CSRS Computation of Annuity FERS i 

Under the General Formula
 

Chapter 50
 

Table of Contents
 

Subchapter 50A CSRS 

Part 50A General Information 

Section 50A1.1-1 Overview ..................................... 1
 

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

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

C. Organization of Subchapter ................................... 2
 

D. Statement of Authority ...................................... 2
 

Part 50A2 Components of the Basic Annuity 

Section 50A2.1-1 Introduction ................................... 3
 

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

B. Basic Annuity Reductions .................................... 3
 

Section 50A2.1-2 Length of Service ................................ 4
 

A. Creditable Service for Computation Purposes ........................ 4
 

B. Calculating Length of Service .................................. 5
 

Section 50A2.1-3 Computing Length of Service Periods .................. 7
 

A. General Rule ............................................. 7
 

B. 30-Day Month/360-Day Year .................................. 7
 

C. Adding a Day When Subtracting ................................ 7
 

D. Period of Service Ending on the Last Day of a Month .................. 8
 

E. Borrowing Years and Months During Subtraction ..................... 8
 

F. Unused Sick Leave ......................................... 9
 

G. Intermittent Service ........................................ 10
 

H. Seasonal Employment ....................................... 10
 

CSRS and FERS Handbook April, 1998 
ii CSRS Computation of Annuity FERS 

Under the General Formula
 

Chapter 50
 

Section 50A2.1-4 High-3 Average Pay .............................. 12
 

A. General ................................................ 12
 

B. Definition ............................................... 12
 

C. Period Used ............................................. 12
 

D. Consecutive Service ........................................ 13
 

E. Use of Noncreditable Service .................................. 13
 

F. Excess LWOP ............................................ 13
 

G. Unused Sick Leave ......................................... 13
 

Section 50A2.1-5 Basic Pay Rates ................................. 14
 

A. Definition ............................................... 14
 

B. General ................................................ 14
 

C. Included in Basic Pay ....................................... 14
 

D. Excluded from Basic Pay ..................................... 14
 

E. Hourly, Daily, and Similar Rates ............................... 14
 

F. Intermittent Employment Rates ................................ 15
 

G. Piecework Rates .......................................... 15
 

H. Multiple Rates ............................................ 16
 

I. Salary Supplemented by Workers' Compensation ..................... 17
 

Part 50A3 Computation of the Basic Annuity 

Section 50A3.1-1 General Formula for Computing the Basic Annuity ......... 18
 

A. General Formula .......................................... 18
 

B. Part-Time Service Annuity Computations .......................... 18
 

C. Special Computation In Cases With Certain Overseas Service ............. 18
 

Section 50A3.1-2 Maximum Annuity ............................... 20
 

A. General Rule ............................................. 20
 

B. When the Annuity Exceeds 80 Percent ............................ 20
 

C. Deductions During Excess Service ............................... 20
 

April, 1998 CSRS and FERS Handbook 
 CSRS	 Computation of Annuity FERS iii
 

Under the General Formula
 

Chapter 50
 

Section 50A3.1-3 Reductions in Annuity ............................. 21
 

A. Order of Reductions ........................................ 21
 

B. Reduction for Retirement Before Age 55 ........................... 21
 

C. Unpaid Deposit Service ...................................... 22
 

D. Reduction to Provide Survivor Annuity for Current Spouse or Former Spouse . . 22
 

E. Elimination of the Current Spouse Survivor Reduction .................. 23
 

F. Amount of Current Spouse Survivor Benefit ........................ 23
 

G.	 Reduction for Election of Survivor Annuity to Person With an Insurable
 

Interest ............................................... 24
 

H. Elimination of the Insurable Interest Reduction ....................... 25
 

I. Amount of Insurable Interest Survivor Benefit ....................... 25
 

J. Reduction for Unpaid Redeposit Covering Service Before October 1990 ...... 26
 

Section 50A3.1-4 CSRS Offset Employees ........................... 27
 

A. General Rule ............................................. 27
 

B. Exception: Offset at Age 62 .................................. 27
 

C. Amount of Offset .......................................... 27
 

Section 50A3.1-5 Additional Annuity -- Voluntary Contributions ............ 29
 

A. General ................................................ 29
 

B. Amount ................................................ 29
 

C. Additional Survivor Annuity .................................. 29
 

CSRS and FERS Handbook	 April, 1998 
iv CSRS Computation of Annuity FERS 

Under the General Formula
 

Chapter 50
 

Subchapter 50B FERS 

Part 50B1 General Information 

Section 50B1.1-1 Overview ..................................... 31
 

A. Introduction ............................................. 31
 

B. Organization of Subchapter ................................... 31
 

C. Applicable CSRS Provisions ................................... 31
 

D. Statement of Authority ...................................... 32
 

Part 50B2 Components of the Basic Annuity 

Section 50B2.1-1 Introduction ................................... 33
 

A. General ................................................ 33
 

B. Reductions in Annuity ....................................... 33
 

C. Employees With a CSRS Component ............................. 33
 

Section 50B2.1-2 Length of Service ................................ 35
 

A. Creditable Service for FERS Computation Purposes ................... 35
 

B. Employees With a CSRS Component ............................. 35
 

Section 50B2.1-3 High-3 Average Pay .............................. 37
 

A. Applicable CSRS Provisions ................................... 37
 

B. Noncreditable Service ....................................... 37
 

C. "Total Service" Average Pay .................................. 37
 

April, 1998 CSRS and FERS Handbook 
 CSRS	 Computation of Annuity FERS v 

Under the General Formula
 

Chapter 50
 

Part 50B3 Computation of the Basic Annuity 

Section 50B3.1-1 General Formula for Computing the Basic Annuity ......... 38
 

A. General Formula .......................................... 38
 

B. Employees Who Are Age 62 With 20 Years of Service ................. 38
 

C. Other Exceptions .......................................... 39
 

Section 50B3.1-2 Maximum Annuity ............................... 40
 

A. General Rule ............................................. 40
 

B. Transferees With a CSRS Component ............................. 40
 

Section 50B3.1-3 Reductions in Annuity ............................. 41
 

A. Rule .................................................. 41
 

B. Reduction Under Early Deferred or MRA + 10 Provisions ............... 41
 

C. No Age Reduction in Disability and Special Provision Retirement Cases ...... 42
 

D. Reduction to Provide Survivor Annuity for Current Spouse or Former Spouse . . 42
 

E. Elimination of Reduction ..................................... 43
 

F. Amount of Current Spouse Survivor Benefit ........................ 43
 

G.	 Reduction for Election of Survivor Annuity to Person With an Insurable
 

Interest ............................................... 43
 

Section 50B3.1-4 Additional Annuity--Voluntary Contributions ............. 44
 

A. General Rule ............................................. 44
 

Part 50B4 Computation With a CSRS Component 

Section 50B4.1-1 General ...................................... 45
 

A. Eligibility for CSRS Component ................................ 45
 

B. Applicability of CSRS or FERS Rules ............................ 45
 

C. Service Credited in Each Component ............................. 45
 

D. Odd Days Are Dropped ...................................... 45
 

Section 50B4.1-2 Computation of Annuity ........................... 47
 

A. High-3 Average Pay ........................................ 47
 

B. Basic Annuity Computation ................................... 47
 

CSRS and FERS Handbook	 April, 1998 
vi CSRS Computation of Annuity FERS 

Under the General Formula
 

Chapter 50
 

Subchapter 50C Job Aids 

Section 50C1.1-1 Charts ........................................ 49
 

Chart 1. -- 360 Day Factor Chart ................................... 50
 

Chart 2. -- Sick Leave Chart 2087 Hours .............................. 51
 

Chart 3. -- 260 Day Work Year Chart ................................ 52
 

Chart 4. -- CSRS General Formula Computation Chart ..................... 53
 

Chart 5. -- CSRS 2% Age Reduction Chart ............................ 54
 

Chart 6. -- For Computing Basic Annuity -- FERS 1% Accrual Factor ........... 55
 

Chart 7. -- For Computing Basic Annuity -- FERS 1.1% Accrual Factor ......... 56
 

Chart 8. -- FERS 5% Age Reduction Chart ............................ 57
 

Chart 9. -- CSRS Present Value Factors .............................. 58
 

Section 50C1.1-2 CSRS Examples ................................. 60
 

Example 1: CSRS or FERS high-3 average pay, with full 3 years of service ....... 60
 

Example 2: CSRS optional retirement, with survivor annuity ................ 65
 

Example 3: CSRS optional retirement, with redeposit service ................ 71
 

Example 4: CSRS early retirement, with reduction for retirement before age 55 and

 survivor annuity .................................... 78
 

Example 5: CSRS discontinued service, with deposit service prior to

 October 1, 1982, and reduction for survivor benefits ............ 84
 

Example 6: CSRS purchase of additional annuity and survivor annuity with

 voluntary contributions ............................... 90
 

Example 7: CSRS deferred retirement, with survivor benefits based on the full

 annuity ......................................... 95
 

Section 50C1.1-3 FERS Examples ................................ 101
 

Example 1: FERS optional retirement, with survivor annuity ............... 101
 

Example 2: FERS MRA + 10 optional retirement, with nondeduction service,

 refunded service, and survivor annuity using one-half as base ..... 107
 

Example 3: FERS transfer employee, optional retirement, with survivor benefits

 based on full annuity ................................ 113
 

Example 4: FERS transfer employee, discontinued service retirement, with

 reduction for age in CSRS component and survivor benefits based

 on full annuity .................................... 122
 

Example 5: FERS postponed MRA + 10 annuity, with nondeduction service,

 refunded service, and survivor annuity using one-half as base ..... 132
 

Example 6: FERS transferee deferred retirement, with survivor benefits based on

 full annuity ...................................... 138
 

April, 1998 CSRS and FERS Handbook 
 CSRS Computation of Annuity FERS vii
 

Under the General Formula
 

Chapter 50
 

Section 50C1.1-4 Computation Worksheets for Local Reproduction ......... 147
 

High-3 Average Pay Computation ................................. 149
 

Computation of Service Credit ................................... 151
 

CSRS Nondisability Annuity Computation ............................ 153
 

Computation of Reduction for Unpaid Redeposit for Service Ending Before

 October 1, 1990, CSRS Employees .............................. 155
 

Voluntary Contributions Computation ............................... 157
 

FERS Basic Annuity Computation ................................. 161
 

FERS Transferee Nondisability Annuity Computation .................... 163
 

CSRS and FERS Handbook April, 1998 
 CSRS Computation of Annuity
 1 

Under the General Formula
 

Chapter 50
 

Subchapter 50A CSRS 

Part 50A General Information 

Section 50A1.1-1 Overview 

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

computation of retired employees' annuities under CSRS. Subchapter 50C 

contains illustrations of computations using the general formula and job aids 

to facilitate the computations. 

NOTE:	 The examples in this chapter were computed using OPM's 

automated system; therefore the answers are exact to the dollar. 

CAUTION:	 Counselors should inform employees that computations made 

by agencies are unofficial estimates. 

B. Topics Covered	 1. This subchapter covers: 

•	 The definition and computation of length of service; 

•	 The definition and computation of high-3 average pay; 

•	 An explanation of basic pay rates; 

•	 The general formula used to compute the basic annuity; 

•	 The application of the maximum annuity rule; 

•	 Adjustments to the basic annuity, including those due to early 

retirement, nondeduction service, refunded service, and elections of 

survivor benefits; and 

•	 The purchase of additional annuity using voluntary contributions. 

CSRS and FERS Handbook	 April, 1998 
2 CSRS Computation of Annuity
 

Under the General Formula
 

Chapter 50
 

B. Topics Covered 

(Cont.)	 

2. This subchapter does not cover the computation of retirement benefits 

for Members of Congress, law enforcement officers, firefighters, air 

traffic controllers, National Guard technicians, and part-time 

employees. 

•	 See Chapter 54, Special Computation Formulas for Law 

Enforcement Officers, Firefighters, and Air Traffic Controllers; 

•	 See Chapter 55, Computation for Part-Time Employees; 

•	 See Chapter 53, Alternative Annuity Elections. 

C. Organization of 

Subchapter 

The CSRS subchapter has three parts. 

Part Name of Part Page 

50A1 General Information 1 

50A2 Components of the Basic Annuity 3 

50A3 Computation of the Basic Annuity 20 

NOTE: Subchapter 50B, about computation of annuity under FERS, 

begins on page 32. 

D. Statement of 

Authority 

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

• United States Code: 5 U.S.C. 8339, 8343, and 8349 

• Code of Federal Regulations: 5 CFR Part 831 

April, 1998	 CSRS and FERS Handbook 
 CSRS Computation of Annuity
 3 

Under the General Formula
 

Chapter 50
 

Part 50A2 Components of the Basic Annuity 

Section 50A2.1-1 Introduction 

A.	 General Rule CSRS basic annuity benefits are based primarily on: 

•	 The amount of creditable service (section 50A2.1-2); and 

•	 The individual's high-3 average pay (section 50A2.1-4). 

NOTE:	 Under CSRS, the rules for determining what service is creditable 

can differ depending on the purpose. The creditability rules for 

purposes of establishing entitlement to an annuity are provided in 

Chapter 20, Creditable Civilian Service, and Chapters 41 

through 46. Civilian service that is creditable for entitlement 

purposes is also creditable for purposes of determining the high-3 

average pay period. However, some service that is creditable for 

entitlement purposes is not creditable for purposes of determining 

the length of service used in the annuity computation. 

B.	 Basic Annuity 

Reductions 

The basic annuity may be reduced for: 

•	 Retirement before age 55; 

•	 Unpaid deposit for nondeduction service performed prior to October 1, 

1982; 

•	 Unpaid redeposit for refunded service performed prior to October 1, 

1990; 

•	 Election of (or court ordered) survivor benefits for a spouse and/or 

former spouse; 

•	 Election of a survivor benefit for a person with an insurable interest; 

•	 Election of the alternative annuity; and 

•	 An offset amount for offset employees who are eligible for Social 

Security benefits. 

CSRS and FERS Handbook	 April, 1998 
4 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

Section 50A2.1-2 Length of Service 

A.	 Creditable 

Service for 

Computation 

Purposes 

The following is a summary of the types of service that are creditable in 

computing the annuity. For more detailed information, see Chapter 20, 

Creditable Civilian Service, and Chapter 22, Creditable Military Service. 

(Creditable service for high-3 average pay purposes is described in section 

50A2.1-4.) 

1.	 All periods of civilian service during which CSRS retirement 

deductions (whether full or reduced CSRS Offset) were properly taken 

and not refunded. If the period of CSRS service was refunded, it will 

be creditable if a redeposit was made (or deemed made under the 

alternative annuity provisions). 

NOTE:	 Refunded service that was performed before October 1, 

1990, will be credited even if the employee has not paid a 

redeposit. However, the annuity will be actuarially reduced 

as described in section 50A3.1-3J. 

2.	 All civilian service during which retirement deductions were not taken 

(for example, temporary appointments), if performed prior to 

October 1, 1982. 

3.	 All civilian service during which retirement deductions were not taken 

performed on or after October 1, 1982, if a deposit for such service has 

been made (or deemed made under the alternative annuity provisions). 

4.	 Honorable active military service performed prior to January 1, 1957. 

5.	 Honorable active military service performed after December 31, 1956, 

if: 

•	 The employee was first employed in a covered position prior to 

October 1, 1982, and has made the military deposit or is not 

entitled to Social Security benefits at date of separation for 

retirement; or 

April, 1998	 CSRS and FERS Handbook 
 CSRS	 Computation of Annuity 5 

Under the General Formula
 

Chapter 50
 

A.	 Creditable 

Service for 

Computation 

Purposes (Cont.) 

• The employee was first employed in a covered position after 

September 30, 1982, and has made the military deposit. 

NOTE 1: Deposits for post-1956 military service are NOT deemed 

made under the alternative annuity provisions. 

NOTE 2:	 Military service may not be creditable if the employee is 

receiving military retired pay. See Chapter 22, 

Creditable Military Service, section 22A4.1-1. 

6.	 Unused sick leave under an approved formal leave system. 

7.	 Time in a nonpay status (for example, leave without pay, suspension, 

furlough, and absence without leave) that does not exceed 6 months in 

the aggregate in any calendar year. 

NOTE:	 See Chapter 20 for special provisions governing credit for 

periods of leave without pay when the employee is: 

•	 On military furlough or is separated to enter military 

service during a period of war or national emergency; 

•	 Receiving workers' compensation; or 

•	 Granted leave without pay to serve as a full-time officer or 

employee of an employee organization. 

B. Calculating 

Length of Service 

Length of service for annuity computation purposes is based on whole 

months (30 days). To determine the total length of service for annuity 

computation purposes, add all creditable civilian and military service and 

the period represented by the unused sick leave; then eliminate any 

fractional part of a month. Compute the amount of creditable service in 

each period in accordance with section 50A2.1-3 below. 

CSRS and FERS Handbook	 April, 1998 
Yr Mo Dy 

Civilian service 7-9-65 to 8-24-95 30 - 01 - 16 

Military service 6-9-62 to 6-18-64 2 - 00 - 10 

Unused sick leave (1571 hours) 

(See sick leave conversion chart 

provided in section 50C1.1-1) 

+ 09 - 01 

Total 32 - 10 - 27 

6 CSRS Computation of Annuity
 

Under the General Formula
 

Chapter 50
 

B.	 Calculating 

Length of Service 

(Cont.) 

EXAMPLE:

Length of Service Creditable 

for Computation Purposes -- 32 years 10 months 

(The 27 days are dropped.) 

CAUTION:	 Accrued and unused sick and/or annual leave may not be 

used to meet the service requirements for eligibility to retire. 

April, 1998	 CSRS and FERS Handbook 
Incorrect Subtraction 

Yr Mo Dy 

80 - 3 - 5 

- 80 - 3 - 1

4 

Correct Subtraction 

Yr Mo Dy 

6 

80 - 3 - 5 

 - 80 - 3 - 1 

5 

 CSRS Computation of Annuity
 7 

Under the General Formula
 

Chapter 50
 

Section 50A2.1-3 Computing Length of Service Periods 

A. General Rule Generally, full credit is given for a period of service from the date of 

appointment through date of separation. To determine the length of the 

period, subtract the beginning date of the period of service from the date 

following the ending date of the period of service (see paragraph C of this 

section). 

NOTE: Exceptions to the general rule are intermittent service (see 

paragraph H of this section) and periods in a nonpay status (for 

example, leave without pay, suspension, furlough, and absence 

without leave) that exceed 6 months in the aggregate in any 

calendar year ("excess LWOP"). 

B. 30-Day Month/ 

360-Day Year 

For retirement computation purposes, all months have 30 days. No credit 

is given for the 31st day of the month. The 28th day of February 

constitutes 3 days (or the 29th day of February constitutes 2 days). 

For retirement computation purposes, a year consists of 360 days (12 x 30 

days). 

C. Adding a Day 

When 

Subtracting 

Except as explained in paragraph D, when subtracting the beginning day of 

a period of service from the ending day of a period of service, add a day to 

the ending date to derive the length of the period. 

EXAMPLE:

CSRS and FERS Handbook April, 1998 
8 CSRS Computation of Annuity
 

Under the General Formula
 

Chapter 50
 

D.	 Period of Service 

Ending on the 

Last Day of a 

Month 

Since all months are considered to have 30 days for retirement purposes 

(see paragraph B of this section), if the ending date of a period of service is 

the last day of any month, simply use 31 for that day when you compute the 

length of service. 

EXAMPLE: Period of Service = 1-6-72 through 2-28-77 

31 

77 - 2 - 28

 - 72 - 1 - 6 

5 - 1 - 25 

E.	 Borrowing Years 

and Months 

During 

Subtraction 

Subtracting the beginning date from the ending date: 

• When it is necessary to borrow a month, the time borrowed is always 

30 days; and 

•	 When it is necessary to borrow a year, the time borrowed is always 

12 months. 

EXAMPLE 1: Period of Service = 1-12-80 through 9-4-86 

35 

8 - 5 

86 - 9 - 4 

- 80 - 1 - 12 

6 - 7 - 23 

EXAMPLE 2: Period of Service = 12-3-74 through 6-9-78 

77 - 18 - 10 

78 - 06 - 09 

- 74 - 12 - 3 

3 - 6 - 7 

EXAMPLE 3: Period of Service = 6-21-80 through 4-15-85

 15 46 

84 - 3 - 16 

85 - 4 - 15 

- 80 - 6 - 21 

4 - 9 - 25 

April, 1998	 CSRS and FERS Handbook 
 CSRS Computation of Annuity 9 

Under the General Formula 

Chapter 50 

F. Unused Sick 

Leave 

1. Unused sick leave is added to the number of years and months of 

service for annuity computation purposes. To convert hours of unused 

sick leave into days/months of service, use Chart 2, the 2,087 Sick 

Leave Chart (2,087 hours = 1 year) provided in section 50C1.1-1. 

EXAMPLE: 2,000 hours of unused sick leave = 11 months and 

15 days of service. 

NOTE: Prior to March 1, 1986, a 2,080-hour basis was used to 

derive hourly rates of pay from annual rates. This was 

consistent with a 260-day work year (see paragraph H2 of 

this section). Effective March 1, 1986, Public Law 99-272 

prescribed a 2,087-hour basis (for budgetary purposes) but 

no change was made in the 260-day work year. 

2. The sick leave conversion chart does not list every number between 0 

and 2,087--there are gaps. If a figure on the chart does not correspond 

exactly to the total hours of unused sick leave an employee has to his or 

her credit at time of retirement, use the next highest number. 

EXAMPLE: An employee has 1,500 hours of unused sick leave at 

retirement. The "1,500 hours" does not appear on the chart; however, 

"1,496 hours" and "1,501 hours" do appear. Use "1,501 hours" to 

determine the amount of service to be added in the computation of the 

annuity. 

The 1,501 hours of unused sick leave equals 8 months and 19 days of 

service. 

NOTE 1: Do not use unused sick leave to compute the employee's 

high-3 average pay or to determine the minimum length of 

service required for retirement eligibility. 

NOTE 2: For a further discussion of the rules regarding the unused 

sick leave, see Chapter 20. 

CSRS and FERS Handbook April, 1998 
10 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

G. Intermittent 

Service	 

1. Generally, when an individual is employed on an intermittent basis 

(non-full-time service) without a prearranged regularly scheduled tour 

of duty (formerly reported as WAE or "when actually employed"), only 

the actual days in a pay status are credited. 

2.	 Unless a different work year is shown, 260 days in a pay status 

constitute 1 year of service of this kind after June 30, 1945; 313 days 

constituted 1 year before July 1, 1945. 

3.	 Credit for intermittent service is computed by considering the number 

of days in a pay status in relation to the established work year. (Since 

July 1, 1962, agencies have been required to record in the OPF the 

number of days in a pay status during such service. See The Guide to 

Processing Personnel Actions (formerly FPM Supplement 296-33, 

Subchapters 24, 30, and 31.) Thus, if the established work year is 260 

days, and the employee was in a pay status 130 workdays, he or she is 

allowed credit for 6 months' service. (When the number of days in a 

pay status is known, the 260-Day Work Year Chart in section 50C1.1-1 

can be used to compute months and days of creditable service.) 

4.	 For an intermittent employee who was paid on an hourly basis, if the 

number of days actually worked cannot be ascertained, and only the 

total number of hours worked is known, each 8 hours constitute a day's 

service. For example, the completion of 1,040 hours in a calendar year 

accords credit for exactly 130 workdays or 6 months. If a lesser 

number of hours is prescribed as a workday, the lesser number of hours 

prescribed constitutes 1 day's service. 

NOTE: The workdays credited may not exceed 260 days in a 

calendar year. 

H. Seasonal 

Employment 

1. "Seasonal employment" means recurring periods of work lasting less 

than 12 months each year. Seasonal employees are placed in 

nonduty/nonpay status and recalled to active duty to meet workload 

requirements in accordance with a preestablished agreement that sets the 

conditions of employment. These employees receive retirement service 

credit both for periods when they are in a pay status and also time spent 

in non-pay status that does not exceed 6 months in a calendar year. 

April, 1998	 CSRS and FERS Handbook 
 CSRS	 Computation of Annuity 11 

Under the General Formula
 

Chapter 50
 

H.	 Seasonal 

Employment 

(Cont.) 

2. Prior to October 1, 1980, employees in a seasonal-WAE status could be 

put in a non-work status during the off-season. Since this employment 

was intermittent (See section 50A2.1-3H), no retirement service credit 

can be given for these periods of non-work status. 

3.	 Effective October 1, 1980, agencies were instructed to put all seasonal 

employees in a non-pay status during the off-season. Consequently, 

any seasonal employee in a non-work status on or after October 1, 

1980, is deemed to be in non-pay status. 

CSRS and FERS Handbook	 April, 1998 
 16 

Date of Retirement 89 - 7 - 15 

Minus 3 years - 3 - 0 - 0 

Beginning Date 86 - 7 - 16 

12 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

Section 50A2.1-4 High-3 Average Pay 

A. General The high-3 average pay is used in computing the employee's annuity. 

NOTE: When an employee dies with less than 3 years of service, a "total 

service average pay" must be used to compute any survivor 

annuity benefit. See Chapter 70. Also, the average pay used in 

computing a supplemental annuity based on reemployed annuitant 

service is the average pay during that service. See Chapter 100, 

Reemployed Annuitants. 

B. Definition The "high-3 average pay" is the largest annual rate resulting from averaging 

an employee's rates of basic pay in effect over any period of 3 consecutive 

years of creditable civilian service, with each rate weighted by the length of 

time it was in effect. 

NOTE: See subchapter 50C, section 50C1.1-2, for an example of a high-3 

average pay computation. 

C.	 Period Used 1. The 3-year period in which the average pay is computed starts and ends 

on the dates that produce the highest average pay. The period need not 

start on January 1, or the first day of any month, or the date of a pay 

change. 

2.	 Normally, to find the beginning date of the 3-year period, subtract 

3 years from the date of the employee's retirement. 

EXAMPLE:

EXCEPTION 1:	 If the employee has had higher pay rates during a 

prior period of service, use that period. 

EXCEPTION 2:	 If the employee has had a break in service during 

the last 3 years of employment, compute the high-3 

average pay period as shown in paragraph D 

below. 

April, 1998	 CSRS and FERS Handbook 
 CSRS	 Computation of Annuity 13 

Under the General Formula 

Chapter 50 

D. Consecutive 

Service 

The 3 years of service used for the high-3 average pay need not be 

continuous, but they must be consecutive periods of service. Thus, two or 

more separate periods of employment may be joined, provided there is no 

intervening service. 

EXAMPLE: Action Date Basic Pay Rate 

Hired 

Pay change 

Pay change 

Resigned 

3-2-80 

9-3-81 

8-4-82 

7-3-83 

$23,456 

25,000 

26,778 

28,990 

Rehired 

Pay change 

Pay change 

Retired 

8-5-88 

1-2-89 

1-4-90 

9-5-90 

$32,900 

34,567 

35,200 

35,200 

NOTE: In computing the high-3 average pay, the periods 8-5-82 to 7-3-83 

and 8-5-88 to 9-5-90 equaling 3 years total time, are used. 

E.	 Use of 

Noncreditable 

Service 

Service that is creditable for entitlement purposes, but not for computation 

purposes, may be used in determining the high-3 average pay. Examples of 

such service include nondeduction service on or after October 1, 1982, for 

which no deposit is made, or service that ended on or after October 1, 

1990, for which retirement deductions were refunded and not redeposited. 

F.	 Excess LWOP If excess LWOP falls within the high-3 average period, subtract the excess 

LWOP from the high-3 period by backing up the high-3 period equal to the 

amount of excess LWOP. For example, if the high-3 average pay period 

contains 8 months of LWOP, use 6 months of the LWOP in the 

computation of the high-3 average pay and give no credit for the excess 

2 months of LWOP. However, back up the high-3 average pay period by 2 

months in order to compute an average pay based on 3 full years of service. 

G.	 Unused Sick 

Leave 

Do not use sick leave to compute the employee's high-3 average pay or to 

meet the minimum length of service required for retirement eligibility. 

CSRS and FERS Handbook	 April, 1998 
14 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

Section 50A2.1-5 Basic Pay Rates 

A. Definition The basic pay rate is the rate of pay fixed by applicable law or regulation 

for a position. 

B. General In computing the high-3 average pay, use the rate of annual basic pay--not 

the pay actually received by the employee--except as specified below. 

C.	 Included in Basic 

Pay 

For the types of pay included in basic pay for retirement purposes, see 

Chapter 30, Employee Deductions and Agency Contributions. 

D.	 Excluded from 

Basic Pay 

For the types of pay excluded from basic pay for retirement purposes, see 

Chapter 30. 

