| RETIREMENT
CALCULATION EXAMPLES FOR NAATS A-76 ACTIVITIES
|
| Age & Service |
Action |
Retirement System |
| |
|
Civil Service Retirement System (CSRS) |
Federal Employees
Retirement System (FERS)* |
| Age 50 with 20 years of "Good time" |
Voluntary Retirement
NOTE: Discontinued Service
Retirement (DSR) or Voluntary Early Retirement Authority
(VERA) does not apply in this case. |
* Guaranteed
50% high three average salary; OR annuity computed as follows:
1.5% x high 3 average salary x 5 years of service PLUS 1.75% x
high 3 average salary for years of service between 5 and 10 years
and 2.0% high-3 x all remaining years and months of service, including
credit for unused sick leave. |
1.7% x high 3 average salary x 20 years of service PLUS
1 % x high 3 average salary for years and months of service over
20 years.
Retiree annuity supplement is payable immediately.
|
Age 50 with 20 years of total service
(Not good time) |
Discontinued Service Retirement (DSR) or
Voluntary Early Retirement Authority (VERA) |
Basic annuity computed as follows: 1.5% x high 3 average
salary x first 5 years of service PLUS 1.75% x high 3 average salary
x the years of service between 5 and 10 years PLUS 2.0% x high 3
average salary x all service over 10 years.
Basic annuity is reduced by 2% for each year that the employee
is under age 55
|
If the employee is under age 62 or age 62 or older with
less than 20 years of total service, the formula is 1% x high 3
average salary x years and months of service.
If the employee is at least age 62 and has 20 or more years of
total service the formula is 1.1% x high 3 average salary x years
and months of service.
Retiree annuity supplement is payable when the employee reaches
Minimum Retirement Age
|
| Any age with 25 years of "Good Time" |
Voluntary
NOTE: Discontinued Service Retirement (DSR) or Voluntary Early
Retirement Authority (VERA) does not apply in this case. |
* Guaranteed 50% high three average salary; OR annuity
computed as follows:
1.5% x high 3 average salary x 5 years of service PLUS 1.75% x high
3 average salary for years of service between 5 and 10 years and
2.0% high-3 x all remaining years and months of service, including
credit for unused sick leave. |
1.7% x high 3 average salary x 20 years of service PLUS
1 % x high 3 average salary for years and months of service over
20 years.
Retiree annuity supplement is payable immediately.
|
| Any age with 25 years of total service (Not
good time) |
Discontinued Service Retirement (DSR) or Voluntary Early
Retirement Authority (VERA) |
Basic Annuity - 1.5% x high 3 average salary x the first
5 years of service PLUS 1.75% x high 3 average salary x the years
of service between 5 and 10 years PLUS 2.0% x high 3 average salary
x all service over 10 years.
The annuity is reduced by 1/6 of 1% for each full month the
employee is under age 55. The reduction is permanent
|
If the employee is under age 62 or age 62 or older with
less than 20 years of total service, the formula is 1% x high 3
average salary x years and months of service. If the employee is
at least age 62 and has 20 or more years of total service the formula
is 1.1% x high 3 average salary x years and months of service.
Retiree annuity supplement is payable when the employee reaches
Minimum Retirement Age |
| Under age 50 with less than 20 years of total service
or any age with less than 25 years of total service |
Involuntary Separation |
Either a deferred annuity or severance pay |
Either a deferred annuity or severance pay |
| Note: The CSRS
annuity consists only of the amount determined by the above formula.
CSRS employees may contribute up to 9% of basic pay into the Thrift
Savings Plan (TSP), but receive no matching agency contribution.
The FERS annuity consists of the sum of each of these three parts,
and is portable:
- Social Security Benefits - participants
pay full Social Security taxes
- Basic Benefit Plan - participants pay a small percentage of
their basic pay into the plan (as depicted in the chart)
- Thrift Savings Plan - participants may elect to contribute
up to 14% of their basic pay into their TSP. Agencies match
contributions according to a pre-determined formula.
* April 7, 2004 |
