Your basic annuity is computed based on your length of service and “high-3” average salary. To determine your length of service for computation, add all your periods of creditable service, then eliminate any fractional part of a month from the total.
High-3 Average Salary
Your “high-3” average pay is the highest average basic pay you earned during any 3 consecutive years of service. These three years are usually your final three years of service, but can be an earlier period, if your basic pay was higher during that period. Your basic pay is the basic salary you earn for your position. It includes increases to your salary for which retirement deductions are withheld, such as shift rates. It does not include payments for overtime, bonuses, etc. (If your total service was less than 3 years, your average salary was figured by averaging your basic pay during all of your periods of creditable Federal service).
Computation for Non-Disability Retirements
FERS Basic Annuity Formula
Under Age 62 at Separation for Retirement, OR
Age 62 or Older With Less Than 20 Years of Service |
1 percent of your high-3 average salary for each year of service |
Age 62 or Older at Separation With 20 or More Years of Service |
1.1 percent of your high-3 average salary for each year of service |