ERS annuities are based on high-3 average pay. Generally, the benefit is calculated as 1 percent of high-3 average pay multiplied by years of creditable service. For those retiring at age 62 or later with at least 20 years of service, a factor of 1.1 percent is used rather than 1 percent.

One percentage point is added for periods of two months or longer than the employee was separated due to disability.

Full months beyond the last full year are credited proportionately. Note: While unused sick leave cannot be counted toward the high-3 years of average salary or for establishing eligibility for retirement, it is used in the calculation as time actually served.

FERS employees retiring with less than 20 years of service and before attaining age 60 will have their annuities reduced by 5 percent for every year they are under age 62. However, that reduction will be waived if the employing agency provides an opportunity to retire early.