CSRS FERS
 Computation of Disability Retirement Benefits 

Chapter 61
 

Important Notice 

A series of court cases have changed the way the Office of Personnel Management (OPM) 

calculates disability annuities and survivor annuities that are based in whole or in part on service 

in positions that are usually tied to higher retirement deduction rates and to higher annuity accrual 

rates. Benefits Administration Letter (BAL) 10-105, Enhanced Disability and Survivor 

Annuity Computations Under CSRS and FERS, July 7, 2010, provides information and 

guidance relating to those changes. The information in BAL 10-105 applies to both disability 

claims and survivor annuity claims (based on a death-in-service) under the Civil Service 

Retirement System (CSRS) and under the Federal Employees Retirement System (FERS) that 

involve employees who have performed service in the following positions: 

 Law Enforcement Officer, Firefighter, and Nuclear Materials Courier, that is qualifying for 

retirement under 5 U.S.C. § 8336(c) or § 8412(d); 

 Custom and Border Protection Officer that is qualifying for retirement under 5 U.S.C. 

§ 8336(c) or § 8412(d); 

 Member of the Supreme Court Police; 

 Member of the Capitol Police; and 

 Air Traffic Controller that is qualifying for retirement under 5 U.S.C. § 8336(e) or § 8412(e). 

The information in BAL 10-105 supersedes the information in chapters 61 and 70 of the CSRS 

and FERS Handbook that references disability and survivor annuity computations for the 

employees working in positions listed above. It also supersedes the guidance provided in BAL 

95-106, dated October 20, 1995, and BAL 02-104, dated May 10, 2002. 

Click here to read BAL 10-105. 
CSRS Computation of Disability Retirement Benefits i 


 

FERS 

Chapter 61

Table of Contents 

Subchapter 61A CSRS 

Part 61A1 General Information 

Section 61A1.1-1 Overview ...................................... 1
 

A. Introduction .............................................. 1
 

B. Topics Covered ............................................ 1
 

C. Organization of Subchapter .................................... 1
 

D. Statement of Authority ....................................... 1
 

Section 61A1.1-2 Applicability of Chapter 50 .......................... 2
 

A. General ................................................. 2
 

Part 61A2 Computation of a Disability Annuity 

Section 61A2.1-1 Disability Computation ............................. 3
 

A. General ................................................. 3
 

B. Earned Annuity Computation ................................... 3
 

C. Guaranteed Minimum Annuity Computation ......................... 3
 

D. When the Guaranteed Minimum Annuity Offers No Advantage ............. 4
 

E. Unused Sick Leave .......................................... 4
 

F. Sample Computations ........................................ 4
 

Section 61A2.1-2 Reductions in Annuity .............................. 6
 

A. General Rule .............................................. 6
 

B. Unpaid Deposits ........................................... 6
 

C. Reduction for Survivor Annuity ................................. 7
 

D. Other Reductions ........................................... 7
 

Section 61A2.1-3 Effect of Military Retired Pay/VA Compensation on 

Disability Retirement Benefits .................................. 8
 

A. General Rule .............................................. 8
 

B. Exception ................................................ 8
 

C. Waiver of Military Retired Pay .................................. 8
 

Section 61A2.1-4 CSRS Offset Employees ............................ 9
 

A. General Rule .............................................. 9
 

B. Exception: Offset if Entitled to Disability Payments from Social Security < ..... 9
 

CSRS and FERS Handbook April, 1998 
ii CSRS Computation of Disability Retirement Benefits FERS 

Chapter 61
 

Subchapter 61B FERS 

Part 61B1 General Information 

Section 61B1.1-1 Overview ...................................... 10
 

A. Introduction .............................................. 10
 

B. Organization of Subchapter .................................... 10
 

C. Statement of Authority ....................................... 10
 

Section 61B1.1-2 Applicability of Chapter 50 .......................... 11
 

A. General ................................................. 11
 

Part 61B2 Computation of a Disability Annuity 

Section 61B2.1-1 Introduction .................................... 12
 

A. Introduction .............................................. 12
 

B. Transferees ............................................... 12
 

Section 61B2.1-2 Average Salary .................................. 13
 

A. Applicable CSRS Provisions .................................... 13
 

B. Noncreditable Service ........................................ 13
 

C. Less Than 3 Years of Service or Total Service Average Salary ............. 13
 

Section 61B2.1-3 Disability Computation for Individuals Who Are Under Age 62

 at Retirement and Ineligible for Voluntary Retirement ................. 14
 

A. General ................................................. 14
 

B. Benefits Payable in the First 12 Months ............................ 14
 

C. Benefits Payable After the First 12 Months .......................... 14
 

D. Recomputation at Age 62 ...................................... 15
 

Section 61B2.1-4 Disability Computation for Individuals Who Are Age 62 or 

Older at Retirement or Who Are Eligible for Voluntary Retirement ........ 17
 

A. General Rule .............................................. 17
 

B. Formula ................................................. 17
 

Section 61B2.1-5 Reduction for Survivor Annuity ....................... 18
 

A. Rule ................................................... 18
 

B. Application of Reduction for Survivor Annuity ........................ 18
 

C. Elimination of Reduction for Survivor Annuity ........................ 18
 

D. Amount of Survivor Annuity ................................... 18
 

E. Insurable Interest Annuity ..................................... 19
 

April, 1998 CSRS and FERS Handbook 
 CSRS Computation of Disability Retirement Benefits FERS iii
 

Chapter 61
 

Section 61B2.1-6 Miscellaneous ................................... 20
 

A. Cost-of-Living Adjustments (COLA's) ............................. 20
 

B. Retiree Annuity Supplement .................................... 20
 

C. Alternative Annuity ......................................... 20
 

D. Receipt of Military Retired Pay/VA Compensation ..................... 20
 

Subchapter 61C Sample Computations and Worksheets
 

Section 61C1.1-1 Computation Worksheets for Local Reproduction ............... 21
 

This section contains the following worksheets:
 

!	 CSRS Disability Annuity Computation Annuity .............................. 22
 

!	 FERS Disability Annuity Computation Annuity
 

- Basic Earned Annuity Computation Annuity ............................. 24
 

- Transferee Basic Earned Annuity Computation Annuity ..................... 25
 

- Benefits Payable in First 12 Months Annuity ............................ 26
 

- Benefits Payable After the First 12 Months Annuity ........................ 27
 

- Basic Annuity Recomputation at Age 62 Annuity ......................... 29
 

- Transferee Basic Annuity Recomputation at Age 62 Annuity .................. 30
 

- Survivor Annuity Computation Annuity ............................... 31
 

Section 61C1.1-2 Sample Computations ................................. 32
 

Example 1: CSRS Disability Retirement -- Earned Annuity .................. 33
 

Example 2: CSRS Disability Retirement -- Guaranteed Minimum
 

(Projected Annuity) ................................... 38
 

Example 3: CSRS Disability Retirement -- Guaranteed Minimum
 

(40 Percent Annuity) .................................. 43
 

Example 4: CSRS Disability Retirement -- Guaranteed Minimum
 

(Projected Annuity with Refund) ........................... 48
 

Example 5: CSRS Disability Retirement -- Guaranteed Minimum
 

(40 Percent Annuity with Refund) .......................... 57
 

Example 6: CSRS Disability Retirement -- Guaranteed Minimum
 

(40 Percent Annuity, CSRS Offset Employee) 66
 

Example 7: FERS Average Salary -- Less than 3 Years of Service ............. 75
 

Example 8: FERS Disability Retirement .............................. 78
 

Example 9: FERS Disability Retirement--Social Security Offset ............... 89
 

Example 10: FERS Disability Retirement -- Transferee With CSRS
 

Component ......................................... 99
 

Example 11: FERS Disability Retirement -- Transferee With CSRS
 

Component Entitled to Earned Annuity ..................... 112
 

Example 12: FERS Disability Retirement -- Employee Age 62,
 

Earned Annuity Payable ............................... 125
 

Example 13: FERS Disability Retirement -- Transferee Eligible 

for Unreduced Voluntary Retirement, Earned
 

Annuity Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
 

CSRS and FERS Handbook	 April, 1998 
 CSRS Computation of Disability Retirement Benefits 1 

Chapter 61 

Subchapter 61A CSRS 

Part 61A1 General Information 

Section 61A1.1-1 Overview 

A.	 Introduction This subchapter contains the rules and procedures that apply to the 

computation of a disability annuity under CSRS. 

Subchapter 61C provides illustrations of actual computations. 

B. Topics Covered	 This subchapter covers: 

•	 The formula used to compute a disability annuity under CSRS; 

• The reductions that may be applied to a CSRS disability annuity; and 

•	 The effect of military retired pay and VA compensation on disability 

retirement benefits. 

C. Organization of The CSRS subchapter has two parts. 

Subchapter 

Part Name of Part Page 

61A1 General Information 1 

61A2 Computation of a Disability 

Annuity 

3 

NOTE: Subchapter 61B about the completion of disability annuities under 

FERS begins on page 10. 

D.	 Statement of 

Authority 

This subchapter is based on the laws and regulations cited below. 

•	 United States Code: 5 U.S.C. 8339 

•	 Code of Federal Regulations: 5 CFR Part 831 

CSRS and FERS Handbook	 April, 1998 
2 CSRS Computation of Disability Retirement Benefits 

Chapter 61 

Section 61A1.1-2 Applicability of Chapter 50 

A.	 General There are several components to the basic annuity. These components are 

discussed in detail in Chapter 50, Computation of Annuity under the 

General Formula. Certain components are common to all annuity 

computations, including the computation of a disability annuity. 

The following provisions of Chapter 50, part 50A2, apply in the 

computation of a disability annuity. 

• Section 50A2.1-3: Computing Length of Service Period(s) 

• Section 50A2.1-4: High-3 Average Salary 

• Section 50A2.1-5: Basic Pay Rates 

April, 1998	 CSRS and FERS Handbook 
 CSRS Computation of Disability Retirement Benefits 3 

Chapter 61 

Part 61A2 Computation of a Disability Annuity 

Section 61A2.1-1 Disability Computation 

A.	 General A CSRS disability annuitant receives the higher of: 

1.	 The amount obtained under the general formula for computing the basic 

annual annuity (the "earned annuity"); or 

2.	 The "guaranteed minimum" disability annuity. 

The formulas and how they are applied are discussed in the paragraphs that 

follow. 

B.	 Earned Annuity The amount of annuity under the general formula or the "earned annuity" is 

Computation computed for most employees as follows: 

1.	 1.5 percent x high-3 average salary x first 5 years of service; plus 

2.	 1.75 percent x high-3 average salary x years of service between 5 and 

10 years; plus 

3.	 2 percent x high-3 average salary x years of service over 10 years. 

NOTE 1:	 This formula does not apply for a law enforcement 

officer, firefighter, or air traffic controller retiring on disability 

if the individual is eligible for optional retirement under the 

special annuity provisions provided for such employees. 

This formula does not apply for retiring United States 

magistrates or Court of Claims and bankruptcy judges, or for 

individuals retiring with 5 or more years of service as a 

congressional employee or Member of Congress. 

NOTE 2:	 See Chapter 50 for additional information about annuities 

computed under the general formula. 

C. Guaranteed 

Minimum 

Annuity 

Computation 

The guaranteed minimum disability annuity is the lesser of the two 

following amounts: 

1. 40 percent x high-3 average salary (which provides an individual with 

an annuity as if he or she worked 21 years and 11 months); or 

CSRS and FERS Handbook	 April, 1998 
4 CSRS Computation of Disability Retirement Benefits 

Chapter 61 

Section 61A2.1-1 Disability Computation (Cont.) 

C.	 Guaranteed 

Minimum 

Annuity 

Computation 

(Cont.) 

D.	 When the 

Guaranteed 

Minimum 

Annuity Offers 

No Advantage 

2.	 The amount obtained under the general formula after increasing the 

actual years, months, and days of service by the total years, months, 

and days remaining from the commencing date of the employee's 

annuity through the date he or she becomes age 60. 

EXAMPLE: If Roland had been employed for 14 years before becoming 

disabled at age 48, add 12 years to the 14 years of service (60 - 48 = 12 

additional years) to obtain the total years of service (26) to be used for 

comparison purposes. 

In this example, 40 percent of the high-3 average salary is less than the 

annuity projecting service to age 60, so the benefit would be based on the 

40-percent computation. 

Because of the percentage and age limitations on the guaranteed minimum 

annuity, it offers no advantage to a retiring employee if he or she: 

1.	 Has completed sufficient creditable service to yield a 40% earned 

annuity, normally 21 years and 11 months of creditable service if no 

deposit or redeposit is involved; or 

2.	 Is age 60 or older. 

Employees who fall into either of the above categories generally receive 

disability benefits based on the earned annuity computation. 

E. Unused Sick 

Leave 

In the case of a disability retiree, the employee may choose, at time of 

approval of disability retirement, to credit the unused sick leave for 

retirement purposes or to postpone separation until all or any portion of 

leave has been used. 

F.	 Sample Subchapter 61C provides the following sample calculations to demonstrate 

Computations the application of the CSRS disability annuity computation. 

•	 CSRS Disability Retirement--Earned Annuity 

•	 CSRS Disability Retirement--Guaranteed Minimum (Projected Annuity) 

•	 CSRS Disability Annuity--Guaranteed Minimum (40-Percent Annuity) 

April, 1998	 CSRS and FERS Handbook 
 CSRS Computation of Disability Retirement Benefits 5 

Chapter 61 

Section 61A2.1-1 Disability Computation (Cont.) 

F.	 Sample • CSRS Disability Annuity--Guaranteed Minimum (Projected Annuity 

Computations with Redeposit) 

(Cont.) 

•	 CSRS Disability Annuity--Guaranteed Minimum (40-Percent Annuity 

with Redeposit) 

CSRS and FERS Handbook	 April, 1998 
6 CSRS Computation of Disability Retirement Benefits
 

Chapter 61
 

Section 61A2.1-2 Reductions in Annuity 

A.	 General Rule As explained below, a disability annuity computed under the provisions of 

section 61A2.1-1 may be reduced. The reductions, if applicable, are taken 

in the following order: 

•	 Reduction for unpaid deposit(s) for nondeduction service performed 

prior to October 1, 1982; 

•	 Reduction to provide a survivor annuity, pursuant to a voluntary 

election or qualifying court order. 

B.	 Unpaid Deposits 1. Employees who receive disability retirement benefits based on their 

"earned annuity" (section 61A2.1-1, paragraph B): 

If the employee has creditable service before October 1, 1982, during 

which no retirement deductions were withheld and for which a deposit 

(including interest) has not been paid, the annual disability annuity is 

reduced by 10 percent of the total deposit due. 

The Omnibus Budget Reconciliation Act of 1990 (OBRA) permits an 

actuarial annuity reduction as an alternative to paying a redeposit for 

period of refunded service under CSRS ending prior to October 1, 

1990. OBRA specifically excludes individuals retiring on disability 

from this provision. 

2.	 Employees whose disability retirement benefits are computed under the 

guaranteed minimum formula (section 61A2.1-1, paragraph C); 

If the disability annuity is computed under the guaranteed minimum 

formula, it may not be necessary for the employee to make the deposit 

to avoid the reduction in annuity. This is because the guaranteed 

minimum annuity may equal the 40-percent limit whether or not the 

deposit is paid. 

Payment or nonpayment of the deposit affects the portion of the 

guaranteed minimum formula that is computed under the general 

formula after projecting service until age 60. If the projected annuity 

without a deposit payment already exceeds the 40-percent annuity, the 

employee should not make the deposit. The deposit would have no 

effect on the amount of the disability benefit payable since the 

guaranteed minimum would continue to be the 40-percent benefit. (See 

example in subchapter 61C.) 

April, 1998	 CSRS and FERS Handbook 
 CSRS Computation of Disability Retirement Benefits 7 

Chapter 61 

Section 61A2.1-2 Reductions in Annuity (Cont.) 

B. Unpaid Deposits However, if the projected benefit without a deposit payment is less than the 

(Cont.)	 40-percent benefit, the employee may want to make the deposit to increase 

his or her disability annuity. (See example in subchapter 61C.) 

NOTE: The comparison described in this paragraph also should be made 

in cases involving a redeposit, a deposit for post-1956 military 

service, which cannot be made after separation, and a deposit for 

nondeduction service performed on or after October 1, 1982. If 

the 40-percent annuity is payable, the deposit/redeposit need not 

be made. 

C. Reduction for 

Survivor Annuity 

The rules that apply when a survivor annuity is elected are covered in 

Chapter 50. Section 50A3.1-4 covers: 

•	 The formula to calculate the reduction applied to a retiree's disability 

annuity to provide a survivor annuity; 

•	 The conditions that must be met to eliminate the survivor annuity 

reduction; and 

• The formula to calculate the amount of the survivor annuity. 

NOTE: Disability retirees may not elect an insurable interest annuity. 

D.	 Other Reductions 1. A reduction for retirement before age 55 does not apply unless the 

disability annuity terminates and the individual applies for a 

discontinued service retirement. In such a case, the provisions in 

Chapter 50, section 50A3.1-3, paragraph B, apply. 

2.	 Disability retirees are not eligible to elect the alternative annuity. 

CSRS and FERS Handbook	 April, 1998 
8 CSRS Computation of Disability Retirement Benefits
 

Chapter 61
 

Section 61A2.1-3 Effect of Military Retired Pay/VA Compensation on Disability Retirement 

Benefits 

A.	 General Rule Employees who are receiving military retired pay or compensation from the 

Department of Veterans' Affairs in lieu of military retired pay are not 

eligible for the guaranteed minimum disability annuity computation or to 

have any military service used in the computation of annuity, unless the 

military retired pay was awarded: 

•	 On account of a service-connected disability incurred in combat with an 

enemy of the United States; or 

•	 On account of a service-connected disability caused by an 

instrumentality of war and incurred in the line of duty during a period 

of war; or 

•	 Under the provisions of 10 U.S.C. 12731-12739 (Chapter 1223), which 

grants retired pay to members of the reserve components of the armed 

forces on the basis of age and service (active and reserve). 

NOTE: The procedures for documenting whether the employee's retired 

pay was awarded under one of these exceptions are found in The 

Guide to Processing Personnel Actions (formerly FPM 

Supplement 296-33). 

B.	 Exception If the military retired pay, VA compensation, and the earned annuity 

combined are less than the guaranteed minimum, the CSRS benefit will be 

increased by the dollar amount of the difference. 

C. Waiver of 

Military Retired 

Pay 

A disability annuitant may waive military retired pay and renounce certain 

types of VA benefits and thereby receive credit for military service in the 

computation of his or her disability annuity. 

NOTE 1: Individuals not entitled to military retired pay may receive VA 

benefits and still have the military service credited for CSRS 

retirement purposes. 

NOTE 2: Individuals whose civilian retirement is not based on disability 

need not renounce VA benefits to receive credit for military 

service if they waive military retired pay for CSRS retirement 

purposes. 

April, 1998	 CSRS and FERS Handbook 
 CSRS Computation of Disability Retirement Benefits 9 

Chapter 61 

Section 61A2.1-4 CSRS Offset Employees 

A.	 General Rule The disability annuities for CSRS Offset employees are computed in the 

same manner as if they were covered under CSRS only. 

B.	 Exception: Offset The disability annuity payment is reduced (offset) when the employee 

if Entitled to becomes eligible for Social Security. The offset is applied as of the 1st day 

Disability of the month during which the disability employee: 

Payments from 

Social Security 1. Is entitled to disability annuity under CSRS, and 

2.	 Is entitled, or on proper application would be entitled, to disability 

benefits under Social Security. 

If the employee is not entitled to Social Security disability, there is no offset 

until or unless he or she later becomes entitled to Social Security. 

C.	 Establishing the Two separate computations must be performed to establish the offset 

Offset Amount amount. The offset amount equals the lesser of: 

1.	 the difference between the Social Security monthly benefit amount with 

and without CSRS Offset service (service after December 31, 1983, 

covered under the Interim CSRS provisions or the CSRS Offset 

provisions), or 

2.	 the product of the Social Security monthly benefit amount, with Federal 

earnings, multiplied by a fraction where the numerator is the 

employee's total CSRS Offset service rounded to the nearest whole 

number of years and the denominator is 40. 

Note: See subchapter 61C for an illustration of an offset computation. 

CSRS and FERS Handbook	 April, 1998 
10 CSRS Computation of Disability Retirement Benefits 

Chapter 61 

Subchapter 61B FERS 

Part 61B1 General Information 

Section 61B1.1-1 Overview 

A.	 Introduction Subchapter 61B contains the rules and procedures that apply to the 

computation of a disability annuity under the Federal Employees Retirement 

System (FERS). 

This subchapter explains how FERS differs from CSRS. It refers to the 

applicable CSRS rule or gives the FERS rule if it is different. 

B.	 Organization of The FERS subchapter has two parts. 

Subchapter 

Part Name of Part Page 

61B1 General Information 10 

61B2 Computation of a Disability Annuity 12 

C.	 Statement of 

Authority 

This subchapter is based on the laws and regulations cited below. 

• United States Code: 5 U.S.C. 8452 

• Code of Federal Regulations: 5 CFR Part 844, Subpart C 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits FERS 11 

Chapter 61 

Section 61B1.1-2 Applicability of Chapter 50 

A.	 General The following provisions of Chapter 50, part 50A2, apply in the 

computation of a FERS disability annuity. 

• Section 50A2.1-3: Computing Length of Service Period(s) 

NOTE:	 Paragraph G, dealing with unused sick leave, applies only if 

there is a CSRS component to the FERS disability annuity. 

• Section 50A2.1-5: Basic Pay Rates 

CSRS and FERS Handbook	 April, 1998 
12 CSRS Computation of Disability Retirement Benefits 

Chapter 61 

Part 61B2 Computation of a Disability Annuity 

Section 61B2.1-1 Introduction 

A.	 Introduction Disability benefits under FERS are computed in different ways depending 

on the annuitant's age and service at retirement. In most cases, FERS 

disability retirement benefits are recomputed after the first 12 months and 

again at age 62. 

B.	 Transferees In general, an employee who transfers to FERS is covered by FERS 

disability rules. CSRS service is used to compute disability benefits under 

FERS, not under CSRS. 

EXCEPTION: In computing the annuity payable, certain transferees with 

a CSRS component will receive an "earned" annuity 

(which includes service computed under CSRS rules) 

rather than 60 percent of the high-3 average salary, if the 

earned annuity is the larger benefit. (See sample 

calculation in subchapter 61C.) 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits FERS 13 

Chapter 61 

Section 61B2.1-2 Average Salary 

A.	 Applicable CSRS 

Provisions 

B.	 Noncreditable 

Service 

The procedure to determine a high-3 average salary is found in 

Chapter 50, section 50A2.1-4. With the exception noted in paragraph C 

below, this procedure applies to FERS disability computations. 

Service that is not creditable under FERS (for example, refunded FERS 

service or nondeduction service performed on or after January 1, 1989) may 

not be included in computing the high-3 average salary. (See section 

50B2.1-3, paragraph B.) 

C.	 Less Than 3 

Years of Service 

or Total Service 

Average Salary 

A "total service" average salary is the largest annual rate resulting from 

averaging an employee's rates of basic pay during his or her total period(s) 

of creditable civilian service when it amounts to less than 3 years. 

A "total service" average salary is used to compute a disability annuity 

under FERS when an employee is eligible for disability retirement benefits 

with between 18 and 36 months of creditable service. 

NOTE 1: References in this subchapter to "high-3" average salary may be 

read to include "total service" average salary. 

NOTE 2: See subchapter 61C for an illustration of an average salary 

computation with less than 3 years of total service. 

CSRS and FERS Handbook	 April, 1998 
14 CSRS Computation of Disability Retirement Benefits 

Chapter 61 

Section 61B2.1-3 Disability Computation for Individuals Who Are Under Age 62 at Retirement 

and Ineligible for Voluntary Retirement 

A.	 General In most cases, employees who qualify for disability retirement under FERS 

are under age 62 and ineligible for immediate voluntary retirement. As a 

consequence, their disability annuity is computed under a formula that 

recomputes the annuity after the first 12 months and again at age 62. The 

formula is described in the paragraphs that follow. 

