The CSRS features that differ by employee group are discussed in the following sections. Members of Congress can retire at younger ages and with fewer years of service than can general employees and congressional staff. General employees and congressional staff are eligible for optional retirement at age 55 with 30 years of service, at age 60 with 20 years, or at age 62 with 5 years. Members can retire at the same age and service combinations but may also retire at age 50 with 20 years and at any age with 25 years. Additionally, Members may retire at age 60 with 10 years of Member service and at age 50 with service in 9 Congresses. Law enforcement officers and firefighters may retire at age 50 with 20 years of service as a law enforcement officer or firefighter. Air traffic controllers can retire at age 50 with 20 years of air traffic controller service or at any age with 25 years of air traffic controller service. The CSRS statute specifies the formulas that will be used in calculating benefit amounts for the various groups. For Members of Congress and congressional staff who have 5 or more years of congressional service, the formula is 2.5 percent of the average annual salaries they earned during their 3 consecutive highest-paid years (known as the “high 3”) for each year of congressional service. The same benefit formula applies to employees who are federal Claims Court judges, bankruptcy judges, U.S. Magistrates, or judges of the U.S. Court of Military Appeals. For example, the formula provides a benefit of 75 percent of high-3 salary to a Member or congressional staff with 30 years of congressional service. In comparison, the formula for general employees is 1.5 percent of high-3 for each of the first 5 years of service, 1.75 percent for each of the next 5 years of service, and 2 percent for each year of service greater than 10 years. The general employee formula provides a benefit of 56.25 percent of high 3 after 30 years of service. The benefit formula for law enforcement officers and firefighters is 2.5 percent of high 3 for each of the first 20 years of service and 2 percent for each year of service greater than 20. Thus, a law enforcement officer or firefighter who retires at age 50 with 20 years of service would receive 50 percent of high 3. After 30 years of service, the benefit would be 70 percent of high 3. Air traffic controllers are covered by the general employee benefit formula, but they are guaranteed to receive no less than 50 percent of their high 3 at retirement. To illustrate this point, a controller who retires at age 50 with 20 years of service receives 50 percent of his or her high 3 because the general employee formula would provide only 36.25 percent of high 3 after 20 years of service. At 25 years of service, a controller would still receive 50 percent of high 3 because the general employee formula would provide 46.25 percent. The “break-even” point occurs at just under 27 years of service when the general employee formula provides about 50 percent of high 3. When Members of Congress retire before age 60, their accrued benefits are reduced. The reduction is one-twelfth of 1 percent for each month (1 percent a year) they are between ages 55 and 60 and one-sixth of 1 percent for each month (2 percent a year) they are younger than age 55. There is no age reduction for any of the other groups covered by CSRS when they meet the optional retirement eligibility requirements. However, the reduction for Members younger than age 60 does not eliminate the overall advantages of their higher benefit formula compared with most other employees. A Member who retires at age 55 with 30 years of service receives a benefit equal to 71.25 percent of high 3 rather than the 75 percent he or she would otherwise receive without the age reduction (1 percent of accrued benefits for each of the 5 years the retiree is younger than age 60). General employees receive 56.25 percent of high 3 at age 55 and 30 years of service. Since the age reduction does not apply to congressional staff, they would receive 75 percent. Several groups, including law enforcement officers, firefighters, customs inspectors, and Veteran’s Affairs’ physicians, receive an additional advantage in their benefit calculations that is not afforded to other employee groups. Their high-3 salaries include certain types of premium pay. For example, the high 3 of law enforcement officers includes pay they receive for administratively uncontrollable overtime or availability pay.The high-3 amounts for other groups are limited to basic salaries and do not include any overtime they may have received. In certain circumstances, employees may retire before attaining the requirements for optional retirement or before they intended to retire. For example, general employees might be unable to continue in federal employment because their jobs were abolished or congressional staff might retire involuntarily if the Members of Congress who employ them are not reelected. Also, employees (except congressional staff) might be given the opportunity to voluntarily retire early to