This resource is a tool designed to estimate the additional payments received by eligible federal employees under the Federal Employees Retirement System (FERS) upon retirement and before becoming eligible for Social Security benefits. It assists in projecting the amount of the temporary annuity payable from the date of retirement until the retiree reaches age 62. The projection considers factors such as years of service, high-3 average salary, and the applicable calculation formula.
The utility of this calculation stems from the fact that it helps potential retirees understand their income streams during the early years of retirement, allowing for more informed financial planning. It provides a bridge, compensating for the period before Social Security eligibility. Historically, this supplement was designed to mimic the Social Security benefits employees would have received had they been eligible at retirement, acknowledging that federal employees contribute to Social Security throughout their careers.