Changes

*The FERS [[annuity]] (a defined-benefit [[pension]] plan, similar to CSRS but at a much lower benefit, and also requiring longer tenure for a higher pension in most cases),

*The FERS [[annuity]] (a defined-benefit [[pension]] plan, similar to CSRS but at a much lower benefit, and also requiring longer tenure for a higher pension in most cases),

*Mandatory participation in [[Social Security]] (CSRS employees do not participate in Social Security unless they also had private sector employment, and in those cases are generally subject to significant reductions), and

*Mandatory participation in [[Social Security]] (CSRS employees do not participate in Social Security unless they also had private sector employment, and in those cases are generally subject to significant reductions), and

*Participation in the [[Thrift Savings Plan]] (TSP, a defined-benefit contribution plan) with agency automatic and matching contributions; CSRS employees may participate in TSP but do not receive agency automatic or matching contributions).

*Participation in the [[Thrift Savings Plan]] (TSP, a defined-benefit contribution plan) with agency automatic and matching contributions; CSRS employees may participate in TSP but do not receive agency automatic or matching contributions.

==FERS Annuity==

==FERS Annuity==

*Age 62, 5 years of service

*Age 62, 5 years of service

*Age 60, 20 years of service (but a deferred annuity is unavailable under this combination)

*Age 60, 20 years of service (but a deferred annuity is unavailable under this combination)

*"Minimum Retirement Age" (MRA)<ref>The MRA ranges between 55 and 57 and is based on the employee's birth year, for a chart see https://www.opm.gov/retirement-services/fers-information/eligibility/.  For example, an employee born in 1965 has a MRA of 56 years and two months; thus a person born on June 3, 1965 with the required number of years of service is eligible to retire on August 3, 2021.</ref>, 30 years of service

*"Minimum Retirement Age" (MRA),<ref>The MRA ranges between 55 and 57 and is based on the employee's birth year, for a chart see https://www.opm.gov/retirement-services/fers-information/eligibility/.  For example, an employee born in 1965 has a MRA of 56 years and two months; thus a person born on June 3, 1965 with the required number of years of service is eligible to retire on August 3, 2021.</ref> 30 years of service

*MRA, 10 years of service (but if having less than 30 years of service, the annuity is permanently reduced by 5/12 of 1% for each month the employee is under age 62, unless at retirement the employee has 20 years of service and agrees to defer the annuity until age 60)

*MRA, 10 years of service (but if having less than 30 years of service, the annuity is permanently reduced by 5/12 of 1% for each month the employee is under age 62, unless at retirement the employee has 20 years of service and agrees to defer the annuity until age 60)

Certain employees facing involuntary separation<ref>The separation cannot be for misconduct or poor performance.</ref>, or "reductions in force" (RIF, or a layoff in the private sector) may be eligible for early retirement at either age 50 with 20 years service, or any age (not MRA) with 25 years.  Also, disability retirement is potentially available for certain employees who due to illness or injury cannot meet the requirements of their position, the employee must have 18 months service and the agency must certify that the employee cannot be accommodated in his/her current position and was considered for other jobs (at the same grade/pay level) in the commuting area, but could not be placed in them.

Certain employees facing involuntary separation,<ref>The separation cannot be for misconduct or poor performance.</ref> or "reductions in force" (RIF, or a layoff in the private sector) may be eligible for early retirement at either age 50 with 20 years service, or any age (not MRA) with 25 years.  Also, disability retirement is potentially available for certain employees who due to illness or injury cannot meet the requirements of their position, the employee must have 18 months service and the agency must certify that the employee cannot be accommodated in his/her current position and was considered for other jobs (at the same grade/pay level) in the commuting area, but could not be placed in them.

===Annuity Calculation===

===Annuity Calculation===

The annuity for the majority of Federal employees <ref>Different calculations apply for law enforcement officers, firefighters, and air traffic controllers (as these positions have mandatory retirement ages under age 62), and for employees retiring on disability.</ref>is calculated based on three factors:

The annuity for the majority of Federal employees <ref>Different calculations apply for law enforcement officers, firefighters, and air traffic controllers (as these positions have mandatory retirement ages under age 62), and for employees retiring on disability.</ref> is calculated based on three factors:

*The employee's "high-3" salary (the average salary for the highest 36 consecutive months of pay),

*The employee's "high-3" salary (the average salary for the highest 36 consecutive months of pay),

*A specified percentage (either 1% or 1.1% in most cases), and

*A specified percentage (either 1% or 1.1% in most cases), and

The system is structured to provide employees an incentive to continue working until age 62 (the earliest date at which an employee can also obtain Social Security benefits), as the annuity percentage is 1.1% for employees age 62 or older with at least 20 years service, and 1% for all others.  Also most employees retiring before age 62 will not receive a cost of living increase until age 62 (except for occupations where the mandatory retirement age is under 62, or employees retiring on disability).