save the jobs of younger employees when their agencies are downsizing or transferring functions to other locations. CSRS does not include any separate early retirement provisions for Members of Congress. The optional retirement provisions apply if a Member loses an election. However, some of the age and service eligibility requirements available to Members for optional retirement are the same as the early retirement eligibility requirements for other employees under CSRS. General employees and congressional staff may retire early if they are age 50 with 20 years of service or any age with 25 years of service. Benefit amounts are reduced by one-sixth of 1 percent for each month (2 percent a year) they are younger than age 55. As discussed previously, Members may retire optionally at age 50 with 20 years of service, at any age with 25 years, or at age 50 with service in 9 Congresses (18 years). Similar to general employees, when Members retire under these provisions, their benefits are reduced by 2 percent for each year they are younger than age 55. However, unlike other employees, Members’ benefits are also reduced by 1 percent for each year they are between ages 55 and 60. Members who resign or are expelled from Congress cannot receive immediate benefits unless they are at least age 55 with 30 years of service, age 62 with 5 years of service, or age 60 with 10 years of Member service. There are no special provisions for law enforcement officers, firefighters, or air traffic controllers to retire before meeting their age and service requirements for optional retirement. In situations where law enforcement officers, firefighters, or air traffic controllers might voluntarily retire early or might be separated involuntarily, the early retirement provisions (including the benefit formula) used for general employees are applied to these groups. Many employees do not continue in their federal jobs long enough to meet the age and service requirements for immediate retirement benefits. Employees who quit their jobs before completing 5 years of service receive no retirement benefits. Their contributions to the system are refunded upon request. Employees who stay longer than 5 years but leave before retirement eligibility may elect to leave their contributions in the retirement fund and receive their earned benefits later under the system’s deferred retirement provisions. The deferred retirement provisions of CSRS are more generous for Members of Congress than for any other group. Deferred benefits for all employees, other than Members, are payable at age 62. Members may receive deferred benefits at age 62 if they had at least 5 years of federal service, but they are also eligible for deferred benefits at age 60 if they had at least 10 years of Member service or at age 50 if they had 20 years of federal service of which at least 10 were Member service (with the same benefit reductions as applied to Member optional retirements before age 60). Members of Congress receive another advantage under the deferred retirement provisions that is not available to any other employee group. CSRS provides benefits to the survivors of former Members who die in the interim between their separation from federal service and the age at which their deferred annuities would have commenced. Other former employees do not have this survivor protection. If they die before deferred benefit payments begin, their survivors are not eligible for survivor benefits. Rather, the former employees’ contributions to the retirement fund are refunded to the survivors and no further benefits are payable. The maximum benefit allowed under CSRS for general employees and congressional staff is 80 percent of high 3. For general employees, about 41 years and 11 months of service are necessary to accrue benefits equal to 80 percent of high 3. Congressional staff benefits reach 80 percent after 32 years of congressional service. The same maximum benefit applies to law enforcement officers, firefighters, and air traffic controllers, but, because of their mandatory retirement requirements (see pp. 8-9), these employees generally cannot work long enough to earn benefits of 80 percent of high 3. Maximum benefits for Members of Congress are determined somewhat differently, and this difference is more favorable to Members. Their maximum benefit (reached after 32 years of service) is 80 percent of the greater of their high 3 or final salary as a Member of Congress. If a Member leaves Congress to accept an appointive position, the final salary of that position is used as the basis for the maximum benefit if it is greater than the former Member’s high-3 salary or final salary as a Member. In some cases, retirees are reemployed by the government. The CSRS provisions covering reemployment of retired Members of Congress are significantly different from the provisions covering the reemployment of other retirees. In general, retirees (other than retired Members of Congress) who are reemployed by the government continue to receive their annuities, but their salaries are reduced by the amount of