E. Hourly, Daily, 

and Similar Rates

1. General rule: 

The basic pay rate of an employee serving on a full-time basis who is 

paid at other than an annual rate is determined by multiplying the basic 

rate of pay by the number of pay units in a 52-week year. 

EXAMPLE 1: An employee's pay rate is $75 per day and his work 

year is 260 days. His basic pay rate would be $19,500 ($75 x 260 = 

$19,500). 

EXAMPLE 2: An employee's pay rate is $6.75 per hour and his work 

year is 2087 hours. His basic pay rate would be $14,087.25 ($6.75 x 

2087 = $14,087.25). 

NOTE:	 For service before March 1, 1986, the work year is 2080 

hours. 

2.	 EXCEPTION: The basic pay rate of an employee who works more than 

8 hours a day as authorized by the Work Hours Act of 

1962 (Public Law 87-581, approved August 13, 1962) is 

determined at the base rate for 40 hours, excluding the 

additional part of the pay for any overtime hours within 

the 40-hour week. 

April, 1998	 CSRS and FERS Handbook 
 CSRS	 Computation of Annuity 15 

Under the General Formula
 

Chapter 50
 

Section 50A2.1-5 Basic Pay Rates (Cont.) 

F.	 Intermittent 

Employment 

Rates 

1. General rule: 

The basic pay of an employee serving on an intermittent (no 

prearranged regularly scheduled tour of duty) or WAE (when actually 

employed) basis is determined by multiplying the basic rate of pay 

received per day/hour by the actual number of days/hours worked at 

that rate of pay. 

2.	 If intermittent service is credited in the high-3 period, the period must 

be extended to compensate for non-work time. This is similar to the 

extension required for excess LWOP (see section 50A2.1-4F). 

3.	 An employee may not receive credit for more than 260 days in a 

calendar year. 

NOTE:	 If the pay rate per day or hour worked cannot be determined, 

the basic pay received can be determined using the retirement 

deductions withheld during the period and the method in 

paragraph H of this section. 

G.	 Piecework Rates 1. General rule: 

The basic annual pay rate for pieceworkers is the total basic earnings 

for any given year. 

2.	 Exception: 

When there are period(s) of creditable leave without pay (LWOP) 

during the year, determine the basic annual pay rate by: 

•	 Dividing the year's earnings by the number of days (or hours) for 

which the employee was paid (work and leave with pay) to obtain 

the average daily rate; and then 

•	 Multiplying the average daily rate by the total number of workdays (or hours) in the year. 

CSRS and FERS Handbook	 April, 1998 
16 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

Section 50A2.1-5 Basic Pay Rates (Cont.) 

H. Multiple Rates 1. General rule: 

The basic annual pay rate of an employee who works at different pay 

rates (whether on a regular or irregular schedule or on dual or multiple 

assignments with different rates of pay involved) is the employee's 

basic pay earnings for each calendar year, plus any additional pay that 

could have been earned in any period of LWOP not exceeding 6 months 

in any calendar year. 

Basic pay earnings for recent years may be obtained from the 

employee's payroll office. If it is not possible to obtain this 

information, basic pay can be determined by computing the amount of 

basic pay from the retirement deductions. 

The following procedure should be observed in determining average pay 

for all cases involving multiple rates: 

a.	 Compute the amount of basic pay on the basis of the lowest basic 

pay rate. 

b.	 For the corresponding period compute the amount of basic pay 

actually received, from the retirement deductions. If applicable, 

increase earnings by basic rate during periods of LWOP. 

c.	 Compare the results of a and b, above, and use the greater amount 

in arriving at the average pay. 

April, 1998	 CSRS and FERS Handbook 
 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

17 

H. Multiple Rates 

(Cont.) 

2. Computation using deductions: 

Multiply the retirement deductions for the period of time by the factor 

for the applicable withholding rate. 

Withholding Rate Factor 

7.50% 13.33 

7.00 14.29 

1.30 76.92 

.94 106.38 

EXAMPLE 1: In calendar year 1989, a prevailing rate employee under full 

CSRS deductions was paid in multiple rates. Retirement deductions at the 

different rates totalled $1,315. The employee had no LWOP. 

Basic Pay for CY 1989 = $1,315 x 14.29 = $18,791.35 

EXAMPLE 2: In calendar year 1988, a prevailing rate employee under 

CSRS Offset was paid in multiple rates. The employee was on LWOP for 

80 hours at the applicable rate of $6.04 per hour. Retirement deductions at 

the different rates totalled $150.00. 

Basic Pay for CY 1988 = ( $150 x 106.38 = $15,957 ) 

Plus 

( $6.04 x 80 (LWOP) = $483.20 ) 

Equals 

$16,440.20 

I. Salary 

Supplemented by 

Workers' 

Compensation 

To determine the pay rate for an employee who is receiving a salary 

supplemented by payments from the Office of Workers' Compensation 

Programs (OWCP), use only the pay rate of the position. Do not include 

any payments from OWCP. 

CSRS and FERS Handbook April, 1998
18 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

Part 50A3 Computation of the Basic Annuity 

Section 50A3.1-1 General Formula for Computing the Basic Annuity 

A.	 General Formula The basic annuity under the general formula is computed as follows: 

•	 1.5 percent of the high-3 average pay multiplied by service up to 5 

years; plus 

•	 1.75 percent of the high-3 average pay multiplied by the number of 

years of service between 5 and 10; plus 

•	 2 percent of the high-3 average pay multiplied by all service over 10 

years. 

NOTE 1:	 The formula above has been used to produce the CSRS General 

Formula Computation Chart, Chart 4, provided in section 

50C1.1-1. 

NOTE 2:	 If the average pay is less than $5,000 per year, substitute 

1 percent of average pay plus $25 for any or all of the 

percentages in the three steps of the formula above. 

NOTE 3:	 Section 50C1.1-2 of subchapter 50C contains illustrations of 

annuity computations using the general formula. 

B.	 Part-Time 

Service Annuity

Computations 

A different application of the general formula applies to any CSRS 

employee whose service includes part-time service performed on or after 

April 7, 1986. See Chapter 55 for additional information. 

C.	 Special 

Computation In 

Cases With 

Certain Overseas 

Service 

A different application of the general formula applies to any CSRS 

employee whose service includes service performed abroad for the Central 

Intelligence Agency (CIA), the Defense Intelligence Agency (DIA), and the 

National Security Agency (NSA). The special computation is used to 

compute a CSRS annuity if the individual: 

•	 retired after September 30, 1989, and 

•	 performed service abroad for the CIA, DIA, or NSA after 

December 31, 1986. The special computation is allowed according 

to the dates of qualifying service certified on the SF 50's or agency 

equivalent or the SF 2806. The service will be certified showing 

April, 1998	 CSRS and FERS Handbook 
 CSRS	 Computation of Annuity 19 

Under the General Formula 

Chapter 50 

Section 50A3.1-1 General Formula for Computing the Basic Annuity (Cont.) 

C.	 Special 

Computation In 

Cases With 

Certain Overseas 

Service (Cont.) 

remarks (or similar language): "Service from (date) to (date) 

qualifies under Section 305 or 505 of P. L. 101-193 entitling 

employee to special annuity computation." 

Computation: Each full month of service certified as qualifying for 

the special computation is substituted in the general formula and 

computed at the 2% rate in place of the 1.5% and 1.75% rates, for 

up to 10 years of such service. 

Example: If an individual retired on January 1, 1999, and 2 years 

of service are certified as qualifying, compute the first 2 years of 

service at 2%, the next 3 years at 1.5%, the next 5 years at 1.75%, 

and the remainder at 2%. If 10 or more years of service are 

qualifying, compute all of the retiree's service at 2%. 

NOTE 1: Entitlement to the special annuity computation for this 

service continues with the employee, regardless of his or her 

agency at final separation or the retirement system under 

which he or she retires. 

NOTE 2: When SF 50's or equivalents are not available and employee 

indicates this type of service, the agency can request copies 

of SF 2806's from the Retirement Operations Center in 

Boyers, Pennsylvania. 

CSRS and FERS Handbook	 April, 1998 
20 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

Section 50A3.1-2 Maximum Annuity 

A.	 General Rule The basic annuity of any employee may not exceed 80 percent of the 

employee's high-3 average pay (disregarding the amount produced by the 

unused sick leave credit as illustrated in the example below). Normally, 

total service of 41 years 11 months (excluding unused sick leave credit) 

produces the maximum annuity. 

EXAMPLE: Tom has a total of 43 years of creditable civilian and military 

service. In addition, he has 2087 hours (1 year) of unused sick leave. His 

annuity would be limited to 80 percent based on civilian and military 

service but the 1 year of sick leave would increase the annuity an additional 

2 percent. Thus, Tom's basic annuity would be 82 percent of his high-3 

average pay. 

B.	 When the 

Annuity Exceeds 

80 Percent 

If the computed basic annuity exceeds 80 percent of the high-3 average pay, 

it is adjusted to an amount equal to 80 percent of the high-3 average pay. 

This adjustment is made before applying any of the reductions explained in 

section 50A3.1-3 and before adding any annuity purchased by voluntary 

contributions described in section 50A3.1-5. 

C.	 Deductions 

During Excess 

Service 

Retirement deductions withheld from the first of the month after an 

employee has performed sufficient service to entitle him or her to the 

maximum annuity, plus 3 percent interest compounded annually to the date 

of retirement, are automatically applied toward any > deposit due for 

civilian nondeduction service, and/or redeposit due for civilian refunded 

service that ended on or after October 1, 1990. < OPM then refunds any 

balance with the initial annuity payment. At this time, the retiree is advised 

by letter of the amount of additional annuity the excess deductions and 

interest would purchase. If the retiree returns the excess deductions and 

interest to OPM, this amount is treated as voluntary contributions and the 

annuity is recomputed accordingly. (See section 50A3.1-5B.) 

> Note: Excess deductions are not automatically applied toward a 

redeposit due for civilian refunded service that ended before 

October 1, 1990. The actuarial reduction described in section 

50A3.1-3 applies to the maximum annuity. However, if the 

retiree elects to purchase an additional annuity with the excess 

deductions, the redeposit has to be paid in full . < 

April, 1998	 CSRS and FERS Handbook 
 CSRS Computation of Annuity
 21 

Under the General Formula
 

Chapter 50
 

Section 50A3.1-3 Reductions in Annuity 

A.	 Order of 

Reductions	 

The annuity computed under the general formula described in section 

50A3.1-1 is reduced, when applicable. Annuity reductions must be applied 

in the following order: 

1.	 Age Reduction: 

Reduction for retirement before age 55. 

2.	 Deposit Reduction: 

Reduction for unpaid deposit(s) for nondeduction service performed 

prior to October 1, 1982. 

3.	 Survivor Reductions: 

•	 Reduction for survivor annuity, because of a voluntary election, 

court order, or operation of law; and/or 

•	 Reduction to provide a survivor annuity to a person with an 

insurable interest. 

NOTE:	 The base used to compute the reduction for both types of 

survivor benefits is the amount after the age and deposit 

reduction. 

4.	 Redeposit Reduction: 

Reduction for unpaid redeposit covering service that ended before 

October 1, 1990. 

5.	 Alternative Annuity Reduction: 

Reduction because of an alternative annuity election. See Chapter 53 

for information about election of an alternative annuity. 

B. Reduction for 

Retirement 

Before Age 55 

The annuity of an employee who retires before age 55 in cases of early 

optional retirement or discontinued service retirement (see Chapters 43 and 

44, respectively) is reduced by one-sixth of 1 percent for each full month (2 

percent per year) he or she is under age 55. 

CSRS and FERS Handbook	 April, 1998 
22 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

B.	 Reduction for 

Retirement 

Before Age 55 

(Cont.) 

NOTE: Section 50C1.1-1, Chart 5, is the CSRS 2 Percent Age Reduction 

Chart, to facilitate computation of the reduction. 

EXAMPLE: See Example 4 in subchapter 50C, section 50C1.1-2, for an 

example of an annuity computed with a reduction for retirement under 

age 55. 

C. Unpaid Deposit 

Service 

If an employee owes a deposit, including interest, to cover a period of 

civilian service performed prior to October 1, 1982, for which no 

retirement deductions were made, the basic annual annuity is reduced by 10 

percent of the unpaid deposit amount. 

EXAMPLE: Subchapter 50C, section 50C1.1-2 contains an example of an 

annuity computed with a reduction for unpaid deposit service. 

D.	 Reduction to 

Provide Survivor 

Annuity for 

Current Spouse 

or Former Spouse 

1. The annuity of a retiree who has a current spouse must be fully reduced 

to provide a survivor annuity, unless the employee and spouse jointly 

waive a survivor annuity, or elect less than the maximum amount 

possible. See Chapter 52, Survivor Benefit Elections, for additional 

information on the procedures for electing survivor benefits at and after 

retirement. 

2.	 A court may also require the employee to provide survivor benefits for 

a former spouse. See Chapter 5, Court Orders, for information on 

court-ordered benefits to a former spouse. 

3.	 The base used in calculating the survivor annuity benefit for a current 

spouse is the retiree's total annuity (after reduction for age and deposit 

but before the alternative annuity reduction, or reduction because of an 

unpaid redeposit covering service that ended before October 1, 1990) 

unless the retiree and his or her spouse jointly elected a lesser base. 

4.	 The reduction is: 

•	 2.5 percent of the amount up to $3,600 elected as the base for the 

survivor benefit, plus 

•	 10 percent of the amount over $3,600 elected as the base for the 

survivor benefit. 

April, 1998	 CSRS and FERS Handbook 
 CSRS Computation of Annuity 23 

Under the General Formula 

Chapter 50 

D. Reduction to 

Provide Survivor 

Annuity for 

Current Spouse 

or Former Spouse 

(Cont.) 

EXAMPLE 1: "Full" Survivor Benefits 

Annuity $14,000 

Base Selected $14,000 

Amount up to $3,600 $3,600 x .025 = $90 

Amount over $3,600 $10,400 x .10 = $1,040 

Total Reduction $1,130 

Reduced Annuity = $14,000 - $1,130 = $12,870 

EXAMPLE 2: Less Than Full Survivor Benefit 

Annuity $14,000 

Base Selected $ 3,000 

Reduction up to $3,600 $3,000 x .025 = $75 

Reduced Annuity = $14,000 - $75 = $13,925 

E. Elimination of 

the Current 

Spouse Survivor 

Reduction 

The current spouse survivor reduction ends if the marriage ends before the 

retired employee dies, effective the month following the one in which the 

marriage ended. 

EXCEPTION: The reduction is not eliminated if the retiree is required by 

court order to continue the survivor benefit for the former 

spouse. See Chapters 5 and 52 for additional information. 

F.	 Amount of 

Current Spouse 

Survivor Benefit 

The survivor annuity is 55 percent of the base selected by the retiree, 

increased by any cost-of-living increases the retiree received prior to the 

date of death. 

Assuming no cost-of-living increases, in paragraph D, example 1, above, 

the survivor is entitled to an annual annuity of $7,700 (55% x $14,000). In 

example 2, he or she is entitled to an annual annuity of $1,650 (55% x 

$3,000). 

CSRS and FERS Handbook	 April, 1998 
 

24 CSRS Computation of Annuity 

Under the General Formula
 

Chapter 50
 

G. Reduction for 

Election of 

Survivor Annuity 

to Person With 

an Insurable 

Interest 

1. An employee retiring in good health may elect a reduced annuity to 

provide a survivor benefit for a person who has an insurable interest in 

the employee. An insurable interest may exist between the retiree and 

any other individual who has a reasonable expectation of financial 

benefit that would terminate upon the death of the retiree. An insurable 

interest will be presumed between individuals of near relationship, and 

may be demonstrated in other cases. Disability retirees may not elect 

an insurable interest survivor annuity. See part 52A3 of Chapter 52 for 

complete information concerning the eligibility requirements for 

electing this type of benefit. 

NOTE: With the election of an insurable interest, unlike regular survivor 

benefits, the retiring employee has no choice with respect to the 

base to be used for the insurable interest election. It is always the 

full basic annuity that is payable. 

2. The base used to compute the reduction for an insurable interest 

survivor benefit is the basic annuity after reduction for age and deposit 

(but before any other survivor benefit reduction, alternative annuity 

reduction, or reduction because of an unpaid redeposit covering service 

that ended before October 1, 1990). The basic annuity is reduced in 

accordance with the following schedule. 

Age of Person Named 

in Relation to That 

of Retiring Employee 

Reduction in Annuity 

of Retiring Employee 

(Percent) 

Older, same age, or less than 5 

years younger 10 

5 but less than 10 years younger 15 

10 but less than 15 years younger 20 

15 but less than 20 years younger 25 

20 but less than 25 years younger 30 

25 but less than 30 years younger 35 

30 or more years younger 40 

April, 1998 CSRS and FERS Handbook 
 CSRS Computation of Annuity
 25 

Under the General Formula
 

Chapter 50
 

G.	 Reduction for 

Election of 

Survivor Annuity 

to Person With 

an Insurable 

Interest (Cont.) 

EXAMPLE: Basic Annuity $12,000 

Insurable interest beneficiary 18 years younger. 

Reduction = $12,000 x 25% = $3,000 

H.	 Elimination of 

the Insurable 

Interest 

Reduction 

1. The insurable interest reduction ends if the person named as survivor 

with insurable interest predeceases the annuitant. The change is 

effective the month following the death of the insurable interest. The 

reduction also ends if a retiree marries and elects a survivor benefit for 

the spouse, if the spouse is the same person for whom the insurable 

interest designation was made. If the retiree marries someone other 

than the insurable interest designee, and elects a survivor annuity for 

the new spouse, the retiree may, at the same time, elect to cancel the 

insurable interest election. 

2.	 In the case of a married retiree who elected an insurable interest 

survivor benefit for the current spouse and also provided a survivor 

benefit for a former spouse, if the former spouse remarries prior to age 

55, loses eligibility under a court order, or dies, the retiree may elect to 

change the insurable interest election to a regular spousal survivor 

election. 

I.	 Amount of 

Insurable Interest 

Survivor Benefit 

The insurable interest survivor benefit is 55 percent of the employee's 

reduced annuity, increased by any cost-of-living increases the retiree 

received prior to the date of death. While the base used in computing a 

spousal survivor annuity is the employee annuity after reduction for age and 

deposit, in the case of an insurable interest, the reduced annuity is the 

annuity after reductions for age, deposit, and election of the insurable 

interest survivor annuity (but before any reduction for a regular survivor 

benefit, an alternative annuity, or an outstanding redeposit for a refund of 

deductions based on service that ended before October 1, 1990). 

EXAMPLE: Using the example in paragraph G above, the reduced annuity 

would be $9,000 ($12,000 - $3,000). The amount of the insurable interest 

survivor benefit is computed as follows. 

$9,000 x 55% = $4,950 

CSRS and FERS Handbook	 April, 1998 
26 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

J.	 Reduction for 

Unpaid Redeposit 

Covering Service 

Before October 

1990 

1. An employee who elects not to redeposit a refund of CSRS retirement 

deductions for service that ended before October 1, 1990, will receive 

credit for that service in the computation of the annuity. However, the 

amount of the monthly annuity will be actuarially reduced. The option 

to pay the redeposit is provided at retirement. 

2.	 The monthly reduction is the amount that would result if an Alternative 

Form of Annuity (AFA) lump sum in the amount of the redeposit had 

been paid, using the same actuarial factors--also called present value 

factors (PVF)--used to determine AFA reductions. The method of 

computation and the table of factors can be found in Chapter 53, section 

53C1.1-1. For convenience, we have also included the table of present 

value factors in section 50C1.1-1 (Chart 9). 

3.	 This reduction applies only to employees who retire under the 

nondisability provisions of CSRS and whose annuity commences on or 

after December 2, 1990. 

April, 1998	 CSRS and FERS Handbook 
 CSRS Computation of Annuity
 27 

Under the General Formula
 

Chapter 50
 

Section 50A3.1-4 CSRS Offset Employees 

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

as if they were covered under CSRS only. 

B. Exception: 

Offset at Age 62 

The nondisability annuity payment is reduced (offset) when the employee 

becomes eligible for Social Security. The offset is applied when the basic 

requirements for Social Security are met (usually at age 62) even if the 

employee does not apply for Social Security. 

If the employee is not entitled to Social Security at age 62, there is no offset 

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

NOTE:	 For information about disability annuity payments, see 

Chapter 60. 

C. Amount of Offset The amount of the offset is the lesser of: 

1.	 The amount of the Social Security benefit attributable to the employee's 

service after December 31, 1983, covered under the interim CSRS 

provisions or the CSRS Offset provisions; or 

2.	 The amount obtained by multiplying the following fraction by the Social 

Security benefit to which the individual is entitled (or would be entitled 

upon proper application) at the time the individual's CSRS annuity 

begins: 

Total Years of Offset Service 

40 

NOTE:	 Partial years of offset service are rounded to the nearest whole 

number, with one half being rounded to the next higher number. 

EXAMPLE: An employee retires at age 55 with 6 years of Offset 

service included in the 30 years of service upon which the retirement is 

based. At age 62 the individual becomes eligible for Social Security 

benefits in the amount of $500 per month. The reduction is the lesser 

of: 

1.	 The $100 that the Social Security Administration computes is 

attributable to the Offset Service; or 

CSRS and FERS Handbook	 April, 1998 
28 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

C.	 Amount of Offset 

(Cont.) 

2. 6 years of Offset Service 

40 x $500 = $75 

Thus, in this example, the CSRS annuity would be offset by $75 

per month beginning at age 62. 

NOTE:	 Spousal survivor annuities, and the reduction therefor, are 

based upon the annuity prior to application of the offset. 

(However, spousal survivor annuities themselves are subject 

to their own offset based upon the Social Security survivor 

benefits attributable to the CSRS Offset Service. The spousal 

survivor offset applies at all times when the survivor is 

eligible for both CSRS survivor benefits and Social Security 

survivor benefits.) 

April, 1998	 CSRS and FERS Handbook 
 CSRS Computation of Annuity
 29 

Under the General Formula
 

Chapter 50
 

Section 50A3.1-5 Additional Annuity -- Voluntary Contributions 

A.	 General An employee who has made voluntary contributions while employed may, 

at time of retirement, use those contributions to purchase additional annuity. 

Excess deductions (see section 50A3.1-2) may also be used to purchase 

additional annuity at the time of retirement. 

NOTE:	 Chapter 31, Voluntary Contributions, contains detailed 

information regarding voluntary contributions. 

B.	 Amount The employee is entitled to an additional annuity of $7 a year for each $100 

in his or her voluntary contribution account, plus 20 cents for each full year 

he or she is over age 55 at time of retirement. 

EXAMPLE: See subchapter 50C, section 50C1.1-2 for an example of an 

employee who retires and elects additional annuity provided by voluntary 

contributions. 

NOTE:	 Additional annuities are not increased by COLA's. 

C. Additional	 

Survivor Annuity	 

1. At retirement, the retiree may elect a reduction in his or her additional 

annuity to purchase an additional survivor annuity for any designated 

person. (There need not be a family relationship or an insurable 

interest.) Compute the reduction by multiplying the unreduced 

additional annuity by the following percentages: 

•	 10 percent if the survivor is the same age, older than, or less than 5 

years younger than the applicant; 

•	 15 percent if the survivor is 5 but less than 10 years younger; 

•	 20 percent if the survivor is 10 but less than 15 years younger; 

•	 25 percent if the survivor is 15 but less than 20 years younger; 

•	 30 percent if the survivor is 20 but less than 25 years younger; 

CSRS and FERS Handbook	 April, 1998 
30 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

C.	 Additional 

Survivor Annuity 

(Cont.) 

• 35 percent if the survivor is 25 but less than 30 years younger; 

• 40 percent if the survivor is 30 or more years younger than the 

applicant. 

2.	 The survivor benefit is 50 percent of the retiree's reduced additional 

annuity. 

NOTE:	 See section 31A3.1-1, paragraph C of Chapter 31 for 

additional information. 

April, 1998	 CSRS and FERS Handbook 
Computation of Annuity FERS 31 

Under the General Formula 

Chapter 50 

Subchapter 50B FERS 

Part 50B1 General Information 

Section 50B1.1-1 Overview 

A.	 Introduction Subchapter 50B contains the rules and procedures that apply to the 

computation of a basic annuity under the Federal Employees Retirement 

System (FERS). 

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

the CSRS rule that applies, or gives the FERS rule if it is different. 

Subchapter 50C, section 50C1.1-3, contains illustrations of computations 

using the general formula. 

This subchapter does not cover the computation of the FERS annuity 

supplement or the alternative annuity. See Chapters 51 and 53, 

respectively. 

B. Organization of 

Subchapter 

The FERS subchapter has four parts. 

Part Name of Part Page 

50B1 General Information 32 

50B2 Components of the Basic Annuity 34 

50B3 Computation of the Basic Annuity 39 

50B4 Computation With a CSRS 

Component 46 

C.	 Applicable CSRS 

Provisions 

The following sections of subchapter 50A apply under FERS. 

• Section 50A2.1-3:	 Computing Length of Service Periods 

• Section 50A2.1-5:	 Basic Pay Rate 

•	 Section 50A3.1-3: Reduction for Election of Survivor Annuity to 

Person with an Insurable Interest 

CSRS and FERS Handbook	 April, 1998 
32 Computation of Annuity FERS 

Under the General Formula 

Chapter 50 

D.	 Statement of 

Authority 

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

• United States Code: 5 U.S.C. 8415 through 8420 

• Code of Federal Regulations: 5 CFR 842, Subparts D and F 

April, 1998	 CSRS and FERS Handbook 
Computation of Annuity FERS 33 

Under the General Formula 

Chapter 50 

Part 50B2 Components of the Basic Annuity 

Section 50B2.1-1 Introduction 

A. General FERS basic annuity benefits are based primarily on: 

1.	 The amount of the employee's creditable service (see section 50B2.1-2); 

and 

2.	 The individual's high-3 average pay (see section 50B2.1-3). 

NOTE:	 Under FERS, the rules for determining what service is creditable 

are the same for the purposes of establishing entitlement, 

determining the length of service used in the annuity computation, 

and determining the high-3 average pay period. 

B. Reductions in
 

Annuity
 

An annuity computed based on the length of service and high-3 average pay 

may be reduced for any or all of the following: 

•	 Age reduction for retirement under MRA + 10 or early deferred 

retirement provisions (see Chapters 42 and 45, respectively); 

•	 Election of (or court-ordered) survivor benefits for a spouse and/or 

former spouse; 

•	 Election of a survivor benefit to a person with an insurable interest; and 

•	 Election of the alternative annuity. 

C. Employees With 

a CSRS 

Component 

Employees who elect to transfer from CSRS coverage to FERS coverage 

after completing 5 or more years of creditable civilian service as of the 

effective date of the transfer (excluding service covered by both CSRS and 

Social Security deductions) will have a CSRS annuity component in their 

FERS benefit. 

CSRS and FERS Handbook	 April, 1998 
34 Computation of Annuity FERS 

Under the General Formula 

Chapter 50 

C. Employees With 

a CSRS 

Component 

(Cont.) 

The CSRS rules in subchapter 50A for creditability of service, calculation 

of length of service, average pay, basic unreduced annuity, reduction for 

unpaid CSRS deposit(s) and additional annuity apply to the CSRS 

component of a FERS benefit. 

See Part 50B4 below for a discussion of computations involving a CSRS 

annuity component. 

April, 1998 CSRS and FERS Handbook 
Computation of Annuity FERS 35 

Under the General Formula 

Chapter 50 

Section 50B2.1-2 Length of Service 

A.	 Creditable 

Service for FERS 

Computation 

Purposes 

Creditable service for FERS computation purposes includes: 

• Service for which full FERS deductions were made and not refunded; 

•	 Nondeduction service (for example, temporary or intermittent service) 

performed prior to January 1, 1989, if a deposit for such service is 

made (or deemed made under the alternative annuity provisions); 

•	 Service for which Social Security taxes and full or reduced CSRS 

deductions were taken (if all CSRS deductions were not refunded); 

EXCEPTION: If the CSRS deductions were refunded based on an 

application filed before the employee became covered 

under FERS, such service is creditable if a redeposit is 

made. 

•	 Creditable periods of military service performed prior to January 1, 

1957; and 

•	 Creditable periods of military service performed after December 31, 

1956, if a deposit for such service is made prior to retirement. 

NOTE:	 Except as noted in paragraph B below, unused sick leave is not 

creditable in the computation of a FERS basic annuity. 

B. Employees With 

a CSRS 

Component 

In determining creditable service for a CSRS annuity component, the rules 

in section 50A2.1-2 apply with the following exceptions and additional rules 

that apply. 

