In one paragraph
Federal retirement uses dozens of acronyms: FERS for the retirement system, TSP for the savings plan, MRA for the earliest retirement age, SRS for the Social Security bridge payment before age 62, and high-3 for the salary figure that drives your pension. This glossary defines the core terms you will meet in the RetireCiv wizard and in your official retirement paperwork (SF-50, LES, OPM letters), grouped by topic. It is a working reference, not an exhaustive index, and it grows as the product does.
Retirement Systems
The two federal retirement systems and the transition rules between them.
- FERSFederal Employees Retirement System#
- The retirement system covering most federal civilian employees first hired on or after January 1, 1984 (the system itself took effect January 1, 1987; 1984–1986 hires were converted then unless they elected CSRS Offset). FERS has three components: a basic pension annuity, the Thrift Savings Plan (TSP), and Social Security.Learn moreThe three pillars of FERS
- CSRSCivil Service Retirement System#
- The older federal retirement system covering employees hired before January 1, 1984. CSRS provides a larger pension annuity than FERS but does not include Social Security or a TSP agency match.
- CSRS Offset#
- A hybrid system for employees who had a CSRS break in service and returned. The CSRS pension is reduced (offset) by the portion of Social Security earned during covered federal service.
Pension & Annuity
How the FERS basic pension is calculated and paid.
- Basic Annuity#
- The lifetime monthly pension paid by the federal government based on years of creditable service and high-3 salary. For most FERS employees the formula is 1.0% × high-3 × years of service, or 1.1% if retiring at age 62 or older with at least 20 years of service.Learn moreThe three pillars of FERS
- High-3High-3 Average Salary#
- The average of your highest three consecutive years of basic pay, used to calculate your annuity. This is usually your last three years of service, but not always; any 36 consecutive months of higher earnings will be used instead.
- SCDService Computation Date#
- The date used to determine your length of creditable federal service for retirement purposes. Your SCD appears on your SF-50 and is typically your hire date adjusted backward for any military service or earlier federal employment you have credited.
- MRAMinimum Retirement Age#
- The earliest age at which a FERS employee can retire with an immediate, unreduced annuity (given enough years of service). The MRA is 55 to 57 depending on year of birth. For anyone born in 1970 or later, the MRA is 57.
- COLACost-of-Living Adjustment#
- An annual percentage increase applied to your FERS annuity to offset inflation. FERS COLAs are smaller than CSRS COLAs and generally only apply once you reach age 62 (with limited exceptions for special-provision employees).
- Pension Multiplier#
- The percentage applied to your high-3 salary per year of service when computing your annuity. The standard FERS multiplier is 1.0%; the enhanced multiplier is 1.1% (age 62+ with 20+ years); special-provision employees get 1.7% for the first 20 years when retiring under the special provisions themselves. Retiring under VERA or DSR computes at the standard rate instead.
Thrift Savings Plan (TSP)
The federal government’s 401(k)-equivalent defined-contribution account.
- TSPThrift Savings Plan#
- The defined-contribution retirement savings plan for federal employees, similar to a private-sector 401(k). FERS employees receive an automatic 1% agency contribution plus matching contributions that top out at 4%, so total agency contributions reach 5% of pay.
- TSP Match#
- The portion of your TSP contributions matched by your agency. FERS employees get a full 100% match on the first 3% they contribute and a 50% match on the next 2%, so the match tops out at 4% of pay. With the automatic 1% agency contribution, total agency money reaches 5% when you contribute at least 5% of your own pay.
- Traditional vs. Roth TSP#
- Traditional TSP contributions are pre-tax (taxed when withdrawn in retirement); Roth TSP contributions are after-tax (withdrawals are tax-free if rules are met). Agency matching contributions always go into the Traditional balance regardless of which option you choose for your own contributions.
- L FundsLifecycle Funds#
- Target-date funds inside the TSP that automatically shift from stock-heavy to bond-heavy allocations as the target retirement year approaches. L Funds are named by year (L 2030, L 2040, etc.) and the L Income fund is for retirees already drawing income.
- TSP Core Funds#
- The five individual TSP funds: G (government securities), F (fixed income bonds), C (S&P 500 stocks), S (small/mid-cap stocks), and I (international stocks). The L Funds are built from these five.
Special Provisions
Enhanced retirement benefits for specific federal occupations with mandatory early-retirement rules.
- Special Provisions Employee#
- A federal employee in a job covered by enhanced FERS retirement rules: Law Enforcement Officer (LEO), Firefighter (FF), Air Traffic Controller (ATC), Customs and Border Protection Officer (CBPO), or Nuclear Materials Courier. Special-provision employees can retire at age 50 with 20 years or any age with 25 years, with a 1.7% pension multiplier for the first 20 years.
- LEOLaw Enforcement Officer#
- A federal employee whose duties primarily involve investigation, apprehension, or detention of suspected or convicted criminals. LEO coverage carries a mandatory retirement age of 57 (with limited extensions).
- Firefighter#
- A federal employee whose primary duties involve fire prevention, suppression, or rescue. Federal firefighters fall under FERS special provisions with the same enhanced multipliers and mandatory retirement age 57 as LEOs.
- ATCAir Traffic Controller#
- A federal employee actively controlling air traffic, covered by FERS special provisions. ATC positions carry a mandatory retirement age of 56 (extendable to 61 in some cases).
- Mandatory Retirement Age#
- The age at which special-provision employees are required to retire by federal law. For LEOs and firefighters this is age 57; for air traffic controllers it is age 56.
