Thursday, January 30, 2025

Federal Employee Pension Rules 1-29-25

Federal government pension rules are based on age, years of service, and salary history. The Federal Employee Retirement System (FERS) is a defined-benefit plan that provides a pension or annuity to federal employees. 

Eligibility To be eligible for a FERS pension, you must work for the federal government for at least five years 

To be eligible for a full, unreduced pension, you must meet one of the following requirements: 

Be 62 years old with five years of service 

Be 60 years old with 20 years of service 

Be at your minimum retirement age (MRA) with 30 years of service  

You may be eligible for a deferred annuity if you leave federal service before meeting the age and service requirements for an immediate retirement benefit 

Funding 

Your FERS pension is funded by automatic deductions from your basic pay

The amount of the deduction depends on your position and the date of your first federal appointment

Additional benefits

You may also be eligible for Social Security retirement benefits, which are based on your earnings averaged over most of your working career 

You may be able to choose to reduce your annuity to provide a larger annuity for your spouse or former spouse 

https://www.google.com/search?q=federal+government+pension+rules

The IRS recently announced the cost-of-living adjustments applicable to certain dollar limits for employee pension benefit plans for 2025. The resulting dollar limits are as follows: The annual benefit limit for defined benefit plans is increased from $275,000 to $280,000.

https://www.google.com/search?q=federal+government+pension+rules&oq=federal+employee+pension+rules&gs_lcrp=EgZjaHJvbWUqCAgBEAAYFhgeMgYIABBFGDkyCAgBEAAYFhgeMggIAhAAGBYYHjILCAMQABgWGB4YiwMyDQgEEAAYChgWGB4YiwMyCwgFEAAYFhgeGIsDMhAIBhAAGIYDGIsDGIAEGIoFMhAIBxAAGIYDGIsDGIAEGIoFMhAICBAAGIYDGIsDGIAEGIoFMhAICRAAGIYDGIsDGIAEGIoF0gEJMzMyOThqMWo3qAIAsAIA&sourceid=chrome&ie=UTF-8

According to data from Pew Research Center, the average working tenure for civilian federal government employees is around 11.8 years. This is significantly higher than the median tenure for private sector jobs, which is typically around 3.7 years. 

Norb Leahy, Dunwoody GA Tea Party Leader

 

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