CSRS annuity formula


Q: I know that I can retire at 30 years of service and 55 years of age.
At the present time I have more than 30 years of service; however, I am under 55. I am 50. I would like to know:
1. For every year above 30 years of service do I get 2 percent more or only at 30 years and age 55?
2. If so? If I decided to retire say at 52 or 53 with 34 years would that balance out to a full retirement?

A: Here’s the formula used to compute the annuities of Civil Service Retirement System employees:
0.015 x your high-three x 5 years of service, plus
0.0175 x your high-three x 5 years of service, plus
0.02 x you high-three x all remaining years of service
In other words, every year of service you have over 10 is multiplied by 0.02 percent. Under CSRS rules, you could only retire before reaching age 55 if your agency offered you early retirement opportunity. Otherwise, you’d have to stay until age 55.


About Author

Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.

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