How is my FERS pension calculated?
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By the FERS Made Easy editorial team · Last reviewed Oct 2026
Short answer: Your yearly FERS pension = high-3 average salary × years of service × 1%. The multiplier is 1.1% if you retire at 62 or older with at least 20 years. Special-provision employees get 1.7% for the first 20 years and 1% after. Then subtract any survivor benefit cost (10% for full, 5% for partial) and any MRA+10 age reduction.
The formula, step by step
- High-3: your highest average basic pay over any 3 consecutive years.
- Service: your years and full months of creditable service, plus unused sick leave converted to months (computation only).
- Multiplier: 1% normally; 1.1% at 62+ with 20+ years; 1.7%/1% for special provisions.
- Reductions: MRA+10 (5/12 of 1% per full month under 62), and the survivor election (10% or 5%).
Worked examples
All figures come from our tested pension calculator, before taxes and FEHB premiums.
| Scenario | Math | Yearly pension (no survivor) | With full survivor |
|---|---|---|---|
| Age 57 (MRA), 30 years, high-3 $95,000 | 95,000 × 30 × 1% | $28,500 ($2,375/mo) | $25,650 |
| Age 62, 30 years + 1,044 hours sick leave, high-3 $95,000 | 95,000 × 30.5 × 1.1% | $31,872 ($2,656/mo) | $28,685 |
| Age 62, 22 years, high-3 $120,000 | 120,000 × 22 × 1.1% | $29,040 | $26,136 |
| Special provision, age 50, 25 years, high-3 $110,000 | 110,000 × (20 × 1.7% + 5 × 1%) | $42,900 | $38,610 |
| MRA+10 at 57, 15 years, high-3 $80,000 | 80,000 × 15 × 1% × (1 − 25%) | $9,000 | see note |
Note: for MRA+10 with a survivor election, the exact order in which OPM applies the age and survivor reductions is not confirmed in our sources, so we don't show a figure here.
The full survivor benefit pays your spouse 50% of your unreduced pension: $14,250 a year in the first example.
Exceptions and edge cases
- Sick leave: counts in the computation only, at 2,087 hours per year, with leftover days dropped (OPM RI 83-8). It never counts toward eligibility or the high-3.
- Part-time service after April 6, 1986 is prorated in the computation. [Our calculator does not model this.]
- Military service counts only if the deposit is paid before retirement.
- CSRS component: if you transferred from CSRS, part of your pension uses the CSRS formula. [Not modeled.]
- Disability retirement uses a different formula (OPM computation page).
- "High-5" proposals were dropped from the 2025 budget law and are not current law as of October 2026 (see Updates).
Common mistakes
- Using total salary with overtime or bonuses as the high-3.
- Applying 1.1% before 62, or with fewer than 20 years.
- Adding sick leave to reach 20 or 30 years.
- Forgetting that the survivor election and FEHB premiums come out of the gross pension.
- Expecting a COLA before 62 as a regular FERS retiree.
What to do next
- Run the FERS pension calculator with your own numbers. It takes about a minute.
- Ask your agency HR/benefits office for a retirement estimate and your official service computation date.
- Check your Social Security estimate at ssa.gov/myaccount.
- Want a second opinion? with a licensed financial professional who works with federal employees. It's optional and free.
Frequently asked questions
Is the high-3 my last three years?
It is the highest average basic pay you earned in any 3 consecutive years of service, usually the last three. Basic pay includes locality pay but generally not overtime or bonuses.
When do I get 1.1% instead of 1%?
When you retire at age 62 or older with at least 20 years of service. Our calculator counts only actual creditable service, not sick leave, toward the 20 years. That is a conservative reading we have not confirmed with OPM, so ask HR if you are close.
How much does unused sick leave add?
It is converted at 2,087 hours per year and added to your service for the computation only, in whole months. About 1,044 hours adds roughly 6 months. On a $95,000 high-3 at 1.1%, 6 months adds about $520 a year.
Does the survivor benefit really cost 10%?
Yes. A full survivor benefit (50% of your unreduced pension) reduces your pension by 10%. A partial (25%) costs 5%. Your spouse must consent in writing to anything less than full.
Does my FERS pension get a COLA?
Regular FERS retirees generally get COLAs only from age 62. When inflation is above 3%, the FERS COLA is 1 point less than Social Security. For 2027 the FERS COLA is 2.6% versus 3.6% for Social Security. See FERS COLA.
Is the pension taxable?
Mostly. The part that returns your own after-tax contributions is tax-free and spread over your lifetime. The rest is taxable federal income; state rules vary.