1. The amount of sick leave creditable is the lesser of: 

• The employee's sick leave balance as of date of transfer to FERS; 

or 

CSRS and FERS Handbook	 April, 1998 
36 Computation of Annuity	 FERS 

Under the General Formula
 

Chapter 50
 

B. Employees With 

a CSRS 

Component 

(Cont.) 

• The employee's sick leave balance as of date of retirement. 

EXAMPLE: Sick leave balance as of: 

Date of Transfer = 1350 hours 

Date of Retirement = 860 hours 

The 860 hours of sick leave is credited in the CSRS portion of the 

annuity computation. 

2.	 Service performed on and after the effective date of the transfer is 

subject to FERS rules and is not included in the CSRS annuity 

component. 

3.	 Service prior to FERS coverage subject to both CSRS and Social 

Security deductions is treated under FERS rules and is not included in a 

CSRS annuity component. 

April, 1998	 CSRS and FERS Handbook 
Computation of Annuity FERS 37 

Under the General Formula 

Chapter 50 

Section 50B2.1-3 High-3 Average Pay 

A. Applicable CSRS 

Provisions 

The provisions in CSRS section 50A2.1-4 apply under FERS, except as 

noted below. 

B. Noncreditable 

Service 

Service that is not creditable toward length of service for computing an 

annuity under FERS is also not creditable for the purpose of computing the 

high-3 average pay. Service that is creditable for average pay purposes 

under CSRS, but not under FERS includes: 

•	 Refunded service; and 

•	 Nondeduction service for which no deposit is made. (Deposit cannot be 

made for nondeduction service performed after December 31, 1988.) 

NOTE:	 See Chapter 55 for computation of high-3 average pay involving 

part-time service. 

EXCEPTION:	 Special rules apply to the high-3 average pay 

determination for transferees with a CSRS annuity 

component (see section 50B4.1-2, paragraph A). 

C. "Total Service" 

Average Pay 

In addition to the circumstances noted in the CSRS section where a total 

service average pay must be used, in FERS a total service average pay must 

be used to compute a disability annuity when the disability retiree has less 

than 3 years of creditable service. (See Chapter 61.) 

CSRS and FERS Handbook	 April, 1998 
38 Computation of Annuity FERS 

Under the General Formula 

Chapter 50 

Part 50B3 Computation of the Basic Annuity 

Section 50B3.1-1 General Formula for Computing the Basic Annuity 

A.	 General Formula Except as explained in paragraph B, The FERS basic annuity computation 

formula is: 

1 percent of the high-3 average pay 

x 

The total years and months of creditable service under FERS. 

NOTE 1:	 A retiree annuity supplement may be payable in addition to the 

basic annuity. Employees who are age 62 or older at 

retirement, however, are not eligible for a retiree annuity 

supplement. See Chapter 51, Retiree Annuity Supplement, for 

further details. 

NOTE 2:	 See Chart 6, the FERS 1% Accrual Factor Chart provided in 

section 50C1.1-1, to facilitate the basic annuity computation. 

B.	 Employees Who 

Are Age 62 With 

20 Years of 

Service 

Use the basic annuity computation shown below for employees who are at 

least age 62 at date of separation and have at least 20 years of total 

creditable service (including CSRS service if the FERS annuity includes a 

CSRS component): 

1.1 percent of the high-3 average pay 

x 

The total years and months of creditable service under FERS. 

NOTE 1:	 The 1.1 percent formula does not apply to individuals who are 

retiring under the special provisions for Members of Congress, 

Congressional employees, military reserve technicians, law 

enforcement officers, firefighters, or air traffic controllers. (See 

Chapters 46, 54, and 101.) 

NOTE 2:	 Employees who are age 62 at retirement are not eligible for a 

retiree annuity supplement. See Chapter 51. 

April, 1998	 CSRS and FERS Handbook 
Computation of Annuity FERS 39 

Under the General Formula 

Chapter 50 

B.	 Employees Who 

Are Age 62 With 

20 Years of 

Service (Cont.) 

NOTE 3: See Chart 7 in section 50C1.1-1 for the FERS 1.1% Accrual 

Factor Chart to help in the basic annuity computation. 

NOTE 4: Subchapter 50C, section 50C1.1-3 contains examples of annuity 

computations using the general formula and the exception that 

applies to employees who are age 62 with at least 20 years of 

creditable service. 

C.	 Other Exceptions 1. A different application of the general formula applies to any employee 

whose service includes some part-time service. See Chapter 55 for 

additional information. 

2.	 A special computation formula applies to the benefits of eligible law 

enforcement officers, firefighters, air traffic controllers, and Members 

of Congress and Congressional employees. See Chapters 54 and 101 

for additional information. 

CSRS and FERS Handbook	 April, 1998 
40 Computation of Annuity FERS 

Under the General Formula 

Chapter 50 

Section 50B3.1-2 Maximum Annuity 

A. General Rule There is no maximum annuity under FERS. 

B.	 Transferees With 

a CSRS 

Component 

The provisions of section 50A3.1-2 apply to the computation of the CSRS 

annuity component of a FERS Basic Annuity. 

April, 1998	 CSRS and FERS Handbook 
Computation of Annuity FERS 41 

Under the General Formula 

Chapter 50 

Section 50B3.1-3 Reductions in Annuity 

A.	 Rule An annuity computed under the general formula (or any of the exceptions) 

described in section 50B3.1-1 may be reduced. The reductions, when 

applicable, are applied in the following order. 

1.	 Age Reduction: 

Reduction for age when retiring under early deferred retirement or 

MRA + 10 provisions. 

2.	 Survivor Reduction: 

•	 Reduction to provide a survivor annuity to a spouse and/or former 

spouse(s); and/or 

•	 Reduction to provide a survivor annuity to a person with an 

insurable interest. 

3.	 Alternative Annuity Reduction: 

Reduction because of an alternative annuity election. See Chapter 53 

for information about election of an alternative annuity. 

B.	 Reduction Under 

Early Deferred or 

MRA + 10 

Provisions 

1. The annuity of an employee who retires under early deferred or 

MRA + 10 provisions is reduced by five-twelfths of 1 percent for each 

full month (5 percent a year) the employee is under age 62 at the 

commencing date of the annuity. 

2.	 An early deferred or MRA + 10 annuity is not reduced if the employee 

completed at least 20 years of service and postpones the commencing 

date until he or she reaches age 60. 

3.	 An early deferred annuity is not reduced if the employee completed at 

least 30 years of service. 

NOTE:	 Chart 8 in section 50C1.1-1 provides the FERS 5 percent age 

reduction factor to facilitate computation of the reduction. 

CSRS and FERS Handbook	 April, 1998 
42 Computation of Annuity	 FERS 

Under the General Formula
 

Chapter 50
 

C.	 No Age 

Reduction in 

Disability and 

Special Provision 

Retirement Cases 

There is no reduction for age for an employee who retires for disability or 

on an immediate annuity under a provision that permits retirement at an age 

earlier than the MRA. See the following Chapters of this Handbook for 

additional information: 

•	 Chapter 43, Early Voluntary Retirement; 

•	 Chapter 44, Discontinued Service Retirement; 

•	 Chapter 46, Special Retirement Provisions for Law Enforcement 

Officers, Firefighters, Air Traffic Controllers, and National Guard 

Technicians; and 

•	 Chapter 101, Special Retirement Provisions for Senior Officials. 

D.	 Reduction to 

Provide Survivor 

Annuity for 

Current Spouse 

or Former Spouse 

1. The annuity of a married employee is reduced unless the employee and 

spouse both waive entitlement to survivor benefits for the spouse. See 

Chapter 52 for additional information on the procedures for electing 

survivor benefits at retirement. 

2.	 The employee also may be required by court order to provide survivor 

benefits for a former spouse. See Chapter 5 for additional information 

on court-ordered benefits. 

3.	 For transferees with a CSRS annuity component, the FERS reduction 

for survivor benefits applies to the combined CSRS and FERS annuity. 

4.	 The employee may use all, or one-half, of his or her annuity as the base 

for the survivor benefit. 

NOTE:	 In calculating the base for the survivor benefit, use the 

annuity after it has been reduced for age, but before any 

alternative annuity reduction. 

5.	 The reduction is 10 percent of the base selected. 

EXAMPLE: For a retiree with a $9,000 annual annuity, the annual 

reduction for full survivor benefits would be $900, (10% x $9,000) and for 

half survivor benefits it would be $450 ($9,000 x 50% x 10%). 

April, 1998	 CSRS and FERS Handbook 
Computation of Annuity FERS 43 

Under the General Formula 

Chapter 50 

E.	 Elimination of 

Reduction	 

The reduction ends if the marriage terminates before the retired employee 

dies, effective the first of the month following the one in which the 

marriage ended. 

EXCEPTION:	 The reduction is not eliminated if the retiree is required by 

court order to provide a survivor benefit for the former 

spouse. See Chapters 5 and 52 for additional information. 

F.	 Amount of 

Current Spouse 

Survivor Benefit 

The survivor annuity is 50 percent of the base selected by the retiree, 

increased by any cost-of-living increases the retiree received prior to the 

date of death. 

G.	 Reduction for 

Election of 

Survivor Annuity 

to Person With 

an Insurable 

Interest 

The provisions of section 50A3.1-3G, H, and I apply under FERS. Unless 

the employee is eligible for a computation that includes a CSRS component 

(see Part 50B4), ignore references in section 50A3.1-3G2 to reductions for 

unpaid deposits, and for unpaid redeposits covering service that ended 

before October 1, 1990, since no such reductions exist under FERS. 

CSRS and FERS Handbook	 April, 1998 
44 Computation of Annuity FERS 

Under the General Formula 

Chapter 50 

Section 50B3.1-4 Additional Annuity--Voluntary Contributions 

A.	 General Rule While FERS employees may not make voluntary contributions, an 

employee who has made voluntary contributions while employed under 

CSRS may, at the time of retirement, use those contributions to purchase 

additional annuity. In this case, the provisions of CSRS section 50A3.1-5 

are applicable. 

April, 1998	 CSRS and FERS Handbook 
Computation of Annuity FERS 45 

Under the General Formula 

Chapter 50 

Part 50B4 Computation With a CSRS Component 

Section 50B4.1-1 General 

A.	 Eligibility for 

CSRS Component	 

Employees who elect to transfer to FERS may be eligible for a retirement 

computation with a CSRS component. An employee has a CSRS annuity 

component if he or she meets the 5-year rule for determining eligibility for 

a CSRS annuity component. See Chapters 10, 11, and 12 of this Handbook 

for a complete explanation of coverage determinations. 

B.	 Applicability of 

CSRS or FERS 

Rules 

When there is a CSRS component, the service included in the component is 

subject to CSRS computation rules. FERS service is credited in the FERS 

component and is subject to FERS computation rules. Any CSRS age 

reduction applies to the CSRS component. All FERS reductions for 

survivor benefits and age apply to the combined CSRS and FERS 

components. CSRS alternative annuity reduction factors apply to the CSRS 

component of an annuity; FERS factors apply to the FERS portion. 

C. Service Credited 

in Each 

Component 

To determine whether a given type of service should be included in the 

CSRS or the FERS component, see Chapters 10, 11, and 12 of this 

Handbook for a complete explanation of coverage determinations. 

D. Odd Days Are
 

Dropped
 

In computing the total creditable service for each component, drop the 

fractional part of a month (if any) in the aggregate service. 

EXAMPLE: An employee has two periods of service in the CSRS 

component, one of 5 years, 6 months, and 20 days and the other of 7 years, 

3 months, and 15 days. In addition, the employee is entitled to credit for 3 

months and 7 days of unused sick leave. This employee's CSRS component 

consists of 13 years and 1 month of service. The 12 odd days are dropped 

completely. They cannot be added to the FERS portion. 

CSRS Component: 

5 yrs - 6 mos - 20 days 

7 yrs - 3 mos - 15 days

 3 mos - 7 days 

12 yrs - 12 mos - 42 days

 13 yrs - 1 mo - 12 days 

CSRS and FERS Handbook	 April, 1998 
46 Computation of Annuity FERS 

Under the General Formula 

Chapter 50 

D. Odd Days Are 

Dropped (Cont.) 

FERS Component: 

2 yrs - 1 mo - 13 days

 + 3 yrs - 9 mos - 10 days 

5 yrs - 10 mos - 23 days 

Total Service for Computation Purposes: 

CSRS 13 yrs - 1 mo 

FERS + 5 yrs - 10 mos 

18 yrs - 11 mos 

April, 1998 CSRS and FERS Handbook 
Computation of Annuity FERS 47 

Under the General Formula 

Chapter 50 

Section 50B4.1-2 Computation of Annuity 

A. High-3 Average 

Pay 

The high-3 average pay for both the FERS and CSRS components of the 

annuity is the average for the highest 3 consecutive years of service, 

regardless of whether the service is subject to FERS or CSRS rules. 

Consequently, the high-3 average pay used to compute the CSRS 

component may cover a period that is partially or wholly subject to FERS. 

See sections 50A2.1-4 and 50B2.1-3 for instructions on how to compute an 

employee's high-3 average pay. 

NOTE:	 See Chapter 55, subchapter 55B, for information regarding the 

calculation of a high-3 average pay for part-time employees who 

have a CSRS component. 

B.	 Basic Annuity 

Computation 

The following outlines the steps to be taken to compute a FERS basic 

annuity with a CSRS component: 

1.	 Compute the employee's high-3 average pay. (See sections 50A2.1-4 

and 50B2.1-3.) 

2.	 Compute the CSRS component under the general formula provisions 

described in section 50A3.1-1. Use only CSRS creditable service. 

(For a complete explanation of coverage determinations, see Chapters 

10, 11, and 12 of this Handbook.) The 80 percent limit applies (see 

sections 50B3.1-2B and 50A3.1-2). 

3.	 If applicable, reduce the amount of the CSRS component for each of the 

following (and in the order shown). 

•	 Retirement before age 55. (See section 50A3.1-3, paragraph B.) 

•	 Unpaid deposit(s) for nondeduction service performed prior to 

October 1, 1982. (See section 50A3.1-3, paragraph C.) 

4.	 Compute the FERS component under the general formula provisions 

described in section 50B3.1-1. Use all creditable FERS service. See 

Chapters 10, 11, and 12 for a complete explanation of coverage 

determinations. 

NOTE:If the FERS service totals less than 30 days, the value of the 

FERS component is $0. If the FERS service is 30 days or more, the 

monthly FERS component must be at least $1. 

CSRS and FERS Handbook	 April, 1998 
48 Computation of Annuity	 FERS 

Under the General Formula
 

Chapter 50
 

B.	 Basic Annuity 

Computation 

(Cont.) 

5. Compute the basic annuity by adding the CSRS component to the FERS 

benefit. 

6.	 If applicable, reduce the basic annuity for each of the following (and in 

the order shown). 

•	 Retirement under MRA + 10 or early deferred retirement 

provisions. (See section 50B3.1-3, paragraph B.) 

NOTE:	 This reduction applies to the combined CSRS and FERS 

benefit. 

•	 Election of survivor annuity benefits. (See section 50B3.1-4.) 

•	 Election of survivor annuity to a person with an insurable interest. 

(See section 50B3.1-4, paragraph D.) 

7.	 Determine the monthly amount by dividing the net basic annuity annual 

amount by 12. Round the monthly amount to the next lower dollar. 

(See computation examples in section 50C1.1-3 for an illustration of the 

rounding procedure.) 

NOTE:	 When a FERS transferee with a CSRS component elects the 

Alternative Form of Annuity (AFA), a special computational 

procedure is required to determine the correct reduction. 

This procedure is described in detail in Chapter 53. (See 

section 53B2.1-1 and the example in section 53C2.1-3.) The 

procedure described in those sections applies also to the 

reduction required for an unpaid redeposit of refunded 

service that ended before October 1, 1990. 

April, 1998	 CSRS and FERS Handbook 
Computation of Annuity FERS 49 

Under the General Formula 

Chapter 50 

Subchapter 50C Job Aids 

Section 50C1.1-1 Charts 

This section contains the following charts: 

Chart 1. 360-Day Factor Chart 

Chart 2. Sick Leave Chart 2087 Hours 

Chart 3. 260 Day Work Year Chart 

Chart 4. CSRS General Formula Computation Chart 

Chart 5. CSRS 2% Age Reduction Chart 

Chart 6. For Computing Basic Annuity -- FERS 1% Accrual Factor 

Chart 7. For Computing Basic Annuity -- FERS 1.1% Accrual Factor 

Chart 8. FERS 5% Age Reduction Chart 

Chart 9. CSRS Present Value Factors 

CSRS and FERS Handbook April, 1998 
 CSRS Computation of Annuity Under the General Formula FERS 50 

Chapter 50 

Section 50C1.1-1 Charts 

Chart 1. -- 360 DAY FACTOR CHART 

For Computing Total Amount for Any Period of Time at a Given Annual Rate. To Complete Factor, Place Number of Full Years Ahead of Decimal Point. 

Number 

of Days 

1 Day 1 Month 2 Months 3 Months 4 Months 5 Months 6 Months 7 Months 8 Months 9 Months 10 Months 11 Months 

0 --­ 0.083333 0.166667 0.250000 0.333333 0.416667 0.500000 0.583333 0.666667 0.750000 0.833333 0.916667 

1 0.002778 0.086111 0.169444 0.252778 0.336111 0.419444 0.502778 0.586111 0.669444 0.752778 0.836111 0.919444 

2 0.005556 0.088889 0.172222 0.255556 0.338889 0.422222 0.505556 0.588889 0.672222 0.755556 0.838889 0.922222 

3 0.008333 0.091667 0.175000 0.258333 0.341667 0.425000 0.508333 0.591667 0.675000 0.758333 0.841667 0.925000 

4 0.011111 0.094444 0.177778 0.261111 0.344444 0.427778 0.511111 0.594444 0.677778 0.761111 0.844444 0.927778 

5 0.013889 0.097222 0.180556 0.263889 0.347222 0.430556 0.513889 0.597222 0.680556 0.763889 0.847222 0.930556 

6 0.016667 0.100000 0.183333 0.266667 0.350000 0.433333 0.516667 0.600000 0.683333 0.766667 0.850000 0.933333 

7 0.019444 0.102778 0.186111 0.269444 0.352778 0.436111 0.519444 0.602778 0.686111 0.769444 0.852778 0.936111 

8 0.022222 0.105556 0.188889 0.272222 0.355556 0.438889 0.522222 0.605556 0.688889 0.772222 0.855556 0.938889 

9 0.025000 0.108333 0.191667 0.275000 0.358333 0.441667 0.525000 0.608333 0.691667 0.775000 0.858333 0.941667 

10 0.027778 0.111111 0.194444 0.277778 0.361111 0.444444 0.527778 0.611111 0.694444 0.777778 0.861111 0.944444 

11 0.030556 0.113889 0.197222 0.280556 0.363889 0.447222 0.530556 0.613889 0.697222 0.780556 0.863889 0.947222 

12 0.033333 0.116667 0.200000 0.283333 0.366667 0.450000 0.533333 0.616667 0.700000 0.783333 0.866667 0.950000 

13 0.036111 0.119444 0.202778 0.286111 0.369444 0.452778 0.536111 0.619444 0.702778 0.786111 0.869444 0.952778 

14 0.038889 0.122222 0.205556 0.288889 0.372222 0.455556 0.538889 0.622222 0.705556 0.788889 0.872222 0.955556 

15 0.041667 0.125000 0.208333 0.291667 0.375000 0.458333 0.541667 0.625000 0.708333 0.791667 0.875000 0.958333 

16 0.044444 0.127778 0.211111 0.294444 0.377778 0.461111 0.544444 0.627778 0.711111 0.794444 0.877778 0.961111 

17 0.047222 0.130556 0.213889 0.297222 0.380556 0.463889 0.547222 0.630556 0.713889 0.797222 0.880556 0.963889 

18 0.050000 0.133333 0.216667 0.300000 0.383333 0.466667 0.550000 0.633333 0.716667 0.800000 0.883333 0.966667 

19 0.052778 0.136111 0.219444 0.302778 0.386111 0.469444 0.552778 0.636111 0.719444 0.802778 0.886111 0.969444 

20 0.055556 0.138889 0.222222 0.305556 0.388889 0.472222 0.555556 0.638889 0.722222 0.805556 0.888889 0.972222 

21 0.058333 0.141667 0.225000 0.308333 0.391667 0.475000 0.558333 0.641667 0.725000 0.808333 0.891667 0.975000 

22 0.061111 0.144444 0.227778 0.311111 0.394444 0.477778 0.561111 0.644444 0.727778 0.811111 0.894444 0.977778 

23 0.063889 0.147222 0.230556 0.313889 0.397222 0.480556 0.563889 0.647222 0.730556 0.813889 0.897222 0.980556 

24 0.066667 0.150000 0.233333 0.316667 0.400000 0.483333 0.566667 0.650000 0.733333 0.816667 0.900000 0.983333 

25 0.069444 0.152778 0.236111 0.319444 0.402778 0.486111 0.569444 0.652778 0.736111 0.819444 0.902778 0.986111 

26 0.072222 0.155556 0.238889 0.322222 0.405556 0.488889 0.572222 0.655556 0.738889 0.822222 0.905556 0.988889 

27 0.075000 0.158333 0.241667 0.325000 0.408333 0.491667 0.575000 0.658333 0.741667 0.825000 0.908333 0.991667 

28 0.077778 0.161111 0.244444 0.327778 0.411111 0.494444 0.577778 0.661111 0.744444 0.827778 0.911111 0.994444 

29 0.080556 0.163889 0.247222 0.330556 0.413889 0.497222 0.580556 0.663889 0.747222 0.830556 0.913889 0.997222 

XXXXX, 1997
 
 CSRS Computation of Annuity Under the General Formula FERS 51 

Chapter 50 

Section 50C1.1-1 Charts 

Chart 2. -- Sick Leave Chart 2087 Hours 

Chart for Converting Hours of Unused Sick Leave to Months and Days (See section 50A2.1-3G). 

DAYS 1 Day 1 Month 2 Months 3 Months 4 Months 5 Months 6 Months 7 Months 8 Months 9 Months 10 Months 11 Months 

0 0 174 348 522 696 870 1044 1217 1391 1565 1739 1913 

1 6 180 354 528 701 875 1049 1223 1397 1571 1745 1919 

2 12 186 359 533 707 881 1055 1229 1403 1577 1751 1925 

3 17 191 365 539 713 887 1061 1235 1409 1583 1757 1930 

4 23 197 371 545 719 893 1067 1241 1415 1588 1762 1936 

5 29 203 377 551 725 899 1072 1246 1420 1594 1768 1942 

6 35 209 383 557 730 904 1078 1252 1426 1600 1774 1948 

7 41 214 388 562 736 910 1084 1258 1432 1606 1780 1954 

8 46 220 394 568 742 916 1090 1264 1438 1612 1786 1959 

9 52 226 400 574 748 922 1096 1270 1444 1617 1791 1965 

10 58 232 406 580 754 928 1101 1275 1449 1623 1797 1971 

11 64 238 412 586 759 933 1107 1281 1455 1629 1803 1977 

12 70 243 417 591 765 939 1113 1287 1461 1635 1809 1983 

13 75 249 423 597 771 945 1119 1293 1467 1641 1815 1988 

14 81 255 429 603 777 951 1125 1299 1472 1646 1820 1994 

15 87 261 435 609 783 957 1130 1304 1478 1652 1826 2000 

16 93 267 441 615 788 962 1136 1310 1484 1658 1832 2006 

17 99 272 446 620 794 968 1142 1316 1490 1664 1838 2012 

18 104 278 452 626 800 974 1148 1322 1496 1670 1844 2017 

19 110 284 458 632 806 980 1154 1328 1501 1675 1849 2023 

20 116 290 464 638 812 986 1159 1333 1507 1681 1855 2029 

21 122 296 470 643 817 991 1165 1339 1513 1687 1861 2035 

22 128 301 475 649 823 997 1171 1345 1519 1693 1867 2041 

23 133 307 481 655 829 1003 1177 1351 1525 1699 1873 2046 

24 139 313 487 661 835 1009 1183 1357 1530 1704 1878 2052 

25 146 319 493 667 841 1015 1188 1362 1536 1710 1884 2058 

26 151 325 499 672 846 1020 1194 1368 1542 1716 1890 2064 

27 157 330 504 678 852 1026 1200 1374 1548 1722 1896 2070 

28 162 336 510 684 858 1032 1206 1380 1554 1728 1901 2075 

29 168 342 516 690 864 1038 1212 1386 1559 1733 1907 2081 

CSRS and FERS Handbook XXXX, 1997 
52 CSRS Computation of Annuity FERS 

Under the General Formula
 

Chapter 50
 

Section 50C1.1-1 Charts 

Chart 3. -- 260 Day Work Year Chart 

(Days worked (when-actually employed) shown in columns b through m are expressed in terms of credit time by the corresponding months in the heading and the days in column a) 

a b c d e f g h i j k l m 

Days 

Under 1 month 1 month 2 months 3 months 4 months 5 months 6 months 7 months 8 months 9 months 10 months 11 months 

0 43 65 108 130 173 195 238 

1 22 44 87 109 152 174 217 239 

2 1 23 66 88 131 153 196 218 

3 2 24 45 67 89 110 132 154 175 197 219 240 

4 3 46 68 111 133 176 198 241 

5 25 47 90 112 155 177 220 242 

6 4 26 69 91 134 156 199 221 

7 5 48 70 113 135 178 200 243 

8 27 49 92 114 157 179 222 244 

9 6 28 50 71 93 115 136 158 180 201 223 245 

10 7 29 72 94 137 159 202 224 

11 8 51 73 116 138 181 203 246 

12 30 52 95 117 160 182 225 247 

13 9 31 74 96 139 161 204 226 

14 10 32 53 75 118 140 183 205 248 

15 11 54 76 97 119 141 162 184 206 227 249 

16 33 55 98 120 163 185 228 250 

17 12 34 77 99 142 164 207 229 

18 13 56 78 121 143 186 208 251 

19 35 57 100 122 165 187 230 252 

20 14 36 79 101 144 166 209 231 

21 15 37 58 80 102 123 145 167 188 210 232 253 

22 16 59 81 124 146 189 211 254 

23 38 60 103 125 168 190 233 255 

24 17 39 61 82 104 147 169 212 234 

25 18 83 126 148 191 213 256 

26 40 62 105 127 170 192 235 257 

27 19 41 63 84 106 128 149 171 193 214 236 258 

28 20 42 85 107 150 172 215 237 

April, 1998 CSRS and FERS Handbook 
29 21 64 86 129 151 194 216 259 
54

54 

 CSRS Computation of Annuity FERS 

Under the General Formula
 

Chapter 50
 

CSRS Computation of Annuity Under the General Formula Chapter 50 

Section 50C1.1-1 Charts Chart 4. -- CSRS General Formula Computation Chart 

For Computing Basic Annuity Where High-3 Average Pay is $5,000 or More
 

To obtain the basic annuity, multiply the high-3 average pay by factor indicated under applicable years and months of service.
 

