Congress passed the Federal Employees Retirement System Act in 1986 (FERS). FERS provides participants in the FERS retirement plan benefits from three sources:
The Basic Benefit
Social Security
Thrift Savings Plan (TSP)
The federal employer deducts the appropriate contributions to the Social Security program and the Basic Benefit from the employee's pay each payroll period. After the person retires, FERS pays an annuity every month for the rest of the participant's life.