Retirement…a time for reflection, rest, and enjoyment…a rewarding time.But, a rewarding retirement doesn’t just happen. It takes careful planning.Knowing when you can retire and where you will stand financially are important parts of that planning process. The financial security you will have in the future depends, in part, on the plans you make today.

The Federal Employees Retirement System, or FERS, became effective January 1, 1987. Almost all new employees hired after December 31, 1983, are automatically covered by FERS. Certain other Federal employees not covered by FERS have the option to transfer into the plan.

You pay full Social Security taxes and a small contribution to the Basic Benefit Plan. In addition, your agency puts an amount equal to 1% of your basic pay each pay period into your Thrift Savings Plan (TSP) account. You are able to make tax-deferred contributions to the TSP and a portion is matched by the Government.

The three components of FERS work together to give you a strong financial foundation for your retirement years.

FERS is a three-tiered retirement plan. The three components are:

• Social Security Benefits
• Basic Benefit Plan
• Thrift Savings Plan