Years 

of Service 

0 Month 1 Month 2 Months 3 Months 4 Months 5 Months 6 Months 7 Months 8 Months 9 Months 10 Months 11 Months 

5_ _ _ _ _ 0.075000 0.076458 0.077917 0.079375 0.080833 0.082292 0.083750 0.085208 0.086667 0.088125 0.089583 0.091042 

6_ _ _ _ _ .092500 .093958 .095417 .096875 .098333 .099792 .101250 .102708 .104167 .105625 .107083 .108542 

7_ _ _ _ _ .110000 .111458 .112917 .114375 .115833 .117292 .118750 .120208 .121667 .123125 .124583 .126042 

8_ _ _ _ _ .127500 .128958 .130417 .131875 .133333 .134792 .136250 .137708 .139167 .140625 .142083 .143542 

9_ _ _ _ _ .145000 .146458 .147917 .149375 .150833 .152292 .153750 .155208 .156667 .158125 .159583 .161042 

10 _ _ _ _ .162500 .164167 .165833 .167500 .169167 .170833 .172500 .174167 .175833 .177500 .179167 .180833 

11 _ _ _ _ .182500 .184167 .185833 .187500 .189167 .190833 .192500 .194167 .195833 .197500 .199167 .200833 

12 _ _ _ _ .202500 .204167 .205833 .207500 .209167 .210833 .212500 .214167 .215833 .217500 .219167 .220833 

13 _ _ _ _ .222500 .224167 .225833 .227500 .229167 .230833 .232500 .234167 .235833 .237500 .239167 .240833 

14 _ _ _ _ .242500 .244167 .245833 .247500 .249167 .250833 .252500 .254167 .255833 .257500 .259167 .260833 

15 _ _ _ _ .262500 .264167 .265833 .267500 .269167 .270833 .272500 .274167 .275833 .277500 .279167 .280833 

16 _ _ _ _ .282500 .284167 .285833 .287500 .289167 .290833 .292500 .294167 .295833 .297500 .299167 .300833 

17 _ _ _ _ .302500 .304167 .305833 .307500 .309167 .310833 .312500 .314167 .315833 .317500 .319167 .320833 

18 _ _ _ _ .322500 .324167 .325833 .327500 .329167 .330833 .332500 .334167 .335833 .337500 .339167 .340833 

19 _ _ _ _ .342500 .344167 .345833 .347500 .349167 .350833 .352500 .354167 .355833 .357500 .359167 .360833 

20 _ _ _ _ .362500 .364167 .365833 .367500 .369167 .370833 .372500 .374167 .375833 .377500 .379167 .380833 

21 _ _ _ _ .382500 .384167 .385833 .387500 .389167 .390833 .392500 .394167 .395833 .397500 .399167 .400833 

22 _ _ _ _ .402500 .404167 .405833 .407500 .409167 .410833 .412500 .414167 .415833 .417500 .419167 .420833 

23 _ _ _ _ .422500 .424167 .425833 .427500 .429167 .430833 .432500 .434167 .435833 .437500 .439167 .440833 

24 _ _ _ _ .442500 .444167 .445833 .447500 .449167 .450833 .452500 .454167 .455833 .457500 .459167 .460833 

25 _ _ _ _ .462500 .464167 .465833 .467500 .469167 .470833 .472500 .474167 .475833 .477500 .479167 .480833 

26 _ _ _ _ .482500 .484167 .485833 .487500 .489167 .490833 .492500 .494167 .495833 .497500 .499167 .500833 

27 _ _ _ _ .502500 .504167 .505833 .507500 .509167 .510833 .512500 .514167 .515833 .517500 .519167 .520833 

28 _ _ _ _ .522500 .524167 .525833 .527500 .529167 .530833 .532500 .534167 .535833 .537500 .539167 .540833 

29 _ _ _ _ .542500 .544167 .545833 .547500 .549167 .550833 .552500 .554167 .555833 .557500 .559167 .560833 

30 _ _ _ _ .562500 .564167 .565833 .567500 .569167 .570833 .572500 .574167 .575833 .577500 .579167 .580833 

31 _ _ _ _ .582500 .584167 .585833 .587500 .589167 .590833 .592500 .594167 .595833 .597500 .599167 .600833 

32 _ _ _ _ .602500 .604167 .605833 .607500 .609167 .610833 .612500 .614167 .615833 .617500 .619167 .620833 

33 _ _ _ _ .622500 .624167 .625833 .627500 .629167 .630833 .632500 .634167 .635833 .637500 .639167 .640833 

34 _ _ _ _ .642500 .644167 .645833 .647500 .649167 .650833 .652500 .654167 .655833 .657500 .659167 .660833 

April, 1998 CSRS and FERS Handbook
 

 CSRS Computation of Annuity FERS 55 

Under the General Formula 

Chapter 50 

35 _ _ _ _ .662500 .664167 .665833 .667500 .669167 .670833 .672500 .674167 .675833 .677500 .679167 .680833 

36 _ _ _ _ .682500 .684167 .685833 .687500 .689167 .690833 .692500 .694167 .695833 .697500 .699167 .700833 

37 _ _ _ _ .702500 .704167 .705833 .707500 .709167 .710833 .712500 .714167 .715833 .717500 .719167 .720833 

38 _ _ _ _ .722500 .724167 .725833 .727500 .729167 .730833 .732500 .734167 .735833 .737500 .739167 .740833 

39 _ _ _ _ .742500 .744167 .745833 .747500 .749167 .750833 .752500 .754167 .755833 .757500 .759167 .760833 

40 _ _ _ _ .762500 .764167 .765833 .767500 .769167 .770833 .772500 .774167 .775833 .777500 .779167 .780833 

41 _ _ _ _ .782500 .784167 .785833 .787500 .789167 .790833 .792500 .794167 .795833 .797500 .799167 1

 80% 1 Annuity in excess of 80 percent that is produced by credit for unused sick leave is payable. 

Update 14 

CSRS and FERS Handbook August 15, 1995 

CSRS and FERS Handbook April, 1998 
56 CSRS 

Section 50C1.1-1 Charts 

Computation of Annuity Under the General Formula 

Chapter 50 

Chart 5. -- CSRS 2% Age Reduction Chart 

Factors for Determining Reduction 

in 

Basic Annuity 

(25-Year Discontinued-Service Retirement; 

20-Year Discontinued-Service at Age 50; and 

Early Optional Retirement) 

Age at 

separation 

and at least 

one day over 

0 Month 1 Month 2 Months 3 Months 4 Months 5 Months 6 Months 7 Months 8 Months 9 Months 10 Months 11 Months 

40_ _ _ _ _ 0.701667 0.703333 0.705000 0.706667 0.708333 0.710000 0.711667 0.713333 0.715000 0.716667 0.718333 0.720000 

41_ _ _ _ _ .721667 .723333 .725000 .726667 .728333 .730000 .731667 .733333 .735000 .736667 .738333 .740000 

42_ _ _ _ _ .741667 .743333 .745000 .746667 .748333 .750000 .751667 .753333 .755000 .756667 .758333 .760000 

43_ _ _ _ _ .761667 .763333 .765000 .766667 .768333 .770000 .771667 .773333 .775000 .776667 .778333 .780000 

44_ _ _ _ _ .781667 .783333 .785000 .786667 .788333 .790000 .791667 .793333 .795000 .796667 .798333 .800000 

45_ _ _ _ _ .801667 .803333 .805000 .806667 .808333 .810000 .811667 .813333 .815000 .816667 .818333 .820000 

46_ _ _ _ _ .821667 .823333 .825000 .826667 .828333 .830000 .831667 .833333 .835000 .836667 .838333 .840000 

47_ _ _ _ _ .841667 .843333 .845000 .846667 .848333 .850000 .851667 .853333 .855000 .856667 .858333 .860000 

48_ _ _ _ _ .861667 .863333 .865000 .866667 .868333 .870000 .871667 .873333 .875000 .876667 .878333 .880000 

49_ _ _ _ _ .881667 .883333 .885000 .886667 .888333 .890000 .891667 .893333 .895000 .896667 .898333 .900000 

50_ _ _ _ _ .901667 .903333 .905000 .906667 .908333 .910000 .911667 .913333 .915000 .916667 .918333 .920000 

51_ _ _ _ _ .921667 .923333 .925000 .926667 .928333 .930000 .931667 .933333 .935000 .936667 .938333 .940000 

52_ _ _ _ _ .941667 .943333 .945000 .946667 .948333 .950000 .951667 .953333 .955000 .956667 .958333 .960000 

53_ _ _ _ _ .961667 .963333 .965000 .966667 .968333 .970000 .971667 .973333 .975000 .976667 .978333 .980000 

54_ _ _ _ _ .981667 .983333 .985000 .986667 .988333 .990000 .991667 .993333 .995000 .996667 .998333 1.000000

 (Multiply unreduced basic annuity by applicable factor shown above to calculate reduced retirement benefits.

 NOTE: There may be further reductions.) 

Update 14 

August 15, 1995 CSRS and FERS Handbook 
Computation of Annuity Under the General Formula FERS 57 

Chapter 50 

Section 50C1.1-1 Charts 

Chart 6. -- For Computing Basic Annuity -- FERS 1 Percent Accrual Factor 

To obtain the basic annuity, multiply the "High-3" average salary by the factor indicated 

under applicable years and months of service. 

Years of 

Service 0 Month 1 Month 2 Months 3 Months 4 Months 5 Months 6 Months 7 Months 8 Months 9 Months 10 Months 11 Months 

1 0.010000 0.010833 0.011667 0.012500 0.013333 0.014167 0.015000 0.015833 0.016667 0.017500 0.018333 0.019167 

2 0.020000 0.020833 0.021667 0.022500 0.023333 0.024167 0.025000 0.025833 0.026667 0.027500 0.028333 0.029167 

3 0.030000 0.030833 0.031667 0.032500 0.033333 0.034167 0.035000 0.035833 0.036667 0.037500 0.038333 0.039167 

4 0.040000 0.040833 0.041667 0.042500 0.043333 0.044167 0.045000 0.045833 0.046667 0.047500 0.048333 0.049167 

5 0.050000 0.050833 0.051667 0.052500 0.053333 0.054167 0.055000 0.055833 0.056667 0.057500 0.058333 0.059167 

6 0.060000 0.060833 0.061667 0.062500 0.063333 0.064167 0.065000 0.065833 0.066667 0.067500 0.068333 0.069167 

7 0.070000 0.070833 0.071667 0.072500 0.073333 0.074167 0.075000 0.075833 0.076667 0.077500 0.078333 0.079167 

8 0.080000 0.080833 0.081667 0.082500 0.083333 0.084167 0.085000 0.085833 0.086667 0.087500 0.088333 0.089167 

9 0.090000 0.090833 0.091667 0.092500 0.093333 0.094167 0.095000 0.095833 0.096667 0.097500 0.098333 0.099167 

10 0.100000 0.100833 0.101667 0.102500 0.103333 0.104167 0.105000 0.105833 0.106667 0.107500 0.108333 0.109167 

11 0.110000 0.110833 0.111667 0.112500 0.113333 0.114167 0.115000 0.115833 0.116667 0.117500 0.118333 0.119167 

12 0.120000 0.120833 0.121667 0.122500 0.123333 0.124167 0.125000 0.125833 0.126667 0.127500 0.128333 0.129167 

13 0.130000 0.130833 0.131667 0.132500 0.133333 0.134167 0.135000 0.135833 0.136667 0.137500 0.138333 0.139167 

14 0.140000 0.140833 0.141667 0.142500 0.143333 0.144167 0.145000 0.145833 0.146667 0.147500 0.148333 0.149167 

15 0.150000 0.150833 0.151667 0.152500 0.153333 0.154167 0.155000 0.155833 0.156667 0.157500 0.158333 0.159167 

16 0.160000 0.160833 0.161667 0.162500 0.163333 0.164167 0.165000 0.165833 0.166667 0.167500 0.168333 0.169167 

17 0.170000 0.170833 0.171667 0.172500 0.173333 0.174167 0.175000 0.175833 0.176667 0.177500 0.178333 0.179167 

18 0.180000 0.180833 0.181667 0.182500 0.183333 0.184167 0.185000 0.185833 0.186667 0.187500 0.188333 0.189167 

19 0.190000 0.190833 0.191667 0.192500 0.193333 0.194167 0.195000 0.195833 0.196667 0.197500 0.198333 0.199167 

20 0.200000 0.200833 0.201667 0.202500 0.203333 0.204167 0.205000 0.205833 0.206667 0.207500 0.208333 0.209167 

21 0.210000 0.210833 0.211667 0.212500 0.213333 0.214167 0.215000 0.215833 0.216667 0.217500 0.218333 0.219167 

22 0.220000 0.220833 0.221667 0.222500 0.223333 0.224167 0.225000 0.225833 0.226667 0.227500 0.228333 0.229167 

23 0.230000 0.230833 0.231667 0.232500 0.233333 0.234167 0.235000 0.235833 0.236667 0.237500 0.238333 0.239167 

24 0.240000 0.240833 0.241667 0.242500 0.243333 0.244167 0.245000 0.245833 0.246667 0.247500 0.248333 0.249167 

25 0.250000 0.250833 0.251667 0.252500 0.253333 0.254167 0.255000 0.255833 0.256667 0.257500 0.258333 0.259167 

26 0.260000 0.260833 0.261667 0.262500 0.263333 0.264167 0.265000 0.265833 0.266667 0.267500 0.268333 0.269167 

27 0.270000 0.270833 0.271667 0.272500 0.273333 0.274167 0.275000 0.275833 0.276667 0.277500 0.278333 0.279167 

28 0.280000 0.280833 0.281667 0.282500 0.283333 0.284167 0.285000 0.285833 0.286667 0.287500 0.288333 0.289167 

29 0.290000 0.290833 0.291667 0.292500 0.293333 0.294167 0.295000 0.295833 0.296667 0.297500 0.298333 0.299167 

30 0.300000 0.300833 0.301667 0.302500 0.303333 0.304167 0.305000 0.305833 0.306667 0.307500 0.308333 0.309167 

31 0.310000 0.310833 0.311667 0.312500 0.313333 0.314167 0.315000 0.315833 0.316667 0.317500 0.318333 0.319167 

32 0.320000 0.320833 0.321667 0.322500 0.323333 0.324167 0.325000 0.325833 0.326667 0.327500 0.328333 0.329167 

33 0.330000 0.330833 0.331667 0.332500 0.333333 0.334167 0.335000 0.335833 0.336667 0.337500 0.338333 0.339167 

34 0.340000 0.340833 0.341667 0.342500 0.343333 0.344167 0.345000 0.345833 0.346667 0.347500 0.348333 0.349167 

35 0.350000 0.350833 0.351667 0.352500 0.353333 0.354167 0.355000 0.355833 0.356667 0.357000 0.358333 0.359167 

36 0.360000 0.360833 0.361667 0.362500 0.363333 0.364167 0.365000 0.365833 0.366667 0.367500 0.368333 0.369167 

37 0.370000 0.370833 0.371667 0.372500 0.373333 0.374167 0.375000 0.375833 0.376667 0.377500 0.378333 0.379167 

38 0.380000 0.380833 0.381667 0.382500 0.383333 0.384167 0.385000 0.385833 0.386667 0.387500 0.388333 0.389167 

39 0.390000 0.390833 0.391667 0.392500 0.393333 0.394167 0.395000 0.395833 0.396667 0.397500 0.398333 0.399167 

40 0.400000 0.400833 0.401667 0.402500 0.403333 0.404167 0.405000 0.405833 0.406667 0.407500 0.408333 0.409167 

Update 14 CSRS and FERS Handbook 
58 Computation of Annuity Under the General Formula FERS 

Chapter 50 

Section 50C1.1-1 Charts 

Chart 7. -- For Computing Basic Annuity -- FERS 1.1 Percent Accrual Factor 

To obtain the basic annuity, multiply the "High-3" average salary by the factor indicated under applicable years and months of service. 

Years of 

Service 0 Month 1 Month 2 Months 3 Months 4 Months 5 Months 6 Months 7 Months 8 Months 9 Months 10 Months 11 Months 

0.000917 0.001833 0.002750 0.003667 0.004583 0.005500 0.006417 0.007333 0.008250 0.009167 0.010083 

1 0.011000 0.011917 0.012833 0.013750 0.014667 0.015583 0.016500 0.017417 0.018333 0.019250 0.020167 0.021083 

2 0.022000 0.022917 0.023833 0.024750 0.025667 0.026583 0.027500 0.028417 0.029333 0.030250 0.031167 0.032083 

3 0.033000 0.033917 0.034833 0.035750 0.036667 0.037583 0.038500 0.039417 0.040333 0.041250 0.042167 0.043083 

4 0.044000 0.044917 0.045833 0.046750 0.047667 0.048583 0.049500 0.050417 0.051333 0.052250 0.053167 0.054083 

5 0.055000 0.055917 0.056833 0.057750 0.058667 0.059583 0.060500 0.061417 0.062333 0.063250 0.064167 0.065083 

6 0.066000 0.066917 0.067833 0.068750 0.069667 0.070583 0.071500 0.072417 0.073333 0.074250 0.075167 0.076083 

7 0.077000 0.077917 0.078833 0.079750 0.080667 0.081583 0.082500 0.083417 0.084333 0.085250 0.086167 0.087083 

8 0.088000 0.088917 0.089833 0.090750 0.091667 0.092583 0.093500 0.094417 0.095333 0.096250 0.097167 0.098083 

9 0.099000 0.099917 0.100833 0.101750 0.102667 0.103583 0.104500 0.105417 0.106333 0.107250 0.108167 0.109083 

10 0.110000 0.110917 0.111833 0.112750 0.113667 0.114583 0.115500 0.116417 0.117333 0.118250 0.119167 0.120083 

11 0.121000 0.121917 0.122833 0.123750 0.124667 0.125583 0.126500 0.127417 0.128333 0.129250 0.130167 0.131083 

12 0.132000 0.132917 0.133833 0.134750 0.135667 0.136583 0.137500 0.138417 0.139333 0.140250 0.141167 0.142083 

13 0.143000 0.143917 0.144833 0.145750 0.146667 0.147583 0.148500 0.149417 0.150333 0.151250 0.152167 0.153083 

14 0.154000 0.154917 0.155833 0.156750 0.157667 0.158583 0.159500 0.160417 0.161333 0.162250 0.163167 0.164083 

15 0.165000 0.165917 0.166833 0.167750 0.168667 0.169583 0.170500 0.171417 0.172333 0.173250 0.174167 0.175083 

16 0.176000 0.176917 0.177833 0.178750 0.179667 0.180583 0.181500 0.182417 0.183333 0.184250 0.185167 0.186083 

17 0.187000 0.187917 0.188833 0.189750 0.190667 0.191583 0.192500 0.193417 0.194333 0.195250 0.196167 0.197083 

18 0.198000 0.198917 0.199833 0.200750 0.201667 0.202583 0.203500 0.204417 0.205333 0.206250 0.207167 0.208083 

19 0.209000 0.209917 0.210833 0.211750 0.212667 0.213583 0.214500 0.215417 0.216333 0.217250 0.218167 0.219083 

20 0.220000 0.220917 0.221833 0.222750 0.223667 0.224583 0.225500 0.226417 0.227333 0.228250 0.229167 0.230083 

21 0.231000 0.231917 0.232833 0.233750 0.234667 0.235583 0.236500 0.237417 0.238333 0.239250 0.240167 0.241083 

22 0.242000 0.242917 0.243833 0.244750 0.245667 0.246583 0.247500 0.248417 0.249333 0.250250 0.251167 0.252083 

23 0.253000 0.253917 0.254833 0.255750 0.256667 0.257583 0.258500 0.259417 0.260333 0.261250 0.262167 0.263083 

24 0.264000 0.264917 0.265833 0.266750 0.267667 0.268583 0.269500 0.270417 0.271333 0.272250 0.273167 0.274083 

25 0.275000 0.275917 0.276833 0.277750 0.278667 0.279583 0.280500 0.281417 0.282333 0.283250 0.284167 0.285083 

26 0.286000 0.286917 0.287833 0.288750 0.289667 0.290583 0.291500 0.292417 0.293333 0.294250 0.295167 0.296083 

27 0.297000 0.297917 0.298833 0.299750 0.300667 0.301583 0.302500 0.303417 0.304333 0.305250 0.306167 0.307083 

28 0.308000 0.308917 0.309833 0.310750 0.311667 0.312583 0.313500 0.314417 0.315333 0.316250 0.317167 0.318083 

29 0.319000 0.319917 0.320833 0.321750 0.322667 0.323583 0.324500 0.325417 0.326333 0.327250 0.328167 0.329083 

30 0.330000 0.330917 0.331833 0.332750 0.333667 0.334583 0.335500 0.336417 0.337333 0.388250 0.339167 0.340083 

31 0.341000 0.341917 0.342833 0.343750 0.344667 0.345583 0.346500 0.347417 0.348333 0.349250 0.350167 0.351083 

32 0.352000 0.352917 0.353833 0.354750 0.355667 0.356583 0.357500 0.358417 0.359333 0.360250 0.361167 0.362083 

33 0.363000 0.363917 0.364833 0.365750 0.366667 0.367583 0.368500 0.369417 0.370333 0.371250 0.372167 0.373083 

34 0.374000 0.374917 0.375833 0.376750 0.377667 0.378583 0.379500 0.380417 0.381333 0.382250 0.383167 0.384083 

35 0.385000 0.385917 0.386833 0.387750 0.388667 0.389583 0.390500 0.391417 0.392333 0.393250 0.394167 0.395083 

36 0.396000 0.396917 0.397833 0.398750 0.399667 0.400583 0.401500 0.402417 0.403333 0.404250 0.405167 0.406083 

37 0.407000 0.407917 0.408833 0.409750 0.410667 0.411583 0.412500 0.413417 0.414333 0.415250 0.416167 0.417083 

38 0.418000 0.418917 0.419833 0.420750 0.421667 0.422583 0.423500 0.424417 0.425333 0.426250 0.427167 0.428083 

39 0.429000 0.429917 0.430833 0.431750 0.432667 0.433583 0.434500 0.435417 0.436333 0.437250 0.438167 0.439083 

40 0.440000 0.440917 0.441833 0.442750 0.443667 0.444583 0.445500 0.446417 0.447333 0.448250 0.449167 0.450083 

Update 14

August 15, 1995 CSRS and FERS Handbook 
Computation of Annuity Under the General Formula FERS 59 

Chapter 50 

Section 50C1.1-1 Charts 

Chart 8. -- FERS 5% Age Reduction Chart 

Factors for Determining Reductions
 

in
 

Basic Annuity for Early Deferred or MRA + 10 Retirement
 

Age at 

annuity 

commencing 

date and at 

least 1 day 

over 

0 Month 1 Month 2 Months 3 Months 4 Months 5 Months 6 Months 7 Months 8 Months 9 Months 10 Months 11 Months 

55 _ _ _ _ 0.654167 0.658333 0.662500 0.666667 0.670833 0.675000 0.679167 0.683333 0.687500 0.691667 0.695833 0.700000 

56 _ _ _ _ 0.704167 0.708333 0.712500 0.716667 0.720833 0.725000 0.729167 0.733333 0.737500 0.741667 0.745833 0.750000 

57 _ _ _ _ 0.754167 0.758333 0.762500 0.766667 0.770833 0.775000 0.779167 0.783333 0.787500 0.791667 0.795833 0.800000 

58 _ _ _ _ 0.804167 0.808333 0.812500 0.816667 0.820833 0.825000 0.829167 0.833333 0.837500 0.841667 0.845833 0.850000 

59 _ _ _ _ 0.854167 0.858333 0.862500 0.866667 0.870833 0.875000 0.879167 0.883333 0.887500 0.891667 0.895833 0.900000 

60 _ _ _ _ 0.904167 0.908333 0.913500 0.916667 0.920833 0.925000 0.929167 0.933333 0.937500 0.941667 0.945833 0.950000 

61 _ _ _ _ 0.954167 0.958333 0.962500 0.966667 0.970833 0.975000 0.979167 0.983333 0.987500 0.991667 0.995833 1.000000 

Multiply unreduced Basic Annuity benefit by applicable factor shown above to calculate reduced retirement benefit. 

NOTE: The election of a survivor benefit will reduce benefits further. 

Update 14 

CSRS and FERS Handbook August 15, 1995 
Age at 

Retirement 

Reduction

Factor 

 Age at 

Retirement 

Reduction 

 Factor

40 294.4 66 156.0

 41 290.0 67 150.7

 42 285.5 68 145.4

 43 280.8 69 140.2

 44 276.2 70 134.7

 45 270.4 71 129.4

 46 264.7 72 124.0

 47 259.2 73 118.8

 48 253.5 74 113.6

 49 247.2 75 108.5

 50 240.4 76 103.5

 51 235.0 77 98.7

 52 229.8 78 93.9

 53 224.4 79 89.4

 54 218.6 80 84.9

 55 212.6 81 80.5

 56 207.5 82 76.3

 57 202.4 83 72.3

 58 197.0 84 68.4

 59 192.3 85 64.7

 60 188.3 86 61.2

 61 182.9 87 57.9

 62 177.0 88 54.7

 63 171.9 89 51.8

 64 166.5 90 48.9

 65 161.1 

60 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

Section 50C1.1-1 (Cont.) 

Charts 

CSRS 

PRESENT VALUE FACTORS 

(Effective 10-1-94 through 9-30-97)

April, 1998 CSRS and FERS Handbook 
 Age at 

Retirement 

Reduction

Factor 

Age at 

Retirement 

Reduction 

 Factor

40 271.2 66 156.8

 41 267.1 67 152.0

 42 263.3 68 147.1

 43 259.9 69 142.3

 44 256.5 70 137.1

 45 252.5 71 131.9

 46 248.4 72 126.7

 47 244.4 73 121.5

 48 240.2 74 116.2

 49 235.8 75 111.0

 50 230.9 76 105.9

 51 226.7 77 100.8

 52 222.6 78 95.8

 53 218.2 79 90.9

 54 213.5 80 86.2

 55 208.5 81 81.6

 56 204.0 82 77.1

 57 199.4 83 72.8

 58 194.7 84 68.7

 59 190.2 85 64.7

 60 186.1 86 61.0

 61 181.2 87 57.4

 62 176.0 88 54.1

 63 171.3 89 50.9

 64 166.4 90 47.9

 65 161.5 

 CSRS Computation of Annuity 61 

Under the General Formula 

Chapter 50 

Section 50C1.1-1 (Cont.) 

Charts 

CSRS 

PRESENT VALUE FACTORS 

(Effective 10-1-97)

CSRS and FERS Handbook April, 1998 
62 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

Section 50C1.1-2 CSRS Examples 

The examples in this section demonstrate the correct procedures for computing annuity estimates. Each 

example consists of an explanatory text that refers to a completed work sheet immediately following the 

text for that example. The circled numbers in the text correspond to circled numbers on the work sheet. 

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. 

Example 1: CSRS or FERS high-3 average pay, with full 3 years of service: 

Date Pay 

1-3-91 $23,890 

6-3-91 25,003 

4-6-92 27,653 

12-7-92 28,001 

8-5-93 29,400 

5-3-94 Optional Retirement 

April, 1998 CSRS and FERS Handbook 
63 

1 

 CSRS Computation of Annuity 

Under the General Formula
 

Chapter 50
 

± Find the beginning date of the high-3 period from the highest 3 consecutive years of pay (5-4-91). 

NOTE 1: Any 3 years of consecutive service (does not have to be continuous) in an employee's 

career may be used to determine the highest 3 years of pay.
 

NOTE 2: See section 50A2.1-3 for instructions about computing length of service.
 

NOTE 3: See Chapter 55 if there is part-time service during the high-3 period.
 

CSRS and FERS Handbook April, 1998 
64 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

Example 1 (Cont.):±2 Compute earnings.

a. Enter the beginning date of the high-3 period (5-4-91) in column A. 

b. Enter the rate of pay in effect on that date in column C ($23,890). 

NOTE: Use basic pay only. (See Chapter 30 for a complete explanation of 

basic pay.) 

c. Enter the last day at that pay rate (6-2-91), or the day before the next pay 

change in column B. 

d. Compute the total time (29 days) in column D by subtracting the date in 

column A from the date in column B. (See section 50A2.1-3.) 

e. In column E, enter the time factor (.080556) from the 360 Day Factor Chart 

(Chart 1) provided in section 50C1.1-1 for the total time (29 days). 

f. Multiply the annual basic pay by the time factor (C x E) to compute the pay 

earned in column F ($1,924.48) and round to the nearest cent. 

NOTE: If date of pay change is on 31st day of the month, enter date of pay 

change as 1st day of the next month. 

±3 Follow step 2 for subsequent pay rates and compute earnings in the same 

manner. 

±4 Check computation. 

a. Total time (column D) should equal 36 months (3 years). 

b. Time factor (column E) should equal 3.0. Check the time factor by using the 

360 Day Factor Chart (Chart 1) provided in section 50C1.1-1 for the total time 

(3 years 0 days). 

NOTE: > Since the time factors are rounded to the sixth decimal place, the 

total in column E may not always equal exactly 3.0. A total of 

2.999999 or 3.000001, < for example, would be appropriate. 

April, 1998 CSRS and FERS Handbook 
 CSRS Computation of Annuity 65 

Under the General Formula 

Chapter 50 

Example 1 ±5 Total all earnings in column F ($81,960.91). 

(Cont.): 

±6 Divide the total pay earned ($81,960.91) by 3 to compute the high-3 average 

pay ($27,320). 

NOTE: Round the average pay computed to the nearest dollar. 

CSRS and FERS Handbook April, 1998 
 

 

 

 

 

66 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

Example 1 (Cont.): 

HIGH-3 AVERAGE Pay COMPUTATION 

04 

±1 1994 - 05 - 03 DATE OF RETIREMENT Plus 1 Day* 

- 03 - 00 - 00 3 YEARS OF SERVICE 

= 1991 - 05 - 04 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 

±2 91 5 4 91 6 2 $23,890 29 .080556 1,924.48 

±3 91 6 3 92 4 5 $25,003 10 3 .841667 $21,044.20 

92 4 6 92 12 6 $27,653 8 1 .669444 $18,512.13 

92 12 7 93 8 4 $28,001 7 28 .661111 $18,511.77 

93 8 5 94 5 3 $29,400 8 29 .747222 $21,968.33 

±4 TOTALS 3 0 0 **3.0 $81,960.91 

±6 $ 81,960.91 ÷ 3 = $ 27,320 

Total Pay Earned 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. 

