BAL 10 – 105 - Attachment 

Sample Calculations 
2 

Contents: 

Example # Page # 

1 CSRS Law Enforcement Officer/Firefighter/Nuclear Materials Courier 3 

2 CSRS Member of the Capitol Police (computation under 5 U.S.C. § 8339(b)) 5 

3 CSRS Former Member of the Capitol Police (computation under 5 U.S.C. 

§ 8339(b)) 

7 

4 CSRS Former Member of the Capitol Police (computation under 5 U.S.C. § 8339(q)) 9 

5 CSRS Former Member of the Capitol Police (computation under 5 U.S.C. 

§ 8339(a)) 

11 

6 CSRS Member of the Supreme Court Police 13 

7 CSRS Air Traffic Controller (50 percent guaranteed minimum benefit) 15 

8 CSRS Air Traffic Controller (Normal disability computation) 16 

9 CSRS Customs and Border Protection Officer (covered under 5 U.S.C. § 8336(c)) 18 

10 CSRS Customs and Border Protection Officer (elected not to be covered under 

5 U.S.C. § 8336(c)) 

20 

11 FERS Law Enforcement Officer/Firefighter/Nuclear Materials Courier/Member of 

the Supreme Court Police/ Member of the Capitol Police 

22 

12 FERS Customs and Border Protection Officer (covered under 5 U.S.C. § 8412(d)) 24 

13 FERS Customs and Border Protection Officer (elected not to be covered under 

5 U.S.C. § 8412(d)) 

26 

14 FERS Air Traffic Controller 28 

15 FERS Air Traffic Controller 30 

16 FERS Air Traffic Controller 32 

17 FERS Air Traffic Controller with a CSRS Component 34 
3 

Example 1: CSRS Law Enforcement Officer/Firefighter/Nuclear Materials Courier 

BACKGROUND INFORMATION: 

An employee in a primary firefighter position covered under the provisions of 5 U.S.C. § 8336(c) 

retires on disability at age 48 with a high-3 average pay of $85,000. He has performed service as 

follows: 

 2 years active duty military service (deposit paid in full); 

 3 years covered civilian service (clerk typist); and 

 15 years of firefighter service that qualifies for retirement under 5 U.S.C. § 8336(c). 

 3 months credit for unused sick leave balance of 520 hours 

Disability Annuity Computation 

 Earned Annuity (Based on 20 years of creditable service, plus 3 months (.25 years) sick leave 

credit, and the high-3 average pay): 

o 2.5% x 15.25 (years) x $85,000 = $32,406.25, plus 

o 2.0% x 5 (years) x $85,000 = $8,500, equals

o Basic Annuity: $40,906.25 

 Guaranteed Minimum Disability Benefit (the lesser of): 

o 40% Benefit: 

 Basic Annuity equals: 40% x $85,000 = $34,000; or 

o Projected to Age 60 Benefit: (Includes 12 years of credit for service projected to 

age 60, credited as firefighter service because the employee was a firefighter 

when he retired. The credit for the additional service in the computation is 

reflected in italicized font.) 

 1.5% x 5 (years) x $85,000 = $6,375, plus 

 1.75% x 5 (years) x $85,000 = $7,437.50, plus 

 2.0% x 10.25 (years) x $85,000 = $17,425, plus 

 2.0% x 12 (years) x $85,000 = $20,400, equals

 Basic Annuity: $51,637.50 

In this example, the guaranteed minimum benefit would be based on 40 percent of the employee’s 

high-3 average pay because that amount is less than the amount computed in the projected to age 

60 guaranteed minimum computation. The annuity payable would be based on the earned 

annuity computation because that amount is greater than the guaranteed minimum benefit. 

Note that the unused sick leave credit was applied to the 2.5 percent annuity accrual rate in the 

earned annuity computation because the employee was in a firefighter position at the time of 

separation for retirement and the total time credited at the 2.5 percent annuity accrual rate did not 

exceed 20 years. Had the employee been in the clerk typist position at retirement (assuming the 

firefighter service was performed before the clerk typist service), the sick leave credit would have 

been applied to the 2.0 percent annuity accrual rate. 

Also note that while the 2.5 percent annuity accrual rate from 5 U.S.C. § 8339(d) is used in the 

earned annuity computation, that accrual rate cannot be used in the projected to age 60 calculation 

because 5 U.S.C. § 8339(g)(2) does not authorize the use of the annuity accrual rates from 

5 U.S.C. § 8339(d) for firefighters, law enforcement officers, and nuclear materials couriers. 
4 

Survivor Annuity Based on the Death of an Employee 

If the type of separation in this example were changed from disability retirement to death of the 

employee, the same calculations would be applied to establish the amount of the survivor annuity 

payable to a spouse. In this example, the spouse’s survivor annuity would equal 55 percent of the 

earned annuity because the earned annuity exceeds the guaranteed minimum benefit. 

Survivor Annuity: 55% x $40,906.25 = $22,498.44 per year 
5 

Example 2: CSRS Member of the Capitol Police (computation under 5 U.S.C. § 8339(b))

BACKGROUND INFORMATION: 

A member of the Capitol Police retires on disability at age 49 with a high-3 average pay of 

$75,000. He has performed service as follows: 

 10 years covered service as a program analyst in the executive branch 

 14 years covered service as a member of the Capitol Police. 

The employee has retirement deductions in the fund covering his last 5 years of service. The 

employee used all available sick leave before retirement. 

Disability Annuity Computation 

 Earned Annuity (Based on 24 years of creditable service and the high-3 average pay): 

o 2.5% x 14 (years) x $75,000 = $26,250, plus 

o 2.0% x 10 (years) x $75,000 = $15,000, equals

o Basic Annuity: $41,250 

 Guaranteed Minimum Disability Benefit (the lesser of): 

o 40% Benefit: 

 Basic Annuity equals: 40% x $75,000 = $30,000; or 

o Projected to Age 60 Benefit: (Includes 11 years of credit for service projected to 

age 60, credited as member of the Capitol Police service because the employee 

was a member of the Capitol Police when he retired. The credit for the additional 

service in the computation is reflected in italicized font.) 

 2.5% x 14 (years) x $75,000 = $26,250, plus 

 2.5% x 11 (years) x $75,000 = $20,625, plus 

 2.0% x 10 (years) x $75,000 = $15,000, equals

 Basic Annuity: $61,875 

In this example, the guaranteed minimum benefit would be based on the 40 percent guaranteed 

minimum computation because that amount is less than the amount computed in the projected to 

age 60 guaranteed minimum computation. The annuity payable would be based on the earned 

benefit computation because that amount is greater than the guaranteed minimum benefit. 

The 1.5 percent and the 1.75 percent annuity accrual rates from 5 U.S.C. § 8339(a) were not used 

in the earned annuity computation in this example because 10 years of the service that applied to 

the 2.5 percent annuity accrual rate replaced the 5 years of service that would normally have been 

applied to the 1.5 percent annuity accrual rate and the 5 years of service that would normally have 

been applied to the 1.75 percent annuity accrual rate. 

 

All of the additional 11 years of credit used in the projected to age 60 guaranteed minimum 

computation is subject to the 2.5 percent annuity accrual rate because that time is credited as 

continuation of service in the position occupied at retirement and because there is no limitation to 

the amount of service that can be subject to the 2.5 percent annuity accrual rate under 

5 U.S.C. § 8339(b). 
6 

Survivor Annuity Based on the Death of an Employee 

If the type of separation in this example were changed from disability retirement to death of the 

employee, the same calculations would be applied to establish the amount of the survivor annuity 

payable to a spouse. In this example, the spouse’s survivor annuity would equal 55 percent of the 

earned benefit because that benefit is greater than the guaranteed minimum benefit. 