the annuity. A reemployed annuitant does not contribute to the retirement fund unless the individual chooses to have such deductions withheld. Reemployment for less than a year does not earn additional retirement benefits. However, annuitants reemployed for a year or more in positions subject to the retirement system are entitled to a supplemental annuity upon subsequent separation if they make retroactive contributions or already had deductions withheld. The supplemental annuity is based on the salary received during the reemployment period. Reemployed annuitants who serve for 5 years or more may, upon separation, elect to pay their retirement contributions retroactively (if they had not elected to have them withheld from pay) and have their annuities recomputed using their total service and new high-3 salary. When retired Members of Congress are reemployed in either elective or appointive positions, their annuities are suspended, and they again become covered by the system as if they had not retired. Reemployed Member retirees make contributions in the amount required for the positions they hold. Upon separation, they receive either (1) reinstated annuities increased by the cost-of-living adjustments that occurred during reemployment or (2) recomputed annuities with credit for their additional service, regardless of the length of the reemployment. In recognition of the differing retirement provisions for the various groups, the CSRS statute requires most groups with preferential benefits to make greater contributions to the retirement fund than general employees. General employees and air traffic controllers contribute 7 percent of their salaries. Members of Congress contribute 8 percent, and congressional staff, law enforcement officers, and firefighters contribute 7.5 percent. Any employee who has a premium pay included in the high-3 salary average must also make contributions from his/her premium pay. For example, law enforcement officers must contribute 7.5 percent of their administratively uncontrollable overtime or availability pay because these premium payments are included in their high-3 salary averages. General employees, law enforcement officers, firefighters, and air traffic controllers receive service credit in their benefit calculations for any full months of unused sick leave they have accumulated at the time of retirement. Sick leave is not used in determining retirement eligibility or high 3. For example, the benefit amount for a general employee at age 55 with 30 years of service and 1 year of unused sick leave would be calculated as if the employee had 31 years of service. The CSRS statute allows the sick leave credit only for employees who are covered by a formal leave system. Since Members of Congress and most congressional staff are not under a formal leave system, they cannot receive the sick leave credit. Of all the employee groups covered by CSRS, only law enforcement officers, firefighters, and air traffic controllers are subject to mandatory retirement provisions. Law enforcement officers must retire by age 57 or as soon thereafter as they complete 20 years of service. Firefighters must retire by age 55 or as soon thereafter as they complete 20 years of service. Individual employees in both groups can be retained to age 60 if their agency heads determine it is in the public interest for them to stay. The mandatory retirement age for air traffic controllers is age 56, regardless of their years of service, and they can be retained to age 61 when the agency head determines it is in the public interest. The basic design of FERS is much different from CSRS. In addition to a pension plan, FERS provides Social Security coverage to all employee groups and includes a Thrift Savings Plan in which all groups may participate. The Social Security and thrift plan provisions do not vary by employee group. The FERS pension plan continued the CSRS practice of providing preferential benefits to Members of Congress, congressional staff, law enforcement officers, firefighters, and air traffic controllers. However, some of the differing benefits under CSRS do not exist in the FERS pension plan. FERS eliminated the benefit reduction under CSRS that applies to Members of Congress who retire before age 60. FERS has no maximum benefit provision. Thus, the higher maximum benefits available to Members of Congress under CSRS do not exist in FERS. FERS provides benefits to the survivors of all employees and Members who have completed at least 10 years of service and die in the interim between their separation from federal service and the age at which their deferred annuities would have commenced. CSRS makes this benefit available only to Members of Congress. FERS does not grant service credit for unused sick leave to any employees, thereby not following the CSRS practice of providing a sick leave credit for all employee groups other than Members of Congress and most congressional staff. FERS eliminated CSRS’ preferential treatment of retired Members of Congress who become reemployed by the government. It requires that annuities