The cost of Basic insurance is shared between you and the Government. Your age does not affect the cost of Basic insurance. You must pay the full cost of Optional insurance, and the amount of the coverage will depend on your age. The Federal Employees Retirement System is a response to the changing times and Federal workforce needs. The new retirement system is flexible.
Covered employees are able to choose what is best for their individual situation.
The retirement system is a three-tiered retirement plan. The first available part of the retirement benefit is Social Security. It provides monthly payments if you are retired and have reached age 62, monthly benefits if you become disabled, monthly benefits for your eligible survivors, and a lump sum benefit upon your death. The basic benefit portion is financed by a very small contribution from the employee and from the Government. Basic Plan Benefits are a monthly payment depending on the employee's pay and length of service.