Myths about Federal Disability Retirement, Debunked

Navigating the complex landscape of Federal Disability Retirement can be a daunting task, and many federal employees have misconceptions that deter them from pursuing the federal benefits they deserve. We're cutting through the confusion of the top 5 myths to give you...

Harris Federal Employee Law Firm Names New Partner

Lexington, KY: Harris Federal Employee Law Firm is pleased to announce the promotion of Leah Bachmeyer Kille to the position of partner. Harris Federal is one of the nation’s leading federal employee benefits law firms, having successfully represented more than 8,000...

Can I Live Off Federal Disability Retirement?

If you’re applying for Federal Disability Retirement, you may be wondering if you can live off the monthly annuity payments. Living with a disability can be costly and having to take an early retirement can be scary, especially when looking at the future of your...

Is It Hard to Get Federal Disability Retirement?

Federal Disability Retirement can be a lifeline for federal workers who are struggling at work due to an injury or illness. But getting approved may be more difficult than you might expect. Discover common challenges in the application process and learn why it’s worth...

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