GS pay and FERS retirement, explained
By a Navy veteran. Updated October 2026.
Short answer: A federal civilian job on the General Schedule (GS) pays a salary set by grade, step and locality. Under FERS, your pension is 1% of your high-3 average pay for each year of service, or 1.1% if you retire at 62 or older with at least 20 years. The TSP adds an agency contribution on top.
How GS pay works
Your pay starts with a grade (GS-1 to GS-15) and a step (1 to 10) on OPM’s base table. A locality adjustment for your area is added on top. Where you work can change your salary by a double-digit percentage, so the same grade and step pays differently in Virginia Beach than in a lower-cost area.
Confirm the current tables and your area’s adjustment on OPM’s pay pages. The Runway calculator uses the 2026 tables.
How the FERS pension is figured
The basic annuity is a percentage of your high-3, multiplied by your years of creditable service. High-3 is the highest average basic pay you earned during any 3 consecutive years. It does not include overtime or bonuses.
| When you retire | Percent per year |
|---|---|
| Under 62, or 62 or older with less than 20 years | 1% |
| 62 or older with 20 or more years | 1.1% |
Worked example
Say your high-3 is $90,000 and you have 20 years of service.
- Retiring under 62: 1% × 20 years × $90,000 = $18,000 a year, about $1,500 a month.
- Retiring at 62 or older: 1.1% × 20 years × $90,000 = $19,800 a year, about $1,650 a month.
Illustration only. Your real figure depends on your actual high-3, service credit and any survivor-benefit election.
When you can retire
| Type | Requirement | Reduction |
|---|---|---|
| Immediate | Age 62 with 5 years | None |
| Immediate | Age 60 with 20 years | None |
| Immediate | Minimum retirement age (MRA) with 30 years | None |
| MRA + 10 | MRA with 10 to 29 years | 5% per year under age 62. Postponing the start date reduces or avoids the cut. |
| Deferred | Age 62 with 5 years, or MRA with 10 years | Same 5% rule at MRA with 10 |
Your MRA depends on your birth year. It is 55 for people born before 1948 and rises to 57 for people born in 1970 or later.
The TSP match
Under FERS, your agency adds 1% of your pay to your TSP automatically, even if you contribute nothing. It also matches what you put in: dollar for dollar on the first 3% of pay and 50 cents on the dollar on the next 2%. Contribute at least 5% of pay to get the full 5% from your agency.
If you are a military retiree
Military retired pay and a FERS pension are separate. Military service counts toward FERS only if you pay a deposit, and a military retiree generally must give up military retired pay to combine the two. There are exceptions, such as retired pay for a combat-related disability and for Reserve service under Chapter 67. Ask OPM and your HR office before you decide. If you keep your military retired pay, only your civilian years count toward FERS.
Also ask HR about
- Family health coverage through FEHB in retirement.
- Social Security, which FERS includes.
- The FERS annuity supplement if you retire before 62.
Run your own numbers
The Runway Full version has a federal job estimator. Pick your GS grade, step and area, see the salary, pension and TSP match, then add it to your family plan as your own or your spouse’s income.
Open the planner