Federal Employee Retirement System (FERS)
The Federal Employee Retirement System (FERS) is commonly referred to as the “new system”. Employees under FERS were hired on or after January 1, 1987. Under this retirement system, employees participate in the FERS pension available at retirement.
FERS employees are eligible to participate in the Thrift Savings Program (the Federal government’s 401(k)), and may receive up to a 5% match on their contributions. FERS employees also contribute to Social Security and may receive benefits as early as age 62, if they meet the eligibility requirements. For those FERS employees retiring before age 62, the Special Retirement Supplement is available. This benefit is only for FERS retirees and ends at age 62.
Although FERS pensions are smaller than their CSRS counterparts, FERS retirees have 2 other sources of retirement income to make up the gap. These are the Thrift Savings Plan and Social Security. It is important to understand these programs and how they affect your retirement picture along with the FERS pension.
To learn more about the FERS retirement system, see the following pages: