The government matching portion is dependent on the employee's job classification and is based on actuarial assumptions, and is subject to change.
[3] Unlike TSP, where an employee can choose not to participate and thus not have any withdrawals from salary, FERS contributions are mandatory.
In order to qualify for the standard FERS annuity an employee must have reached a minimum retirement age (MRA) and have a specified number of years of "creditable Federal service".
Disability retirement is also a potential option for eligible federal employees with at least 18 months of service who no longer can perform their duties.
All salaries earned during the "high-3" period are time-weighted, and include COLA's, within-grade (step) increases, and promotions.
Separate calculations exist for certain workers (mainly Members of Congress or congressional staff, law enforcement officers, firefighters and air traffic control specialists) and for employees who transferred from CSRS to FERS.
Disability retirement annuity payments are offset totally by any Social Security disability payments for the first 12 months, and then partially afterwards until age 62; at that time the annuity is treated as if the employee had worked for the entire period of disability (but at the same grade and step, with no within-grade increases or career ladder promotions taken into account), and the "high-3" and resulting annuity is recalculated taking into account any COLA's that would have been earned between the original retirement and age 62.
Per the Comptroller General in a 1945 decision, employees cannot be on "terminal leave" through the date of retirement (except in extenuating circumstances);[13] this is often avoided by the employee being allowed to use up desired leave, but then coming into work on his/her final work day for out-processing tasks (turn in of badge and computer equipment, etc.)
If the employee/retiree did not designate any beneficiary(ies), then the "statutory order of precedence"[15] is used, as follows: The Federal Erroneous Retirement Coverage Corrections Act (FERCCA) legislation was signed in September 2000.
It was designed to provide relief to federal civilian employees who were placed in the wrong retirement system for at least three years of service after December 31, 1986.