Survivor Annuity: 55% x $41,250 = $22,687.50 per year 
7 

Example 3: CSRS Former Member of the Capitol Police (computation under 5 U.S.C. § 8339(b))

BACKGROUND INFORMATION: 

A procurement analyst in the executive branch retires on disability at age 49 with a high-3 

average pay of $75,000. He has performed service as follows: 

 4 years active duty military service (deposit paid in full); 

 5 years service as a member of the Capitol Police; and 

 10 years service as a procurement analyst. 

The employee has deductions in the fund covering his last 5 years of service. The employee 

used all available sick leave before retirement. 

Disability Annuity Computation 

 Earned Annuity (Based on 19 years of creditable service and the high-3 average pay): 

o 2.5% x 9 (years) x $75,000 = $16,875, plus 

o 1.75% x 1 (year) x $75,000 = $1,312.50, plus 

o 2.0% x 9 (years) x $75,000 = $13,500, equals

o Basic Annuity: $31,687.50. 

 Guaranteed Minimum Disability Benefit (the lesser of): 

o 40% Benefit: 

 Basic Annuity equals: 40% x $75,000 = $30,000; or 

o Projected to Age 60 Benefit: (Includes 11 years of credit for service projected to 

age 60, credited as procurement specialist service because the employee was a 

procurement specialist when he retired. The credit for the additional service in 

the computation is reflected in italicized font.) 

 2.5% x 9 (years) x $75,000 = $16,875, plus 

 1.75% x 1 (year) x $75,000 = $1,312.50, plus 

 2.0% x 9 (years) x $75,000 = $13,500, plus 

 2.0% x 11 (years) x $75,000 = $16,500, equals

 Basic Annuity: $48,187.50 

In this example, the guaranteed minimum benefit would be based on 40 percent of the employee’s 

high-3 average pay because that amount is less than the amount computed in the projected to age 

60 guaranteed minimum computation. The annuity payable would be based on the earned 

annuity computation because that amount is greater than the guaranteed minimum benefit. 

The military service in this example is combined with the service as a member of the Capitol 

Police and applied to the 2.5 percent annuity accrual rate in the earned benefit and in the 

projected to age 62 guaranteed minimum benefit because the calculation is based on 5 U.S.C. 

§ 8339(b) for congressional employees. The 9 years of service used at the 2.5 percent annuity 

accrual rate replaces the 5 years of service that would normally be applied to the 1.5 percent 

accrual rate in 5 U.S.C § 8339(a), and 4 years of the 5 years that would normally apply to the 1.75 

percent accrual rate in 5 U.S.C § 8339(a). 
8 

Survivor Annuity Based on the Death of an Employee 

If the type of separation in this example were changed from disability retirement to death of the 

employee, the same calculations would be applied to establish the amount of the survivor annuity 

payable to a spouse. In this example, the spouse’s survivor annuity would equal 55 percent of the 

earned annuity because the earned annuity is greater than the guaranteed minimum benefit. 

Survivor Annuity: 55% x $31,687.50 = $17,428.13 per year 
9 

Example 4: CSRS Former Member of the Capitol Police (computation under 5 U.S.C. 

§ 8339(q))

BACKGROUND INFORMATION: 

A procurement analyst in the executive branch retires on disability at age 49 with a high-3 

average pay of $75,000. He has performed service as follows: 

 3 years active duty military service (deposit paid in full); 

 4 years covered CSRS service as a member of the Capitol Police; and 

 13 years covered CSRS service as a procurement analyst. 

The employee has deductions in the fund covering his last 5 years of service. The employee 

used all available sick leave before retirement. 

Disability Annuity Computation 

 Earned Annuity (Based on 20 years of creditable service and the high-3 average pay): 

o 2.5% x 4 (years) x $75,000 = $7,500, plus 

o 1.5% x 1 (year) x $75,000 = $1,125, plus 

o 1.75% x 5 (years) x $75,000 = $6,562.50, plus 

o 2.0% x 10 (years) x $75,000 = $15,000, equals

o Basic Annuity: $30,187.50 

 Guaranteed Minimum Disability Benefit (the lesser of): 

o 40% Benefit: 

 Basic Annuity equals: 40% x $75,000 = $30,000; or 

o Projected to Age 60 Benefit: (Includes 11 years of credit for service projected to 

age 60, credited as procurement specialist service because the employee was a 

procurement specialist when he retired. The credit for the additional service in 

the computation is reflected in italicized font.) 

 2.5% x 4 (years) x $75,000 = $7,500, plus 

 1.5% x 1 (year) x $75,000 = $1,125, plus 

 1.75% x 5 (years) x $75,000 = $6,562.50, plus 

 2.0% x 10 (years) x $75,000 = $15,000, plus 

 2.0% x 11 (years) x $75,000 = $16,500, equals

 Basic Annuity: $46,687.50 

In this example, the guaranteed minimum benefit would be based on 40 percent of the employee’s 

high-3 average pay because that amount is less than the amount computed in the projected to age 

60 guaranteed minimum computation. The annuity payable would be based on the earned 

annuity computation because that amount is greater than the guaranteed minimum benefit. 

The 4 years of service performed as a member of the Capitol Police is the only service in this 

example that is subject to the 2.5 percent annuity accrual rate because the 2.5 percent accrual rate 

under 5 U.S.C. § 8339(q) applies only to service as a member of the Capitol Police and not to 

military service. The remaining creditable service not subject to the 2.5 percent accrual rate is 

subject to the General Formula annuity accrual rates found in 5 U.S.C. § 8339(a). The 4 years of 

service subject to the 2.5 percent annuity accrual rate in this example replaces 4 of the 5 years 

that normally apply to the 1.5 percent annuity accrual rate, so only 1 year of service not subject to 

the 2.5 percent accrual rate will be subject to the 1.5 percent annuity accrual rate. 
10 

The annuity in this example cannot be computed under 5 U.S.C. § 8339(b) because the employee 

did not perform at least 5 years of service as a congressional employee (including service as a 

member of the Capitol Police). 

Survivor Annuity Based on the Death of an Employee 

If the type of separation in this example were changed from disability retirement to death of the 

employee, the same calculations would be applied to establish the amount of the survivor annuity 

payable to a spouse. In this example, the spouse’s survivor annuity would equal 55 percent of the 

earned annuity because the earned annuity exceeds the guaranteed minimum benefit. 

Survivor Annuity: 55% x $30,187.50 = $16,603.13 per year 
11 

 Example 5: CSRS Former Member of the Capitol Police (computation under 5 U.S.C. § 8339(a))

BACKGROUND INFORMATION: 

A program analyst retires on disability at age 49 with a high-3 average pay of $75,000. He has 

performed service as follows: 

 2 years of service before October 1, 1982, as a claims clerk not subject to CSRS 

deductions (the employee did not pay a deposit of $2,000 owed for the service) 

 6 years service as a member of the Capitol Police (CSRS deductions refunded and not 

repaid); 

 9 years service as a procurement analyst (CSRS deductions refunded and not repaid); 

 1 year service as a member of the Capitol Police (CSRS deductions remain in the 

retirement fund); and 

 3 years covered CSRS service as a program analyst in the executive branch (CSRS 

deductions remain in retirement fund) 

The employee does not have deductions in the fund covering his last 5 years of service. The 

employee used all available sick leave before retirement. 

Disability Annuity Computation 

 Earned Annuity (Based on 6 years of creditable service and the high-3 average pay): 

o 1.5% x 5 (years) x $75,000 = $5,625, plus 

o 1.75% x 1 (year) x $75,000 = $1,312.50, equals

o Basic Annuity: $6,937.50 

 Guaranteed Minimum Disability Benefit (the lesser of): 

o 40% Benefit: 

 Basic Annuity equals: 40% x $75,000 = $30,000; or 

o Projected to Age 60 Benefit: (Includes 11 years of credit for service projected to 

age 60, credited as program analyst service because the employee was a program 

analyst when he retired. The credit for the additional service in the computation 

is reflected in italicized font.) 