B.	 Benefits Payable For the first 12 months, a disability annuitant receives: 

in the First 12 

Months 60 percent x high-3 average salary 

MINUS 

100 percent of Social Security benefit 

(for any month in which the annuitant is entitled to Social 

Security disability benefits). 

EXAMPLE: Assume Michelle's high-3 average salary at the time of her 

disability is $25,000. Her FERS disability annuity in the first year would 

be $25,000 x 60 percent or $15,000 per year. If Michelle is entitled to 

$7,000 per year in Social Security benefits, her FERS disability annuity 

will be reduced by 100 percent of the Social Security benefit amount 

($15,000 - $7,000 = $8,000). Therefore, during that portion of the first 

year of retirement during which she is entitled to Social Security disability 

benefits, Michelle will receive benefits at the rate of $7,000 per year from 

Social Security and $8,000 per year from FERS. 

NOTE: The employee is entitled to his or her "earned annuity" if it is 

larger than the annuity derived in this paragraph. 

C. Benefits Payable 

After the First 12 

Months 

After the first 12 months, the disability annuitant receives: 

40 percent x high-3 average salary 

MINUS 

60 percent of Social Security benefit 

(for any month in which the annuitant is entitled to Social 

Security benefits). 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits FERS 15 

Chapter 61 

Section 61B2.1-3 Disability Computation for Individuals Who Are Under Age 62 at Retirement 

and Ineligible for Voluntary Retirement (Cont.) 

C.	 Benefits Payable 

After the First 12 

Months (Cont.) 

EXAMPLE: Michelle's FERS disability annuity in the second year will be 

$25,000 x 40 percent or $10,000 per year. If Michelle receives $7,000 per 

year in Social Security disability benefits, her FERS disability annuity will 

be reduced by 60 percent of the Social Security benefit amount ($7,000 x 60 

percent = $ 4,200). Therefore, beginning in the second year of retirement, 

Michelle will receive $7,000 per year from Social Security and $10,000 ­

$4,200 or $5,800 per year from FERS. 

NOTE: The employee is entitled to his or her "earned annuity" if it 

is larger than the annuity derived in this paragraph. See 

example in subchapter 61C. 

D.	 Recomputation at 

Age 62	 

1. The disability annuity is recomputed at age 62 to an amount that 

represents the annuity the individual would have received if he or she 

had continued working until the day before his or her 62nd birthday and 

then retired under FERS non-disability provisions. 

2.	 The total service used in the computation is increased by the amount of 

time the individual received a disability annuity. The high-3 average 

salary is increased by all FERS cost-of-living increases that were 

effective during the time he or she received a disability annuity, 

regardless of whether the retiree's annuity was actually increased by the 

COLA's. 

NOTE: If an annuitant leaves the disability annuity rolls because he or she 

is found recovered or restored to earning capacity and later 

returns to the disability rolls: 

•	 The time spent off the annuity rolls is not included as service 

for annuity computation purposes; and 

•	 Any COLA's that take effect during this time are not used to 

increase the high-3 average salary. 

3.	 The FERS basic annuity formula is then applied, using the adjusted 

time base and average salary. 

CSRS and FERS Handbook	 April, 1998 
16 CSRS Computation of Disability Retirement Benefits 

Chapter 61 

D. Recomputation at 

Age 62 (Cont.) 

4. If an individual who transferred to FERS is eligible for a CSRS 

component, that portion of the benefit is computed under the regular 

CSRS formula, with normal reductions for any deposits and redeposits 

not paid at the time of retirement. Interest stops accruing at the time of 

retirement. The actuarial reduction is not available for any redeposit 

for service that ended before October 1, 1990, because the recomputed 

annuity is still a disability annuity. 

April, 1998 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits FERS 17 

Chapter 61 

Section 61B2.1-4 Disability Computation for Individuals Who Are Age 62 or Older at 

Retirement or Who Are Eligible for Voluntary Retirement 

A.	 General Rule An employee receives an "earned annuity" based on the general FERS 

computation formula if the employee: 

•	 Is 62 years old or older; OR 

•	 Meets the age and service requirements for regular, unreduced 

immediate retirement as described in Chapter 41 (that is, Minimum 

Retirement Age with 30 years, age 60 with 20 years, or age 62 with 5 

years). 

NOTE: An employee who is age 62 and retires on disability with at least 

18 months but less than 5 years of service will receive only the 

earned annuity. See example in subchapter 61C. 

B.	 Formula 1. If the employee has less than 20 years of creditable service or is less 

than age 62 at the date of separation, the following formula is used. 

1 percent x high-3 average salary x years and months

 of FERS service 

2.	 If the employee has at least 20 years of creditable service and is age 62 

or older at the date of separation, the following formula is used. 

1.1 percent x high-3 average salary x years and months 

of FERS service 

NOTE 1: If the employee is eligible for the special formulas that apply to 

law enforcement officers, firefighters, or air traffic controllers, 

consult Chapter 54, Special Computation Formulas for Law 

Enforcement Officers, Firefighters, Air Traffic Controllers, and 

National Guard Technicians, for the computation rules. The 

formula for these special groups of employees uses a 1.7-percent 

factor for the first 20 years and 1 percent for additional years. 

NOTE 2: The above formulas apply only to service credited under FERS 

rules. CSRS computation formulas apply to CSRS component 

service. See part 50B4 in Chapter 50. 

CSRS and FERS Handbook	 April, 1998 
18 CSRS Computation of Disability Retirement Benefits 

Chapter 61 

Section 61B2.1-5 Reduction for Survivor Annuity 

A.	 Rule The basic annual annuity is reduced to provide survivor annuity benefits if 

the employee is married (unless the individual and his or her spouse jointly 

waive the survivor benefit) or if the employee is required by a qualifying 

court order to provide benefits for a former spouse. 

B.	 Application of The procedure to calculate the amount of the reduction for survivor annuity 

Reduction for is the same as the procedure outlined in Chapter 50, section 50B3.1-4, 

Survivor Annuity paragraph B. However, the following special rules apply: 

1.	 The reduction for survivor annuity is applied after the basic annuity is 

offset by any Social Security disability benefits that may be payable. 

2.	 The reduction for survivor annuity is recalculated each time the 

employee's disability annuity is recalculated. 

C. Elimination of 

Reduction for 

Survivor Annuity 

The reduction ends if the marriage terminates before the retired employee 

dies, effective the month following the one in which the marriage ended. 

NOTE: The reduction is not eliminated if the employee is required by 

court order to provide a survivor benefit for his or her former 

spouse. See Chapter 74, Former Spouse Survivor Benefits, for 

additional information. 

D. Amount of	 1. If the disability annuitant dies before reaching age 62, and he or she 

Survivor Annuity	 elected to provide full survivor benefits, the survivor will receive an 

annuity equal to 50 percent of the retiree's basic annuity using the 

"earned annuity" formula (1 percent x high-3 average salary x years and 

months of service). 

•	 The high-3 average salary is increased by all FERS cost-of-living 

adjustments that were effective from the date of retirement to the 

date of death. 

•	 The annuitant's service is increased by the years and months he or 

she was on the annuity rolls plus the years and months between the 

date of death and the date of the annuitant's 62nd birthday. 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits FERS 19 

Chapter 61 

Section 61B2.1-5 Reduction for Survivor Annuity (Cont.) 

D.	 Amount of 2. If the annuitant dies after reaching age 62, and he or she elected to 

Survivor Annuity provide a full survivor benefit, the survivor will receive an annuity 

(Cont.) equal to 50 percent of the unreduced amount that would have been 

payable to the annuitant on his or her date of death. 

NOTE: In the case of either 1 or 2 above, if the annuitant elected to 

provide a partial survivor benefit, the survivor would receive 

an annuity equal to 25 percent of the retiree's basic annuity. 

E.	 Insurable Interest Disability retirees may not elect an insurable interest annuity. 

Annuity 

CSRS and FERS Handbook	 April, 1998 
20 CSRS Computation of Disability Retirement Benefits 

Chapter 61 

Section 61B2.1-6 Miscellaneous 

A.	 Cost-of-Living 1. If the employee is under age 62 at retirement, and the annuity was 

Adjustments computed using 60 percent of the high-3 average salary, no cost-of­

(COLA's) living adjustments (COLA's) are payable for the first 12 months. 

COLA's that occur after this 12-month period are payable. 

2.	 If the employee is age 62 at retirement or if he or she meets the age and 

service requirements for an immediate FERS annuity, all COLA's 

occurring after the commencing date of annuity are payable. However, 

the first COLA is subject to proration, depending on the number of full 

months since the commencing date of the annuity. 

NOTE: See Chapter 2, Cost of Living Adjustments, for additional 

information about COLA's under FERS. 

B. Retiree Annuity Disability retirees are not eligible for the retiree annuity supplement. 

Supplement 

C.	 Alternative Disability retirees are not eligible to elect the alternative annuity. 

Annuity 

D.	 Receipt of Disability retirees are not affected by the provisions of section 61A2.1-3 in 

Military Retired the CSRS subchapter because FERS has no guaranteed minimum annuity 

Pay/VA provision. 

Compensation 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits FERS 21 

Chapter 61 

Subchapter 61C Sample Computations and Worksheets 

Section 61C1.1-1 Computation Worksheets for Local Reproduction 

This section contains the following worksheets: 

! CSRS Disability Annuity Computation 

! FERS Disability Annuity Computation 

- Basic Earned Annuity Computation 

- Transferee Basic Earned Annuity Computation 

- Benefits Payable in First 12 Months 

- Benefits Payable After the First 12 Months 

- Basic Annuity Recomputation at Age 62 

- Transferee Basic Annuity Recomputation at Age 62 

- Survivor Annuity Computation 

CSRS and FERS Handbook April, 1998 
 

 

 

22 CSRS Computation of Disability Retirement Benefits 

Chapter 61 

DISABILITY ANNUITY COMPUTATION 

EARNED ANNUITY 

High-3 Average Salary $ 

Retirement Factor for Total Service ( ) yrs ( ) mos X 

Unreduced Earned Annuity $ 

Reduction for Non-Deposit for Pre-10/1/82 Service (10% of deposit due) $ 

EARNED ANNUITY $ 

GUARANTEED MINIMUM ANNUITY
 

40% OF HIGH - 3 AVERAGE SALARY 

High-3 Average Salary $ 

Multiply by 40% X .40 

40% ANNUITY $ 

PROJECTED ANNUITY 

High-3 Average Salary $ 

Retirement Factor for Total Service to Age 60 

Compute Projected Service

 YRS - MOS - DYS

 Age 60 = 59 - 11 - 30 

Minus Age at Retirement -

Projected Service =

 Plus Actual Service +

 Total Service to Age 60 = 

Retirement Factor for Total Service to Age 60 ( ) yrs ( ) mos X 

Unreduced Projected Annuity $ 

Reduction for Non-Deposit for Pre-10/1/82 Service (10% of deposit due) $ 

PROJECTED ANNUITY $ 

GUARANTED MINIMUM ANNUITY 

Enter the lesser of: 

! 40% Annuity, or 

! Projected Annuity 

$ 

April, 1998 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits 23 

Chapter 61 

DISABILITY ANNUITY COMPUTATION
 

Annuity Payable 

Disability Annuity Payable 

Enter the greater of: 

! the EARNED annuty, or 

! the GUARANTEED MINIMUM annuity 

$ 

Reduction for Survivor Annuity 

Base selected by retiree $ 

Amount up to $3600 - X .025 = $ 

Amount over $3600 = X .10 = +

 Total Reduction = $ -

Annual Annuity $ 

MONTHLY ANNUITY (Divide by 12, round down to lower dollar) $ 

Survivor Annuity Computation 

Amount designated as survivor base $ 

Spouse or former spouse entitled to 55% of survivor base X .55 

Annual Survivor Annuity $ 

MONTHLY ANNUITY (Divide by 12, round down to lower dollar) $ 

For Local Reproduction 

CSRS and FERS Handbook April, 1998 
 

24 CSRS Computation of Disability Retirement Benefits 

Chapter 61 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY RETIREMENT
 

EARNED ANNUITY COMPUTATION 

High-3 Average Pay $ 

Retirement Factor ( ) yrs. ( ) mos. (see section 50C1.1-1, Chart 6) X

 Unreduced FERS Basic Annuity $ 

Reduction for Survivor Annuity 

Base selected by retiree $ 

X .10 

Total reduction $ -

ANNUAL ANNUITY $

 Monthly Annuity (Divide by 12, round down to lower dollar) $ 

For Local Reproduction 

April, 1998 CSRS and FERS Handbook 
 

 

Computation of Disability Retirement Benefits 25 

Chapter 61 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY RETIREMENT
 

EARNED ANNUITY COMPUTATION
 

FERS TRANSFEREE WITH CSRS COMPONENT
 

CSRS COMPONENT COMPUTATION 

High-3 Average Pay $ 

Retirement Factor for CSRS Service ( ) yrs. ( ) mos.

 (see section 50C1.1-1, Chart 4) X

 Unreduced CSRS Basic Annuity $ 

Reduction for non-deposit for service prior 10-1-82 (Subtract 10% of deposit due) -

Reduced CSRS Annuity $ 

FERS COMPONENT AND COMBINED ANNUITY COMPUTATION
 

High-3 Average Pay $ 

Retirement Factor for FERS Service ( ) yrs. ( ) mos. 

(see section 50C1.1-1, Chart 6) X

 Unreduced FERS Basic Annuity $

 Reduced CSRS Annuity +

 FERS Earned Disability Annuity $ 

Reduction for Survivor Annuity 

Base selected by retiree $ 

X .10 

Total reduction $ -

ANNUAL ANNUITY $

 Monthly Annuity (Divide by 12, round down to lower dollar) $ 

For Local Reproduction 

CSRS and FERS Handbook April, 1998 
26 CSRS Computation of Disability Retirement Benefits FERS 

Chapter 61 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY RETIREMENT
 

Benefits Payable in First 12 Months 

High-3 Average Pay $ 

Multiply by 60% X .60

 FERS Disability Annuity Without Social Security Reduction $ 

Less 100% of Social Security Disability Benefit (annual rate) -

FERS Disability Annuity With Social Security Reduction $ 

Reduction for Survivor Annuity 

Base selected by retiree $ 

X .10 

Total reduction $ -

Annual Annuity $

 Monthly Annuity (Divide by 12, round down to lower dollar) $ 

FERS Disability Benefit Payable in First 12 Months 

Enter the greater of: 

! Monthly FERS Earned Disability Annuity, or 

! Monthly FERS Disability Annuity With Social Security Reduction $ 

For Local Reproduction 

April, 1998 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits FERS 

Chapter 61 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY RETIREMENT
 

Benefits Payable After the First 12 Months
 

High-3 Average Pay $ 

Multiply by 40% X .40

 FERS Disability Annuity Without Social Security Reduction $ 

Less 60% of Social Security Disability Benefit 

Annual Social Security Benefit X .60 = -

FERS Disability Annuity With Social Security Reduction $ 

Reduction for Survivor Annuity 

Base selected by retiree $ 

X .10 

Total reduction $ -

Annual Annuity $

 Monthly Annuity (Divide by 12, round down to lower dollar) $ 

FERS Disability Benefit Payable After the First 12 Months 

Enter the greater of: 

! Monthly FERS Earned Disability Annuity, or 

! Monthly FERS Disability Annuity With Social Security Reduction $ 

For Local Reproduction 

CSRS and FERS Handbook April, 1998 
 

28 CSRS Computation of Disability Retirement Benefits FERS 

Chapter 61 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY RETIREMENT
 

Recomputation at Age 62 

High-3 Average Pay $ 

Retirement Factor for FERS Service (See section 50C1.1-1, Chart 6 or 7) 

Compute Adjusted Time Base for Recomputation 

YRS - MOS - DYS

 Age 62 = 61 - 11 - 30 

Minus Age at Retirement -

Total Time on Annuity Rolls =

 Plus Total Creditable Service +

 Adjusted Time Base for Recomputation =

 Retirement Factor for Adjusted Time Base X 

Unreduced FERS Basic Annuity $ 

Reduction for Survivor Annuity 

Base selected by retiree $ 

X .10 

Total reduction $ -

Annual Annuity $ 

Monthly Annuity (Divide by 12, round down to lower dollar) $ 

For Local Reproduction 

April, 1998 CSRS and FERS Handbook 
 

 

Computation of Disability Retirement Benefits FERS 

Chapter 61 

FERS BASIC ANNUITY COMPUTATION 

DISABILITY RETIREMENT 

Recomputation at Age 62 

FERS Transferee With CSRS Component 

CSRS COMPONENT COMPUTATION 

High-3 Average Pay $ 

Retirement Factor for CSRS Service ( ) yrs ( ) mos (see section 50C1.1-1, Chart 4) X 

Unreduced CSRS Basic Annuity $ 

Reduction for non-deposit for service prior 10-1-82 (Subtract 10% of deposit due) -

Reduced CSRS Annuity $ 

FERS COMPONENT AND COMBINED ANNUITY COMPUTATION
 

High-3 Average Pay $ 

Retirement Factor for FERS Service (See section 50C1.1-1, Chart 6 or 7) 

Compute Adjusted Time Base for Recomputation

 YRS - MOS - DYS

 Age 62 = 61 - 11 - 30 

Minus Age at Retirement -

Total Time on Annuity Rolls =

 Plus Total Creditable Service +

 Adjusted Time Base for Recomputation =

 Retirement Factor for Adjusted Time Base X 

Unreduced FERS Basic Annuity $ 

Reduced CSRS Annuity $ 

Total Basic Annuity at Age 62 $ 

Reduction for Survivor Annuity 

Base selected by retiree $ 

X .10 

Total reduction $ -

Annual Annuity $ 

Monthly Annuity (Divide by 12, round down to lower dollar) $ 

For Local Reproduction 

CSRS and FERS Handbook April, 1998 
30 CSRS Computation of Disability Retirement Benefits FERS 

Chapter 61 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY
 

Survivor Annuity Computation 

Survivor Base Elected 

! From the EARNED ANNUITY COMPUTATION if employee 

is eligible for an immediate unreduced voluntary retirement at 

separation, or 

! From the RECOMPUTATION AT AGE 62 if employee is not 

eligible for an immediate unreduced voluntary retirement at 

separation. 

$ 

Spouse or former spouse entitled to 50% of survivor base X .50 

Annual Survivor Annuity $ 

Monthly Survivor Annuity (Divide by 12, round down to lower dollar) $ 

For Local Reproduction 

April, 1998 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits
 31 

Chapter 61
 

Subchapter 61C Sample Computations 

The examples in this section demonstrate the correct procedures for computing disability annuity 

estimates. Each example consists of an explanatory text that refers to a completed work sheet 

immediately following the text for that example. 

Most of the information needed to perform annuity estimates should be readily available to the 

employing agency through sources such as the Official Personnel Folder and payroll records. 

Occasionally, the employing agency may need to contact OPM for certain kinds of information 

concerning prior employment, unless the employee can provide accurate information from personal 

records. For example, information about refunds of retirement contributions or deposits for military 

service might not be available at the current employing agency. 

This section contains the following sample calculations 

Example 1: CSRS Disability Retirement -- Earned Annuity ....... 32 

Example 2: CSRS Disability Retirement -- Guaranteed Minimum 

(Projected Annuity) ...................... 37 

Example 3: CSRS Disability Retirement -- Guaranteed Minimum 

(40 Percent Annuity) ..................... 42 

Example 4: CSRS Disability Retirement -- Guaranteed Minimum 

(Projected Annuity with Refund) ............ 47 

Example 5: CSRS Disability Retirement -- Guaranteed Minimum 

(40 Percent Annuity with Refund) ............. 56 

Example 6: CSRS Disability Retirement -- Guaranteed Minimum 

(40 Percent Annuity, CSRS Offset Employee) 65 

Example 7: FERS Average Salary -- Less than 3 Years of Service .. 74 

Example 8: FERS Disability Retirement ................... 77 

Example 9: FERS Disability Retirement--Social Security Offset .... 88 

Example 10: FERS Disability Retirement -- Transferee With CSRS 

Component ............................. 98 

Example 11: FERS Disability Retirement -- Transferee With CSRS 

Component Entitled to Earned Annuity .......... 111 

Example 12: FERS Disability Retirement -- Employee Age 62, 

Earned Annuity Payable ..................... 124 

Example 13: FERS Disability Retirement -- Transferee Eligible 

for Unreduced Voluntary Retirement, Earned Annuity 

Payable. . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . 127 

CSRS and FERS Handbook April, 1998 
32 Computation of Disability Retirement Benefits FERS 

Chapter 61
 

April, 1998 CSRS and FERS Handbook 
 

Computation of Disability Retirement Benefits
 33 

Chapter 61
 

Example 1: CSRS Disability Retirement -- Earned Annuity 

Name: Sarah Jones 

Last Day of Pay: 11-7-95 

Date of Birth: 4-15-42 

Civilian Service: 7-19-69 to 11-7-95 

COVERED SERVICE 

Unused Sick Leave: None
 

High-3 Average Salary: $43,195
 

Survivor Benefits: Full
 

PART I: COMPUTE ACTUAL CREDITABLE SERVICE 

1.	 Follow the procedures outlined in Chapter 50 to compute the amount of creditable 

CSRS service. In this example, the amount of creditable CSRS service is 26 years, 

3 months, and 19 days. 

PART II: COMPUTE THE EARNED ANNUITY 

2.	 Compute the unreduced earned annuity. 

a.	 Enter the high-3 average salary. $43,195 

b.	 Enter the years and months of total service for computation purposes. 26y 3m 

c.	 Use the CSRS General Formula Computation Chart (Chart 4, Handbook Chapter 

50, section 50C1.1-1) to obtain the retirement factor for 26 years, 3 months 

service. 

.487500 

d.	 Multiply the high-3 average salary by the retirement factor to obtain the 

unreduced earned annuity. 

$43,195 X .487500 = $21,057.56 

3.	 If applicable, subtract 10 percent of the deposit due for nondeduction service prior to 

October 1, 1982, from the unreduced earned annuity to obtain the earned annuity 

reduced for deposit. In this example, all of the service was covered, so there is no 

reduction. 

Earned Annuity = $21,057.56 

Note: The reduction for age is not applicable in the disability computation. 

CSRS and FERS Handbook	 April, 1998 
34 Computation of Disability Retirement Benefits FERS 

Chapter 61 

PART III: COMPUTE THE GUARANTEED MINIMUM ANNUITY 

4.	 Calculate the 40% annuity. Multiply the high-3 average salary by 40%. 

$43,195 X .40 = $17,278.00 

Note:	 The reduction for unpaid deposit for pre-10/1/82 nondeduction service is not 

applicable in the 40% annuity computation. 

5.	 Calculate the annuity projecting service to age 60. 

a.	 Determine the total amount of service projected to age 60. 

1)	 Subtract age at separation (53y, 6m, 23d) from age 60 (59y, 11m, 30d) to 

obtain projected service. 

59 - 11 - 30
 

53 - 06 - 23
 

6y - 5m - 7d 

2)	 Add actual service to projected service to determine the total service used for 

computation purposes. Eliminate any fractional part of a month. 

06y - 05m - 07d 

+	 26y - 03m - 19d
 

32y - 08m - 26d
 

b.	 Use the CSRS General Formula Computation Chart (Chart 4, Handbook Chapter 

50, section 50C1.1-1) to obtain the retirement factor for 32 years, 8 months 

service. 

.615833 

c.	 Multiply the high-3 average salary by the retirement factor to obtain the
 

unreduced earned annuity projecting service to age 60.
 

$43,195 X .615833 = $26,600.91 

d.	 If applicable, subtract 10 percent of the deposit due for nondeduction service 

prior to October 1, 1982, from the unreduced projected annuity to obtain the 

projected annuity reduced for deposit. In this example, all of the service was 

covered, so there is no reduction. 

Projected Annuity = $26,600.91 

6. Determine guaranteed minimum annuity. Enter the LESSER of: 

- the annuity based on 40% of the high-3 average salary ($17,278.00), or 

- the annuity based on service projected to age 60 ($26,600.91). 

$17,278.00 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits 35 

Chapter 61 

PART IV: COMPUTE ANNUITY PAYABLE 

7.	 Determine the disability annuity payable. Enter the GREATER of: 

- the earned annuity ($21,057.56), or 

- the guaranteed minimum annuity ($17,278.00). 

