Federal Employees Retirement Pension Calculation
The basic annual CSRS (Civil Service Retirement System) annuity is expressed as a percentage of your highest 3 years average salary.
Your high 3 percentage is determined by a three-part formula based on your length of creditable service. You earn:
- 1.5% x High-3 x first five years of service
- plus 1.75% x High-3 x next five years of service
- plus 2.0% x High-3 x all years of service over 10
Thus, after 10 years of service you have earned 16.25% of your “high three” and after 30 years you have earned 56.25% (16.25% + 2% x 20 = 56.25%).
By law, the percentage is limited to 80% (reached after 41 years and 11 months of service)however, unused sick leave can be used in the formula to produce a greater result.
Your unused sick leave is converted into months and days and added to your other service. Credit is given for whole months only, (30 days). However, the time representing days of unused sick leave is not counted toward your “high 3” years average salary or for establishing eligibility for retirement. (see the following examples)
| Example 1: | |
| Age | 55 |
| High-3 | $60,000 |
| Years of Service | 30 years |
| .015 x 5 x $60,000 | = $4,500 |
| .0175 x 5 x $60,000 | = $5.250 |
| .02 x 20 x $60,000 | = $24,000 |
| $33,750 (56.25% of High-3) |
| Example 2: | |
| Age | 60 |
| High-3 | $50,000 |
| Years of Service | 20 years |
| .015 x 5 x $50,000 | = $3,750 |
| .0175 x 5 x $50,000 | = $4,375 |
| .02 x 10 x $50,000 | = $10,000 |
| $18,125 (36.25% of High-3) |
source: myfederalretirement
click here for more salary information
In: Careers · Tagged with: 10 Years, 3 Years, Average Salary, Civil Service Retirement, Civil Service Retirement System, Creditable Service, Csrs Retirement, Federal Employees Retirement, Federal Retirement, First Five Years, Next Five Years, Pension Calculation, Retirement Annuity, Retirement Calculation, Retirement Pension, Salary Information, Service Retirement System, Sick Leave, Whole Months