 1.5% x 5 (years) x $75,000 = $5,625, plus 

 1.75% x 1 (year) x $75,000 = $1,312.50, plus 

 1.75% x 4 (years) x $75,000 = $5,250, plus 

 2.0% x 7 (years) x $75,000 = $10,500, equals

 Basic Annuity: $22,687.50 

In this example, the guaranteed minimum benefit would be based on the projected to age 60 

guaranteed minimum computation because that amount is less than 40 percent of the high-3 

average pay. The annuity payable would be based on the projected to age 60 guaranteed 

minimum benefit because that amount is greater than the earned benefit. Note in this example, 

both the earned benefit and the projected benefit would be subject to a reduction equal to 10 

percent of the deposit owed for the non-deduction service performed before October 1, 1982 

($2000 x 10% = 200) in addition to the applicable reduction for survivor annuity. That reduction 

for non-deduction service is applied before establishing the survivor annuity rate (see the survivor 

annuity calculation below). 
12 

The 2.5 percent annuity accrual rate from 5 U.S.C § 8339(b) and § 8339(q) cannot be used to 

compute the disability benefit in this example because retirement deductions in the retirement 

fund only cover the last 4 years of the employee’s service. The 15 years of refunded service 

cannot be used in the disability computation because the employee did not pay the redeposit owed 

for that service. If the redeposit owed for that service had been paid, that refunded service would 

have been credited in the computation of the disability annuity, and the 2.5 percent annuity 

accrual rate from 5 U.S.C. § 8339(b) would have applied to all of the service performed as a 

member of the Capitol Police in the computation of the earned benefit and the projected to age 60 

guaranteed minimum benefit. 

Survivor Annuity Based on the Death of an Employee 

If the type of separation in this example were changed from disability retirement to death of the 

employee, the same calculations would be applied to establish the amount of the survivor annuity 

payable to a spouse. In this example, the spouse’s survivor annuity would equal 55 percent of the 

projected to age 60 guaranteed minimum benefit (after the benefit is reduced by 10 percent of the 

deposit owed for the 2 years on service not subject to CSRS deductions) because that benefit 

exceeds the earned benefit. 

Survivor Annuity: 55% x ($22,687.50 - $200) = $12,368.13 per year 
13 

Example 6: CSRS Member of the Supreme Court Police 

BACKGROUND INFORMATION: 

A member of the Supreme Court Police retires on disability at age 48 with a high-3 average pay 

of $85,000. He has performed service as follows: 

 2 years active duty military service (deposit paid in full); 

 3 years covered civilian service (claims technician); and 

 15 years of covered service as a member of the Supreme Court Police. 

The employee used all available sick leave before retirement. 

Disability Annuity Computation 

 Earned Annuity (Based on 20 years of creditable service and the high-3 average pay): 

o 2.5% x 15 (years) x $85,000 = $31,875, plus 

o 2.0% x 5 (years) x $85,000 = $8,500, equals

o Basic Annuity: $40,375 

 Guaranteed Minimum Disability Benefit (the lesser of): 

o 40% Benefit: 

 Basic Annuity equals: 40% x $85,000 = $34,000; or 

o Projected to Age 60 Benefit: (Includes 12 years of credit for service projected to 

age 60, credited as member of the Supreme Court Police service because the 

employee was a member of the Supreme Court Police when he retired. The 

credit for the additional service in the computation is reflected in italicized font.) 

 2.5% x 15 (years) x $85,000 = $31,875, plus 

 2.5% x 5 (years) x $85,000 = $10,625, plus 

 2.0% x 5 (years) x $85,000 = $8,500, plus 

 2.0% x 7 (years) x $85,000 = $11,900, equals

 Basic Annuity: $62,900 

In this example, the guaranteed minimum benefit would be based on 40 percent of the employee’s 

high-3 average pay because that amount is less than the amount computed in the projected to age 

60 computation. The annuity payable would be based on the earned annuity computation because 

that amount is greater than the guaranteed minimum benefit. 

The annuity computation provisions for members of the Supreme Court Police in 5 U.S.C. § 8339(r) 

require the annuity to be computed using the 2.5 percent annuity accrual rate in 5 U.S.C. § 8339(d). The 

2.5 percent annuity accrual rate was applied to the 15 years of service this employee performed as a 

member of the Supreme Court Police in both the earned annuity computation and the projected to age 60 

benefit computation. Although the additional 12 years of time credited in the projected to age 60 benefit 

is credited as service as a member of the Supreme Court Police, only 5 of those 12 years can be applied to 

the 2.5 percent annuity accrual rate because the amount of total time that can be credited at the 2.5 percent 

annuity accrual rate cannot exceed 20 years. The balance of the additional 12 years not subject to the 2.5 

percent annuity accrual rate is subject to the 2.0 percent annuity accrual rate from the General Formula. 

Service not performed as a member of the Supreme Court Police is subject to the appropriate annuity 

accrual rate from the General Formula (2.0 percent in this example) in both the earned annuity 

computation and the projected to age 60 benefit computation. 
14 

Survivor Annuity Based on the Death of an Employee 

If the type of separation in this example were changed from disability retirement to death of the 

employee, the same calculations would be applied to establish the amount of the survivor annuity 

payable to a spouse. In this example, the spouse’s survivor annuity would equal 55 percent of the 

earned annuity because the earned annuity exceeds the guaranteed minimum benefit. 

Survivor Annuity: 55% x $40,375 = $22,206.25 per year 
15 

Example 7: CSRS Air Traffic Controller (50 percent guaranteed minimum benefit)

BACKGROUND INFORMATION: 

An air traffic controller retires on disability at age 51 with a high-3 average pay of $90,000. She has 

performed service as follows: 

 4 years of CSRS covered service as an annuitant services representative (CSRS deductions for 

this service were refunded to the employee and have not been repaid or redeposited); and 

 18 years of CSRS covered civilian service as an air traffic controller (CSRS deductions covering 

the service as an air traffic controller were not refunded to the employee). 

The employee used all available sick leave before retirement. 

Disability Annuity Computation 

 Earned Annuity (Based on 18 years of service, the high-3 average pay, and the annuity 

accrual rates in 5 U.S.C. §8339(a)): 

o 1.5% x 5 x $90,000 = $6,750, plus 

o 1.75% x 5 x $90,000 = $7,875, plus 

o 2.0% x 8 x $90,000 = $14,400, equals

o Basic Annuity: $29,025 

 50 Percent Guaranteed Minimum Computation for Air Traffic Controllers (5 U.S.C. 

§ 8339(e)): 

o Basic Annuity equals: 50% x $90,000 = $45,000 

In this example, the earned annuity will be increased so that the amount of annuity payable will equal 50 

percent of the high-3 average pay in accordance with the 50 percent guaranteed minimum benefit 

provision found in 5 U.S.C. § 8339(e). Although the employee took a refund of some of her CSRS 

retirement deductions, she is entitled to the 50 percent guaranteed minimum benefit because that refund 

did not cover any of the service during which she performed as an air traffic controller. 

Survivor Annuity Based on the Death of an Employee 

If the type of separation in this example were changed from a disability retirement to death of the 

employee, the same calculations would be applied to establish the amount of the survivor annuity 

payable to a spouse. In this example, the spouse’s survivor annuity would equal 55 percent of the 

50 percent guaranteed minimum benefit because it exceeds the earned annuity. 

Survivor Annuity: 55% x $45,000 = $24,750per year 
16 

Example 8: CSRS Air Traffic Controller (Normal disability computation)

BACKGROUND INFORMATION: 

An air traffic controller retires on disability at age 51 with a high-3 average pay of $90,000. He 

has performed service as follows: 

 4 years of CSRS covered service as a claims clerk (CSRS deductions were refunded to 

employee and not repaid to the retirement fund); 

 5 years of CSRS covered service as an air traffic controller (CSRS deductions were 

refunded to the employee and not repaid to the retirement fund); and 

 13 years of CSRS covered service as an air traffic controller (CSRS deduction remain in 

the retirement fund) 

The employee used all available sick leave before retirement. 

