FEDERAL EMPLOYEES · FERS / TSP / FEHB

The federal package works only when the pension, TSP, Social Security, and FEHB land on compatible dates.

A correct high-3 estimate with the wrong retirement category can still be materially wrong. Immediate, postponed, and deferred retirement are not synonyms—and health coverage can be the expensive difference.

Standard FERS formulaAt age 62 or older with at least 20 years, the basic formula uses 1.1% × high-3 × service. Otherwise it generally uses 1.0%. Eligibility, reductions, and special-category service are separate tests.

NAME THE RETIREMENT CATEGORY

Formula and eligibility are two different gates.

First identify the retirement category. Then calculate the annuity. Reversing that order creates a plausible number attached to an impossible start date.

IMMEDIATE UNREDUCED

Age and service tests are satisfied on separation.

Verify the service computation date, high-3 period, deposits or redeposits, unused sick leave treatment, and the exact commencing date through the agency retirement office.

GET AN AGENCY ESTIMATE WITHIN THREE YEARS OF RETIREMENT.

MRA+10 / POSTPONED

Starting now and starting later can produce different reductions.

An MRA+10 annuity can be reduced 5% for each year under 62. Postponing the start may reduce or eliminate that penalty under OPM rules and can affect when FEHB may resume.

MODEL THE COMMENCING DATE—NOT ONLY THE SEPARATION DATE.

DEFERRED AFTER LEAVING

A future pension may survive while health coverage does not.

A vested former employee may claim a deferred annuity later, but FEHB and FEGLI continuation are not the same as an immediate or eligible postponed path. A refund can erase the annuity.

DO NOT REQUEST A CONTRIBUTION REFUND FROM A ROUGH ESTIMATE.

SPECIAL-PROVISION SERVICE

Law enforcement, firefighter, and other covered service uses different rules.

Eligibility, mandatory separation, and the first-20-year computation can differ from standard FERS. Separate special and regular service before modeling.

USE THE CORRECT RETIREMENT CATEGORY AND SERVICE LEDGER.

FERS FORMULA CHECK

Reproduce the standard basic annuity before layering on the rest.

This model selects the 1.0% or 1.1% standard FERS factor from the entered age and service. It is a formula check—not an eligibility ruling.

High-3 average annual salaryCreditable service yearsAge at separation

Standard FERS formula only. This does not model MRA+10 reductions, special-provision service, CSRS or CSRS Offset, deposits, sick leave, survivor reductions, the FERS supplement, taxes, or eligibility.

STANDARD FERS FORMULA—

THE FEDERAL DECISIONS THAT BITE

FEHB and survivor coverage can be worth more than a small annuity difference.

These rules determine whether the retirement package works for the whole household, not just the employee.

FEHB FIVE-YEAR RULE

Health coverage has a runway requirement.

To continue FEHB into retirement, a retiring employee generally must be enrolled or covered for the five years immediately before retirement, or for all service since the first opportunity if shorter. TRICARE coverage can count in defined circumstances.

SURVIVOR ELECTION

Maximum FERS survivor coverage changes both checks.

OPM states that maximum coverage generally reduces the retiree annuity by 10% and pays a surviving spouse 50% of the earned annuity. Partial coverage generally uses a 5% reduction for a 25% survivor annuity.

TSP AT SEPARATION

The TSP loan and tax mix need their own plan.

Inventory traditional and Roth balances, beneficiaries, outstanding loans, and the tax effect of withdrawals or rollovers. Do not use the TSP to plug an unpriced FEHB or pension-start gap.

MRA+10 REDUCTION

A later start date may be worth more than another vague target.

The 5%-per-year under-62 reduction can be material. Compare immediate, postponed, and deferred paths using the actual service record and FEHB consequences.

FEDERAL RETIREMENT CLEARANCE

Clear the federal retirement decision in the order OPM will see it.

A clean file separates service, eligibility, formula, healthcare, survivor coverage, and withdrawal taxes.

Reconcile the service computation date, military deposits, redeposits, part-time service, and high-3 period.

Name the exact path: immediate unreduced, MRA+10, postponed, deferred, disability, or special provision.

Obtain a written agency estimate at each serious retirement or annuity commencement date.

Verify FEHB five-year coverage and the exact date coverage continues or may resume.

Model full, partial, and no survivor annuity with spouse consent and household cash flow.

Map FERS, TSP, Social Security, and taxes by year instead of quoting one retirement-income total.

OFFICIAL RULES

Use the source that controls this benefit.

The calculator is a screening tool. The current plan document, administrator record, and written benefit estimate control eligibility and payment. Verify the edition and effective date before an irreversible election.

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Use the calculator that matches this retirement system.

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