How To Calculate Your Federal Employee FERS Annuity (With Example!)

Are you trying to understand how much your FERS Annuity will be when you retire? There are two misconceptions many federal employees have when it comes to their federal retirement: 1) mistaking years of service and/or 2) understanding their Hi-3. In this video, Micah is going to break down how the FERS pension works and provides an example!
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Until next time, happy planning!
Micah Shilanski, CFP®
#PlanYourFederalRetirement #FERS
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[@havenpersonalcare7968]

Yes; my brain hurts listening to your info and music at the same time..would have been an awesome video..

[@MDusinberre]

The background music is very distracting. Your videos don’t require music.

[@planyourfederalretirement]

Hey Mollie, thanks for the feedback. We will remove the background music on some of the videos going forward and see what the feedback is. Please let us know what you think. Thank you.

[@mrjumbly2338]

@@planyourfederalretirement Hey remove it all, I am sure it will not be missed.

[@joseCalderon1976]

Not judging, but that's why have to max out your TSP. That's what I'm trying to do. Thanks for the video

[@oldrin1876]

Thanks for the video. Good to know the FERS pension is super weak.

[@miguelortega3361]

federal retirement is depressing.. work so many years to make less than 2000 a month. Hoping tha Social Security and other investments can boost the final numbers.. Imagine working for 20 years to make 1,400 a month...

[@amkrause2004]

Yeah, according to my estimate of my earnings I'll get 825 per month

[@miyard9233]

You shoul have an idea from day one you start to work at the Federal and plan accordingly. Seem like you did not plan .

[@amkrause2004]

@@miyard9233 I don't know if you're replying to me or not. My 825 is going off according to what I'm making now. Ofc, it'll be much higher as I get higher pay rates.

[@DemoniqueLewis]

Thank you for posting this video. I did not know there was a pension!

[@planyourfederalretirement]

Our pleasure! We work with a lot of Federal employees who have been searching for information just like this online and are unsure what is accurate. Happy to provide information like this from licensed financial advisors who specialize in understanding federal benefits.

[@ronaldfarson]

very helpful video - however the music is too loud!

[@johnmcgovern5662]

No music...awful distraction...

[@heidia3586]

I currently receive a 15% retention bonus on top of my basic pay. Does retention get factored into the hi-3 salary?

[@ivanlaboy]

This kind of video does not need music. For next time have it in mind.

[@shazam67]

I'm looking at my MIL's pension statement from the OPM. It shows (average high 3 salary) X 0.011 multiplier X (years and months of service). This all makes perfect sense, to this point. But the kicker is the fourth line in the formula then shows X 0.99 with no explanation or footnote (reducing her benefits by 0.01). Anybody have any idea what the 0.99 is?

[@asiatic1976]

Imagine being 47 years old with 20 years of federal service who recently resigned from the government. 100% service connected veteran and currently working a civilian job that brings in $84,000 yearly. Is it worth it to wait to I’m 62 years old to receive my pension or should I just get the refund now to roll into my 401k?

[@delpurslow1180]

Do your years of service start when you walk in the door as a PTF or when you become regular?

[@planyourfederalretirement]

This will depend on your agency. I would recommend you look on your Leave and Earnings statements to check if you are contributing to FERS, as well as confirm by looking on your SF 50.

[@jeffpadilla9891]

You do know that GRB has retirement calculators on it.

[@SaL-ep7zb]

I have a co worker that's getting ready to retire soon, I believe she worked for more than 40 years of federal service. My understanding is they calculate her FERS pension by calculating her 3 highest earning yers and 1.1% of that times the number of years you worked for federal service, MY QUESTION IS is there a cap to the number of years you've worked you can add ? I believe my co worker is being told there is since she worked over 35 years I believe close to 40yrs and I believe all 40 years aren't being added to her calculation. Can you please clarify?

[@Winchester1906]

under cers yes,41 0r 42 i believe, under fers no limit. work as long as you want. for me as a mailman right now every extra year add around 55 dollars extra a month.

[@danbriones9008]

the limit is 40 years. you can work 50 or more years but your fed service is capped at 40

[@ZOANOM]

@@danbriones9008 wrong. FERS has no limit.

[@CLGill36]

Really wish you guys would eliminate the background music. Pretty please with sugar on top!!

[@bryonfaust5243]

Where do I find out the CORRECT SALARY NUMBER to use?? My paystub has one number. W-2 salary number is different. Tax form number is same as w-2 number. Where can the CORRECT SALARY VALUE be found??

[@epauloconnor]

The background music in this video, is too loud. Your voice is competing with it, instead of the music being background music that compliments your voice. It's damn near in the foreground.

[@Cello69.]

Everyone keeps saying "basic pay". That not the same as "Base pay" correct?

[@planyourfederalretirement]

Your Basic pay generally includes your Base salary plus Locality.

[@mrjumbly2338]

Lose the music, very distracting

[@planyourfederalretirement]

Thank you for the suggestion, we will correct this in the future.

[@timmitchell4633]

GET RID OF THE HORRIBLE AND LOUD MUSIC, all we want to hear is "your voice and the mych needed information" !!!

[@nancyflusa9992]

please cut the loud annoying music

[@kerryp7014]

Doing math on the fly for a retirement video is a big no no