The Federal Employees Pension System ( FERS ) is a retirement system for employees in the US civil service. FERS effective January 1, 1987 to replace the Civil Servant Pension System (CSRS) and to adjust the federal pension plans that are in line with those in the private sector.
FERS consists of three main components:
- Anniversary FERS, defined benefit plan,
- Mandatory participation in Social Security (most CSRS employees are not part of Social Security and do not pay taxes into the system, nor are they eligible for benefits unless they qualify under private sector employment or are reinstated and covered as CSRS with a Social Security) Offset), and
- The Thrift Savings Plan (TSP), defined contribution plans that operate like 401 (k)
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Transisi dari CSRS ke FERS
Since January 1, 1984, employees with less than 5 years of non-military experience on December 31, 1986 were covered by temporary pension rules in which they were covered by CSRS and Social Security systems. They make payments reductions to CSRS (1.3 percent of income, not the usual 7 percent) and donate all their employees to Social Security. Employees with more than 5 years of non-military service on 31 December 1986 remained below the scope of double benefits unless they chose to switch to FERS between 1 July 1986 and 31 December 1987. Employees covered only by CSRS remain closed unless they choose to switch to FERS.
Maps Federal Employees Retirement System
FERS Annuity
The FERS allowance is based on a certain percentage, multiplied by (a) the length of the Federal employee service eligible for FERS pensions (referred to as "credible Federal services", which may not be the actual Federal working duration) and (b) the annual base salary of the consecutive three consecutive years (usually referred to as the "high-3" period). The "high-3" period is usually, but not necessarily, the last three years of service; for example, an employee who takes voluntary downgrade to avoid power reductions (RIF, layoffs in the case of the private sector) could have a 3-high period in the preceding time frame.
Annuities do not start until a full calendar month has passed since retired employees. Thus, an employee who retires on the last day of the month (June 30, for example) will have his annuity starting on August 1 (since the whole month of July will pass), but a retired employee for one month (July 1, for example) will not have the annuity starts until September 1 (since July will not be a full month pass, but August will).
Eligibility for Social Security benefits and TSP withdrawals are covered by the rules for the plan.
Feasibility for FERS
Most of the new federal employees hired on or after January 1, 1984 are automatically protected by FERS. Those newly hired and certain employees reinstated between 1 January 1984 and 31 December 1986 were automatically converted to coverage under FERS on January 1, 1987. Reemployed federal employees who worked before 31 December 1983 and had 5 years of civil service in December. 31, 1986 can choose between fixed in CSRS or choose FERS within 6 months of rehire. Once an employee is covered by FERS or chooses to switch from CSRS to FERS coverage, the employee remains covered by FERS. Non-Customized Non-Funding Funds from the Department of Defense and Homeland Security participate in a separate pension system, except when maintaining previous coverage under different pension systems after the transfer.
Feasibility for annuity
In order to qualify for standard FERS allowances, an employee must reach the minimum retirement age (MRA) and have a certain number of years of "Federal service laudable". A certain level of military service may be purchased for a certain amount, but the repurchase is optional.
The MRA is based on the employee's birth year as shown in the table below:
For immediate retirement (which begins 30 days after the employee stops working) or a deferred retirement, the employee must fulfill one of the following age combinations and years of creditable service:
Employees in certain cases either forced separation, or voluntary separation during "applicable deductions" may qualify for early retirement. Employees must have service for 25 years at any age, or 20 years of work and 50 years of age. Disability pensions are also a potential choice for eligible federal employees with at least 18 months of service who can no longer perform their duties due to medical disabilities.
Calculation of Annuity FERS
The FERS allowance is calculated on an average "high-3" salary base. It uses your highest payout period, which is 7.7 times the base salary, only with locality only. Years with 27 payment periods have no impact on calculations. The average salary includes all items in which the deduction of the pension is deducted (for example, local payment adjustments and shift differences, but not overtime, bonuses, or hazard payments [additional payments for certain "dangerous" job duties, such as working in combat zones].).
For the majority of FERS employees, an annuity is set up to provide employee incentives to continue working until the age of 62 (which is also the earliest age at which FERS employees can collect Social Security benefits) and calculated as follows:
- For employees who retire on or after the age of 62 with at least 20 years of work, the annuity is 1.1 percent of the average high-3 times the number of years of work.
- For employees who retire before age 62, or on or after the age of 62 with less than 20 years of service, the annuity is 1.0 percent of the average high-3 times the number of years of employment.
Separate calculations exist for certain workers (especially Congressmen or congressional staff, law enforcement officials, firefighters and air traffic control specialists) and for employees transferred from CSRS to FERS.
Married employees will experience an annuity reduced with benefits unless the couple agrees to receive less than full benefits; reduction is based on the survival benefits of survivors.
Employees are eligible for cost of living adjustments (Living Cost Benefit) if they meet certain criteria. The most prominent is retirement after the age of 62 years; most employees who retire before age 62 will not receive COLA until the age of 62 years.
FERCCA Rules
The Federal Disability Defense Protection Act (FERCCA) was signed in September 2000. The Act is designed to provide assistance to federal civil servants who are placed in the wrong pension system for at least three years after 31 December 1986.
FERCCA provides affected employees and annuitants placed in the pension system incorrect opportunities to choose between the Federal Employee Pension System (FERS) and CSRS offset provisions. FERCCA may also provide one or more of the following:
- Reimbursement of certain charges to be paid as a result of coverage error,
- The ability to benefit from certain changes in rules about how some government services are accounted for retirement, and
- The make-up contribution to the Savings Savings Plan and the lost earnings of the contribution
References
External links
- Federal Employee Retirement System (FERS)
- Federal Employee Retirement System: Budget and Trust Funding Problems Congressional Research Services
- Life-Cost Adjustment for Federal Civil Service Service Research Congress
- The Federal Employee Retirement System: Benefits and Financing Reports issued January 30, 2014 Congressional Research Service
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