$21,057.56 

8.	 Compute the reduction for the survivor election. 

a.	 Enter the base selected by the retiree for the survivor annuity. $21,057.56 

b.	 Multiply the first $3,600 of the base by 2.5 percent. 

$3,600 X .025 = $90.00 

c.	 Multiply the amount of the base in excess of $3,600 ($21,057.56 - $3,600 = 

$17,457.56), by 10 percent. 

$17,457.56 X 10% = $1,745.76 

d.	 Total the reduction for survivor annuity. 

$90.00 + $1,745.76 = $1,835.76 

9.	 Subtract the total reduction for survivor annuity from the disability annuity payable 

to obtain the annual annuity amount payable. 

$21,057.56 - $1,835.76 = $19,221.80 

10. Divide the annual annuity amount payable by 12 and round to the lower dollar to 

obtain the monthly annuity rate. 

$19,221.80 ÷ 12 = $1,601.00 

PART V: SURVIVOR ANNUITY PAYABLE 

11. Compute the survivor annuity. 

a.	 Multiply the amount designated as the survivor base by 55 percent, to obtain the 

annual survivor rate. 

$21,057.56 X .55 = $11,581.66 

b.	 Divide the annual survivor rate by 12 and round to the lower dollar to obtain the 

monthly survivor annuity rate. 

$11,581.66 ÷ 12 = $965.00 

CSRS and FERS Handbook	 April, 1998 
36 Computation of Disability Retirement Benefits 

Chapter 61 

FERS 

COMPUTATION OF SERVICE CREDIT 

YR MO DY 

NAME: Sarah Jones DATE OF RETIREMENT: 95 11 7 

DATE OF BIRTH: 

AGE: 

42 4 15 

53 6 23 

TYPE OF SERVICE SHOWN 

: CSRS 

9 FERS 

9 CSRS COMPONENT OF FERS 

TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-MO-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

69-07-19 95-11-07 COVERED 26 3 19 

TOTAL CIVILIAN/MILITARY 26 3 19 

UNUSED SICK LEAVE * -­ -­ -­

TOTAL CREDITABLE SERVICE 26 3 19 

TOTAL SERVICE FOR COMPUTATION PURPOSES 26 3 

* For FERS transferee use lesser of amount at date of transfer or date of retirement. Do not 

complete for FERS only or deferred retirements. 

April, 1998	 CSRS and FERS Handbook 
 

 

 

 

 

 

Computation of Disability Retirement Benefits 37 

Chapter 61 

DISABILITY ANNUITY COMPUTATION
 

EARNED ANNUITY
 

High-3 Average Salary $ 43,195 

Retirement Factor for Total Service ( 26 ) yrs ( 3 ) mos X .487500 

Unreduced Earned Annuity $ 21,057.56 

Reduction for Non-Deposit for Pre-10/1/82 Service (10% of deposit due) $ N/A 

EARNED ANNUITY $ 21,057.56 

GUARANTEED MINIMUM ANNUITY
 

40% OF HIGH - 3 AVERAGE SALARY 

High-3 Average Salary $ 43,195 

Multiply by 40% X .40 

40% ANNUITY $ 17,278.00 

PROJECTED ANNUITY 

High-3 Average Salary $ 43,195 

Retirement Factor for Total Service to Age 60 

Compute Projected Service 

YRS - MOS - DYS

 Age 60 = 59 - 11 - 30 

Minus Age at Retirement - 53 - 06 - 23 

Projected Service = 06 - 05 - 07 

Plus Actual Service + 26 - 03 - 19 

Total Service to Age 60 = 32 - 08 - 26 

Retirement Factor for Total Service to Age 60 ( 32 ) yrs ( 8 ) mos X .615833 

Unreduced Projected Annuity $ 26,600.91 

Reduction for Non-Deposit for Pre-10/1/82 Service (10% of deposit due) $ N/A 

PROJECTED ANNUITY $ 26,600.91 

GUARANTED MINIMUM ANNUITY 

Enter the lesser of: 

! 40% Annuity, or 

! Projected Annuity 

$ 17,278.00 

CSRS and FERS Handbook April, 1998 
38 Computation of Disability Retirement Benefits FERS 

Chapter 61 

DISABILITY ANNUITY COMPUTATION
 

Annuity Payable 

Disability Annuity Payable 

Enter the greater of: 

! the EARNED annuty, or 

! the GUARANTEED MINIMUM annuity 

$ 21,057.56 

Reduction for Survivor Annuity 

Base selected by retiree $ 21,057.56 

Amount up to $3600 - 3,600 X .025 = $ 90.00 

Amount over $3600 = 17,457.56 X .10 = + 1,745.76 

Total Reduction = - 1,835.76 

Annual Annuity $ 19,221.80 

MONTHLY ANNUITY (Divide by 12, round down to lower dollar) $ 1,601.00 

Survivor Annuity Computation 

Amount designated as survivor base $ 21,057.56 

Spouse or former spouse entitled to 55% of survivor base X .55 

Annual Survivor Annuity $ 11,581.66 

MONTHLY ANNUITY (Divide by 12, round down to lower dollar) $ 965.00 

April, 1998 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits
 39 

Chapter 61
 

Example 2:	 CSRS Disability Retirement -- Guaranteed Minimum 

(Projected Annuity) 

Name: Tim Bennett 

Last Day of Pay: 3-26-96 

Date of Birth: 2-14-44 

Civilian Service: 11-22-83 to 3-26-96 

COVERED SERVICE 

Unused Sick Leave: None
 

High-3 Average Salary: $26,743
 

Survivor Benefits: Full
 

PART I:	 COMPUTE ACTUAL CREDITABLE SERVICE 

1.	 Follow the procedures outlined in Chapter 50 to compute the amount of 

creditable CSRS service. In this example, the amount of creditable CSRS 

service is 

12 years, 4 months, and 5 days. 

PART II: COMPUTE THE EARNED ANNUITY 

2.	 Compute the unreduced earned annuity. 

a.	 Enter the high-3 average salary. $26,743 

b.	 Enter the years and months of total service for computation purposes. 

12y 4m 

c.	 Use the CSRS General Formula Computation Chart (Chart 4, Handbook 

Chapter 50, section 50C1.1-1) to obtain the retirement factor for 12 years, 

4 months service. 

.209167 

d.	 Multiply the high-3 average salary by the retirement factor to obtain the 

unreduced earned annuity. 

$26,743 X .209167 = $5,593.75 

3.	 If applicable, subtract 10 percent of the deposit due for nondeduction service 

prior to October 1, 1982, from the unreduced earned annuity to obtain the 

earned annuity reduced for deposit. In this example, all of the service was 

covered, so there is no reduction. 

Earned Annuity = $5,593.75 

Note: The reduction for age is not applicable in the disability computation. 

CSRS and FERS Handbook	 April, 1998 
40 Computation of Disability Retirement Benefits FERS 

Chapter 61 

PART III: COMPUTE THE GUARANTEED MINIMUM ANNUITY 

4.	 Calculate the 40% annuity. Multiply the high-3 average salary by 40%. 

$26,743 X .40 = $10,697.20 

Note:	 The reduction for unpaid deposit for pre-10/1/82 nondeduction 

service is not applicable in the 40% annuity computation. 

5.	 Calculate the annuity projecting service to age 60. 

a.	 Determine the total amount of service projected to age 60. 

1)	 Subtract age at separation (52y, 1m, 13d) from age 60 (59y, 11m, 

30d) to obtain projected service. 

59 - 11 - 30 

52 - 01 - 13 

7y - 10m - 17d 

2)	 Add actual service to projected service to determine the total service 

used for computation purposes. Eliminate any fractional part of a 

month. 

07y - 10m - 17d 

+	 12y - 04m - 05d 

20y - 02m - 22d 

b.	 Use the CSRS General Formula Computation Chart (Chart 4, Handbook 

Chapter 50, section 50C1.1-1) to obtain the retirement factor for 20 years, 

2 months service. 

.365833 

c.	 Multiply the high-3 average salary by the retirement factor to obtain the 

unreduced earned annuity projecting service to age 60. 

$26,743 X .365833 = $9,783.47 

d.	 If applicable, subtract 10 percent of the deposit due for nondeduction 

service prior to October 1, 1982, from the unreduced projected annuity to 

obtain the projected annuity reduced for deposit. In this example, all of 

the service was covered, so there is no reduction. 

Projected Annuity = $9,783.47 

6. Determine guaranteed minimum annuity. Enter the LESSER of: 

- the annuity based on 40% of the high-3 average salary ($10,697.20), or 

- the annuity based on service projected to age 60 ($9,783.47). 

$9,783.47 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits 41 

Chapter 61 

PART IV: COMPUTE ANNUITY PAYABLE 

7.	 Determine the disability annuity payable. Enter the GREATER of: 

- the earned annuity ($5,593.75), or 

- the guaranteed minimum annuity ($9,783.47). 

$9,783.47 

8.	 Compute the reduction for the survivor election. 

a. Enter the base selected by the retiree for the survivor annuity. 

$9,783.47 

b.	 Multiply the first $3,600 of the base by 2.5 percent. 

$3,600 X .025 = $90.00 

c.	 Multiply the amount of the base in excess of $3,600 ($9,783.47 - $3,600 

= $6,183.47), by 10 percent. 

$6,183.47 X 10% = $618.35 

d.	 Total the reduction for survivor annuity. 

$90.00 + $618.35 = $708.35 

9.	 Subtract the total reduction for survivor annuity from the disability annuity 

payable to obtain the annual annuity amount payable. 

$9,783.47 - $708.35 = $9,075.12 

10.	 Divide the annual annuity amount payable by 12 and round to the lower dollar 

to obtain the monthly annuity rate. 

$9,075.12 ÷ 12 = $756.00 

PART V: SURVIVOR ANNUITY PAYABLE 

11.	 Compute the survivor annuity. 

a.	 Multiply the amount designated as the survivor base by 55 percent, to 

obtain the annual survivor rate. 

$9,783.47 X .55 = $5,380.91 

b.	 Divide the annual survivor rate by 12 and round to the lower dollar to 

obtain the monthly survivor annuity rate. 

$5,380.91 ÷ 12 = $448.00 

CSRS and FERS Handbook	 April, 1998 
42 Computation of Disability Retirement Benefits 

Chapter 61 

FERS 

COMPUTATION OF SERVICE CREDIT 

YR MO DY 

NAME: Tim Bennett DATE OF RETIREMENT: 96 3 26 

DATE OF BIRTH: 

AGE: 

44 2 14 

52 1 13 

TYPE OF SERVICE SHOWN 

: CSRS 

9 FERS 

9 CSRS COMPONENT OF FERS 

TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-MO-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

83-11-22 96-03-26 COVERED 12 4 5 

TOTAL CIVILIAN/MILITARY 12 4 5 

UNUSED SICK LEAVE * -­ -­ -­

TOTAL CREDITABLE SERVICE 12 4 5 

TOTAL SERVICE FOR COMPUTATION PURPOSES 12 4 

* For FERS transferee use lesser of amount at date of transfer or date of retirement. Do not 

complete for FERS only or deferred retirements. 

April, 1998	 CSRS and FERS Handbook 
 

 

 

 

 

 

Computation of Disability Retirement Benefits 43 

Chapter 61 

DISABILITY ANNUITY COMPUTATION
 

EARNED ANNUITY
 

High-3 Average Salary $ 26,743 

Retirement Factor for Total Service ( 12 ) yrs ( 4 ) mos X .209167 

Unreduced Earned Annuity $ 5,593.75 

Reduction for Non-Deposit for Pre-10/1/82 Service (10% of deposit due) $ N/A 

EARNED ANNUITY $ 5,593.75 

GUARANTEED MINIMUM ANNUITY
 

40% OF HIGH - 3 AVERAGE SALARY 

High-3 Average Salary $ 26,743 

Multiply by 40% X .40 

40% ANNUITY $ 10,697.20 

PROJECTED ANNUITY 

High-3 Average Salary $ 26,743 

Retirement Factor for Total Service to Age 60 

Compute Projected Service

 YRS - MOS - DYS

 Age 60 = 59 - 11 - 30 

Minus Age at Retirement - 52 - 01 - 13 

Projected Service = 07 - 10 -

17 

Plus Actual Service + 12 - 04 - 05 

Total Service to Age 60 = 20 - 02 - 22 

Retirement Factor for Total Service to Age 60 ( 20 ) yrs ( 2 ) mos X .365833 

Unreduced Projected Annuity $ 9,783.47 

Reduction for Non-Deposit for Pre-10/1/82 Service (10% of deposit due) $ N/A 

PROJECTED ANNUITY $ 9,783.47 

GUARANTED MINIMUM ANNUITY 

Enter the lesser of: 

! 40% Annuity, or 

! Projected Annuity 

CSRS and FERS Handbook April, 1998 
44 Computation of Disability Retirement Benefits FERS 

Chapter 61 

$ 9,783.47 

DISABILITY ANNUITY COMPUTATION
 

Annuity Payable 

Disability Annuity Payable 

Enter the greater of: 

! the EARNED annuty, or 

! the GUARANTEED MINIMUM annuity 

$ 9,738.47 

Reduction for Survivor Annuity 

Base selected by retiree $ 9,783.47 

Amount up to $3600 - 3,600 X .025 =$ 90.00 

Amount over $3600 = 6,183.47 X .10 =+ 618.35 

Total Reduction = - 708.35 

Annual Annuity $ 9,075.12 

MONTHLY ANNUITY (Divide by 12, round down to lower dollar) $ 756.00 

Survivor Annuity Computation 

Amount designated as survivor base $ 9,783.47 

Spouse or former spouse entitled to 55% of survivor base X .55 

Annual Survivor Annuity $ 5,380.91 

MONTHLY ANNUITY (Divide by 12, round down to lower dollar) $ 448.00 

April, 1998 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits
 45 

Chapter 61
 

Example 3:	 CSRS Disability Retirement -- Guaranteed Minimum 

(40 Percent Annuity) 

Name: Janice Groves 

Last Day of Pay: 6-30-95 

Date of Birth: 11-20-60 

Civilian Service: 10-11-83 to 6-30-95 

COVERED SERVICE 

Unused Sick Leave: None
 

High-3 Average Salary: $35,649
 

Survivor Benefits: Full
 

PART I:	 COMPUTE ACTUAL CREDITABLE SERVICE 

1.	 Follow the procedures outlined in Chapter 50 to compute the amount of 

creditable CSRS service. In this example, the amount of creditable CSRS 

service is 11 years, 8 months, and 20 days. 

PART II: COMPUTE THE EARNED ANNUITY 

2.	 Compute the unreduced earned annuity. 

a.	 Enter the high-3 average salary. 

$35,649 

b.	 Enter the years and months of total service for computation purposes. 

11y 8m 

c.	 Use the CSRS General Formula Computation Chart (Chart 4, Handbook 

Chapter 50, section 50C1.1-1) to obtain the retirement factor for 11 years, 

8 months service. 

.195833 

d.	 Multiply the high-3 average salary by the retirement factor to obtain the 

unreduced earned annuity. 

$35,649 X .195833 = $6,981.25 

3.	 If applicable, subtract 10 percent of the deposit due for nondeduction service 

prior to October 1, 1982, from the unreduced earned annuity to obtain the 

earned annuity reduced for deposit. In this example, all of the service was 

covered, so there is no reduction. 

Earned Annuity = $6,981.25 

Note:	 The reduction for age is not applicable in the disability computation. 

CSRS and FERS Handbook	 April, 1998 
46 Computation of Disability Retirement Benefits FERS 

Chapter 61 

PART III: COMPUTE THE GUARANTEED MINIMUM ANNUITY 

4.	 Calculate the 40% annuity. Multiply the high-3 average salary by 40%. 

$35,649 X .40 = $14,259.60 

Note:	 The reduction for unpaid deposit for pre-10/1/82 nondeduction 

service is not applicable in the 40% annuity computation. 

5.	 Calculate the annuity projecting service to age 60. 

a.	 Determine the total amount of service projected to age 60. 

1)	 Subtract age at separation (34y, 7m, 11d) from age 60 (59y, 11m, 

30d) to obtain projected service. 

59 - 11 - 30 

34 - 07 - 11 

25y - 04m - 19d 

2)	 Add actual service to projected service to determine the total service 

used for computation purposes. Eliminate any fractional part of a 

month. 

25y - 04m - 19d 

+	 11y - 08m - 20d 

37y - 01m - 09d 

b.	 Use the CSRS General Formula Computation Chart (Chart 4, Handbook 

Chapter 50, section 50C1.1-1) to obtain the retirement factor for 37 years, 

1 month service. 

.704167 

c.	 Multiply the high-3 average salary by the retirement factor to obtain the 

unreduced earned annuity projecting service to age 60. 

$35,649 X .704167 = $25,102.85 

d.	 If applicable, subtract 10 percent of the deposit due for nondeduction 

service prior to October 1, 1982, from the unreduced projected annuity to 

obtain the projected annuity reduced for deposit. In this example, all of 

the service was covered, so there is no reduction. 

Projected Annuity = $25,102.85 

6. Determine guaranteed minimum annuity. Enter the LESSER of: 

- the annuity based on 40% of the high-3 average salary ($14,259.60), or 

- the annuity based on service projected to age 60 ($25,102.85). 

$14,259.60 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits 47 

Chapter 61 

PART IV: COMPUTE ANNUITY PAYABLE 

7.	 Determine the disability annuity payable. Enter the GREATER of: 

- the earned annuity ($6,981.25), or 

- the guaranteed minimum annuity ($14,259.60). 

$14,259.60 

8.	 Compute the reduction for the survivor election. 

a. Enter the base selected by the retiree for the survivor annuity. 

$14,259.60 

b.	 Multiply the first $3,600 of the base by 2.5 percent. 

$3,600 X .025 = $90.00 

c.	 Multiply the amount of the base in excess of $3,600 ($14,259.60 - $3,600 

= $10,659.60), by 10 percent. 

$10,659.60 X 10% = $1,065.96 

d.	 Total the reduction for survivor annuity. 

$90.00 + $1,065.96 = $1,155.96 

9.	 Subtract the total reduction for survivor annuity from the disability annuity 

payable to obtain the annual annuity amount payable. 

$14,259.60 - $1,155.96 = $13,103.64 

10.	 Divide the annual annuity amount payable by 12 and round to the lower dollar 

to obtain the monthly annuity rate. 

$13,103.64 ÷ 12 = $1,091.00 

PART V: SURVIVOR ANNUITY PAYABLE 

11.	 Compute the survivor annuity. 

a.	 Multiply the amount designated as the survivor base by 55 percent, to 

obtain the annual survivor rate. 

$14,259.60 X .55 = $7,842.78 

b.	 Divide the annual survivor rate by 12 and round to the lower dollar to 

obtain the monthly survivor annuity rate. 

$7,842.78 ÷ 12 = $653.00 

CSRS and FERS Handbook	 April, 1998 
48 Computation of Disability Retirement Benefits 

Chapter 61 

FERS 

COMPUTATION OF SERVICE CREDIT 

YR MO DY 

NAME: Janice Groves DATE OF RETIREMENT: 95 6 30 

DATE OF BIRTH: 

AGE: 

60 11 20 

34 7 11 

TYPE OF SERVICE SHOWN 

: CSRS 

9 FERS 

9 CSRS COMPONENT OF FERS 

TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-MO-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

83-10-11 95-06-30 COVERED 11 8 20 

TOTAL CIVILIAN/MILITARY 11 8 20 

UNUSED SICK LEAVE * -­ -­ -­

TOTAL CREDITABLE SERVICE 11 8 20 

TOTAL SERVICE FOR COMPUTATION PURPOSES 11 8 

* For FERS transferee use lesser of amount at date of transfer or date of retirement. Do not 

complete for FERS only or deferred retirements. 

April, 1998	 CSRS and FERS Handbook 
 

 

 

 

 

 

Computation of Disability Retirement Benefits 49 

Chapter 61 

DISABILITY ANNUITY COMPUTATION
 

EARNED ANNUITY
 

High-3 Average Salary $ 35,649 

Retirement Factor for Total Service ( 11 ) yrs ( 8 ) mos X .195833 

Unreduced Earned Annuity $ 6,981.25 

Reduction for Non-Deposit for Pre-10/1/82 Service (10% of deposit due) $ N/A 

EARNED ANNUITY $ 6,981.25 

GUARANTEED MINIMUM ANNUITY
 

40% OF HIGH - 3 AVERAGE SALARY 

High-3 Average Salary $ 35,649 

Multiply by 40% X .40 

40% ANNUITY $ 14,259.60 

PROJECTED ANNUITY 

High-3 Average Salary $ 35,649 

Retirement Factor for Total Service to Age 60 

Compute Projected Service

 YRS - MOS - DYS

 Age 60 = 59 - 11 - 30 

Minus Age at Retirement - 34 - 07 - 11 

Projected Service = 25 - 04 - 19 

Plus Actual Service + 11 - 08 - 20 

Total Service to Age 60 = 37 - 01 - 09 

Retirement Factor for Total Service to Age 60 ( 37 ) yrs ( 1 ) mos X .704167 

Unreduced Projected Annuity $ 25,102.85 

Reduction for Non-Deposit for Pre-10/1/82 Service (10% of deposit due) $ N/A 

PROJECTED ANNUITY $ 25,102.85 

GUARANTED MINIMUM ANNUITY 

Enter the lesser of: 

! 40% Annuity, or 

! Projected Annuity 

$ 14,259.60 

CSRS and FERS Handbook April, 1998 
50 Computation of Disability Retirement Benefits FERS 

Chapter 61 

DISABILITY ANNUITY COMPUTATION
 

Annuity Payable 

Disability Annuity Payable 

Enter the greater of: 

! the EARNED annuty, or 

! the GUARANTEED MINIMUM annuity 

$ 14,259.60 

Reduction for Survivor Annuity 

Base selected by retiree $ 14,259.60 

Amount up to $3600 - 3,600 X .025 =$ 90.00 

Amount over $3600 = 10,659.60 X .10 =+ 1,065.96 

Total Reduction = - 1,155.96 

Annual Annuity $ 13,103.64 

MONTHLY ANNUITY (Divide by 12, round down to lower dollar) $ 1,091.00 

Survivor Annuity Computation 

Amount designated as survivor base $ 14,259.60 

Spouse or former spouse entitled to 55% of survivor base X .55 

Annual Survivor Annuity $ 7,842.78 

MONTHLY ANNUITY (Divide by 12, round down to lower dollar) $ 653.00 

April, 1998 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits
 51 

Chapter 61
 

Example 4:	 CSRS Disability Retirement -- Guaranteed Minimum 

(Projected Annuity with Refund) 

Name: Constance Levin 

Last Day of Pay: 9-24-95 

Date of Birth: 8-29-38 

Civilian Service: 9-13-79 to 1-31-81 -- REFUNDED SERVICE 

1-4-83 to 9-24-95 -- COVERED SERVICE 

Unused Sick Leave: None 

High-3 Average Salary: $24,878 

Survivor Benefits: None 

Note:	 Refunded service can only be used in the computation of a disability annuity if 

the individual redeposits the refund, plus interest. If a redeposit is not made, 

the service cannot be used in the disability computation. Two computations 

must be made to determine the affect payment of the redeposit will have on the 

annuity. Computation #1 includes credit for the refunded service. The 

individual will be entitled to the annuity resulting from this computation if the 

redeposit is paid. Computation #2 does not include credit for the refunded 

service. The individual will be entitled to the annuity resulting from this 

computation if the redeposit is not paid. 

COMPUTATION 1:	 INCLUDE CREDIT FOR REFUNDED 

SERVICE 

PART I:	 COMPUTE ACTUAL CREDITABLE SERVICE 

1.	 Follow the procedures outlined in Chapter 50 to compute the amount of 

creditable CSRS service. Include credit for the refunded service. In this 

example, the amount of creditable CSRS service is 14 years, 1 months, and 9 

days. 

PART II: COMPUTE THE EARNED ANNUITY 

2.	 Compute the unreduced earned annuity. 

a.	 Enter the high-3 average salary. 

$24,878 

b.	 Enter the years and months of total service for computation purposes. 