for all reemployed retirees, including Members, be continued during the reemployment period but deducted from the retirees’ salaries. Any reemployed annuitant, including Members, must be reemployed at least 1 year before a supplemental annuity is payable and must be reemployed at least 5 years before the annuity can be recomputed. The features of the FERS pension plan that differ by employee group are discussed in the next section. The FERS pension plan raised the retirement age for general employees and congressional staff. It adopted a Minimum Retirement Age (MRA) concept that gradually increases, from age 55 to age 57, the earliest age at which general employees and congressional staff are eligible for optional retirement. However, FERS continued the CSRS practice of allowing Members of Congress to retire at younger ages and with fewer years of service than general employees and congressional staff. General employees and congressional staff are eligible to retire at the MRA with 30 years of service, at age 60 with 20 years, and at age 62 with 5 years. Members of Congress are eligible to retire at the same age and service combinations but may also retire at age 50 with 20 years of service or at any age with 25 years. FERS allows law enforcement officers, firefighters, and air traffic controllers to retire at age 50 with 20 years of service or at any age with 25 years. In this manner, the eligibility requirements for all three groups were made the same under FERS. (Under CSRS, eligibility to retire at any age with 25 years of service is available to air traffic controllers only.) FERS also continued the mandatory retirement requirements and associated provisions in CSRS for law enforcement officers, firefighters, and air traffic controllers. FERS added a provision not included in CSRS that allows Members of Congress, congressional staff, and general employees to retire at the MRA with 10 years of service. However, the accrued benefits for persons who retire under this provision are reduced by five-twelfths of 1 percent for each month (5 percent a year) they are younger than age 62. The benefit formulas for Members of Congress, congressional staff, law enforcement officers, firefighters, and air traffic controllers are all the same under the FERS pension plan. They receive 1.7 percent of their high-3 salaries for each of the first 20 years of service and 1 percent of high 3 for each year of service over 20 years. The FERS benefit formula for general employees is considerably less beneficial than the formula for the other groups. Benefits for general employees who retire before age 62 are calculated at 1 percent of high 3 for each year of service. To encourage later retirements, FERS uses a more generous benefit formula for general employees who retire at age 62 or older with at least 20 years of service. These employees’ benefits are calculated at 1.1 percent of high 3 for each year of service. To illustrate the effect of the different benefit formulas under the FERS pension plan, Members of Congress, congressional staff, law enforcement officers, firefighters, and air traffic controllers would all receive 44 percent of their high-3 salaries after 30 years of service. General employees would receive 30 percent if they were younger than age 62 and 33 percent if they were age 62 or older. Like CSRS, the FERS pension plan allows general employees and congressional staff to retire before attaining the age and service requirements for optional retirement. The age and service requirements for early retirement and the conditions under which early retirement may be granted are the same as those under CSRS. Also like CSRS, FERS does not include any separate early retirement provisions for Members of Congress, although some of the age and service requirements available to Members for optional retirement are the same as the early retirement requirements applicable to general employees and congressional staff. FERS also continued the CSRS practice of not allowing law enforcement officers, firefighters, and air traffic controllers to retire before meeting their age and service requirements for optional retirement unless they qualify for early retirement by adding service in other federal occupations. In such cases, the general employee provisions apply. A major difference between the CSRS and FERS provisions on early retirement is that FERS does not require reductions in earned benefits for employees who retire before attaining optional retirement eligibility. While CSRS requires benefits to be reduced by 2 percent for each year a retiree is younger than age 55, there is no such reduction in the FERS pension plan. The deferred retirement provisions under the FERS pension plan are considerably different from CSRS. The earliest age at which deferred benefits are available under CSRS, other than for Members of Congress, is age 62. However, FERS makes deferred benefits available to general employees and congressional staff when they would have qualified for optional retirement if they had not left the government. Under FERS, unreduced