The system is structured to provide employees an incentive to continue working until age 62 (the earliest date at which an employee can also obtain Social Security benefits), as the annuity percentage is 1.1% for employees age 62 or older with at least 20 years service, and 1% for all others.  Also most employees retiring before age 62 will not receive a cost of living increase until age 62 (except for occupations where the mandatory retirement age is under 62, or employees retiring on disability).

Although unused sick leave is added to "creditable Federal service"<ref>The conversion is based on a chart, where 2,087 hours equals one full year, for an example of the chart see http://www.federalretirement.net/sickleavechart.htm.  If actual unused sick leave falls between two amounts, the higher amount is used.</ref>, it cannot be used to increase the service time so as to make an employee eligible for retirement and/or eligible for the increased 1.1% percentage.

Although unused sick leave is added to "creditable Federal service",<ref>The conversion is based on a chart, where 2,087 hours equals one full year, for an example of the chart see http://www.federalretirement.net/sickleavechart.htm.  If actual unused sick leave falls between two amounts, the higher amount is used.</ref> it cannot be used to increase the service time so as to make an employee eligible for retirement and/or eligible for the increased 1.1% percentage.

The actual calculation of creditable service adds years, months, and days separately for civilian employment, military employment repurchased, and unused sick leave.  Days are then converted to months using 30 days as one month, with any remaining days dropped.

The actual calculation of creditable service adds years, months, and days separately for civilian employment, military employment repurchased, and unused sick leave.  Days are then converted to months using 30 days as one month, with any remaining days dropped.

No other types of earned leave are factored into the annuity calculation.  Unused annual leave hours are "cashed out" (paid to the employee, at his/her rate of pay as if the employee remained on the payroll until the leave was used; if a COLA takes place during that time, any leave that would have been taken after that effective date is paid at a higher rate).<ref>For OPM rules on annual leave at separation from Federal service see https://www.opm.gov/policy-data-oversight/pay-leave/leave-administration/fact-sheets/lump-sum-payments-for-annual-leave/</ref>  Where applicable, earned but unused credit hours are also cashed out upon retirement at the same rate as annual leave.<ref>For OPM rules on credit hours at separation from Federal service see https://www.opm.gov/policy-data-oversight/pay-leave/work-schedules/fact-sheets/credit-hours-under-a-flexible-work-schedule/ then click on topic titled "What Happens to Earned Credit Hours if an Employee Leaves Federal Employment or Transfers to Another Federal Department or Agency?"</ref>  Other types of unused leave (such as compensatory time off for travel outside normal duty hours, and time off awards given in lieu of cash) are not paid and are thus lost if not used before retirement.<ref>For OPM rules on travel compensatory leave see https://www.opm.gov/policy-data-oversight/pay-leave/pay-administration/fact-sheets/compensatory-time-off-for-travel-questions-answers-to-fact-sheet/ then click on topic titled "Q27. What happens to an employee's unused compensatory time off for travel upon separation from Federal service?"</ref><ref>For OPM rules on time off awards see https://www.opm.gov/policy-data-oversight/performance-management/performance-management-cycle/rewarding/time-off-awards/</ref>