14y 1m 

c.	 Use the CSRS General Formula Computation Chart (Chart 4, Handbook 

Chapter 50, section 50C1.1-1) to obtain the retirement factor for 14 years, 

1 month service. 

.244167 

CSRS and FERS Handbook	 April, 1998 
52 Computation of Disability Retirement Benefits FERS 

Chapter 61 

d.	 Multiply the high-3 average salary by the retirement factor to obtain the 

unreduced earned annuity. 

$24,878 X .244167 = $6,074.39 

3.	 If applicable, subtract 10 percent of the deposit due for nondeduction service 

prior to October 1, 1982, from the unreduced earned annuity to obtain the 

earned annuity reduced for deposit. In this example, all of the service was 

covered, so there is no reduction. 

Earned Annuity = $6,074.39 

Note:	 The reduction for age is not applicable in the disability computation. 

PART III: COMPUTE THE GUARANTEED MINIMUM ANNUITY 

4.	 Calculate the 40% annuity. Multiply the high-3 average salary by 40%. 

$24,878 X .40 = $9,951.20 

Note:	 The reduction for unpaid deposit for pre-10/1/82 nondeduction 

service is not applicable in the 40% annuity computation. 

5.	 Calculate the annuity projecting service to age 60. 

a.	 Determine the total amount of service projected to age 60. 

1)	 Subtract age at separation (57y, 0m, 26d) from age 60 (59y, 11m, 

30d) to obtain projected service. 

59 - 11 - 30 

57 - 00 - 26 

2y - 11m - 4d 

2)	 Add actual service to projected service to determine the total service 

used for computation purposes. Eliminate any fractional part of a 

month. 

02y - 11m - 04d 

+	 14y - 01m - 09d 

17y - 00m - 13d 

b.	 Use the CSRS General Formula Computation Chart (Chart 4, Handbook 

Chapter 50, section 50C1.1-1) to obtain the retirement factor for 17 years, 

0 months service. 

.302500 

c.	 Multiply the high-3 average salary by the retirement factor to obtain the 

unreduced earned annuity projecting service to age 60. 

$24,878 X .302500 = $7,525.60 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits 53 

Chapter 61 

d.	 If applicable, subtract 10 percent of the deposit due for nondeduction 

service prior to October 1, 1982, from the unreduced projected annuity to 

obtain the projected annuity reduced for deposit. In this example, all of 

the service was covered, so there is no reduction. 

Projected Annuity = $7,525.60 

6.	 Determine guaranteed minimum annuity. Enter the LESSER of: 

- the annuity based on 40% of the high-3 average salary ($9,951.20), or 

- the annuity based on service projected to age 60 ($7,525.60). 

$7,525.60 

PART IV: COMPUTE ANNUITY PAYABLE 

7.	 Determine the disability annuity payable. Enter the GREATER of: 

- the earned annuity ($6,074.39), or 

- the guaranteed minimum annuity ($7,525.60). 

$7,525.60 

8.	 Compute the reduction for the survivor election, if applicable. In this example, 

the individual did not elect to provide a survivor annuity. 

Annual Annuity = $7,525.60 

9.	 Divide the annual annuity amount payable by 12 and round to the lower dollar 

to obtain the monthly annuity rate. 

$7,525.60 ÷ 12 = $627.00 

COMPUTATION 2:	 EXCLUDE CREDIT FOR REFUNDED 

SERVICE 

PART V: COMPUTE ACTUAL CREDITABLE SERVICE 

10.	 Refer to the Computation of Service Credit Worksheet in step 1 and compute 

the amount of creditable CSRS service excluding credit for the refunded 

service. In this example, the amount of creditable CSRS service excluding the 

refunded service is 12 years, 8 months, and 21 days. 

CSRS and FERS Handbook	 April, 1998 
54 Computation of Disability Retirement Benefits FERS 

Chapter 61 

PART VI: COMPUTE THE EARNED ANNUITY 

11.	 Compute the unreduced earned annuity. 

a.	 Enter the high-3 average salary. 

$24,878 

b. Enter the years and months of total service for computation purposes. 

12y 8m 

c.	 Use the CSRS General Formula Computation Chart (Chart 4, Handbook 

Chapter 50, section 50C1.1-1) to obtain the retirement factor for 12 years, 

8 months service. 

.215833 

d.	 Multiply the high-3 average salary by the retirement factor to obtain the 

unreduced earned annuity. 

$24,878 X .215833 = $5,369.49 

12.	 If applicable, subtract 10 percent of the deposit due for nondeduction service 

prior to October 1, 1982, from the unreduced earned annuity to obtain the 

earned annuity reduced for deposit. In this example, all of the service was 

covered, so there is no reduction. 

Earned Annuity = $5,369.49 

Note:	 The reduction for age is not applicable in the disability computation. 

PART VII: COMPUTE THE GUARANTEED MINIMUM ANNUITY 

13.	 Calculate the 40% annuity. Multiply the high-3 average salary by 40%. 

$24,878 X .40 = $9,951.20 

Note:	 The reduction for unpaid deposit for pre-10/1/82 nondeduction 

service is not applicable in the 40% annuity computation. 

14.	 Calculate the annuity projecting service to age 60. 

a.	 Determine the total amount of service projected to age 60. 

1)	 Subtract age at separation (57y, 0m, 26d) from age 60 (59y, 11m, 

30d) to obtain projected service. 

59 - 11 - 30 

57 - 00 - 26 

2y - 11m - 4d 

2)	 Add actual service to projected service to determine the total service 

used for computation purposes. Eliminate any fractional part of a 

month. 

02y - 11m - 04d 

+	 12y - 08m - 21d 

15y - 07m - 25d 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits
 55 

Chapter 61
 

b.	 Use the CSRS General Formula Computation Chart (Chart 4, Handbook 

Chapter 50, section 50C1.1-1) to obtain the retirement factor for 15 years, 

7 months service. 

.274167 

c.	 Multiply the high-3 average salary by the retirement factor to obtain the 

unreduced earned annuity projecting service to age 60. 

$24,878 X .274167 = $6,820.73 

d.	 If applicable, subtract 10 percent of the deposit due for nondeduction 

service prior to October 1, 1982, from the unreduced projected annuity to 

obtain the projected annuity reduced for deposit. In this example, all of 

the service was covered, so there is no reduction. 

Projected Annuity = $6,820.73 

15.	 Determine guaranteed minimum annuity. Enter the LESSER of: 

- the annuity based on 40% of the high-3 average salary ($9,951.20), or 

- the annuity based on service projected to age 60 ($6,820.73). 

$6,820.73 

PART VIII: COMPUTE ANNUITY PAYABLE 

16.	 Determine the disability annuity payable. Enter the GREATER of: 

- the earned annuity ($5,369.49), or 

- the guaranteed minimum annuity ($6,820.73). 

$6,820.73 

17.	 Compute the reduction for the survivor election, if applicable. In this example, 

the individual did not elect to provide a survivor annuity. 

Annual Annuity = $6,820.73 

18.	 Divide the annual annuity amount payable by 12 and round to the lower dollar 

to obtain the monthly annuity rate. 

$6,820.73 ÷ 12 = $568.00 

Note:	 If the redeposit is paid, the monthly annuity will be $627.00. If the redposit is 

not paid, the monthly annuity will be $568.00 

CSRS and FERS Handbook	 April, 1998 
56 Computation of Disability Retirement Benefits 

Chapter 61 

FERS 

COMPUTATION OF SERVICE CREDIT 

YR MO DY 

NAME: Constance Levin DATE OF RETIREMENT: 95 9 24 

DATE OF BIRTH: 

AGE: 

38 8 29 

57 0 26 

TYPE OF SERVICE SHOWN 

: CSRS 

9 FERS 

9 CSRS COMPONENT OF FERS 

TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-MO-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

79-09-13 81-01-31 REFUNDED 1 4 18 

83-01-04 95-09-24 COVERED 12 8 21 

TOTAL CIVILIAN/MILITARY 14 1 9 

UNUSED SICK LEAVE * -­ -­ -­

TOTAL CREDITABLE SERVICE 14 1 9 

TOTAL SERVICE FOR COMPUTATION PURPOSES 14 1 

* For FERS transferee use lesser of amount at date of transfer or date of retirement. Do not 

complete for FERS only or deferred retirements. 

April, 1998	 CSRS and FERS Handbook 
 

 

 

 

 

 

Computation of Disability Retirement Benefits 57 

Chapter 61 

DISABILITY ANNUITY COMPUTATION
 

EARNED ANNUITY
 

High-3 Average Salary $ 24,878 

Retirement Factor for Total Service ( 14 ) yrs ( 1 ) mos X .244167 

Unreduced Earned Annuity $ 6,074.39 

Reduction for Non-Deposit for Pre-10/1/82 Service (10% of deposit due) $ N/A 

EARNED ANNUITY $ 6,074.39 

GUARANTEED MINIMUM ANNUITY
 

40% OF HIGH - 3 AVERAGE SALARY 

High-3 Average Salary $ 24,878 

Multiply by 40% X .40 

40% ANNUITY $ 9,951.20 

PROJECTED ANNUITY 

High-3 Average Salary $ 24,878 

Retirement Factor for Total Service to Age 60 

Compute Projected Service

 YRS - MOS - DYS

 Age 60 = 59 - 11 - 30 

Minus Age at Retirement - 57 - 00 - 26 

Projected Service = 2 - 11 - 04 

Plus Actual Service + 14 - 01 - 09 

Total Service to Age 60 = 17 - 00 - 13 

Retirement Factor for Total Service to Age 60 ( 17 ) yrs ( 0 ) mos X .302500 

Unreduced Projected Annuity $ 7,525.60 

Reduction for Non-Deposit for Pre-10/1/82 Service (10% of deposit due) $ N/A 

PROJECTED ANNUITY $ 7,525.60 

GUARANTED MINIMUM ANNUITY 

Enter the lesser of: 

! 40% Annuity, or 

! Projected Annuity 

$ 7,525.60 

CSRS and FERS Handbook April, 1998 
58 Computation of Disability Retirement Benefits FERS 

Chapter 61 

DISABILITY ANNUITY COMPUTATION
 

Annuity Payable 

Disability Annuity Payable 

Enter the greater of: 

! the EARNED annuty, or 

! the GUARANTEED MINIMUM annuity 

$ 7,525.60 

Reduction for Survivor Annuity 

Base selected by retiree $ 

Amount up to $3600 - X .025 =$ 

Amount over $3600 = X .10 =+ 

Total Reduction = - N/A 

Annual Annuity $ 7,525.60 

MONTHLY ANNUITY (Divide by 12, round down to lower dollar) $ 627.00 

Survivor Annuity Computation 

Amount designated as survivor base $ N/A 

Spouse or former spouse entitled to 55% of survivor base X .55 

Annual Survivor Annuity $ 

MONTHLY ANNUITY (Divide by 12, round down to lower dollar) $ 

April, 1998 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits 

Chapter 61 

59 

COMPUTATION OF SERVICE CREDIT 

YR MO DY 

NAME: Constance Levin DATE OF RETIREMENT: 95 9 24 

DATE OF BIRTH: 

AGE: 

38 8 29 

57 0 26 

TYPE OF SERVICE SHOWN 

: CSRS 

9 FERS 

9 CSRS COMPONENT OF FERS 

TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-MO-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

79-09-13 81-01-31 REFUNDED -­ -­ -­

83-01-04 95-09-24 COVERED 12 8 21 

TOTAL CIVILIAN/MILITARY 12 8 21 

UNUSED SICK LEAVE * -­ -­ -­

TOTAL CREDITABLE SERVICE 12 8 21 

TOTAL SERVICE FOR COMPUTATION PURPOSES 12 8 

* For FERS transferee use lesser of amount at date of transfer or date of retirement. Do not 

complete for FERS only or deferred retirements. 

CSRS and FERS Handbook	 April, 1998 
 

 

 

 

 

 

60 Computation of Disability Retirement Benefits FERS 

Chapter 61 

DISABILITY ANNUITY COMPUTATION
 

EARNED ANNUITY
 

High-3 Average Salary $ 24,878 

Retirement Factor for Total Service ( 12 ) yrs ( 8 ) mos X .215833 

Unreduced Earned Annuity $ 5,369.49 

Reduction for Non-Deposit for Pre-10/1/82 Service (10% of deposit due) $ N/A 

EARNED ANNUITY $ 5,369.49 

GUARANTEED MINIMUM ANNUITY
 

40% OF HIGH - 3 AVERAGE SALARY 

High-3 Average Salary $ 24,878 

Multiply by 40% X .40 

40% ANNUITY $ 9,951.20 

PROJECTED ANNUITY 

High-3 Average Salary $ 24,878 

Retirement Factor for Total Service to Age 60 

Compute Projected Service

 YRS - MOS - DYS

 Age 60 = 59 - 11 - 30 

Minus Age at Retirement - 57 - 00 - 26 

Projected Service = 2 - 11 - 04 

Plus Actual Service + 12 - 08 - 21 

Total Service to Age 60 = 15 - 07 - 25 

Retirement Factor for Total Service to Age 60 ( 15 ) yrs ( 7 ) mos X .274167 

Unreduced Projected Annuity $ 6,820.73 

Reduction for Non-Deposit for Pre-10/1/82 Service (10% of deposit due) $ N/A 

PROJECTED ANNUITY $ 6,820.73 

GUARANTED MINIMUM ANNUITY 

Enter the lesser of: 

! 40% Annuity, or 

! Projected Annuity 

$ 6,820.73 

April, 1998 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits 61 

Chapter 61 

DISABILITY ANNUITY COMPUTATION
 

Annuity Payable 

Disability Annuity Payable 

Enter the greater of: 

! the EARNED annuty, or 

! the GUARANTEED MINIMUM annuity 

$ 6,820.73 

Reduction for Survivor Annuity 

Base selected by retiree $ 

Amount up to $3600 - X .025 =$ 

Amount over $3600 = X .10 =+ 

Total Reduction = - N/A 

Annual Annuity $ 6,820.73 

MONTHLY ANNUITY (Divide by 12, round down to lower dollar) $ 568.00 

Survivor Annuity Computation 

Amount designated as survivor base $ N/A 

Spouse or former spouse entitled to 55% of survivor base X .55 

Annual Survivor Annuity $ 

MONTHLY ANNUITY (Divide by 12, round down to lower dollar) $ 

CSRS and FERS Handbook April, 1998 
62 Computation of Disability Retirement Benefits FERS 

Chapter 61 

Example 5:	 CSRS Disability Retirement -- Guaranteed Minimum 

(40 Percent Annuity with Refund) 

Name: Terry Doherty 

Last Day of Pay: 5-15-96 

Date of Birth: 12-3-59 

Civilian Service: 5-6-81 to 11-14-83 -- REFUNDED SERVICE 

10-11-84 to 5-15-96 -- COVERED SERVICE 

Unused Sick Leave: None 

High-3 Average Salary: $53,017 

Survivor Benefits: None 

Note:	 Refunded service can only be used in the computation of a disability annuity if 

the individual redeposits the refund, plus interest. If a redeposit is not made, 

the service cannot be used in the disability computation. Two computations 

must be made to determine the affect payment of the redeposit will have on the 

annuity. Computation #1 includes credit for the refunded service. The 

individual will be entitled to the annuity resulting from this computation if the 

redeposit is paid. Computation #2 does not include credit for the refunded 

service. The individual will be entitled to the annuity resulting from this 

computation if the redeposit is not paid. 

COMPUTATION 1: INCLUDE CREDIT FOR REFUNDED SERVICE 

PART I:	 COMPUTE ACTUAL CREDITABLE SERVICE 

1.	 Follow the procedures outlined in Chapter 50 to compute the amount of 

creditable CSRS service. Include credit for the refunded service. In this 

example, the amount of creditable CSRS service is 14 years, 1 month, and 14 

days. 

PART II: COMPUTE THE EARNED ANNUITY 

2.	 Compute the unreduced earned annuity. 

a.	 Enter the high-3 average salary. 

$53,017 

b.	 Enter the years and months of total service for computation purposes. 

14y 1m 

c.	 Use the CSRS General Formula Computation Chart (Chart 4, Handbook 

Chapter 50, section 50C1.1-1) to obtain the retirement factor for 14 years, 

1 month service. 

.244167 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits
 63 

Chapter 61
 

d.	 Multiply the high-3 average salary by the retirement factor to obtain the 

unreduced earned annuity. 

$53,017 X .244167 = $12,945.00 

3.	 If applicable, subtract 10 percent of the deposit due for nondeduction service 

prior to October 1, 1982, from the unreduced earned annuity to obtain the 

earned annuity reduced for deposit. In this example, all of the service was 

covered, so there is no reduction. 

Earned Annuity = $12,945.00 

Note:	 The reduction for age is not applicable in the disability computation. 

PART III: COMPUTE THE GUARANTEED MINIMUM ANNUITY 

4.	 Calculate the 40% annuity. Multiply the high-3 average salary by 40%. 

$53,017 X .40 = $21,206.80 

Note:	 The reduction for unpaid deposit for pre-10/1/82 nondeduction 

service is not applicable in the 40% annuity computation. 

5.	 Calculate the annuity projecting service to age 60. 

a.	 Determine the total amount of service projected to age 60. 

1)	 Subtract age at separation (36y, 5m, 13d) from age 60 (59y, 11m, 

30d) to obtain projected service. 

59 - 11 - 30 

36 - 05 - 13 

23y - 6m - 17d 

2)	 Add actual service to projected service to determine the total service 

used for computation purposes. Eliminate any fractional part of a 

month. 

23y - 06m - 17d 

+	 14y - 01m - 14d 

37y - 08m - 01d 

b.	 Use the CSRS General Formula Computation Chart (Chart 4, Handbook 

Chapter 50, section 50C1.1-1) to obtain the retirement factor for 37 years, 

8 months service. 

.715833 

c.	 Multiply the high-3 average salary by the retirement factor to obtain the 

unreduced earned annuity projecting service to age 60. 

$53,017 X .715833 = $37,951.32 

CSRS and FERS Handbook	 April, 1998 
64 Computation of Disability Retirement Benefits FERS 

Chapter 61 

d.	 If applicable, subtract 10 percent of the deposit due for nondeduction 

service prior to October 1, 1982, from the unreduced projected annuity to 

obtain the projected annuity reduced for deposit. In this example, all of 

the service was covered, so there is no reduction. 

Projected Annuity = $37,951.32 

6.	 Determine guaranteed minimum annuity. Enter the LESSER of: 

- the annuity based on 40% of the high-3 average salary ($21,206.80), or 

- the annuity based on service projected to age 60 ($37,951.32). 

$21,206.80 

PART IV: COMPUTE ANNUITY PAYABLE 

7.	 Determine the disability annuity payable. Enter the GREATER of: 

- the earned annuity ($12,945.00), or 

- the guaranteed minimum annuity ($21,206.80). 

$21,206.80 

8.	 Compute the reduction for the survivor election, if applicable. In this example, 

the individual did not elect to provide a survivor annuity. 

Annual Annuity = $21,206.80 

9.	 Divide the annual annuity amount payable by 12 and round to the lower dollar 

to obtain the monthly annuity rate. 

$21,206.80 ÷ 12 = $1,767.00 

COMPUTATION 2: EXCLUDE CREDIT FOR REFUNDED SERVICE 

PART V: COMPUTE ACTUAL CREDITABLE SERVICE 

10.	 Refer to the Computation of Service Credit Worksheet in step 1 and compute 

the amount of creditable CSRS service excluding credit for the refunded 

service. In this example, the amount of creditable CSRS service excluding the 

refunded service is 11 years, 7 months, and 5 days. 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits
 65 

Chapter 61
 

PART VI: COMPUTE THE EARNED ANNUITY 

11.	 Compute the unreduced earned annuity. 

a.	 Enter the high-3 average salary. 

$53,017 

b. Enter the years and months of total service for computation purposes. 

11y 7m 

c.	 Use the CSRS General Formula Computation Chart (Chart 4, Handbook 

Chapter 50, section 50C1.1-1) to obtain the retirement factor for 11 years, 

7 months service. 

.194167 

d.	 Multiply the high-3 average salary by the retirement factor to obtain the 

unreduced earned annuity. 

$53,017 X .194167 = $10,294.15 

12.	 If applicable, subtract 10 percent of the deposit due for nondeduction service 

prior to October 1, 1982, from the unreduced earned annuity to obtain the 

earned annuity reduced for deposit. In this example, all of the service was 

covered, so there is no reduction. 

Earned Annuity = $10,294.15 

Note:	 The reduction for age is not applicable in the disability computation. 

PART VII: COMPUTE THE GUARANTEED MINIMUM ANNUITY 

13.	 Calculate the 40% annuity. Multiply the high-3 average salary by 40%. 

$53,017 X .40 = $21,206.80 

Note:	 The reduction for unpaid deposit for pre-10/1/82 nondeduction 

service is not applicable in the 40% annuity computation. 

14.	 Calculate the annuity projecting service to age 60. 

a.	 Determine the total amount of service projected to age 60. 

1)	 Subtract age at separation (36y, 5m, 13d) from age 60 (59y, 11m, 

30d) to obtain projected service. 

59 - 11 - 30 

36 - 05 - 13 

23y - 6m - 17d 

2)	 Add actual service to projected service to determine the total service 

used for computation purposes. Eliminate any fractional part of a 

month. 

23y - 06m - 17d 

+	 11y - 07m - 05d 

35y - 01m - 22d 

CSRS and FERS Handbook	 April, 1998 
66 Computation of Disability Retirement Benefits FERS 

Chapter 61 

b.	 Use the CSRS General Formula Computation Chart (Chart 4, Handbook 

Chapter 50, section 50C1.1-1) to obtain the retirement factor for 35 years, 

1 month service. 

.664167 

c.	 Multiply the high-3 average salary by the retirement factor to obtain the 

unreduced earned annuity projecting service to age 60. 

$53,017 X .664167 = $35,212.14 

d.	 If applicable, subtract 10 percent of the deposit due for nondeduction 

service prior to October 1, 1982, from the unreduced projected annuity to 

obtain the projected annuity reduced for deposit. In this example, all of 

the service was covered, so there is no reduction. 

Projected Annuity = $35,212.14 

15.	 Determine guaranteed minimum annuity. Enter the LESSER of: 

- the annuity based on 40% of the high-3 average salary ($21,206.80), or 

- the annuity based on service projected to age 60 ($35,212.14). 

$21,206.80 

PART VIII: COMPUTE ANNUITY PAYABLE 

16.	 Determine the disability annuity payable. Enter the GREATER of: 

- the earned annuity ($10,294.15), or 

- the guaranteed minimum annuity ($21,206.80). 

$21,206.80 

17.	 Compute the reduction for the survivor election, if applicable. In this example, 

the individual did not elect to provide a survivor annuity. 

Annual Annuity = $21,206.80 

18.	 Divide the annual annuity amount payable by 12 and round to the lower dollar 

to obtain the monthly annuity rate. 

$21,206.80 ÷ 12 = $1,767.00 

Note:	 In this example, the monthly annuity will be $1,767.00 whether or not the 

redeposit is paid. 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits 

Chapter 61 

67 

COMPUTATION OF SERVICE CREDIT 

YR MO DY 

NAME: Terry Doherty DATE OF RETIREMENT: 96 5 15 

DATE OF BIRTH: 

AGE: 

59 12 3 

36 5 13 

TYPE OF SERVICE SHOWN 

: CSRS 

9 FERS 

9 CSRS COMPONENT OF FERS 

TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-MO-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

81-05-06 83-11-14 REFUNDED 2 6 9 

84-10-11 96-05-15 COVERED (Full CSRS) 11 7 5 

TOTAL CIVILIAN/MILITARY 14 1 14 

UNUSED SICK LEAVE * -­ -­ -­

TOTAL CREDITABLE SERVICE 14 1 14 

TOTAL SERVICE FOR COMPUTATION PURPOSES 14 1 

* For FERS transferee use lesser of amount at date of transfer or date of retirement. Do not 

complete for FERS only or deferred retirements. 