±5 

April, 1998 CSRS and FERS Handbook 
 CSRS	 Computation of Annuity 67 

Under the General Formula
 

Chapter 50
 

Example 2: CSRS optional retirement, with survivor annuity: 

Name: Alan Jay 

Date of Retirement: 10-30-88 

Date of Birth: 4-29-29 

Active Military Service: 12-30-55 to 3-29-59 Deposit Paid 

Civilian Service: 10-2-60 to 10-30-88 Covered Service 

Unused Sick Leave: 1243 hours 

High-3 Average Pay: $34,874 

Survivor Benefits: Based on Full Annuity 

±1 Compute age at separation to determine eligibility for retirement and whether a

reduction for age must be applied to the annuity: 

31 

88 - 10 - 30 (Date of Retirement) 

- 29 - 04 - 29	 (Date of Birth) 

59 - 06 - 02 (Age at Separation) 

±2
 Compute total service for computation purposes. Enter each period of service

by following the steps below.
 

a. Enter the first beginning date of creditable service (12-30-55) in column A. 

b. Enter the last day of the period of service (3-29-59) in column B. 

c. Determine whether the period of service is: 

i. Covered: Retirement deductions were withheld 

NOTE:	 Periods of LWOP in excess of 6 months in a calendar year are 

not creditable, including excess LWOP during refunded and 

nondeduction service. (See Chapter 20 for more information 

about creditable service.) 

CSRS and FERS Handbook	 April, 1998 
68 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

Example 2 

(Cont.): 

ii. Nondeduction: Retirement deductions were not withheld 

NOTE: Determine if nondeduction service occurred on or after October 

1, 1982, and whether or not a deposit for the service has been 

made. If the nondeduction service was performed on or after 

October 1, 1982, and deposit is not made, the service counts 

toward eligibility to retire and to determine the high-3 average 

pay, but is not included in the length of service computation. 

If nondeduction service was performed before October 1, 1982, 

and deposit is not made, the basic annual annuity is reduced by 

10 percent of deposit plus interest owed. (See Chapter 21, 

Service Credit Payments for Civilian Service, for additional 

information.) 

iii. Refunded: Retirement deductions were withheld and refunded 

NOTE:	 If a redeposit for the refunded service is not made, service can 

be used to determine the high-3 average pay, but is not 

included in the length of service computation. EXCEPTION: 

If the employee owes a redeposit for a refund of retirement 

contributions covering a period of service that ended before 

October 1, 1990, that service is included in the length of 

service computation, but the annuity is reduced. (See section 

50A3.1-3.) 

iv. Military: Military service that is creditable for retirement purposes 

NOTE: See Chapter 22 for more information. 

v. Part-time service: See Chapter 55 

d.	 Subtract column B from column A to determine the total service during that 

period: 

58 - 15 - 30 

59 - 03 - 29 

- 55 - 12 - 30 

03 - 03 - 00 (3 years 3 months) 

e. Follow steps a through d for subsequent periods of service. 

±3 Total the civilian and military periods of service in column D.

April, 1998	 CSRS and FERS Handbook 
 CSRS	 Computation of Annuity 69 

Under the General Formula
 

Chapter 50
 

Example 2: 

(Cont.): 

±4 Determine how much credit is allowed for unused sick leave by using the 2087

Sick Leave Chart (Chart 2) provided in section 50C1.1-1: 

1243 hours = 7 months 5 days 

±5 Compute the total creditable service by adding the unused sick leave (7 months

5 days) to the total civilian and military periods of service. 

±6 Compute the total service for computation purposes (31 years 11 months) by

using whole years and months and dropping any extra days. 

±7 Compute the unreduced CSRS annuity.

a.	 Enter the high-3 average pay ($34,874). 

b.	 Enter the years and months of total service for computation purposes (31 years 

11 months). 

c.	 Use the CSRS General Formula Computation Chart (Chart 4) provided in 

section 50C1.1-1 to obtain the retirement factor for 31 years 11 months service 

(.600833). 

d.	 Multiply the high-3 average pay ($34,874) by the retirement factor (.600833) 

to obtain the unreduced CSRS annuity ($20,953.45). 

±8 Compute the annuity amount payable.

NOTE:	 In this example, there are no reductions for retirement before age 55 or 

unpaid deposits for service prior to October 1, 1982. 

a.	 Enter the base selected by the retiree for the survivor annuity. (In this 

example, the retiree has selected the full annuity as the base, or $20,953.45). 

b.	 Multiply the first $3,600 of the base selected by 2.5 percent to obtain $90. 

c.	 Multiply the remainder over $3,600 ($17,353.45) by 10 percent to obtain 

$1,735.35. 

d.	 Total the reduction for survivor annuity ($1,825.35). 

CSRS and FERS Handbook	 April, 1998 
70 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

Example 2 

(Cont.):	 

e.	 Subtract the total reduction for survivor annuity ($1,825.35) from the 

unreduced CSRS annuity ($20,953.45) to obtain the annual annuity amount 

payable ($19,128.10). 

f.	 Divide the annual annuity amount payable ($19,128.10) by 12 and round to the 

next lower dollar to obtain the monthly annuity rate ($1,594). 

±9 Compute the survivor annuity.

a.	 Multiply the amount designated as the survivor base ($20,953.45) by 55 

percent to obtain the annual survivor rate ($11,524.40). 

b.	 Divide the annual survivor rate ($11,524.40) by 12 and round to the next 

lower dollar to obtain the monthly annuity rate ($960). 

April, 1998	 CSRS and FERS Handbook 
YR MO DY 

31 

NAME: Alan Jay DATE OF RETIREMENT: 

DATE OF BIRTH: 

88 

 29 

- 10 -

- 04 -

30

29 ±1 

AGE: 59 - 06 - 02 

 CSRS	 Computation of Annuity 71 

Under the General Formula
 

Chapter 50
 

Example 2 

(Cont.): COMPUTATION OF SERVICE CREDIT 

TYPE OF SERVICE SHOWN
 

Gx CSRS 

G FERS 

G 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 

±2 55-12-30 59-03-29 Military 3 3 0 

60-10-02 88-10-30 Covered 28 0 29 

±3 TOTAL CIVILIAN/MILITARY 31 3 29 

±4 UNUSED SICK LEAVE * 7 5 

±5 TOTAL CREDITABLE SERVICE 31 10 34 

±6 TOTAL SERVICE FOR COMPUTATION PURPOSES 31 11 

* 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 
 

 

72 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

Example 2: 

(Cont.) 

CSRS NONDISABILITY ANNUITY COMPUTATION 

EMPLOYEE ANNUITY COMPUTATION 

High-3 Average Pay ±7 $ 34,874.00 

Retirement Factor ( 31 ) yrs. ( 11 ) mos. (See section 50C1.1-1, Chart 4) x .600833 

Unreduced CSRS Annuity $ 20,953.45 

Reductions are made for: ±8 

1) Under age 55 (See section 50C1.1-1, Chart 5) x NA 

Reduced Annuity $ NA 

2) Non-deposit for service prior to 10-1-82 (subtract 10% of deposit 

due) 

- NA 

Reduced Annuity $ NA 

3) Survivor Annuity: 

Base selected by retiree $20,953.45 

Amount up to $3600 - 3,600.00 x .025 = $ 90.00 

Amount over $3600 = 17,353.45 x .10 = +1,735.35 

Total Reduction = $1,825.35 - 1,825.35 

Annual Annuity $ 19,128.10 

MONTHLY ANNUITY (Divide by 12, round down to next lower dollar) $ 1,594.00 

SURVIVOR ANNUITY COMPUTATION ±9 

Amount designated as survivor base $ 20,953.45 

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

Annual Survivor Annuity $ 11,524.40 

MONTHLY SURVIVOR ANNUITY (Divide by 12, round down to next 

lower dollar) 

$ 960.00 

April, 1998 CSRS and FERS Handbook 
 CSRS	 Computation of Annuity 73 

Under the General Formula
 

Chapter 50
 

Example 3: CSRS optional retirement, with redeposit service: 

Name: Beatrice Lowman 

>Date of Retirement: 5-30-98 

Date of Birth: 11-4-37 

Active Military Service: 6-2-57 to 8-4-60 

Civilian Service: 10-4-62 to 8-8-69 Refunded Service 

7-2-77 to 5-30-98< Covered Service 

Unused Sick Leave: 580 hours 

Redeposit Owed at Retirement: $6,215 

High-3 average pay: $38,422 

Survivor Benefits: None 

±1 Compute age at separation to determine eligibility for retirement and whether a

reduction for age must be applied to the annuity: 

97 - 17 - 31
 

98 - 05 - 30 (Date of Retirement)
 

- 37 - 11 - 04	 (Date of Birth) 

60 - 06 - 27 (Age at Separation) 

±2
 Compute total service for computation purposes. Enter each period of service

by following the steps below.
 

a.	 Enter the beginning date of the first period of creditable service (6-2-57) in 

column A. 

b.	 Enter the last day of that period of service (8-4-60) in column B. 

c.	 Determine whether the period of service is: 

i. Covered: Retirement deductions were withheld 

NOTE:	 Periods of LWOP in excess of 6 months in a calendar year are 

not creditable. (See Chapter 20 for more information about 

creditable service.) 

ii. Nondeduction: Retirement deductions were not withheld 

CSRS and FERS Handbook	 April, 1998 
74 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

Example 3: 

(Cont.) 

NOTE: Determine if nondeduction service occurred on or after October 

1, 1982, and whether or not a deposit for the service has been 

made. If the nondeduction service was performed on or after 

October 1, 1982, and deposit is not made, the service counts 

toward eligibility to retire and to determine the high-3 average 

pay, but is not included in the length of service computation. 

If nondeduction service was performed before October 1, 1982, 

and deposit is not made, the basic annual annuity is reduced by 

10 percent of deposit plus interest owed. (See Chapter 21 for 

additional information.) 

iii. Refunded: Retirement deductions were withheld and refunded 

NOTE: If a redeposit for the refunded service is not made, service can 

be used to determine the high-3 average pay, but is not 

included in the length of service computation. EXCEPTION: 

If the employee owes a redeposit for a refund of retirement 

contributions covering a period of service that ended before 

October 1, 1990, that service is included in the length of 

service computation, but the annuity is reduced. (See section 

50A3.1-3.) 

iv. Military: Military service that is creditable for retirement purposes 

NOTE: See Chapter 22 for more information. 

v. Part-time service: See Chapter 55 

d. Subtract column B from column A to determine the total service during that 

period: 

05 

60 - 08 - 04 

- 57 - 06 - 02 

03 - 02 - 03 (3 years 2 months 3 days) 

e. Follow steps a through d for subsequent periods of service. 

April, 1998 CSRS and FERS Handbook 
 CSRS	 Computation of Annuity 75 

Under the General Formula
 

Chapter 50
 

Example 3: 

(Cont.) 

NOTE: In this computation, assume the retiree has not made the redeposit for 

the refunded service, but since the refund period ended before October 

1, 1990, include credit for this service for computation purposes (see 

section 50A3.1-3J). 

±3 Total the civilian and military periods of service in column D.

±4 Determine how much credit is allowed for unused sick leave by using the 2087

Sick Leave Chart (Chart 2) provided in section 50C1.1-1: 

580 hours = 3 months 10 days 

±5
 Compute the total creditable service by adding the unused sick leave (3 months

10 days) to the total civilian and military periods of service.
 

±6 Compute the total service for computation purposes (31 years 2 months) by

using whole years and months and dropping any extra days. 

±7 Compute the unreduced CSRS annuity.

a.	 Enter the high-3 average pay ($38,422). 

b.	 Enter the years and months of total service for computation purposes (31 years 

2 months). 

c.	 Use the CSRS General Formula Computation Chart (Chart 4) provided in 

section 50C1.1-1 to obtain the retirement factor for 31 years 2 months service 

(.585833). 

d.	 Multiply the high-3 average pay ($38,422) by the retirement factor (.585833)
 

to obtain the unreduced CSRS annuity ($22,508.88).
 

±8 Divide the annual annuity rate ($22,508.88) by 12 and round to the next lower

dollar to obtain the monthly annuity amount ($1,875). 

±9
 Compute the reduced monthly annuity rate because of an unpaid redeposit for

service that ended before October 1, 1990.
 

a.	 Enter the monthly annuity otherwise payable ($1,875.00) 

CSRS and FERS Handbook	 April, 1998 
76 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

Example 3: 

(Cont.)	 

b.	 > Obtain the appropriate present value factor (PVF) for the annuitant's age 

(60) from the CSRS Present Value Factors Chart provided in section 50C1.1-1 

and divide the amount of the redeposit owed ($6,215.00) by the PVF (186.1). 

Round the result ($33.40) to the next higher dollar ($34) and enter that 

amount.< 

c.	 Subtract the monthly reduction ($34) from the monthly annuity otherwise 

payable ($1,875) to obtain the CSRS monthly annuity reduced for unpaid 

redeposit ($1,841). 

April, 1998	 CSRS and FERS Handbook 
YR MO DY 

31 

NAME: Beatrice Lowman DATE OF RETIREMENT: 98 - 05 - 30 

DATE OF BIRTH: 37 - 11 - 04 ±1 

AGE: 60 - 06 - 27 

 CSRS	 Computation of Annuity 77 

Under the General Formula
 

Chapter 50
 

Example 3: 

(Cont.) COMPUTATION OF SERVICE CREDIT 

TYPE OF SERVICE SHOWN
 

Gx CSRS 

G FERS 

G CSRS COMPONENT OF FERS 

TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-M0-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

±2 57-06-02 60-08-04 Military 3 2 3 

62-10-04 69-08-08 Refunded (Redeposit not Paid) 6 10 5 

77-07-02 98-05-30 Covered 20 10 29 

±3 TOTAL CIVILIAN/MILITARY 29 22 37 

±4 UNUSED SICK LEAVE * 3 10 

±5 TOTAL CREDITABLE SERVICE 29 25 47 

±6 TOTAL SERVICE FOR COMPUTATION PURPOSES 31 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. 

CSRS and FERS Handbook	 April, 1998 
 

 

 

 

78 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

Example 3: 

(Cont.) 

CSRS NONDISABILITY ANNUITY COMPUTATION 

EMPLOYEE ANNUITY COMPUTATION 

High-3 Average Pay ±7 $ 38,422.00 

Retirement Factor ( 31 ) yrs ( 2 ) mos (See section 50C1.1-1, Chart 4) x .585833 

Unreduced CSRS Annuity $ 22,508.88 

Reductions are made for: ±8 

1) Under age 55 (See section 50C1.1-1, Chart 5) x NA 

Reduced Annuity $ 22,508.88 

2) Non-deposit for service prior to 10-1-82 (subtract 10% of deposit 

due) 

- NA 

Reduced Annuity $ 22,508.88 

3) Survivor Annuity: 

Base selected by retiree $ 

Amount up to $3600 - x .025 = $ 

Amount over $3600 = x .10 = + 

Total Reduction = $ -

Annual Annuity $ 22,508.88 

MONTHLY ANNUITY (Divide by 12, round down to next lower dollar) $ 1,875.00 

SURVIVOR ANNUITY COMPUTATION
 

Amount designated as survivor base $ NA 

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

Annual Survivor Annuity $ 

MONTHLY SURVIVOR ANNUITY (Divide by 12, round down to next dollar) $ NA 

April, 1998 CSRS and FERS Handbook 
 

 CSRS Computation of Annuity 79 

Under the General Formula 

Chapter 50 

Example 3: 

(Cont.) 

COMPUTATION OF REDUCTION
 

FOR UNPAID REDEPOSIT
 

FOR SERVICE ENDING BEFORE OCTOBER 1, 1990 

CSRS EMPLOYEES 

Monthly Annuity Otherwise Payable ±9 $ 1,875.00 

Subtract Monthly Reduction: (Round to next higher dollar) 

Redeposit Owed $ 6,215 ÷ CSRS PVF* 186.1 = - 34.00 

CSRS MONTHLY ANNUITY REDUCED FOR UNPAID REDEPOSIT $ 1,841.00 

*Present Value Factor (see Chapter 53, Section 53C1.1-1). 

CSRS and FERS Handbook April, 1998 
80 CSRS	 Computation of Annuity 

Under the General Formula
 

Chapter 50
 

Example 4:	 CSRS early retirement, with reduction for retirement before age 55 and survivor 

annuity: 

Name: Hadley Patterson 

Date of Retirement: 6-1-89 

Date of Birth: 3-15-37 

Active Military Service: 12-30-56 to 11-29-59 Deposit Paid 

Civilian Service: 10-4-63 to 8-17-78 Covered Service 

11-8-79 to 6-1-89 Covered Service 

Unused Sick Leave: 268 hours 

High-3 Average Pay: $48,310 

Survivor Benefits: Based on $3,600 

±1 Compute age at separation to determine eligibility for retirement and whether a

reduction for age must be applied to the annuity: 

32 

05 - 02 

89 - 06 - 01 (Date of Retirement) 

- 37 - 03 - 15	 (Date of Birth) 

52 - 02 - 17 (Age at Separation) 

NOTE:	 A reduction applies to the annuity because the retiree is under age 55. 

(See step 8.) 

±2
 Compute total service for computation purposes. Enter each period of service

by following the steps below.
 

a. Enter the first beginning date of creditable service (12-30-56) in column A. 

b. Enter the last day of the period of service (11-29-59) in column B. 

c. Determine whether the period of service is: 

i. Covered: Retirement deductions were withheld 

NOTE:	 Periods of LWOP in excess of 6 months in a calendar year are 

not creditable. (See Chapter 20 for more information about 

creditable service.) 

April, 1998	 CSRS and FERS Handbook 
 CSRS Computation of Annuity 81 

Under the General Formula 

Chapter 50 

Example 4: 

(Cont.) 

ii. Nondeduction: Retirement deductions were not withheld 

NOTE: Determine if nondeduction service occurred on or after October 

1, 1982, and whether or not a deposit for the service has been 

made. If the nondeduction service was performed on or after 

October 1, 1982, and deposit is not made, the service counts 

toward eligibility to retire and to determine the high-3 average 

pay, but is not included in the length of service computation. 

If nondeduction service was performed before October 1, 1982, 

and deposit is not made, the basic annual annuity is reduced by 

10 percent of deposit plus interest owed. (See Chapter 21 for 

additional information.) 

iii. Refunded: Retirement deductions were withheld and refunded 

NOTE: If a redeposit for the refunded service is not made, service can 

be used to determine the high-3 average pay, but is not 

included in the length of service computation. EXCEPTION: 

If the employee owes a redeposit for a refund of retirement 

contributions covering a period of service that ended before 

December 1, 1990, that service is included in the length of 

service computation, but the annuity is reduced. (See section 

50A3.1-3.) 

iv. Military: Military service that is creditable for retirement purposes 

NOTE: See Chapter 22 for more information. 

v. Part-time service: See Chapter 55 

d. Subtract column B from column A to determine the total service during that 

period: 

58 - 23 - 30 

59 - 11 - 29 

- 56 - 12 - 30 

02 - 11 - 00 (2 years 11 months) 

e. Follow steps a through d for subsequent periods of service. 

CSRS and FERS Handbook April, 1998 
82 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

Example 4: 

(Cont.) 

±3 Total the civilian and military periods of service in column D.

NOTE:	 In this example, the post-1956 military deposit has been paid, therefore 

there will not be a recomputation of annuity at age 62. (See Chapter 23 

for more information about post-1956 military service credit payments.) 

±4 Determine how much credit is allowed for unused sick leave by using the 2087

Sick Leave Chart (Chart 2) provided in section 50C1.1-1: 

268 hours = 1 month 17 days 

±5
 Compute the total creditable service by adding the unused sick leave (1 month

17 days) to the total civilian and military periods of service.
 

±6
 Compute the total service for computation purposes (27 years 5 months) by

using whole years and months and dropping any extra days.
 

±7 Compute the unreduced CSRS annuity.

a.	 Enter the high-3 average pay ($48,310). 

b.	 Enter the years and months of total service for computation purposes (27 years 

5 months). 

c.	 Use the CSRS General Formula Computation Chart (Chart 4) provided in 

section 50C1.1-1 to obtain the retirement factor for 27 years 5 months service 

(.510833). 

d.	 Multiply the high-3 average pay ($48,310) by the retirement factor (.510833)
 

to obtain the unreduced CSRS annuity ($24,678.34).
 

±8 Compute the annuity amount payable.

a.	 Obtain the age reduction factor (.945000) for the age at retirement (52 years 2 

months) from the CSRS 2 Percent Age Reduction Chart (Chart 5) provided in 

section 50C1.1-1. 

b.	 Multiply the age reduction factor (.945000) by the unreduced CSRS annuity
 

($24,678.34) to obtain the reduced annuity ($23,321.03).
 

April, 1998	 CSRS and FERS Handbook 
 CSRS Computation of Annuity 83 

Under the General Formula 

Chapter 50 

Example 4: 

(Cont.) 

c. Enter the base selected by the retiree for the survivor annuity. (In this 

example, the retiree has selected $3,600 as the base.) 

d. Multiply the first $3,600 of the base selected by 2.5 percent, to obtain $90. 

e. Total the reduction for survivor annuity ($90). 

f. Subtract the total reduction for survivor annuity ($90) from the annuity 

reduced for age ($23,321.03) to obtain the annual annuity amount payable 

($23,231.03). 

g. Divide the annual annuity amount payable ($23,231.03) by 12 and round to the 

next lower dollar to obtain the monthly annuity rate ($1,935). 

±9 Compute the survivor annuity. 

a. Multiply the amount designated as the survivor base ($3,600) by 55 percent to 

obtain the annual survivor rate ($1,980). 

b. Divide the annual survivor rate ($1,980) by 12 and round to the next lower 

dollar to obtain the monthly survivor annuity rate ($165). 

CSRS and FERS Handbook April, 1998 
YR MO DY 

32 

05 02 

NAME: Hadley Patterson DATE OF RETIREMENT: 

DATE OF BIRTH: 

89 -

37 -

06 -

03 -

01 

15 ±1 

AGE: 52 - 02 - 17 

84 CSRS	 Computation of Annuity 

Under the General Formula
 

Chapter 50
 

Example 4: 

(Cont.) COMPUTATION OF SERVICE CREDIT 

TYPE OF SERVICE SHOWN 

Gx CSRS 

G FERS 

G CSRS COMPONENT OF FERS 

TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-M0-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

±2 56-12-30 59-11-29 Military 2 11 0 

63-10-04 78-08-17 Covered 14 10 14 

79-11-08 89-06-01 Covered 9 6 24 

±3 TOTAL CIVILIAN/MILITARY 25 27 38 

±4 UNUSED SICK LEAVE * 1 17 

±5 TOTAL CREDITABLE SERVICE 25 28 55 

±6 TOTAL SERVICE FOR COMPUTATION PURPOSES 27 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 
 

 

 CSRS Computation of Annuity
 85 

Under the General Formula
 

Chapter 50
 

Example 4: 

(Cont.) 

CSRS NONDISABILITY ANNUITY COMPUTATION 

EMPLOYEE ANNUITY COMPUTATION 

High-3 Average Pay ±7 $ 48,310.00 

Retirement Factor ( 27 ) yrs ( 5 ) mos (See section 50C1.1-1, Chart 4) x .510833 

Unreduced CSRS Annuity $ 24,678.34 

Reductions are made for: ±8 

1) Under age 55 (See section 50C1.1-1, Chart 5) x .945000 

Reduced Annuity $ 23,321.03 

2) Non-deposit for service prior to 10-1-82 (subtract 10% of deposit 

due) 

- NA 

Reduced Annuity $ 23,321.03 

3) Survivor Annuity: 

Base selected by retiree $ 3,600.00 

Amount up to $3600 - 3,600.00 x .025 = $ 90.00 

Amount over $3600 = x .10 = + 

Total Reduction = $90.00 - 90.00 

Annual Annuity $ 23,231.03 

MONTHLY ANNUITY (Divide by 12, round down to next lower dollar) $ 1,935.00 

SURVIVOR ANNUITY COMPUTATION ±9 

Amount designated as survivor base $ 3,600.00 

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

Annual Survivor Annuity $ 1,980.00 

MONTHLY SURVIVOR ANNUITY (Divide by 12, round down to next dollar) $ 165.00 

CSRS and FERS Handbook April, 1998 
86 CSRS	 Computation of Annuity 

Under the General Formula
 

Chapter 50
 

Example 5:	 CSRS discontinued service, with deposit service prior to October 1, 1982, and 

reduction for survivor benefits: 

Name: Debra James 

Date of Retirement: 9-3-90 

Date of Birth: 7-24-39 

Active Military Service: 8-14-59 to 7-30-61 Deposit Paid 

Civilian Service: 10-3-61 to 8-6-62 Deposit Service 

8-7-62 to 9-3-90 Covered Service 

Unused Sick Leave: 2100 hours 

Deposit Owed at Retirement: $1,003 

High-3 Average Pay: $33,947 

Survivor Benefits: Based on $3,600 

±1 Compute age at separation to determine eligibility for retirement and whether a

reduction for age must be applied to the annuity: 

34 

08 - 04 

90 - 09 - 03 (Date of Separation) 

- 39 - 07 - 24	 (Date of Birth) 

51 - 01 - 10 (Age at Separation) 

±2
 Compute total service for computation purposes. Enter each period of service

by following the steps below.
 

a. Enter the first beginning date of creditable service (8-14-59) in column A. 

b. Enter the last day of the period of service (7-30-61) in column B. 

c. Determine whether the period of service is: 

i. Covered: Retirement deductions were withheld 

NOTE:	 Periods of LWOP in excess of 6 months in a calendar year are 

not creditable. (See Chapter 20 for more information about 

creditable service.) 

April, 1998	 CSRS and FERS Handbook 
 CSRS Computation of Annuity 87 

Under the General Formula 

Chapter 50 

Example 5: 

(Cont.) 

ii. Nondeduction: Retirement deductions were not withheld 

NOTE: Determine if nondeduction service occurred on or after October 

1, 1982, and whether or not a deposit for the service has been 

made. If the nondeduction service was performed on or after 

October 1, 1982, and deposit not made, the service counts 

toward eligibility to retire and to determine the high-3 average 

pay, but is not included in the length of service computation. 

If nondeduction service was performed before October 1, 1982, 

and deposit is not made, the basic annual annuity is reduced by 

10 percent of deposit plus interest owed. (See Chapter 21 for 

additional information.) 

iii. Refunded: Retirement deductions were withheld and refunded 

NOTE: If a redeposit for the refunded service is not made, service can 

be used to determine the high-3 average pay, but is not 

included in the length of service computation. EXCEPTION: 

If the employee owes a redeposit for a refund of retirement 

contributions covering a period of service that ended before 

October 1, 1990, that service is included in the length of 

service computation, but the annuity is reduced. (See section 

50A3.1-3.) 

iv. Military: Military service that is creditable for retirement purposes 

NOTE: See Chapter 22 for more information. 

v. Part-time service: See Chapter 55 

d. Subtract column B from column A to determine the total service during that 

period: 

60 - 19 - 31 

61 - 07 - 30 

- 59 - 08 - 14 

01 - 11 - 17 (1 year 11 months 17 days) 

e. Follow steps a through d for subsequent periods of service. 

±3 Total the civilian and military periods of service in column D. 

CSRS and FERS Handbook April, 1998 
88 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

Example 5: 

(Cont.) 

NOTE:	 In this example, the post-1956 military deposit has been paid, therefore 

there will not be a recomputation of annuity at age 62. (See Chapter 23 

for more information about post-1956 military service credit payments.) 

±4 Determine how much credit is allowed for unused sick leave by using the 2087

Sick Leave Chart (Chart 2) provided in section 50C1.1-1: 

2100 hours = 1 year 3 days 

±5
 Compute the total creditable service by adding the unused sick leave (1 year

3 days) to the total civilian and military periods of service.
 

±6
 Compute the total service for computation purposes (31 years 10 months) by

using whole years and months and dropping any extra days.
 

±7 Compute the unreduced CSRS annuity.

a.	 Enter the high-3 average pay ($33,947). 

b.	 Enter the years and months of total service for computation purposes (31 years 

10 months). 

c.	 Use the CSRS General Formula Computation Chart (Chart 4) provided in 

section 50C1.1-1 to obtain the retirement factor for 31 years 10 months service 

(.599167). 

d.	 Multiply the high-3 average pay ($33,947) by the retirement factor (.599167)
 

to obtain the unreduced CSRS annuity ($20,339.92).
 

±8 Compute the annuity amount payable.

a.	 Obtain the age reduction factor (.923333) for the age at retirement (51 years 

1 month) from the CSRS 2 Percent Age Reduction Chart (Chart 5) provided in 

section 50C1.1-1. 

b.	 Multiply the age reduction factor (.923333) by the unreduced CSRS annuity
 

($20,339.92) to obtain the reduced annuity for age ($18,780.52).
 