Disability Annuity Computation 

 Earned Annuity (Based on 13 years of creditable service and the high-3 average pay): 

o 1.5% x 5 (years) x $90,000 = $6,750, plus 

o 1.75% x 5 (years) x $90,000 = $7,875, plus 

o 2.0% x 3 (years) x $90,000 = $5,400, equals

o Basic Annuity: $20,025 

 Guaranteed Minimum Disability Benefit (the lesser of): 

o 40% Benefit: 

 Basic Annuity equals: 40% x $90,000 = $36,000; or 

o Projected to Age 60 Benefit: (Includes 9 years of credit for service projected to 

age 60, credited as air traffic controller service because the employee was an air 

traffic controller when he retired. The credit for the additional service in the 

computation is reflected in italicized font.) 

 1.5% x 5 (years) x $90,000 = $6,750, plus 

 1.75% x 5 (year) x $90,000 = $7,875, plus 

 2.0% x 3 (years) x $90,000 = $5,400, plus 

 2.0% x 9 (years) x $90,000 = $16,200, equals

 Basic Annuity: $36,225 

In this example, the employee is not entitled to the 50 percent guaranteed minimum benefit for air 

traffic controllers under 5 U.S.C. § 8339(e) because he received a refund of CSRS deductions that 

covered a period during which he performed service as an air traffic controller. The earned 

annuity computation must be compared with the disability guaranteed minimum calculations to 

determine the amount of this employee’s disability annuity. 

The guaranteed minimum disability benefit would be based on 40 percent of the employee’s 

high-3 average pay because that amount is less than the amount computed in the projected to age 

60 benefit calculation. The annuity payable would be based on the 40 percent computation 

because that amount is greater than the earned annuity. 
17 

Survivor Annuity Based on the Death of an Employee 

If the type of separation in this example were changed from disability retirement to death of the 

employee, the same calculations would be applied to establish the amount of the survivor annuity 

payable to a spouse. In this example, the spouse’s survivor annuity would equal 55 percent of the 

40 percent guaranteed minimum computation because it exceeds the earned annuity. 

Survivor Annuity: 55% x $36,000 = $19,800 per year 
18 

Example 9: CSRS Customs and Border Protection Officer (covered under 5 U.S.C. § 8336(c) as the 

result of the provisions in Section 535 of Division E of Public Law 110-161, the Department of Homeland 

Security Appropriations Act) 

BACKGROUND INFORMATION: 

An employee in a customs and border protection officer (CBPO) position covered under the 

provisions of 5 U.S.C. § 8336(c) retires on disability at age 51 with a high-3 average pay of 

$90,000. He has performed service as follows: 

 6 years covered civilian service (program analyst); 

 10 years covered civilian service (customs inspector); 

 4 years covered civilian service (CBPO before July 6, 2008); 

 2 years covered civilian service (CBPO on and after July 6, 2008, that qualifies for 

retirement under 5 U.S.C. §8336(c)); 

 1 month credit for unused sick leave. 

The employee did not elect to opt out of the provisions established in section 535 of Public Law 

110-161 for CBPOs. 

Disability Annuity Computation 

 Earned Annuity (Based on 22 years of creditable service, 1 month sick leave credit, and the 

high-3 average pay): 

o 2.5% x 2.083333 (years) x $90,000 = $4,687.50, plus 

o 1.5% x 2.916667 (years) x $90,000 = $3,937.50, plus 

o 1.75% x 5 (years) x $90,000 = $7,875.00, plus 

o 2.0% x 12.083333 (years) x $90,000 = $21,749.99, equals

o Basic Annuity: $38,249.99 

 Guaranteed Minimum Disability Benefit (the lesser of): 

o 40% Benefit: 

 Basic Annuity equals: 40% x $90,000 = $36,000; or 

o Projected to Age 60 Benefit: (Includes 9 years of credit for service projected to 

age 60, credited as CBPO service because the employee was a CBPO when he 

retired. The credit for the additional service in the computation is reflected in 

italicized font.) 

 1.5% x 5 (years) x $90,000 = $6,750, plus 

 1.75% x 5 (years) x $90,000 = $7,875, plus 

 2.0% x 12.083333 (years) x $90,000 = $21,749.99, plus 

 2.0% x 9 (years) x $90,000 = $16,200, equals

 Basic Annuity: $52,574.99 

In this example, the guaranteed minimum benefit would be based on 40 percent of the employee’s 

high-3 average pay because that amount is less than the amount computed in the projected to age 

60 computation. The annuity payable would be based on the earned annuity computation because 

that amount is greater than the guaranteed minimum benefit. 

CBPO service performed on or after July 6, 2008, is the only service in this example subject to 

the provisions of 5 U.S.C. § 8336(c), and consequently, it is the only service that is subject to the 

2.5 percent annuity accrual rate under 5 U.S.C. § 8339(d) in the earned annuity computation. The 
19 

unused sick leave credit is also applied to the 2.5 percent annuity accrual rate in the earned 

annuity computation because the employee was in a CBPO position at the time of separation for 

retirement. The total time credited at the 2.5 percent annuity accrual rate does not exceed 

20 years. The service not used with the 2.5 percent annuity accrual rate is subject to the 

appropriate annuity accrual rates from the General Formula. In this example, the 2 years and 1 

month of CBPO service credited at the 2.5 percent annuity accrual rate replaces 2 years and 1 

month of service that would normally have been applied to the 1.5 percent annuity accrual rate, 

leaving 2 years and 11 months (5 years minus 2 years and 1 month) of service to be credited at 

the 1.5 percent annuity accrual rate. 

Note that while the 2.5 percent annuity accrual rates from 5 U.S.C. § 8339(d) is used in the 

earned annuity computation, that accrual rate cannot be used in the projected to age 60 calculation 

because 5 U.S.C. § 8339(g)(2) does not authorize the use of the 2.5 percent annuity accrual rate 

from 5 U.S.C. § 8339(d) for CBPOs. 

Survivor Annuity Based on the Death of an Employee 

If the type of separation in this example were changed from disability retirement to death of the 

employee, the same calculations would be applied to establish the amount of the survivor annuity 

payable to a spouse. In this example, the spouse’s survivor annuity would equal 55 percent of the 

earned annuity because the earned annuity exceeds the guaranteed minimum benefit. 

Survivor Annuity: 55% x $38,249.99 = $21,037.49 per year 
20 

Example 10: CSRS Customs and Border Protection Officer (elected not to be covered under 5 U.S.C. 

§ 8336(c)) 

BACKGROUND INFORMATION: 

An employee in a customs and border protection officer (CBPO) position not covered under the 

provisions of 5 U.S.C. § 8336(c) retires on disability at age 51 with a high-3 average pay of 

$90,000. He has performed service as follows: 

 6 years covered civilian service (program analyst); 

 10 years covered civilian service (customs inspector); 

 4 years covered civilian service (CBPO before July 6, 2008); 

 2 years covered civilian service (CBPO on and after July 6, 2008. that does not qualify 

for retirement under 5 U.S.C. §8336(c)); 

 1 month credit for unused sick leave. 

The employee made a timely election on or before June 22, 2008, to opt out of the provisions 

established in section 535 of Public Law 110-161 for CBPOs. 

Disability Annuity Computation 

 Earned Annuity (Based on 22 years of creditable service, 1 month sick leave credit, and the 

high-3 average pay): 

o 1.5% x 5 (years) x $90,000 = $6,750, plus 

o 1.75% x 5 (years) x $90,000 = $7,875, plus 

o 2.0% x 12.083333 (years) x $90,000 = $21,749.99, equals

o Basic Annuity: $36,374.99 

 Guaranteed Minimum Disability Benefit (the lesser of): 

o 40% Benefit: 

 Basic Annuity equals: 40% x $90,000 = $36,000; or 

o Projected to Age 60 Benefit: (Includes 9 years of credit for service projected to 

age 60, credited as CBPO service because the employee was a CBPO when he 

retired. The credit for the additional service in the computation is reflected in 

italicized font.) 