CSRS and FERS Handbook	 April, 1998 
 

 

 

 

 

 

68 Computation of Disability Retirement Benefits FERS 

Chapter 61 

DISABILITY ANNUITY COMPUTATION
 

EARNED ANNUITY
 

High-3 Average Salary $ 53,017 

Retirement Factor for Total Service ( 14 ) yrs ( 1 ) mos X .244167 

Unreduced Earned Annuity $ 12,945.00 

Reduction for Non-Deposit for Pre-10/1/82 Service (10% of deposit due) $ N/A 

EARNED ANNUITY $ 12,945.00 

GUARANTEED MINIMUM ANNUITY
 

40% OF HIGH - 3 AVERAGE SALARY 

High-3 Average Salary $ 53,017 

Multiply by 40% X .40 

40% ANNUITY $ 21,206.80 

PROJECTED ANNUITY 

High-3 Average Salary $ 53,017 

Retirement Factor for Total Service to Age 60 

Compute Projected Service

 YRS - MOS - DYS

 Age 60 = 59 - 11 - 30 

Minus Age at Retirement - 36 - 05 - 13 

Projected Service = 23 - 06 - 17 

Plus Actual Service + 14 - 01 - 14 

Total Service to Age 60 = 37 - 08 - 01 

Retirement Factor for Total Service to Age 60 ( 37 ) yrs ( 8 ) mos X .715833 

Unreduced Projected Annuity $ 37,951.32 

Reduction for Non-Deposit for Pre-10/1/82 Service (10% of deposit due) $ N/A 

PROJECTED ANNUITY $ 37,951.32 

GUARANTED MINIMUM ANNUITY 

Enter the lesser of: 

! 40% Annuity, or 

! Projected Annuity 

$ 21,206.80 

April, 1998 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits 69 

Chapter 61 

DISABILITY ANNUITY COMPUTATION
 

Annuity Payable 

Disability Annuity Payable 

Enter the greater of: 

! the EARNED annuty, or 

! the GUARANTEED MINIMUM annuity 

$ 21,206.80 

Reduction for Survivor Annuity 

Base selected by retiree $ 

Amount up to $3600 - X .025 =$ 

Amount over $3600 = X .10 =+ 

Total Reduction = - N/A 

Annual Annuity $ 21,206.80 

MONTHLY ANNUITY (Divide by 12, round down to lower dollar) $ 1,767.00 

Survivor Annuity Computation 

Amount designated as survivor base $ N/A 

Spouse or former spouse entitled to 55% of survivor base X .55 

Annual Survivor Annuity $ 

MONTHLY ANNUITY (Divide by 12, round down to lower dollar) $ 

CSRS and FERS Handbook April, 1998 
70 Computation of Disability Retirement Benefits 

Chapter 61 

FERS 

COMPUTATION OF SERVICE CREDIT 

YR MO DY 

NAME: Terry Doherty DATE OF RETIREMENT: 96 5 15 

DATE OF BIRTH: 

AGE: 

59 12 3 

36 5 13 

TYPE OF SERVICE SHOWN 

: CSRS 

9 FERS 

9 CSRS COMPONENT OF FERS 

TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-MO-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

81-05-06 83-11-14 REFUNDED -­ -­ -­

84-10-11 96-05-15 COVERED (Full CSRS) 11 7 5 

TOTAL CIVILIAN/MILITARY 11 7 5 

UNUSED SICK LEAVE * -­ -­ -­

TOTAL CREDITABLE SERVICE 11 7 5 

TOTAL SERVICE FOR COMPUTATION PURPOSES 11 7 

* For FERS transferee use lesser of amount at date of transfer or date of retirement. Do not 

complete for FERS only or deferred retirements. 

April, 1998	 CSRS and FERS Handbook 
 

 

 

 

 

 

Computation of Disability Retirement Benefits 71 

Chapter 61 

DISABILITY ANNUITY COMPUTATION
 

EARNED ANNUITY
 

High-3 Average Salary $ 53,017 

Retirement Factor for Total Service ( 11 ) yrs ( 7 ) mos X .194167 

Unreduced Earned Annuity $ 10,294.15 

Reduction for Non-Deposit for Pre-10/1/82 Service (10% of deposit due) $ N/A 

EARNED ANNUITY $ 10,294.15 

GUARANTEED MINIMUM ANNUITY
 

40% OF HIGH - 3 AVERAGE SALARY 

High-3 Average Salary $ 53,017 

Multiply by 40% X .40 

40% ANNUITY $ 21,206.80 

PROJECTED ANNUITY 

High-3 Average Salary $ 53,017 

Retirement Factor for Total Service to Age 60 

Compute Projected Service

 YRS - MOS - DYS

 Age 60 = 59 - 11 - 30 

Minus Age at Retirement - 36 - 05 - 13 

Projected Service = 23 - 06 - 17 

Plus Actual Service + 11 - 07 - 05 

Total Service to Age 60 = 35 - 01 - 22 

Retirement Factor for Total Service to Age 60 ( 35 ) yrs ( 1 ) mos X .664167 

Unreduced Projected Annuity $ 35,212.14 

Reduction for Non-Deposit for Pre-10/1/82 Service (10% of deposit due) $ N/A 

PROJECTED ANNUITY $ 35,212.14 

GUARANTED MINIMUM ANNUITY 

Enter the lesser of: 

! 40% Annuity, or 

! Projected Annuity 

$ 21,206.80 

CSRS and FERS Handbook April, 1998 
72 Computation of Disability Retirement Benefits FERS 

Chapter 61 

DISABILITY ANNUITY COMPUTATION
 

Annuity Payable 

Disability Annuity Payable 

Enter the greater of: 

! the EARNED annuty, or 

! the GUARANTEED MINIMUM annuity 

$ 21,206.80 

Reduction for Survivor Annuity 

Base selected by retiree $ 

Amount up to $3600 - X .025 =$ 

Amount over $3600 = X .10 =+ 

Total Reduction = - N/A 

Annual Annuity $ 21,206.80 

MONTHLY ANNUITY (Divide by 12, round down to lower dollar) $ 1,767.00 

Survivor Annuity Computation 

Amount designated as survivor base $ N/A 

Spouse or former spouse entitled to 55% of survivor base X .55 

Annual Survivor Annuity $ 

MONTHLY ANNUITY (Divide by 12, round down to lower dollar) $ 

April, 1998 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits
 73 

Chapter 61
 

Example 6:	 CSRS Disability Retirement -- Guaranteed Minimum 

(40 Percent Annuity -- CSRS Offset Employee) 

Name: Lee Powell 

Last Day of Pay: 11-30-95 

Date of Birth: 3-9-50 

Civilian Service:	 5-21-78 to 8-28-84 -- COVERED 

CSRS SERVICE 

9-12-86 to 11-30-95 -- COVERED 

CSRS INTERIM/OFFSET SERVICE 

Unused Sick Leave: None
 

High-3 Average Salary: $37,360
 

Survivor Benefits: Full
 

Monthly Social Security Disability Benefit: $841.00 

(Benefit is effective 5/1/96)
 

Monthly Social Security Disability Benefit
 

Computed Without CSRS Offset Earnings: $706.00
 

PART I:	 COMPUTE ACTUAL CREDITABLE SERVICE 

1.	 Follow the procedures outlined in Chapter 50 to compute the amount of 

creditable CSRS service. In this example, the amount of creditable CSRS 

service is 15 years, 5 months, and 27 days. 

PART II: COMPUTE THE EARNED ANNUITY 

2.	 Compute the unreduced earned annuity. 

a.	 Enter the high-3 average salary. 

$37,360 

b.	 Enter the years and months of total service for computation purposes. 

15y 5m 

c.	 Use the CSRS General Formula Computation Chart (Chart 4, Handbook 

Chapter 50, section 50C1.1-1) to obtain the retirement factor for 15 years, 

5 months service. 

.270833 

d.	 Multiply the high-3 average salary by the retirement factor to obtain the 

unreduced earned annuity. 

$37,360 X .270833 = $10,118.32 

3.	 If applicable, subtract 10 percent of the deposit due for nondeduction service 

prior to October 1, 1982, from the unreduced earned annuity to obtain the 

earned annuity reduced for deposit. In this example, all of the service was 

covered, so there is no reduction. 

Earned Annuity = $10,118.32 

CSRS and FERS Handbook	 April, 1998 
74 Computation of Disability Retirement Benefits FERS 

Chapter 61 

Note:	 The reduction for age is not applicable in the disability computation. 

PART III: COMPUTE THE GUARANTEED MINIMUM ANNUITY 

4.	 Calculate the 40% annuity. Multiply the high-3 average salary by 40%. 

$37,360 X .40 = $14,944.00 

Note:	 The reduction for unpaid deposit for pre-10/1/82 nondeduction 

service is not applicable in the 40% annuity computation. 

5.	 Calculate the annuity projecting service to age 60. 

a.	 Determine the total amount of service projected to age 60. 

1)	 Subtract age at separation (45y, 8m, 20d) from age 60 (59y, 11m, 

30d) to obtain projected service. 

59 - 11 - 30 

45 - 08 - 20 

14y - 3m - 10d 

2)	 Add actual service to projected service to determine the total service 

used for computation purposes. Eliminate any fractional part of a 

month. 

14y - 03m - 10d 

+	 15y - 05m - 27d 

29y - 09m - 07d 

b.	 Use the CSRS General Formula Computation Chart (Chart 4, Handbook 

Chapter 50, section 50C1.1-1) to obtain the retirement factor for 29 years, 

9 months service. 

.557500 

c.	 Multiply the high-3 average salary by the retirement factor to obtain the 

unreduced earned annuity projecting service to age 60. 

$37,360 X .557500 = $20,828.20 

d.	 If applicable, subtract 10 percent of the deposit due for nondeduction 

service prior to October 1, 1982, from the unreduced projected annuity to 

obtain the projected annuity reduced for deposit. In this example, all of 

the service was covered, so there is no reduction. 

Projected Annuity = $20,828.20 

6. Determine guaranteed minimum annuity. Enter the LESSER of: 

- the annuity based on 40% of the high-3 average salary ($14,944.00), or 

- the annuity based on service projected to age 60 ($20,828.20). 

$14,944.00 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits 75 

Chapter 61 

PART IV: COMPUTE ANNUITY PAYABLE 

7.	 Determine the disability annuity payable. Enter the GREATER of: 

- the earned annuity ($10,118.32), or 

- the guaranteed minimum annuity ($14,944.00). 

$14,944.00 

8.	 Compute the reduction for the survivor election. 

a. Enter the base selected by the retiree for the survivor annuity. 

$14,944.00 

b.	 Multiply the first $3,600 of the base by 2.5 percent. 

$3,600 X .025 = $90.00 

c.	 Multiply the amount of the base in excess of $3,600 ($14,944.00 - $3,600 

= $11,344.00), by 10 percent. 

$11,344.00 X 10% = $1,134.40 

d.	 Total the reduction for survivor annuity. 

$90.00 + $1,134.40 = $1,224.40 

9.	 Subtract the total reduction for survivor annuity from the disability annuity 

payable to obtain the annual annuity amount payable. 

$14,944.00 - $1,224.40 = $13,719.60 

10.	 Divide the annual annuity amount payable by 12 and round to the lower dollar 

to obtain the monthly annuity rate. 

$13,719.60 ÷ 12 = $1,143.00 

PART V: SURVIVOR ANNUITY PAYABLE 

11.	 Compute the survivor annuity. 

a.	 Multiply the amount designated as the survivor base by 55 percent, to 

obtain the annual survivor rate. 

$14,944.00 X .55 = $8,219.20 

b.	 Divide the annual survivor rate by 12 and round to the lower dollar to 

obtain the monthly survivor annuity rate. 

$8,219.20 ÷ 12 = $684.00 

CSRS and FERS Handbook	 April, 1998 
76 Computation of Disability Retirement Benefits FERS 

Chapter 61 

PART VI:	 COMPUTE MONTHLY ANNUITY RATE AFTER OFFSET RELATING TO 

THE DISABILITY BENEFIT UNDER THE SOCIAL SECURITY ACT 

Note:	 Two separate computations must be performed to establish the offset amount. 

The offset amount equals the lower of the two results. There are three 

significant variables used to establish the offset amount: 

!	 the amount of service (rounded to the nearest year) subject to CSRS AND 

FICA coverage (i.e. CSRS Interim and CSRS Offset coverage), 

!	 the amount of the individual's Social Security benefit (this amount includes 

credit for earnings subject to the Social Security Old Age, Survivor, and 

Disability Insurance (OASDI) tax during CSRS Interim and CSRS Offset 

service), and 

!	 the amount of the individual's Social Security benefit computed without 

credit for the earnings subject to OASDI tax during CSRS Interim and 

CSRS Offset service (this amount is computed by the Social Security 

Administration exclusively for OPM). 

12	 Compute the first potential offset amount (Offset Computation A). 

a.	 Enter the individual's monthly Social Security benefit. In this example, 

the Social Secuity benefit equals $841.00. 

b.	 Subtract the monthly Social Security benefit computed without credit for 

the earnings subject to OASDI tax during CSRS Interim and CSRS Offset 

service. In this example, this adjusted benefit equals $706.00. 

c.	 Enter the result. 

$841.00 - $706.00 = $135.00 

Note:	 An agency retirement counselor computing an annuity estimate will not be able 

to perform this computation. The amount of the Social Security benefit 

computed without credit for the earnings subject to OASDI tax during CSRS 

Interim and CSRS Offset service referenced in 12b can only be ascertained by 

OPM upon request to the Social Security Administration. An employee can 

obtain an estimate of his/her Social Security benefit (referenced in 12a above, 

and again in 13b below) by submitting a Request for Earnings and Benefit 

Estimate Statement (form SSA-7004-SM-OP1) to the Social Security 

Administration. 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits 77 

Chapter 61 

13.	 Compute the other potential offset amount (Offset Computation B). 

a.	 Divide the number of years of CSRS Interim and CSRS Offset coverage 

(rounded to the nearest year) by 40 and enter the result. 

9 ÷ 40 = .225 

b.	 Multiply the result by the monthly Social Security benefit. The product 

equals the other potential offset amount. 

.225 X 841 = $189.23. 

14.	 Determine the actual offset amount. Enter the lower of: 

- offset computation A ($135.00), or 

- offset computation B ($189.23). 

$135.00 

15.	 Compute the monthly annuity after offset. Subtract the offset amount by the 

monthly annuity otherwise payable. 

$1,143.00 - $135.00 = $1,008.00 

Note:	 Lee Powell's annuity rate from 12-01-95 to 4-30-96 equals $1,143.00. The 

annuity rate changes to $1,008.00 on 5/1/96 when Lee becomes eligible for 

benefits from the Social Security Administration. 

CSRS and FERS Handbook	 April, 1998 
78 Computation of Disability Retirement Benefits 

Chapter 61 

FERS 

COMPUTATION OF SERVICE CREDIT 

YR MO DY 

NAME: Lee Powell DATE OF RETIREMENT: 95 11 30 

DATE OF BIRTH: 

AGE: 

50 3 9 

45 8 20 

TYPE OF SERVICE SHOWN 

: CSRS 

9 FERS 

9 CSRS COMPONENT OF FERS 

TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-MO-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

78-05-21 84-08-28 COVERED (CSRS) 6 3 8 

84-10-11 96-05-15 COVERED (CSRS Interim/Offset) 9 2 19 

TOTAL CIVILIAN/MILITARY 15 5 27 

UNUSED SICK LEAVE * -­ -­ -­

TOTAL CREDITABLE SERVICE 15 5 27 

TOTAL SERVICE FOR COMPUTATION PURPOSES 15 5 

* For FERS transferee use lesser of amount at date of transfer or date of retirement. Do not 

complete for FERS only or deferred retirements. 

April, 1998	 CSRS and FERS Handbook 
 

 

 

 

 

 

Computation of Disability Retirement Benefits 79 

Chapter 61 

DISABILITY ANNUITY COMPUTATION
 

EARNED ANNUITY
 

High-3 Average Salary $ 37,360 

Retirement Factor for Total Service ( 15 ) yrs ( 5 ) mos X .270833 

Unreduced Earned Annuity $ 10,118.32 

Reduction for Non-Deposit for Pre-10/1/82 Service (10% of deposit due) $ N/A 

EARNED ANNUITY $ 10,118.32 

GUARANTEED MINIMUM ANNUITY
 

40% OF HIGH - 3 AVERAGE SALARY 

High-3 Average Salary $ 37,360 

Multiply by 40% X .40 

40% ANNUITY $ 14,944.00 

PROJECTED ANNUITY 

High-3 Average Salary $ 37,360 

Retirement Factor for Total Service to Age 60 

Compute Projected Service

 YRS - MOS - DYS

 Age 60 = 59 - 11 - 30 

Minus Age at Retirement - 45 - 08 - 20 

Projected Service = 14 - 03 - 10 

Plus Actual Service + 15 - 05 - 27 

Total Service to Age 60 = 29 - 09 - 07 

Retirement Factor for Total Service to Age 60 ( 29 ) yrs ( 9 ) mos X .557500 

Unreduced Projected Annuity $ 20,828.20 

Reduction for Non-Deposit for Pre-10/1/82 Service (10% of deposit due) $ N/A 

PROJECTED ANNUITY $ 20,828.20 

GUARANTED MINIMUM ANNUITY 

Enter the lesser of: 

! 40% Annuity, or 

! Projected Annuity 

$ 14,944.00 

CSRS and FERS Handbook April, 1998 
80 Computation of Disability Retirement Benefits FERS 

Chapter 61 

DISABILITY ANNUITY COMPUTATION
 

Annuity Payable 

Disability Annuity Payable 

Enter the greater of: 

! the EARNED annuty, or 

! the GUARANTEED MINIMUM annuity 

$ 14,944.00 

Reduction for Survivor Annuity 

Base selected by retiree $ 14,944.00 

Amount up to $3600 - 3,600 X .025 =$ 90.00 

Amount over $3600 = 11,344.00 X .10 =+ 1,134.40 

Total Reduction = - 1,224.40 

Annual Annuity $ 13,719.60 

MONTHLY ANNUITY (Divide by 12, round down to lower dollar) $ 1,143.00 

Survivor Annuity Computation 

Amount designated as survivor base $ 14,944.00 

Spouse or former spouse entitled to 55% of survivor base X .55 

Annual Survivor Annuity $ 8,219.20 

MONTHLY ANNUITY (Divide by 12, round down to lower dollar) $ 684.00 

April, 1998 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits 81 

Chapter 61 

COMPUTATION OF OFFSET RELATING TO BENEFITS 

UNDER THE SOCIAL SECURITY ACT 

CSRS OFFSET EMPLOYEES 

Offset Computation A 

Monthly Social Security Benefit Incuding Offset Earnings $ 841.00 

Monthly Social Security Benefit Without Offset Earnings - 706.00 

Potential Offset Amount $ 135.00 

Offset Computation B 

Years of Service Subject to CSRS AND FICA (Round to the nearest year) 9 

Divide by 40 ÷ 40 

= .225 

Monthly Social Security Benefit Incuding Offset Earnings X $841.00 

Potential Offset Amount $ $189.23 

Monthly Offset Relating to Benefits Under the Social Security Act 

Monthly Offset -- The LESSER of Computations A or B $ $135.00 

Compute Monthly Annuity After Offset 

Monthly Annuity Otherwise Payable $ 1,143.00 

Subtract Monthly Offset Relating to Benefits Under the Social Security Act - 135.00 

CSRS Monthly Annuity After Offset $ 1,008.00 

CSRS and FERS Handbook April, 1998 
82 Computation of Disability Retirement Benefits FERS 

Chapter 61 

Example 7: FERS Average Salary -- Less than 3 Years of Service 

Appointment:12-07-93: $35,333 

07-04-94: $37,900 

02-04-95: $39,876 

09-01-95: $41,900 

06-16-96: Disability Retirement 

In this example, because the employee has less than 3 years of service, all creditable civilian 

service is used to compute the average salary. The beginning date of the average salary period 

is the date of appointment (12-07-93). 

1. Compute earnings. 

a.	 Enter the beginning date of the creditable civilian service (12-07-93) in column 

A. 

b.	 Enter the rate of salary in effect on that date in column C ($35,333). 

Note:	 Use basic pay only. Basic pay does not include overtime, sugestion awards, 

bonuses, etc. (See Chapter 50, section 50A2.1-5, for a complete explanation of 

basic pay.) 

c.	 Enter the last day that salary rate was in effect (7-3-94) in column B. 

d.	 Compute the total time (6 months 27 days) in column D by subtracting the date 

in column A from the date in column B (B - A). 

e.	 In column E, enter the time factor (.575000) from the 360 DAY FACTOR 

CHART (see section 50C1.1-1 in Chapter 50) for the total time (6 months 27 

days). 

f.	 Multiply the annual basic pay by the time factor (C x E) to compute the salary 

earned in column F ($20,316.48) and round to the nearest cent. 

2. Follow step 1 for subsequent salary rates and compute earnings in the same manner. 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits 83 

Chapter 61 

3.	 Check computation. 

a.	 Total time (column D) does not equal 36 months (3 years) in this example, but 

should equal 28 months, 70 days (2 years, 6 months, 10 days). 

b.	 Time factor (column E) does not equal 3.0 in this example, but should equal 

2.527777. Check the time factor by using the 360 DAY FACTOR CHART for 

the total time (2years, 6 months, 10 days). 

4.	 Total all earnings in column F ($98,640.70). 

5.	 Divide the total salary earned by the total time factor to compute the average salary. 

Round the average salary computed to the nearest dollar. 

$98,640.70 ÷ 2.527777 = $39,022.71 = $39,023.00 

CSRS and FERS Handbook	 April, 1998 
 

 

84 Computation of Disability Retirement Benefits FERS 

Chapter 61 

HIGH-3 AVERAGE PAY COMPUTATION

 N/A DATE OF RETIREMENT Plus 1 Day* 

Minus (-) 3 YEARS OF SERVICE 

Equals (=) BEGINNING DATE OF HIGH-3 

Columns 

A = Beginning date of the high-3 period and beginning dates of each pay change 

B = The last date at each rate of pay ending with the date of retirement 

C = The pay rate in effect as of the date in A 

D = Total time at rate of pay 

E = Time factor for each rate of pay (See section 50.C1.1-1, Chart 1) 

F = Pay earned at each rate of pay (C x E) 

A 

FROM 

B 

TO 

C 

ANNUAL 

BASIC 

PAY 

D 

TOTAL 

TIME 

E 

TIME 

FACTORS 

F 

Pay 

EARNED 

(C x E) 

YR MO DAY YR MO DAY YRS MOS DAYS 

93 12 07 94 07 03 $35,333 6 27 .575000 $20,316.48 

94 07 04 95 02 03 $37,900 7 00 .583333 $22,108.32 

95 02 04 95 08 31 $39,876 6 27 .575000 $22,928.70 

95 09 01 96 06 16 $41,900 9 16 .794444 $33,287.20 

TOTALS 2 6 10 **2.527777 $98,640.70 

$ 98,640.70 ÷ 3 = $ 39,023.00 

Total Pay Earned 2.527777 High-3 Average Pay 

* High-3 period is usually the last 3 years, but see section 50A2.1-4. 

** Factors should total 3, but may be slightly more or less because of rounding. 

April, 1998 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits
 85 

Chapter 61
 

Example 8: FERS Disability Retirement 

Name: Ruth Castillo 

Last Day of Pay: 9-3-95 

Date of Birth: 6-9-65 

Civilian Service: 2-9-91 to 9-3-95 (Covered) 

High-3 Average Salary: $37,950 

Survivor Benefits: Full 

PART I: COMPUTE ACTUAL CREDITABLE SERVICE 

1. Follow the procedures outlined in Chapter 50 to compute the amount of creditable FERS 

service. In this example, the amount of creditable FERS service is 4 years, 6 months, and 

25 days. 

PART II: COMPUTE THE EARNED ANNUITY 

2. Compute the unreduced FERS basic annuity. 

a.	 Enter the high-3 average salary. $37,950.00 

b. Enter the years and months of total service for computation purposes. 

4y 6m 

c.	 Use the FERS 1 Percent Accrual Factor Chart (Chart 6, Handbook Chapter 50, section 

50C1.1-1) to obtain the retirement factor for 4 years, 6 months service. .045000 

d. Multiply the high-3 average salary by the retirement factor to obtain the unreduced FERS 

basic annuity. 