April, 1998	 CSRS and FERS Handbook 
 CSRS Computation of Annuity 89 

Under the General Formula 

Chapter 50 

Example 5: 

(Cont.) 

c. Subtract 10 percent of the deposit due ($1,003.00) for nondeduction service 

prior to October 1, 1982 ($100.30) from the reduced annuity for age 

($18,780.52) to obtain the reduced annuity for age and deposit ($18,680.22). 

d. Enter the base selected by the retiree for the survivor annuity ($3,600). 

e. Multiply the first $3,600 of the base selected by 2.5 percent to obtain $90. 

f. Total the reduction for survivor annuity ($90). 

g. Subtract the total reduction for survivor annuity ($90) from the reduced 

annuity for age and deposit ($18,680.22) to obtain the annual annuity amount 

payable ($18,590.22). 

h. Divide the annual annuity amount payable ($18,590.22) by 12 and round to the 

next lower dollar to obtain the monthly annuity rate ($1,549). 

±9 Compute the survivor annuity. 

a. Multiply the amount designated as the survivor base ($3,600) by 55 percent to 

obtain the annual survivor rate ($1,980). 

b. Divide the annual survivor rate ($1,980) by 12 and round to the next lower 

dollar to obtain the monthly survivor annuity rate ($165). 

CSRS and FERS Handbook April, 1998 
YR MO DY 

08 34 

NAME: Debra James DATE OF RETIREMENT: 90 - 09 - 03 

DATE OF BIRTH: 39 - 07 - 24 ±1 

AGE: 51 - 01 - 10 

90 CSRS Computation of Annuity 

Under the General Formula
 

Chapter 50
 

Example 5: 

(Cont.) COMPUTATION OF SERVICE CREDIT 

TYPE OF SERVICE SHOWN 

Gx CSRS 

G FERS 

G CSRS COMPONENT OF FERS 

TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-M0-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

±2 59-08-14 61-07-30 Military (Deposit Made) 1 11 17 

61-10-03 62-08-06 Deposit 10 4 

62-08-07 90-09-03 Covered 28 0 27 

±3 TOTAL CIVILIAN/MILITARY 29 21 48 

±4 UNUSED SICK LEAVE * 1 0 3 

±5 TOTAL CREDITABLE SERVICE 30 21 51 

±6 TOTAL SERVICE FOR COMPUTATION PURPOSES 31 10 

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

April, 1998 CSRS and FERS Handbook 
 CSRS Computation of Annuity 91 

Under the General Formula 

Chapter 50 

complete for FERS only or deferred retirements. 

CSRS and FERS Handbook April, 1998 
 

 

92 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

Example 5: 

(Cont.) 

CSRS NONDISABILITY ANNUITY COMPUTATION 

EMPLOYEE ANNUITY COMPUTATION 

High-3 Average Pay ±7 $ 33,947.00 

Retirement Factor ( 31 ) yrs ( 10 ) mos (See section 50C1.1-1, Chart 4) x .599167 

Unreduced CSRS Annuity $ 20,339.92 

Reductions are made for: ±8 

1) Under age 55 (See section 50C1.1-1, Chart 5) x .923333 

Reduced Annuity $ 18,780.52 

2) Non-deposit for service prior to 10-1-82 (subtract 10% of deposit 

due) 

- 100.30 

Reduced Annuity $ 18,680.22 

3) Survivor Annuity: 

Base selected by retiree $ 3,600.00 

Amount up to $3600 - 3,600.00 x .025 = $ 90.00 

Amount over $3600 = x .10 = + 

Total Reduction = $90.00 - 90.00 

Annual Annuity $ 18,590.22 

MONTHLY ANNUITY (Divide by 12, round down to next lower dollar) $ 1,549.00 

SURVIVOR ANNUITY COMPUTATION ±9 

Amount designated as survivor base $ 3,600.00 

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

Annual Survivor Annuity $ 1,980.00 

MONTHLY SURVIVOR ANNUITY (Divide by 12, round down to next 

lower dollar) 

$ 165.00 

April, 1998 CSRS and FERS Handbook 
 CSRS	 Computation of Annuity 93 

Under the General Formula
 

Chapter 50
 

Example 6:	 CSRS purchase of additional annuity and survivor annuity with voluntary 

contributions: 

Using Example 2 as a guide, Alan Jay retires optionally on 10-30-88 with a 

monthly annuity of $1,594. He has a voluntary contributions (VC) account balance 

of $15,500 including interest. Alan has two options at retirement to dispose of his 

voluntary contributions account: 

•	 Receive a refund of the entire account balance including interest in one lump 

sum; or 

•	 Receive a lifetime annuity in addition to his regular retirement annuity. Note: 

VC monthly annuities do not receive cost-of-living adjustments (COLA's) in 

the future. However, regular annuities do. 

Alan Jay chooses to receive a lifetime annuity plus an additional survivor annuity 

for his spouse (spouse's date of birth: 11-19-31). 

±1 Compute age at separation:

31 

88 - 10 - 30 (Date of Separation) 

- 29 - 04 - 29	 (Date of Birth) 

59 - 06 - 02 (Age at Separation) 

±2 Compute total full years over age 55:

03 

59 - 06 - 02 (Age at Separation) 

- 55 - 00 - 00 

4 - 06 - 03 (Full Years over Age 55) 

±3 Compute additional amount to be added to the additional annuity.

a.	 Enter the full years over age 55 (4). 

b.	 Multiply $0.20 by 4 years to obtain $0.80. 

c.	 Add $0.80 to $7.00 to obtain the additional amount to be added to the 

additional annuity ($7.80). 

CSRS and FERS Handbook	 April, 1998 
94 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

Example 6: 

(Cont.) 

±4 Compute the unreduced annual additional amount of annuity. Compute each

$100 in the voluntary contributions account (including interest earned) that will 

provide an additional annuity per year multiplied by the amount computed in 

step 3 ($7.80). 

a.	 Enter the total amount of the voluntary contributions account ($15,500). 

b.	 Divide the voluntary contributions ($15,500) by $100 ($155). 

c.	 Compute the additional annuity by multiplying the amount in item 2 ($155) by 

$7.80 to obtain the unreduced annual additional annuity of $1,209. 

±5
 Compute the additional annuity amount payable. Alan Jay provided a survivor

annuity based on his regular annuity, and he will provide a survivor annuity
 

based on his additional annuity.
 

a.	 Enter the unreduced annual additional annuity from part 4 above ($1,209). 

b.	 Compute the number of full years age difference between Alan Jay's age and
 

the age of the person designated to receive the survivor annuity.

 50 

10 - 20 

31 - 11 - 19 (Survivor's Date of Birth) 

- 29 - 04 - 29	 (Retiree's Date of Birth) 

2 - 06 - 21 (Number of Full Years Difference) 

c.	 Using the table below, obtain the percent to be used for the reduction for the 

survivor annuity. In this example, the reduction for the survivor annuity is 10 

percent because the survivor is 2 years younger than the retiree: 

Age of Person Named 

in Relation to That 

of Retiring Employee 

Reduction in Annuity 

of Retiring Employee 

(Percent)
 

Older, same age, or less than 5
 

years younger 10
 

5 but less than 10 years younger 15
 

10 but less than 15 years younger 20
 

15 but less than 20 years younger 25
 

20 but less than 25 years younger 30
 

25 but less than 30 years younger 35
 

30 or more years younger 40
 

April, 1998	 CSRS and FERS Handbook 
 CSRS Computation of Annuity 95 

Under the General Formula 

Chapter 50 

Example 6: 

(Cont.) 

d. To compute the additional survivor annuity reduction, enter the unreduced 

annual additional annuity ($1,209). Multiply $1,209 by 10 percent (survivor is 

2 years younger than the retiree) to obtain the amount of the survivor reduction 

($120.90). 

e. Subtract the amount of the survivor reduction ($120.90) from the unreduced 

annual additional annuity ($1,209) to obtain the reduced annual additional 

annuity ($1,088.10). 

f. Compute the reduced monthly additional annuity by dividing $1,088.10 by 12 

and rounding to the next lower dollar ($90). 

±6 Compute the additional survivor annuity. The additional survivor annuity is 

equal to 50 percent of the reduced annual additional annuity. Any person, 

related or unrelated to the employee, may be designated as the survivor, and 

need not be the same person for whom regular survivor annuity benefits were 

elected. 

a. Enter the reduced annual additional annuity from part 5 ($1,088.10). 

b. Multiply the reduced annual additional annuity ($1,088.10) by 50 percent to 

obtain the annual additional survivor annuity ($544.05). 

c. To compute the monthly additional survivor annuity ($45), divide the annual 

additional survivor annuity ($544.05) by 12 and round to the next lower dollar. 

CSRS and FERS Handbook April, 1998 
96 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

Example 6: 

(Cont.) 

VOLUNTARY CONTRIBUTIONS COMPUTATION 

NAME: Alan Jay 

Part 1 

YR - MO - DY 

31

Date of Retirement: 88 - 10 - 30 

Date of Birth: 

Age at Separation: 

29 - 04 - 29 

59 - 06 - 02 

Part 2 

YR - MO - DY 

03 

Date of Retirement: 59 - 06 - 02 

Full Years over Age 55: 

- Age 55: 55 - 00 - 00 

04 - 06 - 03 

Part 3 

$7 per $100 voluntary contributions 

Full Years over Age 55: 4 

x $0.20 

= .80 < + 

$7.00 

.80 

AMOUNT ADDED TO ADDITIONAL ANNUITY $ 7.80 

Part 4 

Voluntary Contributions (total account balance) $ 15,500.00 

÷ $100.00 

$ 155.00 

Amount added to additional annuity (from Part 3) X $ 7.80 

UNREDUCED ANNUAL ADDITIONAL ANNUITY $ 1,209.00 

April, 1998 CSRS and FERS Handbook 
 

 

 CSRS Computation of Annuity
 97 

Under the General Formula
 

Chapter 50
 

Example 6: 

(Cont.) 

VOLUNTARY CONTRIBUTIONS COMPUTATION
 

Part 5 ADDITIONAL ANNUITY AMOUNT PAYABLE 

Unreduced Annual Additional Annuity (from Part 4) $ 1,209.00 

Additional Survivor Annuity Reduction: 

Unreduced Annual Additional Annuity $ 1,209.00 

(Percent/Age Difference) x .10 

Total reduction $ 120.90 < - 120.90 

Reduced Annual Additional Annuity $ 1,088.10 

REDUCED MONTHLY ADDITIONAL ANNUITY 

(Divide by 12, round down to next lower dollar) 

$ 90.00 

Part 6 ADDITIONAL SURVIVOR ANNUITY 

Reduced Annual Additional Annuity $ 1,088.10 

Survivor entitled to 50% x .50 

Annual Additional Survivor Annuity $ 544.05 

MONTHLY ADDITIONAL SURVIVOR ANNUITY 

(Divide by 12, round down to next lower dollar) $ 45.00 

CSRS and FERS Handbook April, 1998 
98 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

Example 7: CSRS deferred retirement, with survivor benefits based on the full annuity: 

Name: Bill Simms 

Date of Birth: 8-4-1943 

Date of Separation: 11-2-1990 

Commencing Date of Annuity: 8-4-2005 (age 62) 

Service History: 3-17-1977 to 11-2-1990 Covered 

Unused Sick Leave as of 

Date of Separation: 244 hours 

High-3 Average Pay on 

Date of Separation: $34,890 

Survivor Benefits: Based on Full Annuity 

±1 Compute age on commencing date of annuity.

05 

2005 - 08 - 04 (Commencing Date of Annuity) 

- 1943 - 08 - 04	 (Date of Birth) 

62 - 00 - 01 (Age on Commencing Date of Annuity) 

±2
 Compute total service for computation purposes. Enter each period of service

by following the steps below.
 

a.	 Enter the first beginning date of creditable service (3-17-77) in column A. 

b.	 Enter the last day of the period of service (11-2-90) in column B. 

c.	 Determine whether the period of service is: 

i. Covered: Retirement deductions were withheld 

NOTE:	 Periods of LWOP in excess of 6 months in a calendar year are 

not creditable. (See Chapter 20 for more information about 

creditable service.) 

ii. Nondeduction: Retirement deductions were not withheld 

April, 1998	 CSRS and FERS Handbook 
 CSRS Computation of Annuity 99 

Under the General Formula 

Chapter 50 

Example 7: 

(Cont.) 

NOTE: Determine if nondeduction service occurred on or after October 

1, 1982, and whether or not a deposit for the service has been 

made. If the nondeduction service was performed on or after 

October 1, 1982, and deposit is not made, the service counts 

toward eligibility to retire and to determine the high-3 average 

pay, but is not included in the length of service computation. 

If nondeduction service was performed before October 1, 1982, 

and deposit is not made, the basic annual annuity is reduced by 

10 percent of deposit plus interest owed. (See Chapter 21 for 

additional information.) 

iii. Refunded: Retirement deductions were withheld and refunded 

NOTE: If a redeposit for the refunded service is not made, service can 

be used to determine the high-3 average pay, but is not 

included in the length of service computation. EXCEPTION: 

If the employee owes a redeposit for a refund of retirement 

contributions covering a period of service that ended before 

October 1, 1990, that service is included in the length of 

service computation, but the annuity is reduced. (See section 

50A3.1-3.) 

iv. Military: Military service that is creditable for retirement purposes 

NOTE: See Chapter 22 for more information. 

v. Part-time service: See Chapter 55 

d. Subtract column B from column A to determine the total service during that 

period: 

33 

10 03 

90 - 11 - 02 

- 77 - 03 - 17 

13 - 07 - 16 (13 years 7 months 16 days) 

e. Follow steps a through d for subsequent periods of service. 

CSRS and FERS Handbook April, 1998 
100 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

Example 7: 

(Cont.) 

±3 

±4 

±5 

±6 

±7 

a. 

b. 

c. 

d. 

±8 

a. 

b. 

c. 

d. 

Total the civilian and military periods of service in column D.
 

Unused sick leave to the employee's credit on date of separation is not
 

creditable toward the computation of a deferred annuity.
 

Total creditable service is equal to the total civilian and military periods of
 

service in column D (13 years 7 months 16 days).
 

Compute the total service for computation purposes (13 years 7 months) by
 

using whole years and months and dropping any extra days.
 

Compute the unreduced CSRS annuity.
 

Enter the high-3 average pay ($34,890).
 

Enter the years and months of total service for computation purposes (13 years
 

7 months).
 

Use the CSRS General Formula Computation Chart (Chart 4) provided in
 

section 50C1.1-1 to obtain the retirement factor for 13 years 7 months service
 

(.234167).
 

Multiply the high-3 average pay ($34,890) by the retirement factor (.234167)
 

to obtain the unreduced CSRS annuity ($8,170.09).
 

Compute the annuity amount payable.
 

Enter the base selected by the retiree for the survivor annuity. (In this
 

example, the retiree has selected the full annuity as the base, or $8,170.09)
 

Multiply the first $3,600 of the base selected by 2.5 percent to obtain $90.
 

Multiply the remainder over $3,600 ($4,570.09) by 10 percent to
 

obtain $457.01.
 

Total the reduction for survivor annuity ($547.01).
 

April, 1998 CSRS and FERS Handbook 
 CSRS Computation of Annuity 101 

Under the General Formula 

Chapter 50 

Example 7: 

(Cont.) 

e. Subtract the total reduction for survivor annuity ($547.01) from the unreduced 

CSRS annuity ($8,170.09) to obtain the annual annuity amount payable 

($7,623). 

f. Divide the annual annuity amount payable ($7,623) by 12 and round to the 

next lower dollar to obtain the monthly annuity rate ($635). 

±9 Compute the survivor annuity. 

a. Multiply the amount designated as the survivor base ($8,170.09) by 55 percent 

to obtain the annual survivor rate ($4,493.55). 

b. Divide the annual survivor rate ($4,493.55) by 12 and round to the next lower 

dollar to obtain the monthly annuity rate ($374). 

CSRS and FERS Handbook April, 1998 
YR MO DY 

05 

NAME: Bill Simms DATE OF RETIREMENT: 2005 - 08 - 04 

DATE OF BIRTH: 1943 - 08 - 04 ±1 

AGE: 62 - 00 - 01 

102 CSRS	 Computation of Annuity 

Under the General Formula
 

Chapter 50
 

Example 7: 

(Cont.) COMPUTATION OF SERVICE CREDIT 

TYPE OF SERVICE SHOWN
 

Gx CSRS 

G FERS 

G CSRS COMPONENT OF FERS 

TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-M0-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

±2 77-03-17 90-11-02 Covered 13 7 16 

±3 TOTAL CIVILIAN/MILITARY 13 7 16 

±4 UNUSED SICK LEAVE * 0 0 0 

±5 TOTAL CREDITABLE SERVICE 13 7 16 

±6 TOTAL SERVICE FOR COMPUTATION PURPOSES 13 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 
 

 

 CSRS Computation of Annuity
 103 

Under the General Formula
 

Chapter 50
 

Example 7: 

(Cont.) 

CSRS NONDISABILITY ANNUITY COMPUTATION 

EMPLOYEE ANNUITY COMPUTATION 

High-3 Average Pay ±7 $ 34,890.00 

Retirement Factor ( 13 ) yrs. ( 7 ) mos. (See section 50C1.1-1, Chart 4) x .234167 

Unreduced CSRS Annuity $ 8,170.09 

Reductions are made for: ±8 

1) Under age 55 (See section 50C1.1-1, Chart 5) x NA 

Reduced Annuity $ NA 

2) Non-deposit for service prior to 10-1-82 (subtract 10% of deposit 

due) 

- NA 

Reduced Annuity $ NA 

3) Survivor Annuity: 

Base selected by retiree $8,170.09 

Amount up to $3600 - 3,600.00 x .025 = $ 90.00 

Amount over $3600 = 4,570.09 x .10 = + 457.01 

Total Reduction = $547.01 - 547.01 

Annual Annuity $ 7,623.08 

MONTHLY ANNUITY (Divide by 12, round down to next lower dollar) $ 635.00 

SURVIVOR ANNUITY COMPUTATION ±9 

Amount designated as survivor base $ 8,170.09 

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

Annual Survivor Annuity $ 4,493.55 

MONTHLY SURVIVOR ANNUITY (Divide by 12, round down to next 

lower dollar) 

$ 374.00 

CSRS and FERS Handbook April, 1998 
104 Computation of Annuity FERS 

Under the General Formula
 

Chapter 50
 

Section 50C1.1-3 FERS Examples 

The examples in this section demonstrate the correct procedures for computing annuity estimates. Each 

example consists of an explanatory text that refers to a completed work sheet immediately following the 

text for that example. The circled numbers in the text correspond to circled numbers on the work sheet. 

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. 

Example 1: FERS optional retirement, with survivor annuity: 

Name: Chris Morgan 

Date of Retirement: 7-30-2024 

Date of Birth: 3-15-1964 

Military Service: 12-30-1982 to 3-29-1986 Deposit Paid 

Civilian Service: 5-23-1994 to 5-22-1997 Covered 

8-15-1999 to 7-30-2024 Covered 

High-3 Average Pay: $53,221 

Survivor Benefits: Based on Full Annuity 

±1 Compute age at separation to determine eligibility for retirement and whether a

reduction for age must be applied to the annuity: 

31 

2024 - 07 - 30 (Date of Retirement) 

- 1964 - 03 - 15 - (Date of Birth)

60 - 04 - 16 (Age at Separation) 

±2
 Compute total service for computation purposes. Enter each period of service

by following the steps below.
 

a. Enter the first appointment date of creditable service (12-30-82) in column A. 

b. Enter the last day of the period of service (3-29-86) in column B. 

April, 1998 CSRS and FERS Handbook 
Computation of Annuity FERS 105 

Under the General Formula 

Chapter 50 

Example 1: 

(Cont.) 

c. Determine whether the period of service is: 

i. Covered: Retirement deductions were withheld 

NOTE:	 Periods of LWOP in excess of 6 months in a calendar year are 

not creditable. (See Chapter 20 for more information about 

creditable covered service.) 

ii. Nondeduction: Retirement deductions were not withheld 

NOTE:	 Under FERS, nondeduction service performed prior to January 

1, 1989, is creditable only if a deposit is made for the service. 

Nondeduction service performed on or after January 1, 1989, 

is not creditable. (See Chapter 21 for additional information 

about service credit payments for civilian service.) 

iii. Refunded: Retirement deductions were withheld and refunded 

NOTE:	 Redeposit cannot be made for FERS service. Refunded service 

is not creditable for either eligibility or computation purposes. 

iv. Military: Military service that is creditable for retirement purposes 

NOTE: See Chapter 22 for more information. 

v. Part-time service: See Chapter 55 

d.	 Subtract column B from column A to determine the total service during that 

period: 

85 - 15 - 30 

86 - 03 - 29 

- 82 - 12 - 30 

03 - 03 - 00 (3 years 3 months) 

e.	 Follow steps a through d for subsequent periods of service. 

±3 Total the civilian and military periods of service in column D.

NOTE: Military service creditable only if deposit is made. 

CSRS and FERS Handbook	 April, 1998 
106	 Computation of Annuity FERS 

Under the General Formula
 

Chapter 50
 

Example 1 

(Cont.) 

±4 Compute the total service for computation purposes (31 years 2 months) by

using whole years and months and dropping any extra days. 

±5 Compute the unreduced FERS basic annuity.

a.	 Enter the high-3 average pay ($53,221). 

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

(31 years 2 months). 

c.	 Use the FERS 1 Percent Accrual Factor Chart (Chart 6) provided in section 

50C1.1-1 to obtain the retirement factor for 31 years 2 months service 

(.311667). 

d.	 Multiply the high-3 average pay ($53,221) by the retirement factor (.311667) 

to obtain the unreduced FERS basic annuity ($16,587.23). 

±6 Compute the annuity amount payable.

NOTE:	 In this example, there is no age reduction since the retiree is age 60 with 

30 years of service. 

a.	 Enter the base selected by the retiree for the survivor annuity ($16,587.23). 

b.	 Multiply the base selected ($16,587.23) by 10 percent to obtain the total 

survivor reduction ($1,658.72). 

c.	 Subtract the total survivor reduction ($1,658.72) from the basic annuity 

($16,587.23) to obtain the annual annuity ($14,928.51). 

d.	 Divide the annual annuity ($14,928.51) by 12 and round to the next lower 

dollar to obtain the monthly annuity amount payable ($1,244). 

±7 Compute the survivor annuity.

a.	 Multiply the amount designated as the survivor base ($16,587.23) by 50 

percent to obtain the annual survivor rate ($8,293.62). 

b.	 Divide the annual survivor rate ($8,293.62) by 12 and round to the next lower 

dollar to obtain the monthly annuity rate ($691). 

NOTE: Chris Morgan is eligible for the FERS Annuity Supplement until he 

reaches age 62. See Chapter 51 for eligibility requirements and 

computation of the retiree annuity supplement. 

April, 1998	 CSRS and FERS Handbook 
YR MO DY 

31 

NAME: Chris Morgan DATE OF RETIREMENT: 2024 

DATE OF BIRTH: 1964 

- 07

- 03 

- 30 

- 15 ±1 

AGE: 60 - 04 - 16 

Computation of Annuity	 FERS 107 

Under the General Formula
 

Chapter 50
 

Example 1: 

(Cont.) COMPUTATION OF SERVICE CREDIT 

TYPE OF SERVICE SHOWN
 

G CSRS 

Gx FERS 

G 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 

±2 82-12-30 86-03-29 Military (Deposit Made) 3 3 0 

94-05-23 97-05-22 Covered 3 0 0 

99-08-15 24-07-30 Covered 24 11 16 

TOTAL CIVILIAN/MILITARY 30 14 16 

UNUSED SICK LEAVE * 0 0 0 

±3 TOTAL CREDITABLE SERVICE 30 14 16 

±4 TOTAL SERVICE FOR COMPUTATION PURPOSES 31 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. 

CSRS and FERS Handbook	 April, 1998 
 

108 Computation of Annuity FERS 

Under the General Formula 

Chapter 50 

Example 1: 

(Cont.) 

FERS BASIC ANNUITY COMPUTATION 

NONDISABILITY 

EMPLOYEE ANNUITY COMPUTATION 

High-3 Average Pay ±5 $ 53,221.00 

Retirement Factor ( 31 ) yrs. ( 2 ) mos. (See section 50C1.1-1, Chart 6 or 7) x .311667 

Unreduced FERS Basic Annuity $ 16,587.23 

Reductions are made for: ±6 

1) Under age 62 (not 60/20 or MRA/30) x NA 

Reduced Annuity $ NA 

2) Survivor Annuity: 

Base selected by retiree $ 16,587.23 

x .10 

Total reduction $ 1,658.72 

- 1,658.72 

Annual Annuity $ 14,928.51 

MONTHLY ANNUITY (Divide by 12, round down to next lower dollar) $ 1,244.00 

SURVIVOR ANNUITY COMPUTATION ±7 

Amount designated as survivor base $ 16,587.23 

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

Annual Survivor Annuity $ 8,293.62 

MONTHLY SURVIVOR ANNUITY (Divide by 12, round down to next 

lower dollar) 

$ 691.00 

April, 1998 CSRS and FERS Handbook 
Computation of Annuity	 FERS 109 

Under the General Formula
 

Chapter 50
 

Example 2:	 FERS MRA + 10 optional retirement, with nondeduction service, refunded 

service, and survivor annuity using one-half as base: 

Name: Lea Williams 

Date of Retirement: 9-30-2033 

Date of Birth: 9-10-1975 

Active Military Service: None 

Civilian Service: 8-23-1998 to 10-31-1999 Nondeduction 

Service 

5-04-2002 to 11-27-2008 Refunded Service 

3-15-2020 to 9-30-2033 Covered 

High-3 Average Pay: $93,781 

Survivor Benefits: One-Half Annuity as Base 

±1 Compute age at separation to determine eligibility for retirement and whether a

reduction for age must be applied to the annuity: 

31 

2033 - 09 - 30 (Date of Separation) 

- 1975 - 09 - 10	 (Date of Birth) 

58 - 00 - 21 (Age at Separation) 

±2
 Compute total service for computation purposes. Enter each period of service

by following the steps below.
 

a.	 Enter the appointment date (8-23-98) of the first period of service in 

column A. 

b.	 Enter the last day of the period of service (10-31-99) in column B. 

c.	 Determine whether the period of service is: 

i. Covered: Retirement deductions were withheld 

NOTE:	 Periods of LWOP in excess of 6 months in a calendar year are 

not creditable. (See Chapter 20 for more information about 

creditable covered service.) 

CSRS and FERS Handbook	 April, 1998 
110	 Computation of Annuity FERS 

Under the General Formula
 

Chapter 50
 

Example 2: 

(Cont.) 

ii. Nondeduction: Retirement deductions were not withheld 

NOTE:	 Under FERS, nondeduction service performed prior to January 

1, 1989, is creditable only if a deposit is made for the service. 

Nondeduction service performed on or after January 1, 1989, 

is not creditable. (See Chapter 21 for additional information 

about service credit payments for civilian service.) 

iii. Refunded: Retirement deductions were withheld and refunded 

NOTE:	 Redeposit cannot be made for FERS service. Refunded service 

is not creditable for either eligibility or computation purposes. 

iv. Military: Military service that is creditable for retirement purposes 

NOTE:	 See Chapter 22 for more information. 

v. Part-time service: See Chapter 55 

d.	 Follow steps a through c for subsequent periods of service. 

e.	 For creditable periods of service only, subtract column B from column A to
 

determine the total service during those periods:
 

31
 

2033 - 09 - 30
 

- 2020 - 03 - 15
 

13 - 06 - 16 (13 years 6 months 16 days) 

NOTE: Enter the periods of nondeduction service (8-23-98 to 10-31-99) and 

refunded service (5-4-2002 to 11-27-2008), but do not include these 

periods in computing the amount of the retiree's service because they 

are not creditable for retirement or computation purposes. See 

Chapter 20 about the rules for creditable service under FERS. 

±3 Total the creditable civilian and military periods of service in column D.

April, 1998	 CSRS and FERS Handbook 
Computation of Annuity FERS 111 

Under the General Formula 

Chapter 50 

Example 2: 

(Cont.) 

±4 Enter the total service for computation purposes (13 years 6 months), using

whole years and months and dropping any extra days. 

±5 Compute the unreduced FERS basic annuity.

a.	 Enter the high-3 average pay ($93,781). 

b.	 Enter the years and months of total service for computation purposes (13 years 

6 months). 

c.	 Use the FERS 1 Percent Accrual Factor Chart (Chart 6) provided in section
 

50C1.1-1 to obtain the retirement factor for 13 years 6 months service
 

(.135000).
 

d.	 Multiply the high-3 average pay ($93,781) by the retirement factor (.135000)
 

to obtain the unreduced FERS basic annuity ($12,660.44).
 