deferred benefits are paid to these employees at the MRA if they had at least 30 years of service, at age 60 if they had at least 20 years, and at age 62 with at least 5 years. To illustrate this point, an employee who resigns his job at age 52 after completing 30 years of service is eligible for deferred benefits at his MRA (age 55 to 57, depending on date of birth). Under CSRS, the employee must wait until age 62 for the deferred benefits to begin. The FERS pension plan allows Members of Congress, law enforcement officers, firefighters, and air traffic controllers to receive deferred benefits at the same ages and years of service as general employees if they were not eligible for optional retirement at the time of separation. Deferred benefits for law enforcement officers, firefighters, and air traffic controllers under these circumstances are calculated under the general employee formula, but Members of Congress and congressional staff retain their special benefit formula. The FERS pension plan also provides deferred benefits to all groups at the MRA if they had completed at least 10 years of service. Deferred benefit amounts paid in these circumstances are reduced by 5 percent for each year the former employees are younger than age 62. Like CSRS, the FERS pension plan requires the groups with preferential benefits to make greater contributions to the retirement fund than general employees. General employees are required to contribute 7 percent of their salaries less the Social Security tax rate (now 6.2 percent), exclusive of Medicare. The current general employee contribution rate to the FERS pension plan is 0.8 percent of salary. Members of Congress, congressional staff, law enforcement officers, firefighters, and air traffic controllers must contribute 7.5 percent of salary less their Social Security taxes. Their current contribution rate to the FERS pension plan is 1.3 percent of salary. We requested comments on a draft of this report from the Director of OPM or his designee. On May 8, 1995, we met with the Chief of the Retirement Policy Division to discuss the report. He agreed that the report accurately portrayed the major features of CSRS and FERS. He also suggested certain wording changes that he felt would better describe the differing provisions for the various employee groups. In general, we incorporated the suggested changes. A copy of this report is being sent to Congressman Dan Miller, who also asked us for information on congressional retirement. Copies of the report are also being sent to the Director of OPM and other parties interested in federal retirement matters and will be made available to others on request. Assistant Director Robert E. Shelton and Senior Evaluator Laura G. Shumway developed the information for this report. Please contact me on (202) 512-5074 if you or your staffs have any questions about this report. This appendix lists CSRS provisions that differ for the various employee groups they cover. Not only do the provisions vary by employee group, but they also vary by the type of retirement. The types of retirement shown in table I.1 include: optional retirement in which employees may opt to retire and receive an early retirement in which employees may retire and receive an immediate annuity before attaining the age and service requirements for optional retirement. The circumstances include (1) involuntary separations such as loss of employment through job abolishment or reduction-in-force and (2) voluntary separations occurring when an agency is undergoing a major reorganization, a major reduction-in-force, or a major transfer of function where a significant percentage of employees will be separated or have their salary grades reduced; and deferred retirement in which employees leave federal service before qualifying for optional or early retirement, i.e., before qualifying for an annuity that can begin immediately. Their annuities are deferred until they reach a specified age. Age 62, 5 years Age 55, 30 years (with reduction) Age 50, 20 years (with reduction) Any age, 25 years (with reduction) Age 50, service in nine Congresses (with reduction) None at age 60 and older Annuity reduced by one-twelfth of 1% for each month Member is between ages 55 and 60 (1% a year) and by one-sixth of 1% for each month Member is under age 55 (2% a year) 80% of high 3, excluding credit for unused sick leave 80% of high 3 80% of the greater of: - final basic pay of the Member, - high 3 of the Member, or - final basic pay of the appointive position of a former Member (continued) Age 50, 20 years Any age, 25 years (with reduction if under age 55) Same as optional retirement formula with reduction if under age 55 Annuity reduced by one-sixth of 1% for each month the employee is under age 55 (2% a year) None. See optional and deferred retirement provisions (with reduction if under age 55) Annuity payable when former Member reaches: - age 62 with at least 5 years of service - age 60 with at least 10 years of Member service - age 50 with at least 20 years of federal service, including at least 10 years Member service (with reduction) Air traffic controllers must retire at age 56, regardless of years of service(continued) Annuity continues upon reemployment, but the salary is reduced by the amount of the annuity as long as required contributions are made an individual employed: - at least one year can receive a supplemental annuity upon separation, and - at least five years can have the annuity recomputed based on total service and a new high 3 Annuity suspended upon reemployment and Member again makes required contributions Upon separation, the annuity recommences and is either (1) recomputed with credit for additional service regardless of how long the Member was reemployed or (2) reinstated with the cost-of-living adjustments that occurred during reemployment Members cannot receive an annuity under these age and service requirements if they resign or are expelled from Congress. The high 3 for law enforcement officers includes availability pay or pay for administratively uncontrollable overtime. Law enforcement officers and firefighters may be retained to age 60 when the agency head believes the public interest requires that they stay. This appendix lists FERS provisions that differ for the various employee groups they cover. Not only do the provisions vary by employee group, but they also vary by the type of retirement. The types of retirement shown in table II.1 include: optional retirement in which employees may opt to retire and receive an early retirement in which employees may retire and receive an immediate annuity before attaining the age and service requirements for optional retirement. The circumstances include (1) involuntary separations such as loss of employment through job abolishment or reduction-in-force and (2) voluntary separations occurring when an agency is undergoing a major reorganization, a major reduction-in-force, or a major transfer of function where a significant percentage of employees will be separated or have their salary grades reduced; and deferred retirement in which employees leave federal service before qualifying for optional or early retirement, i.e., before qualifying for an annuity that can begin immediately. Their annuities are deferred until they reach a specified age. Age 60, 20 years Age 62, 5 years MRA, 10 years (with reduction) Formula for determining the annuity amount 1.1% of high 3 for each year of service if age 62 or older with 20 years 1% of high-3 for each year of service if under age 62, or age 62 or older with less than 20 years None at ages MRA and 30 years, age 60 and 20 years, or age 62 and 5 years For employee retiring at MRA and 10 years, annuity reduced by five-twelfths of 1% for each month employee is under age 62 (5% a year) Age 62, 5 years Age 50, 20 yearsAny age, 25 yearsMRA, 10 years (with reduction) If 5 or more years of congressional service: 1.7% of high-3 for each of first 20 years of congressional service 1% of high-3 for each year over 20 years of congressional service and any other federal service (including military service) None at ages MRA and 30 years, age 60 and 20 years, age 62 and 5 years, age 50 and 20 years, or any age and 25 years For Member retiring at MRA and 10 years, annuity reduced by five-twelfths of 1% for each month Member is under age 62 (5% a year) Same as optional retirement formula (continued) Annuity payable when former employee reaches the age requirement for optional retirement: - MRA with at least 30 years - age 60 with at least 20 years - age 62 with at least 5 years - MRA with at least 10 years (with reduction) Same as optional retirement formula None at age 62, age 60 and 20 years, or MRA and 30 years For MRA and 10 years, annuity reduced by five-twelfths of 1% for each month the former employee is under age 62 (5% a year) If at least 10 years of service, annuity begins on the day after the former employee would have been - age 62, if less than 20 years service - age 60, if 20 through 29 years service - MRA, if 30 or more years service Alternatively, annuity can begin the day after death, but annuity computed actuarially equivalent to waiting for above age and service combinations Currently 0.8% of salary (7% of salary less the Social Security tax rate, other than Medicare) Air traffic controllers must retire at age 56 or as soon thereafter as they complete 20 years of service(continued) Annuity continues upon reemployment, but the salary is reduced by the amount of the annuity As long as required contributions are made, an individual employed: - at least one year can receive a supplemental annuity upon separation, and - at least five years can have the annuity recomputed based on total service and a new high 3 upon separation The high 3 for law enforcement officers includes availability pay or pay for administratively uncontrollable overtime. Law enforcement officers and firefighters may be retained to age 60 when the agency head believes the public interest requires that they stay. Figure III.1: Maximum CSRS Annuities Immediately Available to Employee Groups Under the Optional Retirement Provisions Law enforcement officers and