 1.5% x 5 (years) x $90,000 = $6,750, plus 

 1.75% x 5 (years) x $90,000 = $7,875, plus 

 2.0% x 12.083333 (years) x $90,000 = $21,749.99, plus 

 2.0% x 9 (years) x $90,000 = $16,200, equals

 Basic Annuity: $52,574.99 

In this example, the guaranteed minimum benefit would be based on 40 percent of the employee’s 

high-3 average pay because that amount is less than the amount computed in the projected to age 

60 computation. The annuity payable would be based on the earned annuity computation because 

that amount is greater than the guaranteed minimum benefit. 

The 2.5 percent annuity accrual rate from 5 U.S.C. § 8339(d) is not used in the computation of the 

earned annuity because the employee elected not to be covered under the provisions of 5 U.S.C. 

§ 8336(c) for law enforcement officers, firefighters, nuclear materials couriers, and customs and 

border protection officers. The annuity accrual rates from 5 U.S.C. § 8339(a) apply to both the 

earned annuity computation and the projected to age 60 benefit.
21 

Survivor Annuity Based on the Death of an Employee 

If the type of separation in this example were changed from disability retirement to death of the 

employee, the same calculations would be applied to establish the amount of the survivor annuity 

payable to a spouse. In this example, the spouse’s survivor annuity would equal 55 percent of the 

earned annuity because the earned annuity exceeds the guaranteed minimum benefit. 

Survivor Annuity: 55% x $36,374.99 = $20,006.24 per year 
22 

Example 11: FERS Law Enforcement Officer/Firefighter/Nuclear Materials Courier/Member of the 

Supreme Court Police/ Member of the Capitol Police 

BACKGROUND INFORMATION: 

A law enforcement officer retires on disability at age 48 with a high-3 average pay of $85,000. She 

performed the following service: 

 4 years of FERS service as a soil conservation technician, 

 15 years of FERS law enforcement officer service covered under the provisions of 5 U.S.C. 

§ 8412(d), 

 1 month credit for unused sick leave (note that the separation for retirement occurred after 

October 28, 2009, and the 1 month sick leave credit is the amount that actually may be credited in 

the computation of the FERS annuity). 

The employee never received a refund of her FERS deductions. She is not entitled to social security 

disability benefits. For purposes of the recalculation at age 62, assume no cost-of-living-adjustments 

were authorized while she received her FERS disability annuity. 

Disability Annuity Computation 

 Earned Annuity: (based on 19 years of creditable service and 1 month sick leave credit) 

o 1.7% x 15.083333 (years) x $85,000 = $21,795.41, plus 

o 1.0% x 4 (years) x $85,000 = $3,400, equals

o Basic Annuity: $25,195.41 

 60 Percent of Average Pay Less 100 Percent of Social Security Disability 

o 60% x $85,000 = $51,000 

 40 Percent of Average Pay Less 60 Percent of Social Security Disability 

o 40% x $85,000 = $34,000 

 Recalculation at Age 62 (Includes 14 years of credit for the time the annuitant received FERS 

disability benefits, credited as law enforcement officer service because the employee was a 

law enforcement officer when she retired. The credit for the additional service in the 

computation is reflected in italicized font.) 

o 1.7% x 15.083333 (years) x $85,000 = $21,795.41, plus 

o 1.7% x 4.916667 (years) x $85,000 = $7,104.58, plus 

o 1.0% x 4 (years) x $85,000 = $3,400, plus 

o 1.0% x 9.083333 (years) x $85,000 = $7,720.83, equals

o Basic Annuity: $40,020.82 

In this example, the 1.7 percent annuity accrual rate from 5 U.S.C. § 8415(d) and the 1.0 percent 

annuity accrual rate from 5 U.S.C. § 8415(a) are used to compute the earned annuity and the 

annuity recalculated at age 62. Unused sick leave credit is subject to the 1.7 percent annuity 

accrual rate because the individual was a law enforcement officer at the time of retirement. 

The annuitant would receive annuity based on 60 percent of her average pay during the first year 

she received disability annuity. After the first year, the annuity would be recomputed and her 

annuity would be based on 40 percent of her average pay. (Both the 60 percent computation and 

the 40 percent computation exceed her earned annuity computation.) At age 62, the annuity 

would be recomputed again, based on the amount of creditable service the annuitant performed 
23 

before retirement and additional credit for the time she was receiving FERS disability annuity. 

The additional credit is treated as service in the position occupied at the time of retirement. In 

this example, only 4 years and 11 months of the additional credit (as law enforcement officer 

service) is subject to the 1.7 percent annuity accrual rate because the total time subject to the 1.7 

percent annuity accrual rate cannot exceed 20 years. The remaining 9 years and 1 month of 

additional credit is subject to the 1.0 percent annuity accrual rate. Note that the 1.1 percent 

annuity accrual rate authorized in 5 U.S.C. § 8415(h) for certain employees who have performed 

20 years of service or more and who retire after reaching age 62 is not applicable because the 

employee retired as a law enforcement officer. 

Survivor Annuity Based on the Death of the Disability Retiree 

If the disability annuitant in this example elected the maximum survivor annuity for a spouse or 

former spouse and died before attaining age 62, the survivor annuity payable to the spouse or 

former spouse would be based on the recomputation at age 62 annuity rate. The survivor annuity 

would equal 50 percent of that rate. 

Survivor Annuity: 50% x $40,020.82 = $20,010.41 per year 

Survivor Annuity Based on the Death of an Employee 

If the type of separation in this example were changed from disability retirement to death of the 

employee, the survivor annuity payable to a spouse or a former spouse would be based on the 

earned annuity computation. The survivor annuity would equal 50 percent of the earned annuity. 

Survivor Annuity: 50% x $25,195.41 = $12,597.71 per year 
24 

Example 12: FERS Customs and Border Protection Officer (covered under 5 U.S.C. § 8412(d) as the 

result of the provisions in Section 535 of Division E of Public Law 110-161, the Department of Homeland 

Security Appropriations Act) 

BACKGROUND INFORMATION: 

A customs and border protection officer (CBPO) retires on disability at age 33 with a high-3 average pay 

of $70,000. She performed the following service: 

 3 years of FERS service as a biological science technician, 

 4 years of FERS service as a CBPO performed before July 6, 2008, not covered under the 

provisions of 5 U.S.C. § 8412(d). 

 2 years of FERS service as a CBPO performed on or after July 6, 2008, covered under the 

provisions of 5 U.S.C. § 8412(d). 

The employee used all available sick leave before retirement. She never received a refund of her 

FERS deductions. She is not entitled to social security disability benefits. Assume no cost-ofliving-adjustments were authorized while she was receiving her FERS disability annuity. 

Disability Annuity Computation 

 Earned Annuity: (based on 9 years of creditable service) 

o 1.7% x 2 (years) x $70,000 = $2,380 , plus 

o 1.0% x 7 (years) x $70,000 = $4,900, equals

o Basic Annuity: $7,280 

 60 Percent of Average Pay Less 100 Percent of Social Security Disability 

o 60% x $70,000 = $42,000 

 40 Percent of Average Pay Less 60 Percent of Social Security Disability 

o 40% x $85,000 = $28,000 

 Recomputation at Age 62 (Includes 29 years of credit for the time the annuitant received 

FERS disability benefits, credited as CBPO service because the employee was a CBPO when 

she retired. The credit for the additional service in the computation is reflected in italicized 

font.) 

o 1.7% x 2 (years) x $70,000 = $2,380, plus 

o 1.7% x 18 (years) x $70,000 = $21,420, plus 

o 1.0% x 7 (years) x $70,000 = $4,900, plus 

o 1.0% x 11 (years) x $70,000 = $7,700, equals

o Basic Annuity: $36,400 

In this example, the 1.7 percent annuity accrual rate from 5 U.S.C. § 8415(d) and the 1.0 percent 

annuity accrual rate from 5 U.S.C. § 8415(a) are used to compute the earned annuity and the 

annuity recalculated at age 62 because the CBPO service on and after July 6, 2008, is creditable 

toward retirement under § 8412(d). The 1.7 percent annuity accrual rate only applies to the 

CBPO service performed on and after July 6, 2008. 

