Ask The Experts: Retirement

By Reg Jones

FERS annuity

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Q. I have questions on calculating the FERS annuity.

Assume for simplicity’s sake that my high-3 is $50,000.

When you say years and months, is that decimal — i.e., 20 years and six months would be 20.5? If so, 20 years at age 60 (multiplier of .01) is $10,250 and if 62 (multiplier of .011), $11,275? Second, this is the annual annuity, so the monthly check is that amount divided by 12 or $854.16/ $939.58 per month and then taxes, etc., are deducted? Am I missing anything here?

A. Well done. You are right on all counts.

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  1. TomR Says:
    January 23rd, 2013 at 11:07 am

    …and then lop off 10% if your spouse is getting here full annuity (50%) if you should die first.

  2. Dave Says:
    January 23rd, 2013 at 4:28 pm

    And, if I am not mistaken, should you opt to maintain your FEHB coverage in retirement, your part of the premium will be deducted from the annuity as well.