FERSÂ stands for the Federal Employees Retirement System. Congress created the system in 1986 and it came into effect January 1, 1987. FERS is a retirement plan that provides federal employees with benefits from three sources. These sources are Social Security, a Basic Benefit Plan and the Thrift Savings Plan. A FERS Retirement Calculator can help you with your future planning. The Social Security and the Thrift Savings Plan can be taken with you to your next job if you cease working for the federal government prior to your retirement.
The Social Security and the Basic Benefits parts of FERS are taken from your pay cheque each pay period. This is your part of the payment into these plans. The government also pays into these plans each pay period. Once you retire, you will receive monthly annuity payments for the rest of your life.
The government sets up a Thrift Savings Plan account for you when you start working for them. Each pay period the government adds to the account. They essentially add 1% of your pay into the account each pay period. You may also add your own funds to the account and the government will match your contribution. These contributions are tax deferred. The Federal Retirement Thrift Investment Board administers the Thrift Savings Plan.
Unlike other retirement calculators, the FERS retirement calculator is not easily found to the average person. There are versions available online but you require a password to access them. Access to one can be found on the USGS website. You must be registered and then logged in to be able to access the FERS Estimator or FERS retirement calculator.
In order to get a FERS estimate you will need to provide some basic information. They will ask for your date of birth, service computation date, high three salary, if you desire survivor benefits and the date you wish to retire. Yo
u will then be provided with an estimate for your eventual retirement.