Federal Employees Retirement System (FERS) Eligibility Requirements: Min. years for Min. years for Year of Birth Minimum Age Unreduced Benefit Reduced Benefit Optional N/A 62 5 N/A & N/A N/A DeferredBefore * & 2 mos 30 10* & 4 mos 30 10* & 6 mos 30 10* & 8 mos 30 10* & 10 mos 30 10* * & 2 mos 30 10* & 4 mos 30 10* & 6 mos 30 10* & 8 mos 30 10* & 10 mos 30 10* 1970 & After * *Reduction is 5% for each year the employee is under age 62 (MRA + 10)

Federal Employees Retirement System (FERS) Discontinued Service Retirement: Year of BirthMinimum Age Years N/A N/A Any 25 The separation must be involuntary and not for misconduct of delinquency.

Federal Employees Retirement System (FERS) 3 Components of FERS Retirement Benefit: Basic Annuity Annuity Supplement/Social Security Thrift Savings Plan (TSP)

Federal Employees Retirement System (FERS) Basic Annuity is based on: Total years of service; and The high-3 average salary

Federal Employees Retirement System (FERS) Eligibility for a Unreduced Basic Annuity: At least 5 years of creditable civilian service; Be subject to FERS at date of separation; and Meet one of the age and service requirements Employee’s meets Minimum Retirement Age (MRA) and has at least 30 years of service; or Age 60 with 20 years of service; or Age 62 with 5 years of service

Federal Employees Retirement System (FERS) Computing Basic Annuity: Under Age 62 or over Age 62 with less than 20 years of service: 1% x high-3 average salary x years & months of service Example: high-3 average salary = $45,000 x 1% = 450 x 19 yrs of svc = $8,550 Age 62 with at least 20 years of service: 1.1% x high-3 average salary x years & months of service

Federal Employees Retirement System (FERS) Annuity Supplement: Benefit paid to employees who are entitled to an immediate unreduced, non-disability annuity prior to age 62, i.e., meets the MRA and number of years of service The annuity supplement approximates the Social Security benefits until the annuitant reaches age 62 and Social Security benefits begin paying

Federal Employees Retirement System (FERS) Questions to ask prior to retirement: Non-Deduction Service: Non-deduction service performed prior to January 1, 1989, can be purchased for use in computing your retirement Non-deduction service performed after January 1, 1989, can not be purchased and is not creditable for retirement purposes

Federal Employees Retirement System (FERS) Questions to ask prior to retirement (Continued): Non-Deduction Service: If an employee has a CSRS component and there was non-deduction service performed prior to becoming a FERS employee, service performed prior to 10/1/82 is creditable for length of service and also for annuity purposes whether they make a deposit or not If an employee has a CSRS component and there was non-deduction service performed prior to becoming a FERS employee, service performed on or after 10/1/82 is creditable for length of service but a deposit must be made to capture time for annuity purposes

Federal Employees Retirement System (FERS) Refunded Service: Service under FERS for which retirement deductions have been refunded is not included in length of service for eligibility nor annuity computation purposes Service under a CSRS component for which retirement deductions have been refunded will be included as creditable service for both eligibility and computation, provided a redeposit has been made

Federal Employees Retirement System (FERS) Military Service: All post-1956 military service must be covered by a deposit to receive credit under FERS rules for any purpose. The amount of the deposit is 3% of the military basic pay earned during the period of military service plus interest

Federal Employees Retirement System (FERS) Annual Leave: You will receive a lump sum payment for annual leave normally the 2 nd pay period after you retire Hourly rate multiplied by the number of hours of annual leave The annual leave lump sum will be taxed when received (28%) Sick Leave: Unused sick leave is NOT included in service for determining eligibility for retirement Unused sick leave disappears

Federal Employees Retirement System (FERS) Commencing Date of Annuity: Annuities commence the first day of the month after separation from service and meeting the age and service requirement