$37,950 X .045000 = $1,707.75 

3. Compute the earned annuity monthly benefit. 

a.	 Enter the base selected by the retiree for the survivor annuity. $1,707.75 

b. Multiply the base selected by 10 percent to obtain the total survivor reduction. 

$1,707.75 X .10 = $170.78 

c.	 Subtract the total survivor reduction from the unreduced basic annuity to obtain the annual 

annuity. $1,707.75 - $170.78 = $1,536.97 

d. Divide the annual annuity by 12 and round to the lower dollar to obtain the monthly 

annuity for the earned benefit. 

$1,536.97 ÷ 12 = $128.00 

Note: The FERS disability earned annuity is not subject to the FERS age reduction. 

CSRS and FERS Handbook	 April, 1998 
86 Computation of Disability Retirement Benefits FERS 

Chapter 61 

PART III: ANNUITY PAYABLE FOR FIRST 12 MONTHS 

4. Multiply the high-3 average salary by 60 percent to determine the FERS disability annuity 

without the Social Security reduction. 

$37,950 X .60 = $22,770.00 

5. Subtract 100 percent of any Social Security disability benefits payable to obtain the FERS 

Disability Annuity With Social Security Reduction. (In this example, no Social Security 

benefits are payable.) 

$22,770.00 - (100 % X 0) = $22,770.00 

6. Compute the monthly FERS disability annuity with Social Security reduction. 

a.	 Enter the base selected by the retiree for the survivor annuity. $22,770.00 

b. Multiply the base selected by 10 percent to obtain the total survivor reduction. 

$22,770.00 X .10 = $2,277.00 

c.	 Subtract the total survivor reduction from the annuity with Social Security reduction to 

obtain the annual annuity. 

$22,770.00 - $2,277.00 = $20,493.00 

d. Divide the annual annuity by 12 and round to the lower dollar to obtain the monthly 

annuity. 

$20,493.00 ÷ 12 = $1,707.00 

7. Determine the FERS disability benefit payable in the first 12 months. Enter the greater of:

 - the FERS earned monthly annuity benefit ($128.00), or

 - the FERS monthly benefit after 60% of the high-3 average salary has been reduced by 

100% of the Social Security disability benefit, and the cost of the survivor election.
 

($1,707.00)
 

$1,707.00.
 

PART IV: ANNUITY PAYABLE AFTER THE FIRST 12 MONTHS 

8. Multiply the high-3 average salary by 40 percent to determine the FERS disability annuity 

without the Social Security reduction, beginning the second year of retirement. 

$37,950 X .40 = $15,180.00 

9. Subtract 60 percent of any Social Security benefits payable. (In this example, no Social 

Security benefits are payable.) 

$15,180.00 - (60% X 0) = 0 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits 87 

Chapter 61 

10. Compute the monthly FERS disability annuity with Social Security reduction. 

a.	 Enter the base selected by the retiree for the survivor annuity. $15,180.00 

b. Multiply the base selected by 10 percent to obtain the total survivor reduction. 

$15,180.00 X .10 = $1,518.00 

c.	 Subtract the total survivor reduction from the annuity with Social Security reduction to 

obtain the annual annuity. 

$15,180.00 - $1,518.00 = $13,662.00 

d. Divide the annual annuity by 12 and round to the next lower dollar to obtain the monthly 

annuity. 

$13,662.00 ÷ 12 = $1,138.00 

11. Determine the FERS disability benefit payable after the first 12 months. Enter the greater 

of:

 - the FERS earned monthly annuity benefit ($128.00), or

 - the FERS monthly benefit after 40% of the high-3 average salary has been reduced by 

60% of the Social Security disability benefit, and the cost of the survivor election
 

($1,138.00)
 

$1,138.00.
 

PART V: RECOMPUTATION AT AGE 62 

12. Compute the unreduced basic annuity projected to age 62. 

a.	 Enter updated high-3 average salary. $37,950.00 

Note:	 The high-3 average salary used in the recomputation at age 62 is the high-3 

average salary at date of retirement, updated by all FERS COLA'S occurring 

during the period the annuitant was entitled to FERS disability benefits 

(regardless of whether the annuity was affected by COLA's.) Since future 

COLA rates are unknown, the high-3 average salary at date of retirement is used 

for the recomputation in this example. 

b. Determine the adjusted time base used in the recomputation. 

1)	 Subtract age at retirement (30y, 2m 25d) from age 62 (61y 11m 30d) to obtain the 

time on the annuity rolls. This time on the annuity rolls will be credited as projected 

service. 

61y - 11m - 30d

 - 30y - 02m - 25d
 

31y - 09m - 05d 

CSRS and FERS Handbook	 April, 1998 
88 Computation of Disability Retirement Benefits FERS 

Chapter 61 

2)	 Add actual FERS service to projected service to determine the total service used for 

computation purposes. Eliminate any fractional part of a month. 

31y - 09m - 05d

 + 04y - 06m - 25d
 

36y - 04m - 00d
 

c.	 Find the retirement factor, using the appropriate FERS accrual factor chart, that
 

corresponds to the total service used in the recomputation.
 

.399667 

Note:	 The 1.1 percent retirement factor is used in the recomputation at age 62 if total 

service is 20 years or more. 

d. Multiply the high-3 average salary by the retirement factor for the adjusted service to 

obtain the unreduced FERS basic annuity. 

$37,950.00 X .399667 = $15,167.36 

13. Compute the monthly annuity payable. 

a.	 Enter the base selected by the retiree for the survivor annuity. 

$15,167.36 

b. Multiply the base selected by 10 percent to obtain the total survivor reduction. 

$15,167.36 X .10 = $1,516.74 

c.	 Subtract the total survivor reduction from the unreduced basic annuity to obtain the annual 

annuity. 

$15,167.36 - $1,516.74 = $13,650.62 

d. Divide the annual annuity by 12 and round to the lower dollar to obtain the monthly 

annuity recomputed at age 62. 

$13,650.62 ÷ 12 = $1,137.00 

PART VI: SURVIVOR ANNUITY PAYABLE 

14. Compute the survivor annuity. 

a.	 Multiply the amount designated as the survivor base by 50 percent. 

$15,167.36 X .50 = $7,583.68 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits 89 

Chapter 61 

b. Divide the annual survivor rate by 12 and round to the lower dollar to obtain the monthly 

survivor annuity rate payable. 

$7,583.68 ÷ 12 = $631.00 

Note: The survivor annuity in this example is computed as if the annuitant died before age 

62. Thus, the survivor annuity is based on the same computation shown in Part V, 

except that the high-3 average salary is updated only for all FERS COLA's occurring 

prior to the death of the annuitant. 

If the disability annuitant dies at or after age 62, the survivor annuity is computed 

using the same method as would be used in the case of a non-disability annuitant. 

See Chapter 71, Death Benefits--Death of an Annuitant, for further details. 

CSRS and FERS Handbook April, 1998 
90 Computation of Disability Retirement Benefits 

Chapter 61 

FERS 

YR MO DY 

NAME: Ruth Castillo DATE OF RETIREMENT: 95 9 3 

DATE OF BIRTH: 

AGE: 

65 6 9 

30 2 25 

COMPUTATION OF SERVICE CREDIT 

TYPE OF SERVICE SHOWN 

9 CSRS 

: FERS 

9 CSRS COMPONENT OF FERS 

TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-MO-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

91-02-09 95-09-03 COVERED 4 6 25 

TOTAL CIVILIAN/MILITARY 4 6 25 

UNUSED SICK LEAVE * -­ -­ -­

TOTAL CREDITABLE SERVICE 4 6 25 

TOTAL SERVICE FOR COMPUTATION PURPOSES 4 6 

* For FERS transferee use lesser of amount at date of transfer or date of retirement. Do not 

complete for FERS only or deferred retirements. 

April, 1998 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits
 91 

Chapter 61
 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY
 

EARNED ANNUITY COMPUTATION 

High-3 Average Pay $ 37,950 

Retirement Factor ( 4 ) yrs. ( 6 ) mos. (see section 50C1.1-1, Chart 6) X .045000

 Unreduced FERS Basic Annuity $ 1,707.75 

Reduction Made for Survivor Annuity 

Base selected by retiree $ 1,707.75 

X .10 

Total reduction $ 170.78 - 170.78

 ANNUAL ANNUITY $ 1,536.97

 Monthly Annuity (Divide by 12, round down to lower dollar) $ 128.00 

CSRS and FERS Handbook April, 1998 
92 Computation of Disability Retirement Benefits FERS 

Chapter 61 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY
 

Benefits Payable in First 12 Months 

High-3 Average Pay $ 37,950 

Multiply by 60% X .60

 FERS Disability Annuity Without Social Security Reduction $ 22,770.00 

Less 100% of Social Security Disability Benefit (annual rate) - 0

 FERS Disability Annuity With Social Security Reduction $ 22,770.00 

Reduction for Survivor Annuity 

Base selected by retiree $ 22,770.00 

X .10 

Total reduction $ 2,277.00 - 2,277.00

 Annual Annuity $ 20,493.00

 Monthly Annuity (Divide by 12, round down to lower dollar) $ 1,707.00 

FERS Disability Benefit Payable in First 12 Months 

Enter the greater of: 

! Monthly FERS Earned Disability Annuity, or 

! Monthly FERS Disability Annuity With Social Security Reduction $ 1,707.00 

April, 1998 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits
 93 

Chapter 61
 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY
 

Benefits Payable After the First 12 Months 

High-3 Average Pay $ 37,950 

Multiply by 40% X .40

 FERS Disability Annuity Without Social Security Reduction $ 15,180.00 

Less 60% of Social Security Disability Benefit 

Annual Social Security Benefit 0 X .60 = - 0

 FERS Disability Annuity With Social Security Reduction $ 15,180.00 

Reduction for Survivor Annuity 

Base selected by retiree $ 15,180.00 

X .10 

Total reduction $ 1,518.00 - 1,518.00

 Annual Annuity $ 13,662.00

 Monthly Annuity (Divide by 12, round down to lower dollar) $ 1,138.00 

FERS Disability Benefit Payable After the First 12 Months 

Enter the greater of: 

! Monthly FERS Earned Disability Annuity, or 

! Monthly FERS Disability Annuity With Social Security Reduction $ 1,138.00 

CSRS and FERS Handbook April, 1998 
 

 

 

 

 

94 Computation of Disability Retirement Benefits FERS 

Chapter 61 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY
 

Recomputation at Age 62 

High-3 Average Pay $ 37,950 

Retirement Factor for FERS Service (See section 50C1.1-1, Chart 6 or 7) 

Compute Adjusted Time Base for Recomputation

 YRS - MOS - DYS

 Age 62 = 61 - 11 - 30 

Minus Age at Retirement - 30 - 02 - 25 

Total Time on Annuity Rolls = 31 - 09 - 05 

Plus Total Creditable Service + 4 - 06 - 25 

Adjusted Time Base for Recomputation = 36 - 04 - 00 

Retirement Factor for Adjusted Time Base X .399667 

Unreduced FERS Basic Annuity $ 15,167.36 

Reduction Made for Survivor Annuity 

Base selected by retiree $ 15,167.36 

X .10 

Total reduction $ 1,516.74 - 1,516.74 

Annual Annuity $ 13,650.62 

Monthly Annuity (Divide by 12, round down to lower dollar) $ 1,137.00 

April, 1998 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits
 95 

Chapter 61
 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY
 

Survivor Annuity Computation 

Survivor Base Elected 

! From the EARNED ANNUITY COMPUTATION if employee 

is eligible for an immediate unreduced voluntary retirement at 

separation, or 

! From the RECOMPUTATION AT AGE 62 if employee is not 

eligible for an immediate unreduced voluntary retirement at 

separation. 

$ 15,167.36 

Spouse or former spouse entitled to 50% of survivor base X .50 

Annual Survivor Annuity $ 7,583.68 

Monthly Survivor Annuity (Divide by 12, round down to lower dollar) $ 631.00 

CSRS and FERS Handbook April, 1998 
96 Computation of Disability Retirement Benefits FERS 

Chapter 61 

Example 9: FERS Disability Retirement -- Social Security Offset 

Name: Stephen Innis 

Last Day of Pay: 12-6-99 

Date of Birth: 7-22-48 

Civilian Service: 8-1-87 through 12-6-99 

Covered Service 

High-3 Average Salary: $28,258 

Survivor Benefits: Full 

PART I: COMPUTE ACTUAL CREDITABLE SERVICE 

1. Follow the procedures outlined in Chapter 50 to compute the amount of creditable FERS 

service. In this example, the amount of creditable FERS service is 12 years, 4 months, 6 

days. 

PART II: COMPUTE THE EARNED ANNUITY 

2. Compute the unreduced FERS basic annuity. 

a.	 Enter the high-3 average salary. 

$28,258.00 

b. Enter the years and months of total service for computation purposes. 

12y 4m 

c.	 Use the FERS 1 Percent Accrual Factor Chart (Chart 6, Handbook Chapter 50, 

section 50C1.1-1) to obtain the retirement factor for 12 years, 4 months service. 

.123333 

d.	 Multiply the high-3 average salary by the retirement factor to obtain the unreduced 

FERS basic annuity. 

$28,258 X .123333 = $3,485.14 

3. Compute the earned annuity monthly benefit. 

a.	 Enter the base selected by the retiree for the survivor annuity. 

$3,485.14 

b.	 Multiply the base selected by 10 percent to obtain the total survivor reduction. 

$3,485.14 X .10 = $348.51 

c.	 Subtract the total survivor reduction from the unreduced basic annuity to obtain the 

annual annuity. $3,485.14 - $348.51 = $3,136.63 

d.	 Divide the annual annuity by 12 and round to the lower dollar to obtain the monthly 

annuity for the earned benefit. 

$3,136.53 ÷ 12 = $261.00 

Note: The FERS disability earned annuity is not subject to the FERS age reduction. 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits 97 

Chapter 61 

PART III: ANNUITY PAYABLE FOR FIRST 12 MONTHS 

4. Multiply the high-3 average salary by 60 percent to determine the FERS disability annuity 

without the Social Security reduction. 

$28,258 X .60 = $16,954.80 

5. Subtract 100 percent of any Social Security disability benefits payable to obtain the FERS 

Disability Annuity With Social Security Reduction. Assume, for this example, that the 

annual Social Security disability benefit payable is $5,000.00. 

$16,954.80 - $5,000 = $11,954.80 

6. Compute the monthly FERS disability annuity with Social Security reduction. 

a.	 Enter the base selected by the retiree for the survivor annuity. $11,954.80 

b.	 Multiply the base selected by 10 percent to obtain the total survivor reduction. 

$11,954.80 X .10 = $1,195.48 

c.	 Subtract the total survivor reduction from the annuity with Social Security reduction 

to obtain the annual annuity. 

$11,954.80 - $1,195.48 = $10,759.32 

d.	 Divide the annual annuity by 12 and round to the lower dollar to obtain the monthly 

annuity. 

$10,759.32 ÷ 12 = $896.00 

7. Determine the FERS disability benefit payable in the first 12 months. Enter the greater 

of:

 - the FERS earned monthly annuity benefit ($261.00), or

 - the FERS monthly benefit after 60% of the high-3 average salary has been reduced 

by 100% of the Social Security disability benefit, and the cost of the survivor
 

election. ($896.00)
 

$896.00.
 

PART IV: ANNUITY PAYABLE AFTER THE FIRST 12 MONTHS 

8. Multiply the high-3 average salary by 40 percent to determine the FERS disability annuity 

without the Social Security reduction, beginning the second 

year of retirement. $28,258 X .40 = $11,303.20 

9. Subtract 60 percent of any Social Security benefits payable. Assume for this example that 

the annual Social Security disability benefit payable is $5,000. 

! 60% X $5,000 = $3,000.00 

! $11,303.20 - $3,000.00 = $8,303.20 

CSRS and FERS Handbook	 April, 1998 
98 Computation of Disability Retirement Benefits FERS 

Chapter 61 

10. Compute the monthly FERS disability annuity with Social Security reduction. 

a.	 Enter the base selected by the retiree for the survivor annuity. $8,303.20 

b.	 Multiply the base selected by 10 percent to obtain the total survivor reduction. 

$8,303.20 X .10 = $830.32 

c.	 Subtract the total survivor reduction from the annuity with Social Security 

reduction to obtain the annual annuity. 

$8,303.20 - $830.32 = $7,472.88 

d.	 Divide the annual annuity by 12 and round to the lower dollar to obtain the 

monthly annuity. 

$7,472.88 ÷ 12 = $622.00 

11. Determine the FERS disability benefit payable after the first 12 months. Enter the 

greater of:

 - the FERS earned monthly annuity benefit ($261.00), or

 - the FERS monthly benefit after 40% of the high-3 average salary has been 

reduced by 60% of the Social Security disability benefit, and the cost of the
 

survivor election ($622.00)
 

$622.00.
 

PART V: RECOMPUTATION AT AGE 62 

12. Compute the unreduced basic annuity projected to age 62. 

a.	 Enter updated high-3 average salary. 

$28,258.00 

Note:	 The high-3 average salary used in the recomputation at age 62 is the high-3 

average salary at date of retirement, updated by all FERS COLA'S occurring 

during the period the annuitant was entitled to FERS disability benefits 

(regardless of whether the annuity was affected by COLA's.) Since future 

COLA rates are unknown, the high-3 average salary at date of retirement is 

used for the recomputation in this example. 

b.	 Determine the adjusted time base used in the recomputation. 

1) Subtract age at retirement (51y 4m 15d) from age 62 (61y 11m 30d) to obtain 

the time on the annuity rolls. This time on the annuity rolls will be credited 

as projected service. 

61y - 11m - 30d

 - 51y - 04m - 15d
 

10y - 07m - 15d 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits 99 

Chapter 61 

2) Add actual FERS service to projected service to determine the total service 

used for computation purposes. Eliminate any fractional part of a month. 

10y - 07m - 15d 

+ 12y - 04m - 06d
 

22y - 11m - 21d
 

c.	 Find the retirement factor, using the appropriate FERS accrual factor chart, that 

corresponds to the total service used in the recomputation. 

.252083 

Note:	 The 1.1 percent retirement factor is used in the recomputation at age 62 if 

total service is 20 years or more. 

d.	 Multiply the high-3 average salary by the retirement factor for the adjusted 

service to obtain the unreduced FERS basic annuity. 

$28,258.00 X .252083 = $7,123.36 

13. Compute the monthly annuity payable. 

a.	 Enter the base selected by the retiree for the survivor annuity. 

$7,123.36 

b. Multiply the base selected by 10 percent to obtain the total survivor reduction. 

$7,123.36 X .10 = $712.34 

c.	 Subtract the total survivor reduction from the unreduced basic annuity to obtain 

the annual annuity. 

$7,123.36 - $712.34 = $6,411.02 

d.	 Divide the annual annuity by 12 and round to the lower dollar to obtain the 

monthly annuity recomputed at age 62. 

$6,411.02 ÷ 12 = $534.00 

PART VI: SURVIVOR ANNUITY PAYABLE 

14. Compute the survivor annuity. 

a.	 Multiply the amount designated as the survivor base by 50 percent. 

$7,123.36 X .50 = $3,561.68 

CSRS and FERS Handbook	 April, 1998 
100	 Computation of Disability Retirement Benefits FERS 

Chapter 61 

b.	 Divide the annual survivor rate by 12 and round to the lower dollar to obtain the 

monthly survivor annuity rate payable. 

$3,561.68 ÷ 12 = $296.00 

Note:	 The survivor annuity in this example is computed as if the annuitant died 

before age 62. Thus, the survivor annuity is based on the same computation 

shown in Part V, except that the high-3 average salary is updated only for all 

FERS COLA's occurring prior to the death of the annuitant. 

If the disability annuitant dies at or after age 62, the survivor annuity is 

computed using the same method as would be used in the case of a nondisability annuitant. See Chapter 71, Death Benefits--Death of an Annuitant, 

for further details. 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits 101 

Chapter 61 

COMPUTATION OF SERVICE CREDIT 

YR MO DY 

NAME: Stephen Innis DATE OF RETIREMENT: 99 12 06 

DATE OF BIRTH: 48 07 22 

AGE: 51 04 15 

TYPE OF SERVICE SHOWN 

9 CSRS 

: FERS 

9 CSRS COMPONENT OF FERS 

TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-MO-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

87-08-01 99-12-06 COVERED 12 04 06 

TOTAL CIVILIAN/MILITARY 12 04 06 

UNUSED SICK LEAVE * -­ -­ -­

TOTAL CREDITABLE SERVICE 12 04 06 

TOTAL SERVICE FOR COMPUTATION PURPOSES 12 04 

* For FERS transferee use lesser of amount at date of transfer or date of retirement. Do not 

complete for FERS only or deferred retirements. 

CSRS and FERS Handbook	 April, 1998 
102 Computation of Disability Retirement Benefits FERS 

Chapter 61 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY
 

EARNED ANNUITY COMPUTATION 

High-3 Average Pay $ 28,258 

Retirement Factor (12) yrs. ( 4 ) mos. (see section 50C1.1-1, Chart 6) X .123333

 Unreduced FERS Basic Annuity $ 3,485.14 

Reduction Made for Survivor Annuity 

Base selected by retiree $ 3,485.14 

X .10 

Total reduction $ 348.51 - 348.51

 ANNUAL ANNUITY $ 3,136.63

 Monthly Annuity (Divide by 12, round down to lower dollar) $ 261.00 

April, 1998 CSRS and FERS Handbook 
 

Computation of Disability Retirement Benefits
 103 

Chapter 61
 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY
 

Benefits Payable in First 12 Months 

High-3 Average Pay $ 28,258 

Multiply by 60% X .60

 FERS Disability Annuity Without Social Security Reduction $ 16,954.80 

Less 100% of Social Security Disability Benefit (annual rate) - 5,000.00

 FERS Disability Annuity With Social Security Reduction $ 11,954.80 

Reduction for Survivor Annuity 

Base selected by retiree $ 11,954.80 

X .10 

Total reduction $ 1,195.48 - 1,195.48

 Annual Annuity $ 10,759.32

 Monthly Annuity (Divide by 12, round down to lower dollar) $ 896.00 

FERS Disability Benefit Payable in First 12 Months 

Enter the greater of: 

! Monthly FERS Earned Disability Annuity, or 

! Monthly FERS Disability Annuity With Social Security Reduction $ 896.00 

CSRS and FERS Handbook April, 1998 
 

 

 

104 Computation of Disability Retirement Benefits FERS 

Chapter 61 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY
 

Benefits Payable After the First 12 Months 

High-3 Average Pay $ 28,258 

Multiply by 40% X .40

 FERS Disability Annuity Without Social Security Reduction $ 11,303.20 

Less 60% of Social Security Disability Benefit 

Annual Social Security Benefit $5,000.00 X .60 = - 3,000.00

 FERS Disability Annuity With Social Security Reduction $ 8,303.20 

Reduction for Survivor Annuity 

Base selected by retiree $ 8,303.20 

X .10 

Total reduction $ 830.32 - 830.32

 Annual Annuity $ 7,472.88

 Monthly Annuity (Divide by 12, round down to lower dollar) $ 622.00 

FERS Disability Benefit Payable After the First 12 Months 

Enter the greater of: 

! Monthly FERS Earned Disability Annuity, or 

! Monthly FERS Disability Annuity With Social Security Reduction $ 622.00 

April, 1998 CSRS and FERS Handbook 
 

 

 

 

 

 

 

Computation of Disability Retirement Benefits 105 

Chapter 61 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY
 

Recomputation at Age 62 

High-3 Average Pay $ 28,258 

Retirement Factor for FERS Service (See section 50C1.1-1, Chart 6 or 7) 

Compute Adjusted Time Base for Recomputation

 YRS - MOS - DYS 

Age 62 = 61 - 11 - 30 

Minus Age at Retirement - 51 - 04 - 15 

Total Time on Annuity Rolls = 10 - 07 - 15 

Plus Total Creditable Service + 12 - 04 - 06 

Adjusted Time Base for Recomputation = 22 - 11 - 21 

Retirement Factor for Adjusted Time Base X .252083 

Unreduced FERS Basic Annuity $ 7,123.36 

Reduction Made for Survivor Annuity 

Base selected by retiree $ 7,123.36 

X .10 

Total reduction $ 712.34 - 712.34 

Annual Annuity $ 6,411.02 

Monthly Annuity (Divide by 12, round down to lower dollar) $ 534.00 

CSRS and FERS Handbook April, 1998 
106 Computation of Disability Retirement Benefits FERS 

Chapter 61 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY
 

Survivor Annuity Computation 

Survivor Base Elected 

! From the EARNED ANNUITY COMPUTATION if employee 

is eligible for an immediate unreduced voluntary retirement at 

separation, or 

! From the RECOMPUTATION AT AGE 62 if employee is not 

eligible for an immediate unreduced voluntary retirement at 

separation. 