firefighters Note 1: The CSRS optional retirement provisions are described in appendix I. Under these provisions an individual may voluntarily retire with an immediate annuity, which may be unreduced or reduced depending on his/her age and years of service at the time of retirement. Special early out voluntary retirements, disability retirements, and involuntary retirements are not considered optional. Note 2: These bars represent the maximum percentage of high-3 that is available at the years of service shown. The ages required to obtain these maximum percentages vary by group. Note 3: The percentages shown above the bars are rounded. For example, the 56 percent shown for general federal employees and air traffic controllers at 30 years of service is actually 56.25 percent. Law enforcement officers and firefighters Note 1: A missing bar means the employee group cannot retire at that age and years of service under the optional retirement provisions. Note 2: The percentages shown above the bars are rounded. For example, the 56 percent shown for air traffic controllers at 30 years of service is actually 56.25 percent. Law enforcement officers and firefighters Note 1: A missing bar means the employee group cannot retire at that age and years of service under the optional retirement provisions. Note 2: The percentages shown above the bars are rounded. For example, the 56 percent shown for general federal employees and air traffic controllers at 30 years of service is actually 56.25 percent. Note 1: A missing bar means the employee group cannot retire at that age and years of service under the optional retirement provisions. Note 2: The percentages shown above the bars are rounded. For example, the 56 percent shown for general federal employees at 30 years of service is actually 56.25 percent. Note 3: Law enforcement officers, firefighters, and air traffic controllers are not shown in this figure. In most cases, they have already retired because of their mandatory retirement ages. Note 1: The percentages shown above the bars are rounded. For example, the 56 percent shown for general federal employees at 30 years of service is actually 56.25 percent. Note 2: Law enforcement officers, firefighters, and air traffic controllers are not shown in this figure. In most cases, they have already retired because of their mandatory retirement ages. Figure IV.1: Maximum FERS Annuities Immediately Available to Employee Groups Under the Optional Retirement Provisions Law enforcement officers and firefighters (Figure notes on next page) Note 1: The FERS optional retirement provisions are described in appendix II. Under these provisions an individual may voluntarily retire with an immediate annuity, which may be unreduced or reduced depending on his/her age and years of service at the time of retirement. Special early out voluntary retirements, disability retirements, and involuntary retirements are not considered optional. Note 2: These bars represent the maximum percentage of high-3 that is available at the years of service shown. The ages required to obtain these maximum percentages vary by group. Note 3: The percentages shown above the bars are rounded. For example, the 9 percent shown for Members of Congress at 5 years of service is actually 8.5 percent. Note 4: If a general federal employee is age 62 with at least 20 years of service, the percentages are 22 percent with 20 years, 27.5 percent with 25 years, 33 percent with 30 years, and 38.5 percent with 35 years, because the multiplier increases from 1 percent for each year of service to 1.1 percent for each year of service.

Summary: Pursuant to a congressional request, GAO compared the retirement benefits available to members of Congress and congressional staff with those available to other employees under the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS). GAO found that: (1) CSRS provisions for congressional members are generally more generous than those for general employees; (2) Members of Congress, law enforcement officers, firefighters, and air traffic controllers may retire at a younger age and with fewer years of service than general and congressional employees; (3) Members, congressional staff, law enforcement officers, firefighters, and court judges enjoy a higher benefit formula than general employees; (4) air traffic controllers are covered by the general employee benefit formula, but they are guaranteed a minimum 50-percent pension; (5) general employees and Members are subject to having their pensions reduced if they retire early; (6) some special employee groups have their premium pay included in their benefit formulas; (7) employees who receive preferential benefits are required to make greater payroll contributions; (8) the FERS pension plan has many of the CSRS advantages for Members, congressional staff, law enforcement officers, firefighters, and air traffic controllers and has eliminated or changed some CSRS provisions; and (9) under FERS, law enforcement officers, firefighters, and air traffic controllers enjoy provisions similar to those for Members of Congress.