±6 Compute the annuity amount payable.

a.	 Use the FERS 5 Percent Age Reduction Chart (Chart 8) provided in section 

50C1.1-1 to obtain the reduction factor for the age on the annuity commencing 

date (58 years and 0 months) = .804167. 

b.	 Multiply the reduction factor (.804167) by the basic annuity ($12,660.44) to
 

obtain the reduced annuity ($10,181.11).
 

c.	 Enter the base selected by the retiree for the survivor annuity ($10,181.11 x 50 

percent = $5,090.56). 

d.	 Multiply the base selected ($5,090.56) by 10 percent to obtain the total
 

survivor reduction ($509.06).
 

e.	 Subtract the total survivor reduction ($509.06) from the reduced annuity
 

($10,181.11) to obtain the annual annuity ($9,672.05).
 

f.	 Divide the annual annuity ($9,672.05) by 12 and round to the next lower dollar 

to obtain the monthly annuity amount payable ($806). 

CSRS and FERS Handbook	 April, 1998 
112 Computation of Annuity FERS 

Under the General Formula 

Chapter 50 

Example 2: 

(Cont.) 

±7 Compute the survivor annuity. 

a. Multiply the amount designated as the survivor base ($5,090.56) by 50 percent 

to obtain the annual survivor rate ($2,545.28). 

b. Divide the annual survivor rate ($2,545.28) by 12 and round to the next lower 

dollar to obtain the monthly annuity rate ($212). 

NOTE: Lea Williams is eligible for the FERS Annuity Supplement until she 

reaches age 62. See Chapter 51 for eligibility requirements and 

computation of the FERS annuity supplement. 

April, 1998 CSRS and FERS Handbook 
YR MO DY 

31 

NAME: Lea Williams DATE OF RETIREMENT: 2033 - 09 - 30 

DATE OF BIRTH: 1975 - 09 - 10 ±1 

AGE: 58 - 00 - 21 

Computation of Annuity	 FERS 113 

Under the General Formula
 

Chapter 50
 

Example 2: 

(Cont.) COMPUTATION OF SERVICE CREDIT 

TYPE OF SERVICE SHOWN 

G CSRS 

Gx FERS 

G CSRS COMPONENT OF 

FERS TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-M0-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

±2 1998-08-23 1999-10-31 Nondeduction (Not Used) 

2002-05-04 2008-11-27 Refunded (Not Used) 

2020-03-15 2033-09-30 Covered 13 6 16 

TOTAL CIVILIAN/MILITARY 13 6 16 

UNUSED SICK LEAVE * 0 0 0 

±3 TOTAL CREDITABLE SERVICE 13 6 16 

±4 TOTAL SERVICE FOR COMPUTATION PURPOSES 13 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. 

CSRS and FERS Handbook	 April, 1998 
 

114 Computation of Annuity FERS 

Under the General Formula 

Chapter 50 

Example 2: 

(Cont.) 

FERS BASIC ANNUITY COMPUTATION 

NONDISABILITY 

EMPLOYEE ANNUITY COMPUTATION 

High-3 Average Pay ±5 $ 93,781.00 

Retirement Factor ( 13 ) yrs. ( 6 ) mos. (See section 50C1.1-1, Chart 6 or 7) x .135000 

Unreduced FERS Basic Annuity $ 12,660.44 

Reductions are made for: ±6 

1) Under age 62 (not 60/20 or MRA/30) x .804167 

Reduced Annuity $ 10,181.11 

2) Survivor Annuity: 

Base selected by retiree $ 5,090.56 (full or one-half)

 x .10 

Total reduction $ 509.06 

- 509.06 

Annual Annuity $ 9,672.05 

MONTHLY ANNUITY (Divide by 12, round down to next lower dollar) $ 806.00 

SURVIVOR ANNUITY COMPUTATION ±7 

Amount designated as survivor base $ 5,090.56 

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

Annual Survivor Annuity $ 2,545.28 

MONTHLY SURVIVOR ANNUITY (Divide by 12, round down to next 

lower dollar) 

$ 212.00 

April, 1998 CSRS and FERS Handbook 
Computation of Annuity	 FERS 115 

Under the General Formula
 

Chapter 50
 

Example 3:	 FERS transfer employee, optional retirement, with survivor benefits based on full 

annuity: 

Name: Travis James 

Date of Retirement: 7-31-2005 

Date of Birth: 6-8-1942 

Military Service: 9-14-1962 to 7-11-1970 Deposit Paid 

Civilian Service: 7-8-1981 

Career Appointment (CSRS) 

7-5-87 Transfer (FERS) 

7-31-2005 Retired 

Unused Sick Leave: Date of Transfer = 1500 hours 

Date of Retirement = 483 hours 

High-3 Average Pay: $48,000 

Survivor Benefits: Based on Full Annuity 

±1 Compute age at separation to determine eligibility for retirement and whether a

reduction for age must be applied to the annuity: 

2005 - 07 - 31 (Date of Retirement) 

- 1942 - 06 - 08	 (Date of Birth) 

63 - 01 - 23 (Age of Separation) 

±2
 Compute CSRS service for computation purposes. Enter each period of

service by following the steps below.
 

a.	 Enter the first appointment date of creditable service (9-14-62) in column A. 

b.	 Enter the last day of the period of service (7-11-70) in column B. 

c.	 Determine whether the period of service is: 

i. Covered: Retirement deductions were withheld 

NOTE:	 Periods of LWOP in excess of 6 months in a calendar year are 

not creditable. (See Chapter 20 for more information about 

creditable covered service.) 

CSRS and FERS Handbook	 April, 1998 
116 Computation of Annuity FERS 

Under the General Formula 

Chapter 50 

Example 3: 

(Cont.) 

ii. Nondeduction: Retirement deductions were not withheld 

NOTE: Under CSRS, determine if nondeduction service occurred on or 

after October 1, 1982, and whether or not a deposit for the 

service has been made. If the nondeduction service was 

performed on or after October 1, 1982, and deposit is not 

made, the service counts toward eligibility to retire but is not 

used to compute the retirement benefit. If nondeduction 

service was performed before October 1, 1982, and deposit is 

not made, the basic annual CSRS annuity is reduced by 10 

percent of deposit plus interest owed. (See Chapter 21 for 

additional information.) 

iii. Refunded: Retirement deductions were withheld and refunded 

NOTE: Under CSRS, if a redeposit for the refunded service is not 

made, the service counts toward eligibility to retire but is not 

used to compute the retirement benefit. EXCEPTION: If the 

employee owes a redeposit for a refund of retirement 

contributions covering a period of service that ended before 

October 1, 1990, that service is included in the computation, 

but the annuity is reduced. (See section 50A3.1-3.) 

iv. Military: Military service that is creditable for retirement purposes 

NOTE: See Chapter 22 for more information. 

v. Part-time service: See Chapter 55 

d. Subtract column B from column A to determine the total service during that 

period: 

18 - 42 

69 - 06 - 12 

70 - 07 - 11 

- 62 - 09 - 14 

07 - 09 - 28 (7 years 9 months 28 days) 

e. Follow steps a through d for subsequent periods of CSRS service through the 

day before the date of transfer (7-4-87). 

April, 1998 CSRS and FERS Handbook 
Computation of Annuity FERS 117 

Under the General Formula 

Chapter 50 

Example 3: 

(Cont.) 

±3 Total the civilian and military periods of service in column D.

±4 Determine how much credit is allowed for unused sick leave by using the 2087

Sick Leave Chart (Chart 2) provided in section 50C1.1-1: 

483 hours = 2 months 24 days 

NOTE:	 Creditable sick leave applied to the CSRS component for a FERS 

transferee is the lesser of the balance accrued effective on: 

• The date of transfer to FERS; or 

• The date of retirement. 

±5 Compute the total CSRS creditable service by adding the unused sick leave

(2 months 24 days) to the total civilian and military periods of service. 

±6 Enter the total CSRS service for computation purposes (14 years 0 months) by

using whole years and months and dropping any extra days. 

±7 Compute FERS service for computation purposes.

a. Enter periods of creditable service beginning with the date of transfer (7-5-87). 

b. Determine whether the period of service is: 

i. Covered: Retirement deductions were withheld 

NOTE:	 Periods of LWOP in excess of 6 months in a calendar year are 

not creditable. (See Chapter 20 for more information about 

creditable covered service.) 

ii. Nondeduction: Retirement deductions were not withheld 

NOTE:	 Under FERS, nondeduction service performed prior to 

January 1, 1989, is creditable only if a deposit is made for the 

service. Nondeduction service performed on or after January 

1, 1989, is not creditable. (See Chapter 21 for additional 

information about service credit payments for civilian service.) 

CSRS and FERS Handbook	 April, 1998 
118 Computation of Annuity FERS 

Under the General Formula 

Chapter 50 

Example 3: 

(Cont.) 

iii. Refunded: Retirement deductions were withheld and refunded 

NOTE:	 Redeposit cannot be made for FERS service. Refunded service 

is not creditable for either eligibility or computation purposes. 

iv. Military: Military service that is creditable for retirement purposes 

NOTE: See Chapter 22 for more information. 

v. Part-time service: See Chapter 55 

c.	 Total the civilian and military periods of service in column D (18 years
 

0 months 27 days). No credit for unused sick leave is applied to the FERS
 

service.
 

d.	 Enter the total service for computation purposes (18 years 0 months) by using 

whole years and months and dropping any extra days. 

±8 Compute the CSRS basic annuity benefit.

a.	 Enter the high-3 average pay ($48,000). 

b.	 Enter the years and months of CSRS service from step 6 above (14 years 0
 

months).
 

c.	 Use the CSRS General Formula Computation Chart provided in section
 

50C1.1-1 to obtain the retirement factor for 14 years 0 months service
 

(.242500).
 

d.	 Multiply the high-3 average pay ($48,000) by the retirement factor (.242500)
 

to obtain the CSRS earned annuity benefit ($11,640).
 

NOTE: In this example, there is no reduction for retirement under age 55 or 

unpaid deposit, and the post-1956 military service credit payment was 

made. Therefore, $11,640 is the CSRS annuity amount payable. 

±9 Compute the FERS basic annuity benefit.

a.	 Enter the high-3 average pay ($48,000). 

April, 1998	 CSRS and FERS Handbook 
Computation of Annuity FERS 119 

Under the General Formula 

Chapter 50 

Example 3: 

(Cont.) 

b. Enter the years and months of FERS service from step 7 (18 years 

0 months). 

c.	 Use the FERS 1.1 Percent Accrual Factor Chart (Chart 7) to obtain the 

retirement factor for 18 years 0 months service (.198000). In this example, the 

employee is entitled to the 1.1 percent accrual (instead of 1 percent) because he 

is at least age 62, and has at least 20 years of service. (See section 50B3.1-1B.) 

d.	 Multiply the retirement factor (.198000) by the high-3 average pay ($48,000) 

to obtain the FERS earned basic annuity benefit ($9,504). 

±10 Compute the combined total basic annuity amount payable. 

a.	 Add the FERS basic annuity from step 9 ($9,504) to the CSRS basic annuity 

from step 8 ($11,640) to obtain the total unreduced basic annuity ($21,144). 

NOTE: In this example, there is no reduction for retirement before age 62 

because Travis was age 63 on the commencing date of annuity with 

more than 20 years service. 

b.	 Enter the base selected by the retiree for the survivor annuity ($21,144). 

c.	 Multiply the base selected ($21,144) by 10 percent, which is the total survivor 

reduction ($2,114.40). 

d.	 Subtract the total survivor reduction ($2,114.40) from the total unreduced basic 

annuity ($21,144) to obtain the annual basic annuity ($19,029.60). 

e.	 Divide the annual basic annuity ($19,029.60) by 12 and round to the next 

lower dollar to obtain the monthly annuity rate ($1,585). 

±11 Compute the survivor annuity. 

a.	 Multiply the amount designated as the survivor base ($21,144) by 

50 percent to obtain the annual survivor rate ($10,572). 

b.	 Divide the annual survivor rate ($10,572) by 12 and round to the next lower 

dollar to obtain the monthly annuity rate ($881). 

CSRS and FERS Handbook	 April, 1998 
YR MO DY 

NAME: Travis James DATE OF RETIREMENT: 2005 - 07 - 31

 DATE OF BIRTH: 1942 - 06 - 08 ±1 

AGE: 63 - 01 - 23 

120	 Computation of Annuity FERS 

Under the General Formula
 

Chapter 50
 

Example 3: 

(Cont.) COMPUTATION OF SERVICE CREDIT 

TYPE OF SERVICE SHOWN
 

G CSRS 

G FERS 

Gx CSRS COMPONENT OF FERS 

TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-M0-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

±2 62-09-14 70-07-11 Military (Deposit Paid) 7 9 28 

81-07-08 87-07-04 Covered 5 11 27 

±3 TOTAL CIVILIAN/MILITARY 12 20 55 

±4 UNUSED SICK LEAVE * 2 24 

±5 TOTAL CREDITABLE SERVICE 12 22 79 

±6 TOTAL SERVICE FOR COMPUTATION PURPOSES 14 0 

* 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 
YR MO DY 

NAME: Travis James DATE OF RETIREMENT: 2005 - 07 - 31

 DATE OF BIRTH: 1942 - 06 - 08 

AGE: 63 - 01 - 23 

Computation of Annuity	 FERS 121 

Under the General Formula
 

Chapter 50
 

Example 3: 

(Cont.) COMPUTATION OF SERVICE CREDIT 

TYPE OF SERVICE SHOWN
 

G CSRS 

Gx FERS 

GCSRS COMPONENT OF FERS 

TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-M0-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

±7 1987-07-05 2005-07-31 Covered 18 0 27 

TOTAL CIVILIAN/MILITARY 

UNUSED SICK LEAVE * 

TOTAL CREDITABLE SERVICE 18 0 27 

TOTAL SERVICE FOR COMPUTATION PURPOSES 18 0 

* 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 
122 Computation of Annuity FERS 

Under the General Formula 

Chapter 50 

Example 3: 

(Cont.) 

FERS TRANSFEREE NONDISABILITY 

ANNUITY COMPUTATION 

CSRS BASIC ANNUITY COMPUTATION ±8 

High-3 Average Pay $ 48,000.00 

Retirement Factor (See section 50C1.1-1, Chart 4) for 

CSRS service ( 14 ) yrs. ( 0 ) mos. 

x .242500 

Unreduced CSRS Basic Annuity $ 11,640.00 

Reductions are made for: 

1) Under age 55 (See Chart 5) x NA 

Reduced CSRS Annuity $ NA 

2) Non-deposit for service prior to 10-1-82 (Subtract 10% of deposit due) - NA 

REDUCED CSRS ANNUITY $ NA 

FERS BASIC ANNUITY COMPUTATION ±9 

High-3 Average Pay $ 48,000.00 

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

FERS service (18) yrs. (0) mos. 

x .198000 

UNREDUCED FERS BASIC ANNUITY $ 9,504.00 

April, 1998 CSRS and FERS Handbook 
 

 

Computation of Annuity FERS 123 

Under the General Formula 

Chapter 50 

Example 3: 

(Cont.) 

FERS TRANSFEREE NONDISABILITY 

ANNUITY COMPUTATION 

TOTAL BASIC ANNUITY COMPUTATION ±10 

Unreduced FERS Basic Annuity $9,504.00 + Reduced CSRS Annuity $11,640.00 $ 21,144.00 

Reductions are made for: 

1) Under age 62 (not 60/20 or MRA/30) (See section 50C1.1-1, Chart 8) x NA 

Reduced Annuity $ 21,144.00 

2) Survivor Annuity: 

Base selected by retiree $ 21,144.00 (full or one-half) 

x .10 

Total reduction $ 2,114.40 

- 2,114.40 

Annual Annuity $ 19,029.60 

MONTHLY BASIC ANNUITY (Divide by 12, round down to next lower dollar) $ 1,585.00 

SURVIVOR ANNUITY COMPUTATION ±11 

Survivor Base Selected (full or one-half) $ 21,144.00 

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

Annual Survivor Annuity $ 10,572.00 

MONTHLY SURVIVOR ANNUITY (Divide by 12, round down to next 

lower dollar) 

$ 881.00 

CSRS and FERS Handbook April, 1998 
124	 Computation of Annuity FERS 

Under the General Formula
 

Chapter 50
 

Example 4:	 FERS transfer employee, discontinued service retirement, with reduction for age in 

CSRS component and survivor benefits based on full annuity: 

Name: Toby Kay 

Date of Retirement: 8-9-89 Job Abolishment 

Date of Birth: 6-8-40 

Military Service: 9-4-60 to 12-1-65 Deposit Paid 

Civilian Service: 8-15-68 Career Appointment (CSRS) 

7-5-87 Transfer to FERS 

8-9-89 Retirement 

Unused Sick Leave: Date of Transfer = 680 hours 

Date of Retirement = 720 hours 

High-3 Average Pay: $72,000 

Survivor Benefits: Based on Full Annuity 

±1 Compute age at separation to determine eligibility for retirement and whether a

reduction for age must be applied to the CSRS component of the annuity: 

10 

89 - 08 - 09 (Date of Retirement) 

- 40 - 06 - 08	 (Date of Birth) 

49 - 02 - 02 (Age at Separation) 

±2
 Compute CSRS service for computation purposes. Enter each period of

service by following the steps below:
 

a. Enter the first appointment date of creditable service (9-4-60) in column A. 

b. Enter the last day of the period of service (12-1-65) in column B. 

c. Determine whether the period of service is: 

i. Covered: Retirement deductions were withheld 

NOTE:	 Periods of LWOP in excess of 6 months in a calendar year are 

not creditable. (See Chapter 20 for more information about 

creditable covered service.) 

April, 1998	 CSRS and FERS Handbook 
Computation of Annuity 

Under the General Formula 

Chapter 50 

FERS 125 

Example 4: 

(Cont.) 

ii. Nondeduction: Retirement deductions were not withheld 

NOTE: Under CSRS, determine if nondeduction service occurred on or 

after October 1, 1982, and whether or not a deposit for the 

service has been made. If the nondeduction service was 

performed on or after October 1, 1982, and deposit is not 

made, the service counts toward eligibility to retire and to 

determine the high-3 average pay, but is not included in the 

length of service computation. If nondeduction service was 

performed before October 1, 1982, and deposit is not made, 

the basic annual annuity is reduced by 10 percent of deposit 

plus interest owed. (See Chapter 21 for additional 

information.) 

iii. Refunded: Retirement deductions were withheld and refunded 

NOTE: Under CSRS, if a redeposit for the refunded service is not 

made, service can be used to determine the high-3 average pay, 

but is not included in the length of service computation. 

EXCEPTION: If the employee owes a redeposit for a refund 

of retirement contributions covering a period of service that 

ended before October 1, 1990, that service is included in the 

length of service computation, but the annuity is reduced. (See 

section 50A3.1-3.) 

iv. Military: Military service that is creditable for retirement purposes 

NOTE: See Chapter 22 for more information. 

v. Part-time service: See Chapter 55 

d. Subtract column B from column A to determine the total service during that 

period: 

32 

11 02 

65 - 12 - 01 

- 60 - 09 - 04 

05 - 02 - 28 (5 years 2 months 28 days) 

e. Follow steps a through d for subsequent periods of CSRS service until the date 

of transfer (7-5-87). 

CSRS and FERS Handbook April, 1998 
126	 Computation of Annuity FERS 

Under the General Formula
 

Chapter 50
 

Example 4: 

(Cont.) 

±3 Total the civilian and military periods of service in column D.

±4 Determine how much credit is allowed for unused sick leave by using the 2087

Sick Leave Chart (Chart 2) provided in section 50C1.1-1: 

680 hours = 3 months 28 days 

NOTE:	 Creditable sick leave applied to the CSRS component for a FERS 

transferee is the lesser of the balance accrued effective on: 

• The date of transfer to FERS; or 

• The date of retirement. 

±5 Compute the total CSRS creditable service (23 years 15 months 76 days) by

adding the unused sick leave (3 months 28 days) to the total civilian and 

military periods of service (23 years 12 months 48 days). 

±6 Compute the total CSRS service for computation purposes (24 years 5 months)

by using whole years and months and dropping any extra days. 

±7 Compute FERS service for computation purposes.

a.	 Enter periods of creditable service beginning with the date of transfer (July 5, 

1987). 

b.	 Determine whether the period of service is: 

i. Covered: Retirement deductions were withheld 

NOTE:	 Periods of LWOP in excess of 6 months in a calendar year are 

not creditable. (See Chapter 20 for more information about 

creditable covered service.) 

ii. Nondeduction: Retirement deductions were not withheld 

April, 1998	 CSRS and FERS Handbook 
Computation of Annuity FERS 127 

Under the General Formula 

Chapter 50 

Example 4: 

(Cont.) 

NOTE:	 Under FERS, nondeduction service performed prior to January 

1, 1989, is creditable only if a deposit is made for the service. 

Nondeduction service performed on or after January 1, 1989, 

is not creditable. (See Chapter 21 for additional information 

about service credit payments for civilian service.) 

iii. Refunded: Retirement deductions were withheld and refunded 

NOTE:	 Redeposit cannot be made for FERS service. Refunded service 

is not creditable for either eligibility or computation purposes. 

iv. Military: Military service that is creditable for retirement purposes 

NOTE: See Chapter 22 for more information. 

v. Part-time service: See Chapter 55 

c.	 Total the creditable service in column D (2 years 1 month 5 days). No credit
 

for unused sick leave is applied to the FERS service.
 

d.	 Compute the total service for computation purposes (2 years 1 month) by using 

whole years and months and dropping any extra days. 

±8 Compute the CSRS earned annuity benefit.

a.	 Enter the high-3 average pay ($72,000). 

b.	 Enter the years and months of CSRS service from step 6 above (24 years 5
 

months).
 

c.	 Use the CSRS General Formula Computation Chart (Chart 4) provided in 

section 50C1.1-1 to obtain the retirement factor for 24 years 5 months service 

(.450833). 

d.	 Multiply the high-3 average pay ($72,000) by the retirement factor (.450833)
 

to obtain the CSRS earned annuity benefit ($32,459.98).
 

CSRS and FERS Handbook	 April, 1998 
128	 Computation of Annuity FERS 

Under the General Formula
 

Chapter 50
 

Example 4: ±9 Compute the reduced CSRS annuity amount payable.

(Cont.) 

a.	 Use the CSRS 2 Percent Age Reduction Chart (Chart 5) provided in section 

50C1.1-1 to obtain the reduction factor for the age at separation (49 years 2 

months = .885000). 

b.	 Multiply the age reduction factor (.885000) by the unreduced basic CSRS 

earned annuity ($32,459.98), to obtain the reduced CSRS annuity 

($28,727.08). 

±10 Compute the FERS basic annuity benefit. 

a.	 Enter the years and months of FERS service from step 7 (2 years 1 month). 

b.	 Use the FERS 1 Percent Accrual Factor Chart (Chart 6) provided in section 

50C1.1-1 to obtain the retirement factor for 2 years 1 month service (.020833). 

c.	 Multiply the retirement factor (.020833) by the high-3 average pay ($72,000) 

to obtain the FERS earned basic annuity benefit ($1,499.98). 

NOTE: There is no reduction for age in the FERS component of a transfer 

employee retirement computation. 

±11 Compute the combined total basic annuity amount payable. 

a.	 Add the FERS earned annuity from step 10 ($1,499.98) to the CSRS earned 

annuity from step 9 ($28,727.08) to obtain the total unreduced basic annuity 

($30,227.06). 

b.	 Enter the base elected by the retiree for the survivor annuity ($30,227.06). 

c.	 Multiply the base selected ($30,227.06) by 10 percent to obtain the total 

survivor reduction ($3,022.71). 

d.	 Subtract the total survivor reduction ($3,022.71) from the total unreduced basic 

annuity ($30,227.06), to obtain the annual basic annuity ($27,204.35). 

April, 1998	 CSRS and FERS Handbook 
Computation of Annuity FERS 129 

Under the General Formula 

Chapter 50 

Example 4: 

(Cont.) 

e. Divide the annual basic annuity ($27,204.35) by 12 and round to the next 

lower dollar to obtain the monthly annuity rate ($2,267). 

±12 Compute the survivor annuity. 

a. Multiply the amount designated as the survivor base ($30,227.06) by 50 

percent to obtain the annual survivor rate ($15,113.53). 

b. Divide the annual survivor rate ($15,113.53) by 12 and round to the next 

lower dollar to obtain the monthly annuity rate ($1,259). 

CSRS and FERS Handbook April, 1998 
YR MO DY 

10 

NAME: Toby Kay DATE OF RETIREMENT: 

 DATE OF BIRTH: 

89 

40

- 08 -

- 06 -

09

08 ±1 

AGE: 49 - 02 - 02 

130	 Computation of Annuity FERS 

Under the General Formula
 

Chapter 50
 

Example 4: 

(Cont.) COMPUTATION OF SERVICE CREDIT 

TYPE OF SERVICE SHOWN
 

G CSRS 

G FERS 

Gx CSRS COMPONENT OF FERS 

TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-M0-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

±2 60-09-04 65-12-01 Military (Deposit Made) 5 2 28 

68-08-15 87-07-04 Covered 18 10 20 

±3 TOTAL CIVILIAN/MILITARY 23 12 48 

±4 UNUSED SICK LEAVE * 3 28 

±5 TOTAL CREDITABLE SERVICE 23 15 76 

±6 TOTAL SERVICE FOR COMPUTATION PURPOSES 24 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 
YR MO DY 

10 

NAME: Toby Kay DATE OF RETIREMENT:

DATE OF BIRTH: 

89 

40 

- 08 -

- 06 -

09

08 

AGE: 49 - 02 - 02 

Computation of Annuity	 FERS 131 

Under the General Formula
 

Chapter 50
 

Example 4: 

(Cont.) COMPUTATION OF SERVICE CREDIT 

TYPE OF SERVICE SHOWN
 

G CSRS 

Gx FERS 

G CSRS COMPONENT OF FERS 

TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-M0-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

±7 87-07-05 89-08-09 Covered 2 1 5 

TOTAL CIVILIAN/MILITARY 

UNUSED SICK LEAVE * 

TOTAL CREDITABLE SERVICE 2 1 5 

TOTAL SERVICE FOR COMPUTATION PURPOSES 2 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 
132 Computation of Annuity FERS 

Under the General Formula 

Chapter 50 

Example 4: 

(Cont.) 

FERS TRANSFEREE NONDISABILITY 

ANNUITY COMPUTATION 

CSRS BASIC ANNUITY COMPUTATION ±8 

High-3 Average Pay $ 72,000.00 

Retirement Factor (See section 50C1.1-1, Chart 4) for 

CSRS service ( 24 ) yrs. ( 5 ) mos. 

x .450833 

Unreduced CSRS Basic Annuity $ 32,459.98 

Reductions are made for: ±9 

1) Under age 55 (See Chart 7) x .885000 

Reduced CSRS Annuity $ 28,727.08 

2) Non-deposit for service prior to 10-1-82 (Subtract 10% of deposit due) - .00 

REDUCED CSRS ANNUITY $ 28,727.08 

FERS BASIC ANNUITY COMPUTATION ±10 

High-3 Average Pay $ 72,000.00 

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

FERS service (2) yrs (1) mos. 

x .020833 

UNREDUCED FERS BASIC ANNUITY $ 1,499.98 

April, 1998 CSRS and FERS Handbook 
 

 

Computation of Annuity FERS 133 

Under the General Formula 

Chapter 50 

Example 4: 

(Cont.) 

FERS TRANSFEREE NONDISABILITY 

ANNUITY COMPUTATION 

TOTAL BASIC ANNUITY COMPUTATION ±11 

Unreduced FERS Basic Annuity $ 1,499.98 + Reduced CSRS Annuity $28,727.08 $ 30,227.06 

Reductions are made for: 

1) Under age 62 (not 60/20 or MRA/30) (See section 50C1.1-1 Chart 

8) 

x NA 

Reduced Annuity $ 30,227.06 

2) Survivor Annuity: 

Base selected by retiree $ 30,227.06 (full or one-half) 

x .10 

Total reduction $ 3,022.71 

- 3,022.71 

Annual Annuity $ 27,204.35 

MONTHLY BASIC ANNUITY (Divide by 12, round down to next lower dollar) $ 2,267.00 

SURVIVOR ANNUITY COMPUTATION ±12 

Survivor Base Selected (full or one-half) $ 30,227.06 

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

Annual Survivor Annuity $ 15,113.53 

MONTHLY SURVIVOR ANNUITY (Divide by 12, round down to next 

lower dollar) 

$ 1,259.00 

CSRS and FERS Handbook April, 1998 
134	 Computation of Annuity FERS 

Under the General Formula 

Chapter 50 

Example 5:	 FERS postponed MRA + 10 annuity, with nondeduction service, refunded service, 

and survivor annuity using one-half as base: 

Using Example 2 as a guide, Lea Williams is eligible to retire on an MRA + 10 

optional retirement at date of separation (9-30-2033). In Example 5, she chooses to 

postpone the annuity commencing date until age 62 to avoid the reduction for age. 