$ 7,123.36 

Spouse or former spouse entitled to 50% of survivor base X .50 

Annual Survivor Annuity $ 3,561.68 

Monthly Survivor Annuity (Divide by 12, round down to lower dollar) $ 296.00 

April, 1998 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits
 107 

Chapter 61
 

Example 10: FERS Disability Retirement -- Transferee With CSRS Component 

Name: Lisa Weiss 

Last Day of Pay: 4-5-95 

Date of Birth: 1-27-58 

Civilian Service:	 7-28-80 to 12-19-87 -- Covered 

CSRS Service 

12-20-87 to 4-5-95 -- Covered 

FERS Service 

High-3 Average Salary: $41,255 

Survivor Benefits: Half 

PART I: COMPUTE ACTUAL CREDITABLE SERVICE 

1. Follow the procedures outlined in Chapter 50 to compute the amount of creditable CSRS 

service and FERS service. In this example, the amount of creditable CSRS service equals 

7 years, 4 months, and 22 days. The amount of creditable FERS service equals 7 years, 

3 months, and 16 days. 

PART II: COMPUTE THE EARNED ANNUITY 

2. Compute the unreduced CSRS component basic annuity. 

a.	 Enter the high-3 average salary. $41,255.00 

b.	 Enter the years and months of total CSRS service for computation purposes. 

7y 4m 

c.	 Use the CSRS General Formula Computation Chart (Chart 4, Handbook Chapter 50, 

section 50C1.1-1) to obtain the retirement factor for 7 years, 4 months service. 

.115833 

d.	 Multiply the high-3 average salary by the retirement factor to obtain the unreduced 

CSRS basic annuity. 

$41,255 X .115833 = $4,778.69 

3. Compute the reduced CSRS component basic annuity. Subtract 10% of the deposit due for 

nondeduction performed prior to 10-1-82. In this example, all of the service was covered, 

so there is no reduction. The CSRS annuity component equals $4,778.69 

4. Compute the unreduced FERS component basic annuity. 

a.	 Enter the high-3 average salary. $41,255.00 

b.	 Enter the years and months of total FERS service for computation purposes. 

7y 3m 

c.	 Use the FERS 1 Percent Accrual Factor Chart (Chart 6, Handbook Chapter 50, 

section 50C1.1-1) to obtain the retirement factor for 7 years, 3 months service. 

.072500 

CSRS and FERS Handbook	 April, 1998 
108	 Computation of Disability Retirement Benefits FERS 

Chapter 61 

d.	 Multiply the high-3 average salary by the retirement factor to obtain the unreduced 

FERS basic annuity component. 

$41,255 X .072500 = $2,990.99 

5. Compute the combined FERS earned disability annuity. Add the CSRS annuity
 

component to the FERS annuity component.
 

$2,990.99 + $4,778.69 = $7,769.68 

6. Compute the earned annuity monthly benefit. 

a.	 Enter the base selected by the retiree for the survivor annuity. $3,884.84 

($7,769.68 X 1/2 = $3,884.84) 

b.	 Multiply the base selected by 10 percent to obtain the total survivor reduction. 

$3,884.84 X .10 = $388.48 

c.	 Subtract the total survivor reduction from the combined FERS disability annuity to 

obtain the annual annuity. $7,769.68 - $388.48 = $7,381.20 

d.	 Divide the annual annuity by 12 and round to the lower dollar to obtain the monthly 

annuity for the earned benefit. 

$7,381.20 ÷ 12 = $615.00 

Note: The FERS disability earned annuity is not subject to the FERS age reduction. 

PART III: ANNUITY PAYABLE FOR FIRST 12 MONTHS 

7. Multiply the high-3 average salary by 60 percent to determine the FERS disability annuity 

without the Social Security reduction. 

$41,255 X .60 = $24,753.00 

8. Subtract 100 percent of any Social Security disability benefits payable to obtain the FERS 

Disability Annuity With Social Security Reduction. (In this example, no Social Security 

benefits are payable.) 

$24,753.00 - $0 = $24,753.00 

9. Compute the monthly FERS disability annuity with Social Security reduction. 

a.	 Enter the base selected by the retiree for the survivor annuity. $12,376.50 

($24,753.00 X 1/2 = $12,376.50) 

b.	 Multiply the base selected by 10 percent to obtain the total survivor reduction. 

$12,376.50 X .10 = $1,237.65 

c.	 Subtract the total survivor reduction from the annuity with Social Security reduction 

to obtain the annual annuity. 

$24,753.00 - $1,237.65 = $23,515.35 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits 109 

Chapter 61 

d.	 Divide the annual annuity by 12 and round to the lower dollar to obtain the monthly 

annuity. 

$23,515.35 ÷ 12 = $1,959.00 

10. Determine the FERS disability benefit payable in the first 12 months. Enter the 

greater of:

 - the FERS earned monthly annuity benefit ($615.00), or

 - the FERS monthly benefit after 60% of the high-3 average salary has been 

reduced by 100% of the Social Security disability benefit, and the cost of the
 

survivor election. ($1,959.00)
 

$1,959.00.
 

PART IV: ANNUITY PAYABLE AFTER THE FIRST 12 MONTHS 

11.	 Multiply the high-3 average salary by 40 percent to determine the FERS disability 

annuity without the Social Security reduction, beginning the second 

year of retirement. $41,255 X .40 = $16,502.00 

12.	 Subtract 60 percent of any Social Security benefits payable. (In this example, no 

Social Security benefits are payable.) 

$16,502.00 - $0 = $16,502.00 

13.	 Compute the monthly FERS disability annuity with Social Security reduction. 

a.	 Enter the base selected by the retiree for the survivor annuity. $8,251.00 

($16,502.00 X 1/2 = $8,251.00) 

b.	 Multiply the base selected by 10 percent to obtain the total survivor reduction. 

$8,251.00 X .10 = $825.10 

c.	 Subtract the total survivor reduction from the annuity with Social Security 

reduction to obtain the annual annuity. 

$16,502.00 - $825.10 = $15,676.90 

d.	 Divide the annual annuity by 12 and round to the lower dollar to obtain the 

monthly annuity. 

$15,676.90 ÷ 12 = $1,306.00 

14. Determine the FERS disability benefit payable after the first 12 months. Enter the 

greater of:

 - the FERS earned monthly annuity benefit ($615.00), or

 - the FERS monthly benefit after 40% of the high-3 average salary has been 

reduced by 60% of the Social Security disability benefit, and the cost of the
 

survivor election ($1,306.00).
 

$1,306.00.
 

CSRS and FERS Handbook	 April, 1998 
110	 Computation of Disability Retirement Benefits FERS 

Chapter 61 

PART V: RECOMPUTATION AT AGE 62 

15. Compute the CSRS annuity component projected to age 62. 

a.	 Enter updated high-3 average salary. $41,255.00 

Note: The high-3 average salary used in the recomputation at age 62 is the high3 average salary at date of retirement, updated by all FERS COLA'S 

occurring during the period the annuitant was entitled to FERS disability 

benefits (regardless of whether the annuity was affected by COLA's.) 

Since future COLA rates are unknown, the high-3 average salary at date of 

retirement is used for the recomputation in this example. 

b. Enter the years and months of total CSRS service for computation purposes. 

7y 4m 

c.	 Use the CSRS General Formula Computation Chart (Chart 4, Handbook Chapter 

50, section 50C1.1-1) to obtain the retirement factor for 7 years, 4 months 

service. .115833 

d.	 Multiply the high-3 average salary by the retirement factor to obtain the 

unreduced CSRS basic annuity. 

$41,255 X .115833 = $4,778.69 

e.	 Compute the reduced CSRS component basic annuity. Subtract 10% of the 

deposit due for nondeduction performed prior to 10-1-82. In this example, all of 

the service was covered, so there is no reduction. The CSRS annuity component 

projected to age 62 equals $4,778.69. 

16. Compute the unreduced FERS basic annuity component projected to age 62. 

a.	 Enter updated high-3 average salary. $41,255.00 

Note: The high-3 average salary used in the recomputation at age 62 is the high3 average salary at date of retirement, updated by all FERS COLA'S 

occurring during the period the annuitant was entitled to FERS disability 

benefits (regardless of whether the annuity was affected by COLA's.) 

Since future COLA rates are unknown, the high-3 average salary at date of 

retirement is used for the recomputation in this example. 

b.	 Determine the adjusted time base used in the recomputation of the FERS annuity 

component. 

1) Subtract age at retirement (37y 2m 9d) from age 62 (61y 11m 30d) to obtain 

the time on the annuity rolls. This time on the annuity rolls will be credited 

as projected service. 

61y - 11m - 30d

 - 37y - 02m - 09d
 

24y - 09m - 21d 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits 111 

Chapter 61 

2) Add actual FERS service to projected service to determine the total service 

used for computation purposes. Eliminate any fractional part of a month. 

24y - 09m - 21d

 +	 07y - 03m - 16d
 

32y - 01m - 07d
 

c.	 Find the retirement factor, using the appropriate FERS accrual factor chart, that 

corresponds to the total service used in the recomputation. 

.352917 

Note: The 1.1 percent retirement factor is used in the recomputation at age 62 if 

total service is 20 years or more. 

d.	 Multiply the high-3 average salary by the retirement factor for the total adjusted 

service to obtain the unreduced FERS basic annuity component. 

$41,255.00 X .352917 = $14,559.59 

17.	 Compute the combined FERS basic annuity at age 62. Add the CSRS annuity 

component to the FERS annuity component. 

$14,559.59 + $4,778.69 = $19,338.28 

18.	 Compute the monthly annuity payable. 

a.	 Enter the base selected by the retiree for the survivor annuity. $9,669.14 

($19,338.28 X 1/2 = $9,669.14) 

b.	 Multiply the base selected by 10 percent to obtain the total survivor reduction. 

$9,669.14 X .10 = $966.91 

c.	 Subtract the total survivor reduction from the unreduced basic annuity to obtain 

the annual annuity. 

$19,338.28 - $966.91 = $18,371.37 

d.	 Divide the annual annuity by 12 and round to the lower dollar to obtain the 

monthly annuity recomputed at age 62. 

$18,371.37 ÷ 12 = $1,530.00 

CSRS and FERS Handbook	 April, 1998 
112	 Computation of Disability Retirement Benefits FERS 

Chapter 61 

PART VI: SURVIVOR ANNUITY PAYABLE 

19. Compute the survivor annuity. 

a. Multiply the amount designated as the survivor base by 50 percent. 

$9,669.14 X .50 = $4,834.57 

b. Divide the annual survivor rate by 12 and round to the lower dollar to obtain the 

monthly survivor annuity rate payable. 

$4,834.57 ÷ 12 = $402.00 

Note:	 The survivor annuity in this example is computed as if the annuitant died 

before age 62. Thus, the survivor annuity is based on the same computation 

shown in Part V, except that the high-3 average salary is updated only for all 

FERS COLA's occurring prior to the death of the annuitant. 

If the disability annuitant dies at or after age 62, the survivor annuity is 

computed using the same method as would be used in the case of a nondisability annuitant. See Chapter 71, Death Benefits--Death of an Annuitant, 

for further details. 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits 113 

Chapter 61 

COMPUTATION OF SERVICE CREDIT 

YR MO DY 

NAME: Lisa Weiss DATE OF RETIREMENT: 95 4 05 

DATE OF BIRTH: 58 1 27 

AGE: 37 2 09 

TYPE OF SERVICE SHOWN 

9 CSRS 

9 FERS 

: CSRS COMPONENT OF FERS 

TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-MO-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

80-07-28 87-12-19 COVERED 7 4 22 

TOTAL CIVILIAN/MILITARY 7 4 22 

UNUSED SICK LEAVE * 0 

TOTAL CREDITABLE SERVICE 7 4 22 

TOTAL SERVICE FOR COMPUTATION PURPOSES 7 4 

* For FERS transferee use lesser of amount at date of transfer or date of retirement. Do not 

complete for FERS only or deferred retirements. 

CSRS and FERS Handbook	 April, 1998 
114 Computation of Disability Retirement Benefits FERS 

Chapter 61 

COMPUTATION OF SERVICE CREDIT 

YR MO DY 

NAME: Lisa Weiss (continued) DATE OF RETIREMENT: 

DATE OF BIRTH: 

AGE: 37 2 9 

TYPE OF SERVICE SHOWN 

9 CSRS 

: FERS 

9 CSRS COMPONENT OF FERS 

TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-MO-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

87-12-20 95-4-5 COVERED 7 3 16 

TOTAL CIVILIAN/MILITARY 7 3 16 

UNUSED SICK LEAVE * -­ -­ -­

TOTAL CREDITABLE SERVICE 7 3 16 

TOTAL SERVICE FOR COMPUTATION PURPOSES 7 3 

* For FERS transferee use lesser of amount at date of transfer or date of retirement. Do not 

complete for FERS only or deferred retirements. 

April, 1998	 CSRS and FERS Handbook 
 

 

Computation of Disability Retirement Benefits
 115 

Chapter 61
 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY
 

EARNED ANNUITY COMPUTATION
 

FERS TRANSFEREE WITH CSRS COMPONENT
 

CSRS COMPONENT COMPUTATION 

High-3 Average Pay $ 41,255 

Retirement Factor for CSRS Service ( 7 ) yrs. ( 4 ) mos.

 (see section 50C1.1-1, Chart 4) X .115833

 Unreduced CSRS Basic Annuity $ 4,778.69 

Reduction for non-deposit for service prior 10-1-82 (Subtract 10% of deposit due) - N/A

 Reduced CSRS Annuity $ 4,778.69 

FERS COMPONENT AND COMBINED ANNUITY COMPUTATION
 

High-3 Average Pay $ 41,255 

Retirement Factor for FERS Service ( 7 ) yrs. ( 3 ) mos. 

(see section 50C1.1-1, Chart 6) X .072500

 Unreduced FERS Basic Annuity $ 2,990.99

 Reduced CSRS Annuity + 4,778.69

 FERS Earned Disability Annuity $ 7,769.68 

Reduction Made for Survivor Annuity 

Base selected by retiree $ 3,884.84 

X .10 

Total reduction $ 388.48 - 388.48

 ANNUAL ANNUITY $ 7,381.20

 Monthly Annuity (Divide by 12, round down to lower dollar) $ 615.00 

CSRS and FERS Handbook April, 1998 
 

 

116 Computation of Disability Retirement Benefits FERS 

Chapter 61 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY
 

Benefits Payable in First 12 Months
 

High-3 Average Pay $ 41,255 

Multiply by 60% X .60

 FERS Disability Annuity Without Social Security Reduction $ 24,753.00 

Less 100% of Social Security Disability Benefit (annual rate) - 0

 FERS Disability Annuity With Social Security Reduction $ 24,753.00 

Reduction for Survivor Annuity 

Base selected by retiree $ 12,376.50 

X .10 

Total reduction $ 1,237.65 - 1,237.65

 Annual Annuity $ 23,515.35

 Monthly Annuity (Divide by 12, round down to lower dollar) $ 1,959.00 

FERS Disability Benefit Payable in First 12 Months 

Enter the greater of: 

! Monthly FERS Earned Disability Annuity, or 

! Monthly FERS Disability Annuity With Social Security Reduction $ 1,959.00 

April, 1998 CSRS and FERS Handbook 
 

 

Computation of Disability Retirement Benefits
 117 

Chapter 61
 

FERS BASIC ANNUITY COMPUTATION 

DISABILITY 

Benefits Payable After the First 12 Months 

High-3 Average Pay $ 41,255 

Multiply by 40% X .40

 FERS Disability Annuity Without Social Security Reduction $ 16,502.00 

Less 60% of Social Security Disability Benefit 

Annual Social Security Benefit 0 X .60 = - 0

 FERS Disability Annuity With Social Security Reduction $ 16,502.00 

Reduction for Survivor Annuity 

Base selected by retiree $ 8,251.00 

X .10 

Total reduction $ 825.10 - 825.10

 Annual Annuity $ 15,676.90

 Monthly Annuity (Divide by 12, round down to lower dollar) $ 1,306.00 

FERS Disability Benefit Payable After the First 12 Months 

Enter the greater of: 

! Monthly FERS Earned Disability Annuity, or 

! Monthly FERS Disability Annuity With Social Security Reduction $ 1,306.00 

CSRS and FERS Handbook April, 1998 
 

 

 

 

 

 

 

 

118 Computation of Disability Retirement Benefits FERS 

Chapter 61 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY
 

Recomputation at Age 62 

FERS Transferee With CSRS Component 

CSRS COMPONENT COMPUTATION 

High-3 Average Pay $ 41,255 

Retirement Factor for CSRS Service ( 7 ) yrs. ( 4 ) mos.

 (see section 50C1.1-1, Chart 4) X .115833 

Unreduced CSRS Basic Annuity $ 4,778.69 

Reduction for non-deposit for service prior 10-1-82 (Subtract 10% of deposit due) - N/A 

Reduced CSRS Annuity $ 4,778.69 

FERS COMPONENT AND COMBINED ANNUITY COMPUTATION
 

High-3 Average Pay $ 41,255 

Retirement Factor for FERS Service (See section 50C1.1-1, Chart 6 or 7) 

Compute Adjusted Time Base for Recomputation 

YRS - MOS - DYS 

Age 62 = 61 - 11 - 30 

Minus Age at Retirement - 37 - 2 - 9 

Total Time on Annuity Rolls = 24 - 9 - 21 

Plus Total Creditable Service + 7 - 3 - 16 

Adjusted Time Base for Recomputation = 32 - 1 - 7 

Retirement Factor for Adjusted Time Base X .352917 

Unreduced FERS Basic Annuity $ 14,559.59 

Reduced CSRS Annuity $ 4,778.69 

Total Basic Annuity at Age 62 $ 19,338.28 

Reduction Made for Survivor Annuity 

Base selected by retiree $ 9,669.14 

X .10 

Total reduction $ 966.91 - 966.91 

Annual Annuity $ 18,371.37 

Monthly Annuity (Divide by 12, round down to lower dollar) $ 1,530.00 

April, 1998 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits
 119 

Chapter 61
 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY
 

Survivor Annuity Computation 

Survivor Base Elected 

! From the EARNED ANNUITY COMPUTATION if employee 

is eligible for an immediate unreduced voluntary retirement at 

separation, or 

! From the RECOMPUTATION AT AGE 62 if employee is not 

eligible for an immediate unreduced voluntary retirement at 

separation. 

$ 9,669.14 

Spouse or former spouse entitled to 50% of survivor base X .50 

Annual Survivor Annuity $ 4,834.57 

Monthly Survivor Annuity (Divide by 12, round down to lower dollar) $ 402.00 

CSRS and FERS Handbook April, 1998 
120	 Computation of Disability Retirement Benefits FERS 

Chapter 61
 

Example 11: FERS Disability Retirement -- Transferee With CSRS Component, 

Earned Annuity Payable 

Name: Michael Ruzzi 

Last Day of Pay: 9-23-95 

Date of Birth: 6-8-43 

Civilian Service: 8-8-63 to 12-19-87 -- Covered 

CSRS Service 

12-20-87 to 9-23-95 -- Covered 

FERS Service 

High-3 Average Salary: $53,572 

Survivor Benefits: Full 

PART I: COMPUTE ACTUAL CREDITABLE SERVICE 

1. Follow the procedures outlined in Chapter 50 to compute the amount of creditable CSRS 

service and FERS service. In this example, the amount of creditable CSRS service equals 

24 years, 4 months, and 12 days. The amount of creditable FERS service equals 7 

years, 9 months, and 4 days. 

PART II: COMPUTE THE EARNED ANNUITY 

2. Compute the unreduced CSRS component basic annuity. 

a.	 Enter the high-3 average salary. $53,572.00 

b.	 Enter the years and months of total CSRS service for computation purposes. 

24y 4m 

c.	 Use the CSRS General Formula Computation Chart (Chart 4, Handbook Chapter 50, 

section 50C1.1-1) to obtain the retirement factor for 24 years, 4 months service. 

.449167 

d.	 Multiply the high-3 average salary by the retirement factor to obtain the unreduced 

CSRS basic annuity. 

$53,572 X .449167 = $24,062.77 

3. Compute the reduced CSRS component basic annuity. Subtract 10% of the deposit due for 

nondeduction performed prior to 10-1-82. In this example, all of the service was covered, 

so there is no reduction. The CSRS annuity component equals $24,062.77 

4. Compute the unreduced FERS component basic annuity. 

a.	 Enter the high-3 average salary. $53,572.00 

b.	 Enter the years and months of total FERS service for computation purposes. 

7y 9m 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits 121 

Chapter 61 

c.	 Use the FERS 1 Percent Accrual Factor Chart (Chart 6, Handbook Chapter 50, 

section 50C1.1-1) to obtain the retirement factor for 7 years, 9 months service. 

.077500 

d.	 Multiply the high-3 average salary by the retirement factor to obtain the unreduced 

FERS basic annuity component. 

$53,572 X .077500 = $4,151.83 

5. Compute the combined FERS earned disability annuity. Add the CSRS annuity
 

component to the FERS annuity component.
 

$4,151.83 + $24,062.77 = $28,214.60 

6. Compute the earned annuity monthly benefit. 

a.	 Enter the base selected by the retiree for the survivor annuity. $28,214.60 

b.	 Multiply the base selected by 10 percent to obtain the total survivor reduction. 

$28,214.60 X .10 = $2,821.46 

c.	 Subtract the total survivor reduction from the combined FERS disability annuity to 

obtain the annual annuity. $28,214.60 - $2,821.46 = $25,393.14 

d.	 Divide the annual annuity by 12 and round to the lower dollar to obtain the monthly 

annuity for the earned benefit. 

$25,393.14 ÷ 12 = $2,116.00 

Note: The FERS disability earned annuity is not subject to the FERS age reduction. 

PART III: ANNUITY PAYABLE FOR FIRST 12 MONTHS 

7. Multiply the high-3 average salary by 60 percent to determine the FERS disability annuity 

without the Social Security reduction. 

$53,572 X .60 = $32,143.20 

8. Subtract 100 percent of any Social Security disability benefits payable to obtain the FERS 

Disability Annuity With Social Security Reduction. (In this example, no Social Security 

benefits are payable.) 

$32,143.20 - $0 = $32,143.20 

9. Compute the monthly FERS disability annuity with Social Security reduction. 

a.	 Enter the base selected by the retiree for the survivor annuity. $32,143.20 

b.	 Multiply the base selected by 10 percent to obtain the total survivor reduction. 

$32,143.20 X .10 = $3,214.32 

c.	 Subtract the total survivor reduction from the annuity with Social Security reduction 

to obtain the annual annuity. 

$32,143.20 - $3,214.32 = $28,928.88 

CSRS and FERS Handbook	 April, 1998 
122	 Computation of Disability Retirement Benefits FERS 

Chapter 61 

d.	 Divide the annual annuity by 12 and round to the lower dollar to obtain the monthly 

annuity. 

$28,928.88 ÷ 12 = $2,410.00 

10. Determine the FERS disability benefit payable in the first 12 months. Enter the 

greater of:

 - the FERS earned monthly annuity benefit ($2,116.00), or

 - the FERS monthly benefit after 60% of the high-3 average salary has been 

reduced by 100% of the Social Security disability benefit, and the cost of the 

survivor election. ($2,410.00) 

$2,410.00. 

PART IV: ANNUITY PAYABLE AFTER THE FIRST 12 MONTHS 

11.	 Multiply the high-3 average salary by 40 percent to determine the FERS disability 

annuity without the Social Security reduction, beginning the second 

year of retirement. $53,572 X .40 = $21,428.80 

12.	 Subtract 60 percent of any Social Security benefits payable. (In this example, no 

Social Security benefits are payable.) 