Leave & Service Credit
How accumulated leave and prior service convert into retirement credit.
- Sick Leave Credit#
- Unused sick leave at retirement is converted into additional creditable service for your annuity calculation, at the rate of 174 hours per month of service. Sick leave credit does not count toward retirement eligibility, only toward the size of your annuity.
- Annual Leave Category#
- Your annual-leave accrual rate, determined by years of federal service: Category 1 (less than 3 years) earns 4 hours per pay period, Category 2 (3 to 15 years) earns 6 hours plus 10 hours in the last full pay period of the leave year, for 160 hours a year (5 U.S.C. §6303(a)), and Category 3 (15+ years) earns 8 hours.
- Creditable Service#
- The total federal service that counts toward your retirement eligibility and annuity size. Includes most civilian federal service, military service if deposit is paid, and certain non-federal service in specific circumstances.
- Military Service Credit#
- Active-duty military service can be credited toward your FERS annuity if you pay a "post-1956 military deposit", typically 3% of your military basic pay plus interest. Without the deposit, military service may still count toward retirement eligibility but not annuity computation in some cases.
Spousal & Survivor Benefits
Options that continue benefits to your spouse after your death.
- Survivor Benefit Election#
- At retirement you choose whether to provide a survivor annuity to your spouse: none, 25%, or 50% of your annuity. Electing 50% reduces your annuity by 10% during your lifetime; electing 25% reduces it by 5%; spousal consent is required to elect less than 50%.
- FEHBFederal Employees Health Benefits#
- The federal health-insurance program. To carry FEHB into retirement you generally must have been enrolled in any FEHB plan for the 5 years immediately before retirement (or since first eligibility, if less than 5 years).
- FEDVIPFederal Employees Dental and Vision Insurance Program#
- Separate dental and vision insurance for federal employees and retirees. Unlike FEHB, there is no government contribution: retirees pay the full premium, deducted from the annuity with after-tax dollars.
- FEGLIFederal Employees Group Life Insurance#
- The federal group life-insurance program. At retirement you elect how Basic coverage behaves after age 65: a 75% reduction (premium-free after 65), a 50% reduction, or no reduction, each with different ongoing premiums.
- Former Spouse Survivor Annuity#
- A survivor annuity for a former spouse, awarded through a court order or qualifying domestic relations order. If a former spouse is entitled to the full survivor annuity, you may not elect a current-spouse survivor annuity from the same retirement.
Retirement Options
The different paths to retirement under FERS, each with different eligibility rules and annuity treatment.
- Immediate Retirement#
- Retiring with an annuity that begins the month after separation. The unreduced combinations are age 62 with 5+ years, age 60 with 20+ years, or MRA with 30+ years of service. An MRA+10 retirement is also immediate but is reduced for each year you are under age 62.
- MRA+10#
- Retiring at your Minimum Retirement Age with at least 10 years (but less than 30) of service. The annuity is reduced by 5% for each year you are under age 62. You can postpone the start date to reduce or eliminate this reduction.
- Deferred Retirement#
- Separating from federal service before becoming eligible for an immediate annuity, with the annuity starting at a later age. Most commonly used when you leave federal service with at least 5 years of service but before MRA.
- Postponed Retirement#
- An MRA+10 retirement where you delay the start of your annuity to reduce or eliminate the age-based reduction. Postponing also preserves your right to re-enroll in FEHB when the annuity starts.
- Disability Retirement#
- An annuity available if you become unable to perform the essential functions of your position due to medical condition, with at least 18 months of FERS service. The annuity computation uses a different formula than standard retirement and can be combined with Social Security Disability Insurance. The RetireCiv calculator does not model this computation; the course covers it as educational content.
- DSRDiscontinued Service Retirement#
- An immediate, unreduced annuity for employees separated involuntarily, such as in a reduction in force (RIF), at age 50 with 20 years of service or at any age with 25 years. Uses the same age and service tracks as VERA; the difference is that the separation is involuntary. Declining a reasonable offer of another position, or separation for cause, ends DSR eligibility, and accepting severance pay and taking a DSR are mutually exclusive. A law enforcement officer, firefighter, or controller who retires under DSR is computed at the standard 1.0% rate, not the 1.7% special-provision rate, and their supplement starts at their MRA.
- VERAVoluntary Early Retirement Authority#
- Special authority that lets agencies offer early retirement to employees during reorganizations or restructuring. VERA allows eligible employees to retire at any age with 25 years of service, or at age 50 with 20 years. A law enforcement officer, firefighter, or controller who retires under VERA is computed at the standard 1.0% rate, not the 1.7% special-provision rate, and their supplement starts at their MRA.
- VSIPVoluntary Separation Incentive Pay#
- A lump-sum payment (up to $25,000, or higher for DoD) offered by agencies as an incentive for voluntary separation or early retirement. Recipients who return to federal service within 5 years generally must repay the incentive.
- Phased Retirement#
- A program allowing eligible employees to work half-time while drawing half their annuity, with at least 20% of those hours spent mentoring. Open only to employees eligible at MRA with 30 years or age 60 with 20 years, and requires agency approval.
See how these terms apply to you
The RetireCiv wizard walks you through each input these terms describe, and computes your annuity, TSP projection, and readiness score from them.
Start free
Social Security & Special Retirement Supplement
How Social Security integrates with FERS and bridges the gap before age 62.