Annuity

An annuity is a fixed sum of money paid to someone each year, typically for the rest of their life. In FERS, this refers to your retirement pension payment.

Your FERS annuity is calculated based on your years of service and your highest 3 consecutive years of basic pay (High-3 average salary). The basic formula is:

• 1% of your High-3 average salary multiplied by your years of service
• 1.1% if you are age 62 or older with at least 20 years of service

Your annuity may be reduced if you retire before reaching certain age and service combinations.