The annuitant would receive annuity based on 60 percent of her average pay during the first year 

she received disability annuity. After the first year, the annuity would be recomputed and her 

annuity would be based on 40 percent of her average pay. (Both the 60 percent computation and 

the 40 percent computation exceed her earned annuity computation.) At age 62, the annuity 
25 

would be recomputed again, based on the amount of creditable service the annuitant performed 

before retirement and additional credit for the time she was receiving FERS disability annuity. 

The additional credit is treated as service in the position occupied at the time of retirement. In 

this example, 18 years of the additional credit (as CBPO service) is subject to the 1.7 percent 

annuity accrual rate because the total time subject to the 1.7 percent annuity accrual rate under 

5 U.S.C. § 8415(d) cannot exceed 20 years. The remaining 11 years of additional credit is subject 

to the 1.0 percent annuity accrual rate. Note that the 1.1 percent annuity accrual rate authorized 

in 5 U.S.C. § 8415(h) for certain employees who have performed at least 20 years of service and 

who retire after reaching age 62 is not applicable because the employee retired as a CBPO 

covered under the retirement provisions of 5 U.S.C. § 8412(d). 

Survivor Annuity Based on the Death of the Disability Retiree 

If the disability annuitant in this example elected the maximum survivor annuity for a spouse or 

former spouse and died before attaining age 62, the survivor annuity payable to the spouse or 

former spouse would be based on the recomputation at age 62 annuity rate. The survivor annuity 

would equal 50 percent of that rate. 

Survivor Annuity: 50% x $36,400 = $18,200 per year 

Survivor Annuity Based on the Death of an Employee 

If the type of separation in this example were changed from disability retirement to death of the 

employee, there would be no survivor annuity payable to a spouse or a former spouse because the 

employee did not perform the minimum 10 years of creditable service required for a survivor 

annuity to be paid. 
26 

Example 13: FERS Customs and Border Protection Officer (elected not to be covered under 5 U.S.C. 

§ 8412(d))

BACKGROUND INFORMATION: 

A customs and border protection officer (CBPO) retires on disability at age 33 with a high-3 average pay 

of $70,000. He performed the following service: 

 3 years of FERS service as a paralegal specialist, 

 4 years of FERS service as a CBPO performed before July 6, 2008, not covered under the 

provisions of 5 U.S.C. § 8412(d). 

 2 years of FERS service as a CBPO performed on or after July 6, 2008, NOT covered under the 

provisions of 5 U.S.C. § 8412(d). 

The employee made a timely election on or before June 22, 2008, to opt out of the provisions 

established in section 535 of Public Law 110-161 for CBPOs. He used all available sick leave 

before retirement. He never received a refund of his FERS deductions. He is not entitled to 

social security disability benefits. Assume no cost-of-living-adjustments were authorized while 

he was receiving his FERS disability annuity. 

Disability Annuity Computation 

 Earned Annuity: (based on 9 years of creditable service) 

o Basic Annuity: 1.0% x 9 (years) x $70,000 = $6,300 

 60 Percent of Average Pay Less 100 Percent of Social Security Disability 

o 60% x $70,000 = $42,000 

 40 Percent of Average Pay Less 60 Percent of Social Security Disability 

o 40% x $70,000 = $28,000 

 Recomputation at Age 62 (Includes 29 years of credit for the time the annuitant received 

FERS disability benefits, credited as CBPO service (not subject to the provisions of 5 U.S.C. 

§ 8412(d)) because the employee was a CBPO when he retired. The credit for the additional 

service in the computation is reflected in italicized font.) 

o 1.1% x 9 (years) x $70,000 = $6,930, plus 

o 1.1% x 29 (years) x $70,000 = $22,330, equals

o Basic Annuity: $29,260 

In this example, the earned annuity is computed entirely under 5 U.S.C. § 8415(a) because the 

employee elected not to be covered under the provisions of 5 U.S.C. § 8412(d) as a CBPO. 

The annuitant would receive annuity based on 60 percent of his average pay during the first year 

he received disability annuity. After the first year, the annuity would be recomputed and his 

annuity would be based on 40 percent of his average pay. (Both the 60 percent computation and 

the 40 percent computation exceed his earned annuity computation.) At age 62, the annuity 

would be recomputed again, based on the amount of creditable service the annuitant performed 

before retirement and additional credit for the time he was receiving FERS disability annuity. 

The additional credit is treated as service in the position occupied at the time of retirement. In 

this example, all 29 years of the additional credit (as CBPO service) is subject to the 1.1 percent 

annuity accrual rate because the individual elected not to be covered under the provisions of 

5 U.S.C. § 8412(d). The 1.1 percent annuity accrual rate in 5 U.S.C. § 8415(h) can be used in 
27 

lieu of the 1.0 percent annuity accrual rate in 5 U.S.C. § 8415(a) to compute the benefit at age 62 

because of the total time is credited in the computation is at least 20 years and because the 

employee elected not to be subject to the provisions relating to CBPOs established in section 535 

of Public Law 110-161. 

Survivor Annuity Based on the Death of the Disability Retiree 

If the disability annuitant in this example elected the maximum survivor annuity for a spouse or 

former spouse and died before attaining age 62, the survivor annuity payable to the spouse or 

former spouse would be based on the recomputation at age 62 annuity rate. The survivor annuity 

would equal 50 percent of that rate. 

Survivor Annuity: 50% x $29,260 = $14,630 per year 

Survivor Annuity Based on the Death of an Employee 

If the type of separation in this example were changed from disability retirement to a death of the 

employee, there would be no survivor annuity payable to a spouse or a former spouse because the 

employee did not perform the minimum 10 years of creditable service required for a survivor 

annuity to be paid. 
28 

Example 14: FERS Air Traffic Controller 

BACKGROUND INFORMATION: 

A supervisory air traffic controller retires on disability at age 42. Her high-3 average pay is $90,000. Her 

creditable service is as follows: 

 2 years military service – military deposit paid 

 3 years FERS service - - procurement technician 

 10 years FERS air traffic controller – front-line (5 U.S.C. § 2109(1)(A)(i)) 

 4 years FERS air traffic controller – first level supervisor (5 U.S.C. § 2109(1)(B)) 

The employee used all available sick leave before retirement. She never received a refund of her FERS 

deductions. She is not entitled to social security disability benefits. Assume no cost-of-livingadjustments were authorized while she was receiving her FERS disability annuity. 