Date of Separation: 9-30-2033 

Date of Birth: 9-10-1975 

Commencing Date of Annuity: 8-11-2037 (earliest commencing date that will 

Active Military Service: None avoid a reduction for age) 

Civilian Service: 8-23-1998 to 10-31-1999 Nondeduction 

5-4-2002 to 11-27-2008 Refunded 

3-15-2020 to 9-30-2033 Covered 

High-3 Average Pay: $93,781 

Survivor Benefits: One-Half Annuity as Base 

±1 Compute age at separation to determine eligibility for retirement:

31 

2033 - 09 - 10 (Date of Separation) 

- 1975 - 09 - 10	 (Date of Birth) 

58 - 00 - 21 (Age at Separation) 

±2 Compute total service for computation purposes. Enter each period of service

by following the steps below. 

a.	 Enter the appointment date (8-23-98) of the first period of service in 

column A. 

b.	 Enter the last day of the period of service (10-31-99) in column B. 

April, 1998	 CSRS and FERS Handbook 
Computation of Annuity FERS 135 

Under the General Formula 

Chapter 50 

Example 5: 

(Cont.) 

c.	 Determine whether the period of service is: 

i. Covered: Retirement deductions were withheld 

NOTE:	 Periods of LWOP in excess of 6 months in a calendar year are 

not creditable. (See Chapter 20 for more information about 

creditable covered service.) 

ii. Nondeduction: Retirement deductions were not withheld. 

NOTE:	 Under FERS, nondeduction service performed prior to January 

1, 1989, is creditable only if a deposit is made for the service. 

Nondeduction service performed on or after January 1, 1989, 

is not creditable. (See Chapter 21 for additional information 

about service credit payments for civilian service.) 

iii. Refunded: Retirement deductions were withheld and refunded 

NOTE:	 Redeposit cannot be made for FERS service. Refunded service 

is not creditable for either eligibility or computation purposes. 

iv. Military: Military service that is creditable for retirement purposes 

NOTE: See Chapter 22 for more information. 

v. Part-time service: See Chapter 55 

d.	 Follow steps a through c for subsequent periods of service. 

e.	 For creditable periods of service only, subtract column B from column A to 

determine the total service during those periods: 

31
 

2033 - 09 - 30
 

- 2020 - 03 - 15 

13 - 06 - 16 (13 years 6 months 16 days) 

CSRS and FERS Handbook	 April, 1998 
136	 Computation of Annuity FERS 

Under the General Formula
 

Chapter 50
 

Example 5: 

(Cont.)	 

NOTE: Enter the periods of nondeduction service (8-23-98 to 10-31-99) and 

refunded service (5-4-2002 to 11-27-2008), but do not include the 

length of service for these periods because they are not creditable for 

retirement or computation purposes. See Chapter 20 about the rules 

for creditable service under FERS. 

±3 Total the creditable civilian and military periods of service in column D.

±4 Enter the total service for computation purposes (13 years 6 months), using

whole years and months and dropping any extra days. 

±5 Compute the unreduced FERS basic annuity.

a.	 Enter the high-3 average pay ($93,781). 

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

(13 years 6 months). 

c.	 Use the FERS 1 Percent Accrual Factor Chart (Chart 6) provided in section 

50C1.1-1 to obtain the retirement factor for 13 years 6 months service 

(.135000). 

d.	 Multiply the high-3 average pay ($93,781) by the retirement factor (.135000) 

to obtain the unreduced FERS basic annuity ($12,660.44). 

±6 Compute the annuity amount payable.

NOTE:	 Unlike in Example 2, Lea Williams' basic annuity will not be reduced for 

age because she postponed her annuity commencing date until age 62. 

a.	 Enter the base selected by the retiree for the survivor annuity ($12,660.44 x 50 

percent = $6,330.22). 

b.	 Multiply the base selected ($6,330.22) by 10 percent to obtain the total 

survivor reduction ($633.02). 

c.	 Subtract the total survivor reduction ($633.02) from the basic annuity 

($12,660.44) to obtain the reduced annual annuity ($12,027.42). 

April, 1998	 CSRS and FERS Handbook 
Computation of Annuity 

Under the General Formula 

Chapter 50 

FERS 137 

Example 5: 

(Cont.) 

d. Divide the reduced annual annuity ($12, 027.42) by 12 and round to the next 

lower dollar to obtain the monthly annuity amount payable ($1,002). 

±7 Compute the survivor annuity. 

a. Multiply the amount designated as the survivor base ($6,330.22) by 50 percent 

to obtain the annual survivor rate ($3,165.11). 

b. Divide the annual survivor rate ($3,165.11) by 12 and round to the next lower 

dollar to obtain the monthly annuity rate ($263). 

CSRS and FERS Handbook April, 1998 
YR MO DY 

31 

NAME: Lea Williams DATE OF RETIREMENT: 2033 - 09 - 30 

DATE OF BIRTH: 1975 - 09 - 10 ±1 

AGE: 58 - 00 - 21 

138	 Computation of Annuity FERS 

Under the General Formula
 

Chapter 50
 

Example 5: 

(Cont.) COMPUTATION OF SERVICE CREDIT 

TYPE OF SERVICE SHOWN
 

G CSRS 

Gx FERS 

G CSRS COMPONENT OF FERS 

TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-M0-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

±2 1998-08-23 1999-10-31 Nondeduction (Not Used) 

2002-05-04 2008-11-27 Refunded (Not Used) 

2020-03-15 2033-09-30 Covered 13 6 16 

TOTAL CIVILIAN/MILITARY 13 6 16 

UNUSED SICK LEAVE * 0 0 0 

±3 TOTAL CREDITABLE SERVICE 13 6 16 

±4 TOTAL SERVICE FOR COMPUTATION PURPOSES 13 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 Annuity FERS 139 

Under the General Formula 

Chapter 50 

Example 5: 

(Cont.) 

FERS BASIC ANNUITY COMPUTATION
 

NONDISABILITY
 

EMPLOYEE ANNUITY COMPUTATION 

High-3 Average Pay ±5 $ 93,781.00 

Retirement Factor ( 13 ) yrs. ( 6 ) mos. (See section 50C1.1-1, Chart 6 or 7) x .135000 

Unreduced FERS Basic Annuity $ 12,660.44 

Reductions are made for: ±6 

1) Under age 62 (not 60/20 or MRA/30) x NA 

Reduced Annuity $ 12,660.44 

2) Survivor Annuity: 

Base selected by retiree $ 6,330.22 (full or one-half)

 x .10 

Total reduction $ 633.02 

- 633.02 

Annual Annuity $ 12,027.42 

MONTHLY ANNUITY (Divide by 12, round down to next lower dollar) $ 1,002.00 

SURVIVOR ANNUITY COMPUTATION ±7 

Survivor Base Selected (full or one-half) $ 6,330.22 

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

Annual Survivor Annuity $ 3,165.11 

MONTHLY SURVIVOR ANNUITY (Divide by 12, round down to next 

lower dollar) 

$ 263.00 

CSRS and FERS Handbook April, 1998 
140	 Computation of Annuity FERS 

Under the General Formula
 

Chapter 50
 

Example 6: FERS transferee deferred retirement, with survivor benefits based on full annuity: 

Name: Ruth Hanover
 

Date of Birth: 1-11-1954
 

Date of Separation: 6-12-2004
 

Commencing Date of Annuity: 2-1-2010
 

Service History:	 3-10-1974 to 2-18-1977 Military 

2-19-1977 to 12-4-1987 Covered (CSRS) 

12-5-1987 Transfer to FERS 

12-5-1987 to 6-12-2004 Covered (FERS) 

Date of Application for 

Deferred Retirement: 1-11-2010 (age 56) 

Unused Sick Leave: Date of Transfer = 1100 hours 

Date of Separation = 200 hours 

High-3 Average Pay on 

Date of Separation: $54,333 

Survivor Benefits: Based on Full Annuity 

±1
 Determine commencing date of annuity and age on commencing date of

deferred retirement.
 

a. Commencing date of annuity: 

In this example, Ruth is applying for deferred retirement at the Minimum 

Retirement Age (MRA) which, for someone born in 1954, is age 56. The 

commencing date of annuity is the first day of the month after the MRA, which 

is 2-1-2010. 

b. Age on commencing date of deferred retirement: 

32 

01 02 

2010 - 02 - 01 (Commencing Date of Annuity) 

- 1954 - 01 - 11 (Date of Birth) 

56 - 00 - 21	 (Age on Commencing Date of 

Deferred Retirement) 

April, 1998	 CSRS and FERS Handbook 
Computation of Annuity 

Under the General Formula 

Chapter 50 

FERS 141 

Example 6: 

(Cont.) 

±2 Compute CSRS service for computation purposes. Enter each period of 

service by following the steps below: 

a. Enter the first appointment date of creditable service (3-10-74) in column A. 

b. Enter the last day of the period of service (2-18-77) in column B. 

c. Determine whether the period of service is: 

i. Covered: Retirement Deductions were withheld 

NOTE: Periods of LWOP in excess of 6 months in a calendar year are 

not creditable. (See Chapter 20 for more information about 

creditable covered service.) 

ii. Nondeduction: Retirement deductions were not withheld 

NOTE: Under CSRS, determine if nondeduction service occurred on or 

after October 1, 1982, and whether or not a deposit for the 

service has been made. If the nondeduction service was 

performed on or after October 1, 1982, and deposit is not 

made, the service counts toward eligibility to retire and to 

determine the high-3 average pay, but is not included in the 

length of service computation. If nondeduction service was 

performed before October 1, 1982, and deposit is not made, 

the basic annual annuity is reduced by 10 percent of deposit 

plus interest owed. (See Chapter 21 for additional 

information.) 

iii. Refunded: Retirement deductions were withheld and refunded 

NOTE: Under CSRS, if a redeposit for the refunded service is not 

made, can be used to determine the high-3 average pay, but is 

not included in the length of service computation. 

EXCEPTION: If the employee owes a redeposit for a refund 

of retirement contributions covering a period of service that 

ended before October 1, 1990, that service is included in the 

computation, but the annuity is reduced. (See section 50A3.1­

3.) 

CSRS and FERS Handbook April, 1998 
142 Computation of Annuity FERS 

Under the General Formula 

Chapter 50 

Example 6: 

(Cont.) 

iv. Military: Military service that is creditable for retirement purposes 

NOTE: See Chapter 22 for more information. 

v. Part-time service: See Chapter 55 

d.	 Subtract column B from column A to determine the total service during that 

period:
 

76 14 19
 

77 - 02 - 18
 

- 74 - 03 - 10 

02 - 11 - 09 (2 years 11 months 9 days) 

e.	 Follow steps a through d for subsequent periods of CSRS service until the date 

of transfer (12-5-87). 

±3 Total the creditable civilian and military periods of service in column D.

±4
 Unused sick leave to the employee's credit on date of transfer or separation is

not creditable toward the computation of a deferred annuity.
 

±5 Total creditable service is equal to the total civilian and military periods of

service on column D (13 years 8 months 25 days). 

±6 Enter the total service for computation purposes (13 years 8 months) by using

whole years and months and dropping any extra days. 

±7 Compute FERS service for computation purposes.

a.	 Enter periods of creditable service beginning with the date of transfer
 

(12-5-87).
 

b.	 Determine whether the period of service is: 

i.	 Covered: Retirement deductions were withheld 

NOTE:	 Periods of LWOP in excess of 6 months in a calendar year are 

not creditable. (See Chapter 20 for more information about 

creditable covered service.) 

April, 1998	 CSRS and FERS Handbook 
Computation of Annuity FERS 143 

Under the General Formula 

Chapter 50 

Example 6: 

(Cont.) 

ii. Nondeduction: Retirement deductions were not withheld 

NOTE:	 Under FERS, nondeduction service performed prior to January 

1, 1989, is creditable only if a deposit is made for the service. 

Nondeduction service performed on or after January 1, 1989, 

is not creditable. (See Chapter 21 for additional information 

about service credit payments for civilian service.) 

iii. Refunded: Retirement deductions were withheld and refunded 

NOTE:	 Redeposit cannot be made for FERS service. Refunded service 

is not creditable for either eligibility or computation purposes. 

iv.	 Military: Military service that is creditable for retirement purposes 

NOTE: See Chapter 22 for more information. 

v. Part-time service: See Chapter 55 

c.	 Total the creditable service in column D (16 years 6 months 8 days). 

d.	 Compute the total service for computation purposes (16 years 6 months) by 

using whole years and months and dropping any extra days. 

±8 Compute the CSRS earned annuity benefit.

a.	 Enter the high-3 average pay ($54,333). 

b.	 Enter the years and months of CSRS service from step 6 above (13 years 8 

months). 

c.	 Use the CSRS General Formula Computation Chart (Chart 4) provided in 

section 50C1.1-1 to obtain the retirement factor for 13 years 8 months service 

(.235833). 

CSRS and FERS Handbook	 April, 1998 
144	 Computation of Annuity FERS 

Under the General Formula
 

Chapter 50
 

Example 6: 

(Cont.) 

d. Multiply the high-3 average pay ($54,333) by the retirement factor (.235833) 

to obtain the CSRS earned annuity benefit ($12,813.51). 

NOTE: In this example, there is no reduction for retirement under age 55 or 

unpaid deposit. Therefore, $12,813.51 is the CSRS basic annuity 

amount before any reductions. 

±9 Compute the FERS earned basic annuity benefit.

a.	 Enter the years and months of FERS service from step 7 (16 years 6 months). 

b.	 Use the FERS 1 Percent Accrual Factor Chart (Chart 6) provided in section 

50C1.1-1 to obtain the retirement factor for 16 years 6 months service 

(.165000). 

c.	 Multiply the retirement factor (.165000) by the high-3 average pay ($54,333) 

to obtain the FERS earned basic annuity benefit ($8,964.95). 

±10 Compute the combined total basic annuity amount payable. 

a.	 Add the FERS earned annuity from step 9 ($8,964.95) to the CSRS earned 

annuity from step 8 ($12,813.51) to obtain the total unreduced basic annuity 

($21,778.46). 

b.	 Enter the base selected by the retiree for the survivor annuity ($21,778.46). 

Under FERS, base is either all or 50 percent of ALL of the annuity. 

c.	 Multiply the base selected ($21,778.46) by 10 percent to obtain the total 

survivor reduction ($2,177.85). 

d.	 Subtract the total survivor reduction ($2,177.85) from the total unreduced basic 

annuity ($21,778.46), to obtain the annual basic annuity ($19,600.61). 

e.	 Divide the annual basic annuity ($19,600.61) by 12 and round to the next 

lower dollar to obtain the monthly annuity rate ($1,633). 

±11 Compute the survivor annuity. 

a.	 Multiply the amount designated as the survivor base ($21,778.46) by 50 

percent to obtain the monthly annuity rate ($907). 

April, 1998	 CSRS and FERS Handbook 
YR MO DY 

01 32 

NAME: Ruth Hanover DATE OF RETIREMENT: 2010 - 02 - 01 

DATE OF BIRTH: 1954 - 01 - 11 ±1 

AGE: 56 - 00 - 21 

Computation of Annuity	 FERS 145 

Under the General Formula
 

Chapter 50
 

Example 6: 

(Cont.) COMPUTATION OF SERVICE CREDIT 

TYPE OF SERVICE SHOWN
 

G CSRS 

G FERS 

Gx CSRS COMPONENT OF 

FERS TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-M0-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

±2 74-03-10 77-02-18 Military 2 11 9 

77-02-19 87-12-04 Covered 10 9 16 

±3 TOTAL CIVILIAN/MILITARY 13 8 25 

±4 UNUSED SICK LEAVE * 0 0 0 

±5 TOTAL CREDITABLE SERVICE 13 8 25 

±6 TOTAL SERVICE FOR COMPUTATION PURPOSES 13 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 
YR MO DY 

01 32 

NAME: Ruth Hanover DATE OF RETIREMENT: 2010 - 02 - 01 

DATE OF BIRTH: 1954 - 01 - 11 

AGE: 56 - 00 - 21 

146 Computation of Annuity FERS 

Under the General Formula
 

Chapter 50
 

Example 6: 

(Cont.) COMPUTATION OF SERVICE CREDIT 

TYPE OF SERVICE SHOWN
 

G CSRS 

Gx FERS 

G CSRS COMPONENT OF 

FERS TRANSFEREE 

A B C D 

(Do not list noncreditable 

periods of service) 

STARTING 

YR-M0-DY 

ENDING 

YR-MO-DY 

COVERED/REFUNDED/ 

NONDEDUCTION/MILITARY 

YRS MOS DAYS 

±7 1987-12-05 2004-06-12 Covered 16 6 8 

TOTAL CIVILIAN/MILITARY 

UNUSED SICK LEAVE * 

TOTAL CREDITABLE SERVICE 16 6 8 

TOTAL SERVICE FOR COMPUTATION PURPOSES 16 6 

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

April, 1998 CSRS and FERS Handbook 
Computation of Annuity FERS 147 

Under the General Formula 

Chapter 50 

complete for FERS only or deferred retirements. 

CSRS and FERS Handbook April, 1998 
 

 

148 Computation of Annuity FERS 

Under the General Formula 

Chapter 50 

Example 6: 

(Cont.) 

FERS TRANSFEREE NONDISABILITY 

ANNUITY COMPUTATION 

CSRS BASIC ANNUITY COMPUTATION ±8 

High-3 Average Pay $ 54,333.00 

Retirement Factor (See section 50C1.1-1, Chart 4) for 

CSRS service ( 13 ) yrs. ( 8 ) mos. x .235833 

Unreduced CSRS Basic Annuity $ 12,813.51 

Reductions are made for: 

1) Under age 55 (See Chart 5) x NA 

Reduced CSRS Annuity $ NA 

2) Non-deposit for service prior to 10-1-82 (Subtract 10% of deposit due) - NA 

REDUCED CSRS ANNUITY $ NA 

FERS BASIC ANNUITY COMPUTATION ±9 

High-3 Average Pay $ 54,333.00 

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

FERS service ( 16 ) yrs. ( 6 ) mos. 

x .165000 

UNREDUCED FERS BASIC ANNUITY $ 8,964.95 

April, 1998 CSRS and FERS Handbook 
Computation of Annuity FERS 149 

Under the General Formula 

Chapter 50 

Example 6: 

(Cont.) 

FERS TRANSFEREE NONDISABILITY 

ANNUITY COMPUTATION 

TOTAL BASIC ANNUITY COMPUTATION ±10 

Unreduced FERS Basic Annuity $ 8,964.95 + Reduced CSRS Annuity $ 12,813.51 $ 21,778.46 

Reductions are made for: 

1) Under age 62 (not 60/20 or MRA/30) (See section 50C1.1-1, Chart 8) x NA 

Reduced Annuity $ 21,778.46 

2) Survivor Annuity: 

Base selected by retiree $ 21,778.46 (full or one-half) 

x .10 

Total reduction $ 2,177.85 

- 2,177.85 

Annual Annuity $ 19,600.61 

MONTHLY BASIC ANNUITY (Divide by 12, round down to next lower dollar) $ 1,633.00 

SURVIVOR ANNUITY COMPUTATION ±11 

Survivor Base Selected (full or one-half) $ 21,7 

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

Annual Survivor Annuity $ 10,889.23 

MONTHLY SURVIVOR ANNUITY (Divide by 12, round down to next 

lower dollar) 

$ 907.00 

CSRS and FERS Handbook April, 1998 
 

 

 

150 CSRS Computation of Annuity	 FERS 

Under the General Formula
 

Chapter 50
 

Section 50C1.1-4 Computation Worksheets for Local Reproduction 

HIGH-3 AVERAGE PAY COMPUTATION 

 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 

TOTALS ** 

$ ÷ 3 = $

 Total Pay Earned 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. 

For Local Reproduction 

April, 1998	 CSRS and FERS Handbook 
 CSRS Computation of Annuity FERS 151 

Under the General Formula 

Chapter 50 

Blank 

CSRS and FERS Handbook April, 1998 
 

 

 

 

152 CSRS Computation of Annuity	 FERS 

Under the General Formula
 

Chapter 50
 

Section 50C1.1-4 Computation Worksheets for Local Reproduction 

COMPUTATION OF SERVICE CREDIT 

YR MO DY 

NAME: DATE OF RETIREMENT: 

DATE OF BIRTH: 

AGE: 

TYPE OF SERVICE SHOWN 

G CSRS 

G FERS 

G 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 

TOTAL CIVILIAN/MILITARY 

UNUSED SICK LEAVE * 

TOTAL CREDITABLE SERVICE 

TOTAL SERVICE FOR COMPUTATION PURPOSES 

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

complete for FERS only or deferred retirements. 

For Local Reproduction 
 CSRS Computation of Annuity FERS 153 

Under the General Formula 

Chapter 50 

Blank 

CSRS and FERS Handbook April, 1998 
 

 

 

 

 

 

 

154 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

Section 50C1.1-4 Computation Worksheets for Local Reproduction 

CSRS NONDISABILITY ANNUITY COMPUTATION 

EMPLOYEE ANNUITY COMPUTATION 

High-3 Average Pay $ 

Retirement Factor ( ) yrs. ( ) mos. (See section 50C1.1-1, Chart 4) x 

Unreduced CSRS Annuity $ 

Reductions are made for: 

1) Under age 55 (See section 50C1.1-1, Chart 5) x 

Reduced Annuity $ 

2) Non-deposit for service prior to 10-1-82 (subtract 10% of deposit 

due) -

Reduced Annuity $ 

3) 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 next 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 next lower dollar) $ 

For Local Reproduction 

April, 1998 CSRS and FERS Handbook 
 CSRS Computation of Annuity 155 

Under the General Formula 

Chapter 50 

Blank 

CSRS and FERS Handbook April, 1998 
 

156 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

Section 50C1.1-4 Computation Worksheets for Local Reproduction 

COMPUTATION OF REDUCTION
 

FOR UNPAID REDEPOSIT 

FOR SERVICE ENDING BEFORE OCTOBER 1, 1990
 

CSRS EMPLOYEES
 

Monthly Annuity Otherwise Payable $ 

Subtract Monthly Reduction: (Round to next higher dollar) 

Redeposit Owed $ ÷ CSRS PVF* = -

CSRS MONTHLY ANNUITY REDUCED FOR UNPAID REDEPOSIT $ 

*Present Value Factor (see Chapter 53, Section 53C1.1-1). 

For Local Reproduction 

April, 1998 CSRS and FERS Handbook 
 CSRS Computation of Annuity 157 

Under the General Formula 

Chapter 50 

Blank 

CSRS and FERS Handbook April, 1998 
 

 

 

 

 

 

 

 

 

 

158 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

Section 50C1.1-4 Computation Worksheets for Local Reproduction 

VOLUNTARY CONTRIBUTIONS COMPUTATION 

NAME: 

Part 1 

Date of Retirement: 

Date of Birth: 

Age at Separation: 

YR - MO - DY 

Part 2 

Date of Retirement: 

- Age 55: 

Full Years over Age 55: 

YR - MO - DY 

Part 3 

Full Years over Age 55: 

$7 per $100 voluntary contributions 

x 

= < + 

AMOUNT ADDED TO ADDITIONAL ANNUITY $ 

Part 4 

Voluntary Contributions (total account balance) $ 

÷ 

$ 

Amount added to additional annuity (from Part 3) X 

UNREDUCED ANNUAL ADDITIONAL ANNUITY $ 

For Local Reproduction 

1 of 2 

April, 1998 CSRS and FERS Handbook 
 CSRS Computation of Annuity 159 

Under the General Formula 

Chapter 50 

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CSRS and FERS Handbook April, 1998 
 

 

 

160 CSRS Computation of Annuity 

Under the General Formula 

Chapter 50 

Section 50C1.1-4 Computation Worksheets for Local Reproduction 

VOLUNTARY CONTRIBUTIONS COMPUTATION 

(continued) 

Part 5 ADDITIONAL ANNUITY AMOUNT PAYABLE 

Unreduced Annual Additional Annuity (from Part 4) $ 

Additional Survivor Annuity Reduction: 

Base selected by retiree $ 

Amount up to $3600 x 

Total reduction $ < -

Reduced Annual Additional Annuity $ 

REDUCED MONTHLY ADDITIONAL ANNUITY 

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

Part 6 ADDITIONAL SURVIVOR ANNUITY 

Reduced Annual Additional Annuity $ 

Survivor entitled to 50% x 

Annual Additional Survivor Annuity $ 

MONTHLY ADDITIONAL SURVIVOR ANNUITY 

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

For Local Reproduction
 

Page 2 of 2
 

April, 1998 CSRS and FERS Handbook 
 CSRS Computation of Annuity 161 

Under the General Formula 

Chapter 50 

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CSRS and FERS Handbook April, 1998 
 

 

 

162 Computation of Annuity FERS 

Under the General Formula 

Chapter 50 

Section 50C1.1-4 Computation Worksheets for Local Reproduction 

FERS BASIC ANNUITY COMPUTATION
 

NONDISABILITY
 

EMPLOYEE ANNUITY COMPUTATION 

High-3 Average Pay $ 

Retirement Factor ( ) yrs. ( ) mos. (See section 50C1.1-1, Chart 6 or 7) x 

Unreduced FERS Basic Annuity $ 

Reductions are made for: 

1) Under age 62 (not 60/20 or MRA/30) (See section 501C1.1-1, Chart 8) x 

Reduced Annuity $ 

2) Survivor Annuity: 

Base selected by retiree $ 

x .10 

Total reduction $ 

-

Annual Annuity $ 

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

SURVIVOR ANNUITY COMPUTATION
 

Amount designated as survivor base $ 

Spouse or former spouse entitled to 50% of survivor base x 

Annual Survivor Annuity $ 

MONTHLY SURVIVOR ANNUITY (Divide by 12, round down to next 

lower dollar) $ 

For Local Reproduction 

April, 1998 CSRS and FERS Handbook 
Computation of Annuity FERS 163 

Under the General Formula 

Chapter 50 

Blank 

CSRS and FERS Handbook April, 1998 
 

 

 

164 Computation of Annuity FERS 

Under the General Formula 

Chapter 50 

Section 50C1.1-4 Computation Worksheets for Local Reproduction 

FERS TRANSFEREE NONDISABILITY 

ANNUITY COMPUTATION
 

CSRS BASIC ANNUITY COMPUTATION 

High-3 Average Pay $ 

Retirement Factor (See section 50C1.1-1, Chart 4) for 

CSRS service ( ) yrs. ( ) mos. x 

Unreduced CSRS Basic Annuity $ 

Reductions are made for: 

1) Under age 55 (See Chart 5) x 

Reduced CSRS Annuity $ 

2) Non-deposit for service prior to 10-1-82 (Subtract 10% of deposit due) -

REDUCED CSRS ANNUITY $ 

FERS BASIC ANNUITY COMPUTATION
 

High-3 Average Pay $ 

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

FERS service ( ) yrs. ( ) mos. x 

UNREDUCED FERS BASIC ANNUITY $ 

For Local Reproduction 

1 of 2 

April, 1998 CSRS and FERS Handbook 
Computation of Annuity FERS 165 

Under the General Formula 

Chapter 50 

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CSRS and FERS Handbook April, 1998 
 

 

 

 

 

166 Computation of Annuity FERS 

Under the General Formula 

Chapter 50 

Section 50C1.1-4 Computation Worksheets for Local Reproduction 

FERS TRANSFEREE NONDISABILITY
 

ANNUITY COMPUTATION
 

(continued)
 

TOTAL BASIC ANNUITY COMPUTATION 

Unreduced FERS Basic Annuity $ + Reduced CSRS Annuity $ $ 

Reductions are made for: 

1) Under age 62 (not 60/20 or MRA/30) (See section 50C1.1-1, Chart 8) x 

Reduced Annuity $ 

2) Survivor Annuity: 

Base selected by retiree $ (full or one-half) 

x 

Total reduction $ 

-

Annual Annuity $ 

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

SURVIVOR ANNUITY COMPUTATION
 

Survivor Base Selected (full or one-half) $ 

Spouse or former spouse entitled to 50% of survivor base x 

Annual Survivor Annuity $ 

MONTHLY SURVIVOR ANNUITY (Divide by 12, round down to next 

lower dollar) $ 

For Local Reproduction 

2 of 2 

April, 1998 CSRS and FERS Handbook