$21,428.80 - $0 = $21,428.80 

13. Compute the monthly FERS disability annuity with Social Security reduction. 

a.	 Enter the base selected by the retiree for the survivor annuity. $21,428.80 

b.	 Multiply the base selected by 10 percent to obtain the total survivor reduction. 

$21,428.80 X .10 = $2,142.88 

c.	 Subtract the total survivor reduction from the annuity with Social Security 

reduction to obtain the annual annuity. 

$21,428.80 - $2,142.88 = $19,285.92 

d.	 Divide the annual annuity by 12 and round to the lower dollar to obtain the 

monthly annuity. 

$19,285.92 ÷ 12 = $1,607.00 

14.	 Determine the FERS disability benefit payable after the first 12 months. Enter the 

greater of:

 - the FERS earned monthly annuity benefit ($2,116.00), or

 - the FERS monthly benefit after 40% of the high-3 average salary has been 

reduced by 60% of the Social Security disability benefit, and the cost of the 

survivor election ($1,607.00). 

$2,116.00. 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits 123 

Chapter 61 

PART V: RECOMPUTATION AT AGE 62 

15. Compute the CSRS annuity component projected to age 62. 

a.	 Enter updated high-3 average salary. $53,572.00 

Note:	 The high-3 average salary used in the recomputation at age 62 is the high-3 

average salary at date of retirement, updated by all FERS COLA'S occurring 

during the period the annuitant was entitled to FERS disability benefits 

(regardless of whether the annuity was affected by COLA's.) Since future 

COLA rates are unknown, the high-3 average salary at date of retirement is 

used for the recomputation in this example. 

b.	 Enter the years and months of total CSRS service for computation purposes. 

24y 4m 

c.	 Use the CSRS General Formula Computation Chart (Chart 4, Handbook Chapter 

50, section 50C1.1-1) to obtain the retirement factor for 24 years, 4 months 

service. .449167 

d.	 Multiply the high-3 average salary by the retirement factor to obtain the 

unreduced CSRS basic annuity. 

$53,572 X .449167 = $24,062.77 

e.	 Compute the reduced CSRS component basic annuity. Subtract 10% of the 

deposit due for nondeduction performed prior to 10-1-82. In this example, all of 

the service was covered, so there is no reduction. The CSRS annuity component 

projected to age 62 equals $24,062.77 

16. Compute the unreduced FERS basic annuity component projected to age 62. 

a.	 Enter updated high-3 average salary. $53,572.00 

Note: The high-3 average salary used in the recomputation at age 62 is the high3 average salary at date of retirement, updated by all FERS COLA'S 

occurring during the period the annuitant was entitled to FERS disability 

benefits (regardless of whether the annuity was affected by COLA's.) 

Since future COLA rates are unknown, the high-3 average salary at date of 

retirement is used for the recomputation in this example. 

b.	 Determine the adjusted time base used in the recomputation of the FERS annuity 

component. 

1) Subtract age at retirement (52y 3m 16d) from age 62 (61y 11m 30d) to obtain 

the time on the annuity rolls. This time on the annuity rolls will be credited 

as projected service. 

61y - 11m - 30d

 - 52y - 03m - 16d
 

09y - 08m - 14d 

CSRS and FERS Handbook	 April, 1998 
124	 Computation of Disability Retirement Benefits FERS 

Chapter 61 

2) Add actual FERS service to projected service to determine the total service 

used for computation purposes. Eliminate any fractional part of a month. 

09y - 08m - 14d

 + 07y - 09m - 04d
 

17y - 05m - 18d
 

c.	 Find the retirement factor, using the appropriate FERS accrual factor chart, that 

corresponds to the total service used in the recomputation. 

.191583 

Note: The 1.1 percent retirement factor is used in the recomputation at age 62 if 

total service (including creditable CSRS component service) is 20 years or 

more. 

d.	 Multiply the high-3 average salary by the retirement factor for the total adjusted 

service to obtain the unreduced FERS basic annuity component. 

$53,572.00 X .191583 = $10,263.48 

17.	 Compute the combined FERS basic annuity at age 62. Add the CSRS annuity 

component to the FERS annuity component. 

$10,263.48 + $24,062.77 = $34,326.25 

18.	 Compute the monthly annuity payable. 

a. Enter the base selected by the retiree for the survivor annuity. $34,326.25 

b. Multiply the base selected by 10 percent to obtain the total survivor reduction. 

$34,326.25 X .10 = $3,432.63 

c.	 Subtract the total survivor reduction from the unreduced basic annuity to obtain 

the annual annuity. 

$34,326.25 - $3,432.63 = $30,893.62 

d.	 Divide the annual annuity by 12 and round to the lower dollar to obtain the 

monthly annuity recomputed at age 62. 

$30,893.62 ÷ 12 = $2,574.00 

PART VI: SURVIVOR ANNUITY PAYABLE 

14.	 Compute the survivor annuity. 

a.	 Multiply the amount designated as the survivor base by 50 percent. 

$34,326.25 X .50 = $17,163.13 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits
 125 

Chapter 61
 

b.	 Divide the annual survivor rate by 12 and round to the lower dollar to obtain the 

monthly survivor annuity rate payable. 

$17,163.13 ÷ 12 = $1,430.00 

Note:	 The survivor annuity in this example is computed as if the annuitant died 

before age 62. Thus, the survivor annuity is based on the same computation 

shown in Part V, except that the high-3 average salary is updated only for all 

FERS COLA's occurring prior to the death of the annuitant. 

If the disability annuitant dies at or after age 62, the survivor annuity is 

computed using the same method as would be used in the case of a nondisability annuitant. See Chapter 71, Death Benefits--Death of an Annuitant, 

for further details. 

CSRS and FERS Handbook	 April, 1998 
126 Computation of Disability Retirement Benefits FERS 

Chapter 61 

COMPUTATION OF SERVICE CREDIT 

YR MO DY 

NAME: Michael Ruzzi DATE OF RETIREMENT: 95 9 23 

DATE OF BIRTH: 43 6 8 

AGE: 52 3 16 

TYPE OF SERVICE SHOWN 

9 CSRS 

9 FERS 

: CSRS COMPONENT OF FERS 

TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-MO-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

63-8-8 87-12-19 COVERED 24 4 12 

TOTAL CIVILIAN/MILITARY 24 4 12 

UNUSED SICK LEAVE * 0 

TOTAL CREDITABLE SERVICE 24 4 12 

TOTAL SERVICE FOR COMPUTATION PURPOSES 24 4 

* For FERS transferee use lesser of amount at date of transfer or date of retirement. Do not 

complete for FERS only or deferred retirements. 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits 127 

Chapter 61 

COMPUTATION OF SERVICE CREDIT 

YR MO DY 

NAME: Michael Ruzzi (cont.) DATE OF RETIREMENT: 

DATE OF BIRTH: 

AGE: 52 3 16 

TYPE OF SERVICE SHOWN 

9 CSRS 

: FERS 

9 CSRS COMPONENT OF FERS 

TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-MO-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

87-12-20 95-9-23 COVERED 7 9 4 

TOTAL CIVILIAN/MILITARY 7 9 4 

UNUSED SICK LEAVE * -­ -­ -­

TOTAL CREDITABLE SERVICE 7 9 4 

TOTAL SERVICE FOR COMPUTATION PURPOSES 7 9 

* For FERS transferee use lesser of amount at date of transfer or date of retirement. Do not 

complete for FERS only or deferred retirements. 

CSRS and FERS Handbook	 April, 1998 
 

 

 

128 Computation of Disability Retirement Benefits FERS 

Chapter 61 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY
 

EARNED ANNUITY COMPUTATION
 

FERS TRANSFEREE WITH CSRS COMPONENT
 

CSRS COMPONENT COMPUTATION 

High-3 Average Pay $ 53,572 

Retirement Factor for CSRS Service ( 24 ) yrs. ( 4 ) mos.

 (see section 50C1.1-1, Chart 4) X .449167

 Unreduced CSRS Basic Annuity $ 24,062.77 

Reduction for non-deposit for service prior 10-1-82 (Subtract 10% of deposit due) - N/A

 Reduced CSRS Annuity $ 24,062.77 

FERS COMPONENT AND COMBINED ANNUITY COMPUTATION
 

High-3 Average Pay $ 53,572 

Retirement Factor for FERS Service ( 7 ) yrs. ( 9 ) mos. 

(see section 50C1.1-1, Chart 6) X .077500

 Unreduced FERS Basic Annuity $ 4,151.83

 Reduced CSRS Annuity + 24,062.77

 FERS Earned Disability Annuity $ 28,214.60 

Reduction Made for Survivor Annuity 

Base selected by retire $ 28,214.60 

X .10 

Total reduction $ 2,821.46 - 2,821.46

 ANNUAL ANNUITY $ 25,393.14

 Monthly Annuity (Divide by 12, round down to lower dollar) $ 2,116.00 

April, 1998 CSRS and FERS Handbook 
 

 

 

Computation of Disability Retirement Benefits 129 

Chapter 61 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY
 

Benefits Payable in First 12 Months
 

High-3 Average Pay $ 53,572 

Multiply by 60% X .60

 FERS Disability Annuity Without Social Security Reduction $ 32,143.20 

Less 100% of Social Security Disability Benefit (annual rate) - 0

 FERS Disability Annuity With Social Security Reduction $ 32,143.20 

Reduction for Survivor Annuity 

Base selected by retiree $ 32,143.20 

X .10 

Total reduction $ 3,214.32 - 3,214.32

 Annual Annuity $ 28,928.88

 Monthly Annuity (Divide by 12, round down to lower dollar) $ 2,410.00 

FERS Disability Benefit Payable in First 12 Months 

Enter the greater of: 

! Monthly FERS Earned Disability Annuity, or 

! Monthly FERS Disability Annuity With Social Security Reduction $ 2,410.00 

CSRS and FERS Handbook April, 1998 
 

 

 

 

130 Computation of Disability Retirement Benefits FERS 

Chapter 61 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY
 

Benefits Payable After the First 12 Months
 

High-3 Average Pay $ 53,572 

Multiply by 40% X .40

 FERS Disability Annuity Without Social Security Reduction $ 21,428.80 

Less 60% of Social Security Disability Benefit 

Annual Social Security Benefit 0 X .60 = - 0

 FERS Disability Annuity With Social Security Reduction $ 21,428.80 

Reduction for Survivor Annuity 

Base selected by retiree $ 21,428.80 

X .10 

Total reduction $ 2,142.88 - 2,142.88

 Annual Annuity $ 19,285.92

 Monthly Annuity (Divide by 12, round down to lower dollar) $ 1,607.00 

FERS Disability Benefit Payable After the First 12 Months 

Enter the greater of: 

! Monthly FERS Earned Disability Annuity, or 

! Monthly FERS Disability Annuity With Social Security Reduction $ 2,116.00 

April, 1998 CSRS and FERS Handbook 
 

 

 

 

 

 

 

Computation of Disability Retirement Benefits 131 

Chapter 61 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY
 

Recomputation at Age 62 

FERS Transferee With CSRS Component 

CSRS COMPONENT COMPUTATION 

High-3 Average Pay $ 53,572 

Retirement Factor for CSRS Service ( 24 ) yrs. ( 4 ) mos.

 (see section 50C1.1-1, Chart 4) X .449167 

Unreduced CSRS Basic Annuity $ 24,062.77 

Reduction for non-deposit for service prior 10-1-82 (Subtract 10% of deposit due) - 0 

Reduced CSRS Annuity $ 24,062.77 

FERS COMPONENT AND COMBINED ANNUITY COMPUTATION
 

High-3 Average Pay $ 53,572 

Retirement Factor for FERS Service (See section 50C1.1-1, Chart 6 or 7) 

Compute Adjusted Time Base for Recomputation 

YRS - MOS - DYS 

Age 62 = 61 - 11 - 30 

Minus Age at Retirement - 52 - 3 - 16 

Total Time on Annuity Rolls = 9 - 8 - 14 

Plus Total Creditable Service + 7 - 9 - 4 

Adjusted Time Base for Recomputation = 17 - 5 - 18 

Retirement Factor for Adjusted Time Base X .191583 

Unreduced FERS Basic Annuity $ 10,263.48 

Reduced CSRS Annuity $ 24,062.77 

Total Basic Annuity at Age 62 $ 34,326.25 

Reduction Made for Survivor Annuity 

Base selected by retiree $ 34,326.25 

X .10 

Total reduction $ 3,432.63 - 3,432.63 

Annual Annuity $ 30,893.62 

Monthly Annuity (Divide by 12, round down to lower dollar) $ 2,574.00 

CSRS and FERS Handbook April, 1998 
 

 

 

132 Computation of Disability Retirement Benefits FERS 

Chapter 61 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY
 

Survivor Annuity Computation 

Survivor Base Elected 

! From the EARNED ANNUITY COMPUTATION if employee 

is eligible for an immediate unreduced voluntary retirement at 

separation, or 

! From the RECOMPUTATION AT AGE 62 if employee is not 

eligible for an immediate unreduced voluntary retirement at 

separation. 

$ 34,326.25 

Spouse or former spouse entitled to 50% of survivor base X .50 

Annual Survivor Annuity $ 17,163.13 

Monthly Survivor Annuity (Divide by 12, round down to lower dollar) $ 1,430.00 

April, 1998 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits
 133 

Chapter 61
 

Example 12: FERS Disability Retirement -- Employee is Age 62, Earned Annuity Payable 

Name: Amy Mitchell 

Last Day of Pay: 2-15-96 

Date of Birth: 8-13-33 

Civilian Service: 11-1-91 to 2-15-96 (Covered) 

High-3 Average Salary: $25,352 

Survivor Benefits: None 

PART I: COMPUTE ACTUAL CREDITABLE SERVICE 

1. Follow the procedures outlined in Chapter 50 to compute the amount of creditable FERS 

service. In this example, the amount of creditable FERS service is 4 years, 3 months, 15 

days. 

PART II: COMPUTE THE EARNED ANNUITY 

2. Compute the unreduced FERS basic annuity. 

a.	 Enter the high-3 average salary. $25,352.00 

b. Enter the years and months of total service for computation purposes. 

4y 3m 

c.	 Use the FERS 1 Percent Accrual Factor Chart (Chart 6, Handbook Chapter 50, section 

50C1.1-1) to obtain the retirement factor for 4 years, 3 months service. .042500 

d. Multiply the high-3 average salary by the retirement factor to obtain the unreduced FERS 

basic annuity. 

$25,352 X .042500 = $1,077.46 

3. Compute the earned annuity monthly benefit. 

a.	 Enter the unreduced FERS basic annuity. $1,077.46 

Note:	 In this example, Amy elected a self-only annuity, so her annuity is not reduced to 

provide survivor benefits. 

b. Divide the annual annuity by 12 and round to the lower dollar to obtain the monthly 

annuity. 

$1,077.46 ÷ 12 = $89.00 

CSRS and FERS Handbook	 April, 1998 
134 Computation of Disability Retirement Benefits FERS 

Chapter 61 

COMPUTATION OF SERVICE CREDIT 

YR MO DY 

NAME: Amy Mitchell DATE OF RETIREMENT: 96 2 15 

DATE OF BIRTH: 33 8 13 

AGE: 62 6 3 

TYPE OF SERVICE SHOWN 

9 CSRS 

: FERS 

9 CSRS COMPONENT OF FERS 

TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-MO-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

91-11-01 96-02-25 COVERED 4 3 15 

TOTAL CIVILIAN/MILITARY 4 3 15 

UNUSED SICK LEAVE * -­ -­ -­

TOTAL CREDITABLE SERVICE 4 3 15 

TOTAL SERVICE FOR COMPUTATION PURPOSES 4 3 

* For FERS transferee use lesser of amount at date of transfer or date of retirement. Do not 

complete for FERS only or deferred retirements. 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits
 135 

Chapter 61
 

CSRS and FERS Handbook April, 1998 
 

 

 

136 Computation of Disability Retirement Benefits FERS 

Chapter 61 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY
 

EARNED ANNUITY COMPUTATION 

High-3 Average Pay $ 25,352 

Retirement Factor ( 4 ) yrs. ( 3 ) mos. (see section 50C1.1-1, Chart 6) X .042500

 Unreduced FERS Basic Annuity $ 1,077.46 

Reduction Made for Survivor Annuity 

Base selected by retiree $ 

X .10 

Total reduction $ - N/A

 ANNUAL ANNUITY $ 1,077.46

 Monthly Annuity (Divide by 12, round down to lower dollar) $ 89.00 

April, 1998 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits 137 

Chapter 61 

Example 13: FERS Disability Retirement -- Transferee Eligible for Unreduced Voluntary Retirement, 

Earned Annuity Payable 

Name: Timothy Austin 

Last Day of Pay: 10-31-95 

Date of Birth: 6-6-39 

Civilian Service: 5-5-65 to 8-16-87 -- Covered 

CSRS Service 

8-17-87 to 10-31-95 -- Covered 

FERS Service 

High-3 Average Salary: $48,215 

Survivor Benefits: Full 

PART I: COMPUTE ACTUAL CREDITABLE SERVICE 

1. Follow the procedures outlined in Chapter 50 to compute the amount of creditable CSRS 

service and FERS service. In this example, the amount of creditable CSRS service equals 

22 years, 3 months, and 12 days. The amount of creditable FERS service equals 8 

years, 2 months, and 14 days. 

PART II: COMPUTE THE EARNED ANNUITY 

2. Compute the unreduced CSRS component basic annuity. 

a.	 Enter the high-3 average salary. $48,215.00 

b.	 Enter the years and months of total CSRS service for computation purposes. 

22y 3m 

c.	 Use the CSRS General Formula Computation Chart (Chart 4, Handbook Chapter 50, 

section 50C1.1-1) to obtain the retirement factor for 22 years, 3 months service. 

.407500 

d.	 Multiply the high-3 average salary by the retirement factor to obtain the unreduced 

CSRS basic annuity. 

$48,215 X .407500 = $19,647.61 

3. Compute the reduced CSRS component basic annuity. Subtract 10% of the deposit due for 

nondeduction performed prior to 10-1-82. In this example, all of the service was covered, 

so there is no reduction. The CSRS annuity component equals $19,647.61. 

4. Compute the unreduced FERS component basic annuity. 

a.	 Enter the high-3 average salary. $48,215.00 

b.	 Enter the years and months of total FERS service for computation purposes. 

8y 2m 

c.	 Use the FERS 1 Percent Accrual Factor Chart (Chart 6, Handbook Chapter 50, 

section 50C1.1-1) to obtain the retirement factor for 8 years, 2 months service. 

.081667 

CSRS and FERS Handbook	 April, 1998 
138	 Computation of Disability Retirement Benefits FERS 

Chapter 61 

d.	 Multiply the high-3 average salary by the retirement factor to obtain the unreduced 

FERS basic annuity component. 

$48,215 X .081667 = $3,937.57 

5. Compute the combined FERS earned disability annuity. Add the CSRS annuity 

component to the FERS annuity component. 

$3,937.57 + $19,647.61 = $23,585.18 

6. Compute the earned annuity monthly benefit. 

a.	 Enter the base selected by the retiree for the survivor annuity. $23,585.18 

b.	 Multiply the base selected by 10 percent to obtain the total survivor reduction. 

$23,585.18 X .10 = $2,358.52 

c.	 Subtract the total survivor reduction from the combined FERS disability annuity to 

obtain the annual annuity. $23,585.18 - $2,358.52 = $21,226.66 

d.	 Divide the annual annuity by 12 and round to the lower dollar to obtain the monthly 

annuity for the earned benefit. 

$21,226.66 ÷ 12 = $1,768.00 

PART III: SURVIVOR ANNUITY PAYABLE 

7.	 Compute the survivor annuity. 

a.	 Multiply the amount designated as the survivor base by 50 percent. 

$23,585.18 X .50 = $11,792.59 

b.	 Divide the annual survivor rate by 12 and round to the lower dollar to obtain the 

monthly survivor annuity rate payable. 

$11,792.59 ÷ 12 = $982.00 

April, 1998	 CSRS and FERS Handbook 
Computation of Disability Retirement Benefits 139 

Chapter 61 

COMPUTATION OF SERVICE CREDIT 

YR MO DY 

NAME: Timothy Austin DATE OF RETIREMENT: 95 10 31 

DATE OF BIRTH: 39 6 6 

AGE: 56 4 25 

TYPE OF SERVICE SHOWN 

9 CSRS 

9 FERS 

: CSRS COMPONENT OF FERS 

TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-MO-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

65-05-05 87-08-16 COVERED 22 3 12 

TOTAL CIVILIAN/MILITARY 22 3 12 

UNUSED SICK LEAVE * 0 

TOTAL CREDITABLE SERVICE 22 3 12 

TOTAL SERVICE FOR COMPUTATION PURPOSES 22 3 

* For FERS transferee use lesser of amount at date of transfer or date of retirement. Do not 

complete for FERS only or deferred retirements. 

CSRS and FERS Handbook	 April, 1998 
140 Computation of Disability Retirement Benefits FERS 

Chapter 61 

COMPUTATION OF SERVICE CREDIT 

YR MO DY 

NAME: Timothy Austin (cont.) DATE OF RETIREMENT: 

DATE OF BIRTH: 

AGE: 56 4 25 

TYPE OF SERVICE SHOWN 

9 CSRS 

: FERS 

9 CSRS COMPONENT OF FERS 

TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-MO-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

87-08-17 95-10-31 COVERED 8 2 14 

TOTAL CIVILIAN/MILITARY 8 2 14 

UNUSED SICK LEAVE * -­ -­ -­

TOTAL CREDITABLE SERVICE 8 2 14 

TOTAL SERVICE FOR COMPUTATION PURPOSES 8 2 

* For FERS transferee use lesser of amount at date of transfer or date of retirement. Do not 

complete for FERS only or deferred retirements. 

April, 1998	 CSRS and FERS Handbook 
 

 

 

Computation of Disability Retirement Benefits
 141 

Chapter 61
 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY
 

EARNED ANNUITY COMPUTATION
 

FERS TRANSFEREE WITH CSRS COMPONENT
 

CSRS COMPONENT COMPUTATION 

High-3 Average Pay $ 48,215 

Retirement Factor for CSRS Service ( 22 ) yrs. ( 3 ) mos.

 (see section 50C1.1-1, Chart 4) X .407500

 Unreduced CSRS Basic Annuity $ 19,647.61 

Reduction for non-deposit for service prior 10-1-82 (Subtract 10% of deposit due) - N/A

 Reduced CSRS Annuity $ 19,647.61 

FERS COMPONENT AND COMBINED ANNUITY COMPUTATION
 

High-3 Average Pay $ 48,215 

Retirement Factor for FERS Service ( 8 ) yrs. ( 2 ) mos. 

(see section 50C1.1-1, Chart 6) X .081667

 Unreduced FERS Basic Annuity $ 3,937.57

 Reduced CSRS Annuity + 19,647.61

 FERS Earned Disability Annuity $ 23,585.18 

Reduction Made for Survivor Annuity 

Base selected by retiree $ 23,585.18 

X .10 

Total reduction $ 2,358.52 - 2,358.52

 ANNUAL ANNUITY $ 21,226.66

 Monthly Annuity (Divide by 12, round down to lower dollar) $ 1,768.00 

CSRS and FERS Handbook April, 1998 
 

 

 

142 Computation of Disability Retirement Benefits FERS 

Chapter 61 

FERS BASIC ANNUITY COMPUTATION
 

DISABILITY
 

Survivor Annuity Computation 

Survivor Base Elected 

! From the EARNED ANNUITY COMPUTATION if employee 

is eligible for an immediate unreduced voluntary retirement at 

separation, or 

! From the RECOMPUTATION AT AGE 62 if employee is not 

eligible for an immediate unreduced voluntary retirement at 

separation. 

$ 23,585.18 

Spouse or former spouse entitled to 50% of survivor base X .50 

Annual Survivor Annuity $ 11,792.59 

Monthly Survivor Annuity (Divide by 12, round down to lower dollar) $ 982.00 

April, 1998 CSRS and FERS Handbook