Disability Annuity Computation 

 Earned Annuity (based on 19 years of creditable service) 

o 1.7% x 10 (years) x $90,000 = $15,300, plus 

o 1.7% x 4 (years) x $90,000 = $6,120, plus 

o 1.0% x 5 (years) x $90,000 = $4,500, equals

o Basic Annuity: $25,920 

 60 Percent of Average Pay Less 100 Percent of Social Security Disability 

o 60% x $90,000 = $54,000 

 40 Percent of Average Pay Less 60 Percent of Social Security Disability 

o 40% x $90,000 = $36,000 

 Recomputation at Age 62 (Includes 20 years of credit for the time the annuitant received 

FERS disability benefits, credited as supervisory air traffic controller service because the 

employee was a supervisory air traffic controller when she retired. The credit for the 

additional service in the computation is reflected in italicized font.) 

o 1.7% x 10 (years) x $90,000 = $15,300, plus 

o 1.7% x 4 (years) x $90,000 = $6,120, plus 

o 1.7% x 16 (years) x $90,000 = $24,480, plus 

o 1.0% x 4 (years) x $90,000 = $3,600, plus 

o 1.0% x 5 (years) x $90,000 = $4,500, equals

o Basic Annuity: $54,000 

In this example the 1.7 percent annuity accrual rates from both 5 U.S.C. § 8415(d) and § 8415(e) 

are used to compute the earned benefit and the recalculated benefit at age 62. The front-line air 

traffic controller service is subject to the 1.7 percent annuity accrual rate in § 8415(e) and the 

supervisory air traffic controller service is subject to the 1.7 percent annuity accrual rate in 

§ 8415(d). 

The annuitant would receive annuity based on 60 percent of her average pay during the first year 

she received disability annuity. After the first year, the annuity would be recomputed and her 

annuity would be based on 40 percent of her average pay. (Both the 60 percent computation and 

the 40 percent computation exceed her earned annuity computation.) At age 62, the annuity 

would be recomputed again, based on the amount of creditable service the annuitant performed 
29 

before retirement and the additional credit for the time she was receiving FERS disability annuity. 

The additional credit is treated as service in the position occupied at the time of retirement. In 

this example, 16 years of the additional credit (as supervisory air traffic controller service) is 

subject to the 1.7 percent annuity accrual rate because the total time subject to the 1.7 percent 

annuity accrual rate, excluding the front-line air traffic controller service, cannot exceed 20 years. 

(The front-line air traffic controller service is subject to the 1.7 percent annuity accrual rate under 

5 U.S.C. §8415(e) and does not count toward the 20 year limit to service applied to the 1.7 

percent annuity accrual rate under 5 U.S.C. § 8415(d)). The remaining four years of additional 

credit is subject to the 1.0 percent annuity accrual rate under 5 U.S.C. § 8415(a). Note that the 

1.1 percent annuity accrual rate authorized in 5 U.S.C. § 8415(h) for certain employees who have 

performed at least 20 years of service and who retire after reaching age 62 is not applicable 

because the employee retired as an air traffic controller. 

Survivor Annuity Based on the Death of the Disability Retiree 

If the disability annuitant in this example elected the maximum survivor annuity for a spouse or 

former spouse and died before attaining age 62, the survivor annuity payable to the spouse or 

former spouse would be based on the recomputation at age 62 annuity rate. The survivor annuity 

would equal 50 percent of that rate. 

Survivor Annuity: 50% x $54,000 = $27,000 per year 

Survivor Annuity Based on the Death of an Employee 

If the type of separation in this example were changed from disability retirement to death of the 

employee, the survivor annuity payable to a spouse or a former spouse would be based on the 

earned annuity computation. The survivor annuity would equal 50 percent of the earned annuity. 

Survivor Annuity: 50% x $25,920 = $12,960 per year 
30 

Example 15: FERS Air Traffic Controller 

BACKGROUND INFORMATION: 

A supervisory air traffic controller retires on disability at age 42. Her high-3 average pay is $90,000. Her 

creditable service is as follows: 

 2 years military service – military deposit paid 

 3 years FERS service - - procurement technician 

 4 years FERS air traffic controller – front-line (5 U.S.C. § 2109(1)(A)(i)) 

 10 years FERS air traffic controller – first level supervisor (5 U.S.C. § 2109(1)(B)) 

The employee used all available sick leave before retirement. She never received a refund of her FERS 

deductions. She is not entitled to social security disability benefits. Assume no cost-of-livingadjustments were authorized while she was receiving her FERS disability annuity. 

Disability Annuity Computation 

 Earned Annuity (based on 19 years of creditable service) 

o 1.7% x 14 (years) x $90,000 = $21,420, plus 

o 1.0% x 5 (years) x $90,000 = $4,500, equals

o Basic Annuity: $25,920 

 60 Percent of Average Pay Less 100 Percent of Social Security Disability 

o 60% x $90,000 = $54,000 

 40 Percent of Average Pay Less 60 Percent of Social Security Disability 

o 40% x $90,000 = $36,000 

 Recomputation at Age 62 (Includes 20 years of credit for the time the annuitant received 

FERS disability benefits, credited as supervisory air traffic controller service because the 

employee was a supervisory air traffic controller when she retired. The credit for the 

additional service in the computation is reflected in italicized font.) 

o 1.7% x 14 (years) x $90,000 = $21,420, plus 

o 1.7% x 6 (years) x $90,000 = $9,180, plus 

o 1.0% x 14 (years) x $90,000 = $12,600, plus 

o 1.0% x 5 (years) x $90,000 = $4,500, equals

o Basic Annuity: $47,700 

In this example the 1.7 percent annuity accrual rate in 5 U.S.C. § 8415(e) can not be used in the earned 

annuity computation or in the recomputation at age 62 because the employee did not perform the 

minimum 5 years of front-line air traffic controller service required in that section. The earned annuity 

and the recomputation at age 62 will be subject to the 1.7 percent annuity accrual rate in 

5 U.S.C. § 8415(d) and the 1.0 percent annuity accrual rate in § 8415(a). 

The annuitant would receive annuity based on 60 percent of her average pay during the first year 

she received disability annuity. After the first year, the annuity would be recomputed and her 

annuity would be based on 40 percent of her average pay. (Both the 60 percent computation and 

the 40 percent computation exceed her earned annuity computation.) At age 62, the annuity 

would be recomputed again, based on the amount of creditable service the annuitant performed 

before retirement and the additional credit for the time she was receiving FERS disability annuity. 

The additional credit is treated as service in the position occupied at the time of retirement. In 
31 

this example, 6 years of the additional credit (as supervisory air traffic controller service) is 

subject to the 1.7 percent annuity accrual rate because the total time subject to the 1.7 percent 

annuity accrual rate, cannot exceed 20 years. (The front line air traffic controller service is 

included in determining the 20 year limit in this example because it cannot be applied to the 1.7 

percent annuity accrual rate in 5 U.S.C. § 8415(e).) The remaining 14 years of additional credit is 

subject to the 1.0 percent annuity accrual rate under 5 U.S.C. § 8415(a). Note that the 1.1 percent 

annuity accrual rate authorized in 5 U.S.C. § 8415(h) for certain employees who have performed 

at least 20 years of service and who retire after reaching age 62 is not applicable because the 

employee retired as an air traffic controller. 

Survivor Annuity Based on the Death of the Disability Retiree 

If the disability annuitant in this example elected the maximum survivor annuity for a spouse or 

former spouse and died before attaining age 62, the survivor annuity payable to the spouse or 

former spouse would be based on the recomputation at age 62 annuity rate. The survivor annuity 

would equal 50 percent of that rate. 

Survivor Annuity: 50% x $47,700 = $23,850 per year 

Survivor Annuity Based on the Death of an Employee 

If the type of separation in this example were changed from disability retirement to death of the 

employee, the survivor annuity payable to a spouse or a former spouse would be based on the 

earned annuity computation. The survivor annuity would equal 50 percent of the earned annuity. 

Survivor Annuity: 50% x $25,920 = $12,960 per year 
32 

Example 16: FERS Air Traffic Controller 

BACKGROUND INFORMATION: 

A front line air traffic controller retires on disability at age 34. Her high-3 average pay is $60,000. Her 

creditable service is as follows: 

 2 years military service – military deposit paid 

 6 years covered FERS service – aviation clerk 

 4 years FERS air traffic controller – front-line (5 U.S.C. § 2109(1)(A)(i)) 

The employee used all available sick leave before retirement. She never received a refund of her FERS 

deductions. She is not entitled to social security disability benefits. Assume no cost-of-livingadjustments were authorized while she was receiving her FERS disability annuity. 