No other types of earned leave are factored into the annuity calculation.  Unused annual leave hours are "cashed out" (paid to the employee, at his/her rate of pay as if the employee remained on the payroll until the leave was used; if a COLA takes place during that time, any leave that would have been taken after that effective date is paid at a higher rate).<ref>For OPM rules on annual leave at separation from Federal service see https://www.opm.gov/policy-data-oversight/pay-leave/leave-administration/fact-sheets/lump-sum-payments-for-annual-leave/</ref>  Where applicable, earned but unused credit hours are also cashed out upon retirement at the same rate as annual leave.<ref>For OPM rules on credit hours at separation from Federal service see https://www.opm.gov/policy-data-oversight/pay-leave/work-schedules/fact-sheets/credit-hours-under-a-flexible-work-schedule/ then click on topic titled "What Happens to Earned Credit Hours if an Employee Leaves Federal Employment or Transfers to Another Federal Department or Agency?"</ref>  Other types of unused leave (such as compensatory time off for travel outside normal duty hours, and time off awards given in lieu of cash) are not paid and are thus lost if not used before retirement.<ref>For OPM rules on travel compensatory leave see https://www.opm.gov/policy-data-oversight/pay-leave/pay-administration/fact-sheets/compensatory-time-off-for-travel-questions-answers-to-fact-sheet/ then click on topic titled "Q27. What happens to an employee's unused compensatory time off for travel upon separation from Federal service?"</ref><ref>For OPM rules on time off awards see https://www.opm.gov/policy-data-oversight/performance-management/performance-management-cycle/rewarding/time-off-awards/</ref>

Generally, an employee has the right to determine his/her "date of final separation" (i.e. the last day on the payroll; it does not have to be the final working day in a pay period<ref>However, an employee leaving service during a pay period will not earn annual leave or sick leave for that period.</ref>), but an employee cannot be on leave on that date<ref>A common trick is for an employee to take substantial leave -- generally sick leave in excess of what is needed to obtain additional time toward the annuity, or compensatory or awarded leave which is not paid out at separation -- until the final day, then come into the office on that day for out processing.</ref>; the following day is the employee's retirement date.  The annuity does not begin until '''''one full calendar month''''' has passed since the employee's retirement.  Thus, an employee retiring on June 30 will have his/her annuity begin on August 1 (as the employee will be retired beginning July 1 and for the entire month of July), but an employee retiring on July 1 will not have his/her annuity begin until September 1 (as the employee will be retired beginning July 2 but not for the entire month of July, only in the following month -- August -- will the employee be retired for an entire month).  Thus, it is common for employees to retire on the last day of the month, and more common for the date to be December 31 (as employees commonly use little or no annual leave in the final year, which added to their carryover balance from the prior year -- 240 hours for most employees -- provides a large lump-sum in January of the following year).

Generally, an employee has the right to determine his/her "date of final separation" (i.e. the last day on the payroll; it does not have to be the final working day in a pay period<ref>However, an employee leaving service during a pay period will not earn annual leave or sick leave for that period.</ref>), but an employee cannot be on leave on that date;<ref>A common trick is for an employee to take substantial leave -- generally sick leave in excess of what is needed to obtain additional time toward the annuity, or compensatory or awarded leave which is not paid out at separation -- until the final day, then come into the office on that day for out processing.</ref> the following day is the employee's retirement date.  The annuity does not begin until '''''one full calendar month''''' has passed since the employee's retirement.  Thus, an employee retiring on June 30 will have his/her annuity begin on August 1 (as the employee will be retired beginning July 1 and for the entire month of July), but an employee retiring on July 1 will not have his/her annuity begin until September 1 (as the employee will be retired beginning July 2 but not for the entire month of July, only in the following month—August—will the employee be retired for an entire month).  Thus, it is common for employees to retire on the last day of the month, and more common for the date to be December 31 (as employees commonly use little or no annual leave in the final year, which added to their carryover balance from the prior year—240 hours for most employees—provides a large lump-sum in January of the following year).

Married employees must agree to provide spouses (or former spouses, in some cases), a survivor annuity (which pays a lower portion of salary to the surviving spouse or former spouse), unless the current or former spouse affirmatively consents in writing to forego the annuity.<ref>The only exception is if the current or former spouse cannot be located.</ref>  Survivor annuities are also available for other persons, whether or not related by blood or marriage, but the person must provide proof of insurability.  The standard survivor annuity for a spouse is 50% of the retiree's annuity (before a 10% reduction to pay for that annuity) but other options are available.

Married employees must agree to provide spouses (or former spouses, in some cases), a survivor annuity (which pays a lower portion of salary to the surviving spouse or former spouse), unless the current or former spouse affirmatively consents in writing to forego the annuity.<ref>The only exception is if the current or former spouse cannot be located.</ref>  Survivor annuities are also available for other persons, whether or not related by blood or marriage, but the person must provide proof of insurability.  The standard survivor annuity for a spouse is 50% of the retiree's annuity (before a 10% reduction to pay for that annuity) but other options are available.