Disability Annuity Computation 

 Earned Annuity (based on 12 years of creditable service) 

o 1.7% x 4 (years) x $60,000 = $4,080, plus 

o 1.0% x 8 (years) x $60,000 = $4,800, equals

o Basic Annuity: $8,880 

 60 Percent of Average Pay Less 100 Percent of Social Security Disability 

o 60% x $60,000 = $36,000 

 40 Percent of Average Pay Less 60 Percent of Social Security Disability 

o 40% x $60,000 = $24,000 

 Recomputation at Age 62 (Includes 28 years of credit for the time the annuitant received 

FERS disability benefits, credited as front-line air traffic controller service because the 

employee was a front-line air traffic controller when she retired. The credit for the additional 

service in the computation is reflected in italicized font.) 

o 1.7% x 4 (years) x $60,000 = $4,080, plus 

o 1.7% x 28 (years) x $60,000 = $28,560, plus 

o 1.0% x 8 (years) x $60,000 = $4,800, equals

o Basic Annuity: $37,440 

In this example, the annuitant would receive annuity based on 60 percent of her average pay 

during the first year she received disability annuity. After the first year, the annuity would be 

recomputed and her annuity would be based on 40 percent of her average pay. (Both the 60 

percent computation and the 40 percent computation exceed her earned annuity computation.) At 

age 62, the annuity would be recomputed again, based on the amount of creditable service the 

annuitant performed before retirement and the additional credit for the time she was receiving 

FERS disability annuity. The additional credit is treated as service in the position occupied at the 

time of retirement. In this example, all of the additional credit (as front-line air traffic controller 

service) is subject to the 1.7 percent annuity accrual rate. The additional credit to age 62 as a 

front-line air traffic controller can be combined with the front-line air traffic controller service the 

employee actually performed to satisfy the 5 year front-line air traffic controller service 

requirement in 5 U.S.C. § 8415(e). In this example, all of the time credited as front-line air traffic 

controller service in the age 62 recomputation is subject to the 1.7 percent annuity accrual rate 

found in 5 U.S.C. § 8415(e). The remaining creditable service is subject to the 1.0 percent 

annuity accrual rate under 5 U.S.C. § 8415(a). Note that the 1.1 percent annuity accrual rate 
33 

authorized in 5 U.S.C. § 8415(h) for certain employees who have performed at least 20 years of 

service and who retire after reaching age 62 is not applicable because the employee retired as an 

air traffic controller. 

Survivor Annuity Based on the Death of the Disability Retiree 

If the disability annuitant in this example elected the maximum survivor annuity for a spouse or 

former spouse and died before attaining age 62, the survivor annuity payable to the spouse or 

former spouse would be based on the recomputation at age 62 annuity rate. The survivor annuity 

would equal 50 percent of that rate. 

Survivor Annuity: 50% x $37,440 = $18,720 per year 

Survivor Annuity Based on the Death of an Employee 

If the type of separation in this example were changed from disability retirement to death of the 

employee, the survivor annuity payable to a spouse or a former spouse would be based on the 

earned annuity computation. The survivor annuity would equal 50 percent of the earned annuity. 

Survivor Annuity: 50% x $8,880 = $4,440 per year 
34 

Example 17: FERS Annuity with a CSRS Component - Air Traffic Controller 

BACKGROUND INFORMATION: 

A supervisory air traffic controller retires on disability at age 49. His high-3 average pay is $90,000. His 

creditable service is as follows: 

 2 years military service – CSRS military deposit paid 

 12 years CSRS air traffic controller service – front-line (5 U.S.C. § 2109(1)(A)(i)) 

 8 years FERS air traffic controller – front-line (5 U.S.C. § 2109(1)(A)(i)) 

 4 years FERS air traffic controller – first level supervisor (5 U.S.C. § 2109(1)(B)) 

 2 months of frozen unused sick leave credited in the CSRS component 

 1 month of unused sick leave credited in the FERS component (note that the separation for 

retirement occurred after October 28, 2009, and the 1 month sick leave credit is the amount 

that actually may be credited in the computation of the FERS annuity). 

The employee never received a refund of his CSRS or FERS deductions. He is not entitled to social 

security disability benefits. Assume no cost-of-living-adjustments were authorized while he was 

receiving his FERS disability annuity. 

Disability Annuity Computation 

 Earned Annuity 

o CSRS Component (based on 14 years of creditable service and 2 months sick leave 

credit) 

 1.5% x 5 (years) x $90,000 = $6,750, plus 

 1.75% x 5 (years) x $90,000 = $7,875, plus 

 2.0% x 4.166667 (years) x $90,000 = $7,500, equals

 CSRS Component Basic Annuity: $22,125 

o FERS Component (based on 12 years of creditable service and 1 month of sick leave 

credit): 

 1.7% x 8 (years) x $90,000 = $12,240, plus 

 1.7% x 4.083333 (years) x $90,000 = $6,247.49, equals

 FERS Component Basic Annuity: $18,487.49 

o FERS Annuity with CSRS Component: 

 CSRS Component: $22,125.00, plus 

 FERS Component: $18,487.49, equals

 FERS Basic Annuity: $40,612.49 

 60 Percent of Average Pay Less 100 Percent of Social Security Disability 

o 60% x $90,000 = $54,000 

 40 Percent of Average Pay Less 60 Percent of Social Security Disability 

o 40% x $90,000 = $36,000 

 Recomputation at Age 62 (Includes 13 years of credit for the time the annuitant received 

FERS disability benefits, credited as supervisory air traffic controller service because the 

employee was a supervisory air traffic controller when he retired. The credit for the 

additional service in the computation is reflected in italicized font.) 
35 

o CSRS Component: $22,125.00, plus 

o 1.7% x 8 (years) x $90,000 = $12,240, plus 

o 1.7% x 4.083333 (years) x $90,000 = $6,247.49, plus 

o 1.7% x 13 (years) x $90,000 = $19,890, equals

o Basic Annuity: $60,502.49 

In this example, the earned annuity equals the sum of the CSRS component and the FERS 

component. The CSRS component is based on the earned computation provisions of the CSRS 

law and not the guaranteed minimum provisions. 

The annuitant would receive annuity based on 60 percent of his average pay during the first year 

he received disability annuity because the 60 percent computation exceeds the earned annuity. 

After the first year, the annuity would be recomputed and the annuity payable would be based on 

the earned annuity because that annuity is greater than the annuity under the 40 percent 

computation. At age 62, the annuity would be recomputed again, based on the amount of 

creditable service the annuitant performed before retirement and the additional credit for the time 

he was receiving FERS disability annuity. The additional credit is treated as service in the 

position occupied at the time of retirement. In this example, all 13 years of the additional credit 

(as supervisory air traffic controller service) is subject to the 1.7 percent annuity accrual rate 

under 5 U.S.C. § 8415(d) because the total amount of time credited as an air traffic controller 

under § 8415(d) is less than 20 years. The 8 years of front-line air traffic controller service under 

FERS is subject to the 1.7 percent annuity accrual rate under 5 U.S.C. §8415(e) and does not 

count toward the 20 year limit under §8415(d). 

Survivor Annuity Based on the Death of the Disability Retiree 

If the disability annuitant in this example elected the maximum survivor annuity for a spouse or 

former spouse and died before attaining age 62, the survivor annuity payable to the spouse or 

former spouse would be based on the recomputation at age 62 annuity rate. The survivor annuity 

would equal 50 percent of that rate. 

Survivor Annuity: 50% x $60,502.49 = $30,251.25 per year 

Survivor Annuity Based on the Death of an Employee 

If the type of separation in this example were changed from disability retirement to death of the 

employee, the survivor annuity payable to a spouse or a former spouse would be based on the 

earned annuity computation. The survivor annuity would equal 50 percent of the earned annuity. 

Survivor Annuity: 50% x $40,612.49 = $20,306.25 per year