You can qualify if you are:

• Federal Employees Retirement System (FERS) employee (started on or after January 1, 1984)
• Civil Service Retirement System (CSRS) employee (began before January 1, 1984, and did not convert to FERS)
• Member of the uniformed services (active duty or Ready Reserve)
• Civilians in specific other categories of Government service, including some congressional positions and judges

As a federal employee can contribute up to $23,000 in your Thrift Savings Plan in 2024. Additionally, all federal employees over the age of 50 can make a catch-up contribution of $7,500 per year.
If you are a member of the uniformed services, receiving tax-exempt pay that is subject to the combat zone tax exclusion, you can make contributions up to the combined limit of $69,000 per year.

Additionally, as a TSP participant, you will receive a matching contribution on the first 5% of your salary that you contribute each pay period.  You will get a 1% government contribution even if you choose not to participate in the plan. The next 3% of your contributions will get a dollar-for-dollar match. The next 2% will be matched at 50 cents on the dollar. Contributions above 5% of your salary do not receive an additional match.

Civil Service Retirement System (CSRS) employees can contribute to TSP without receiving a government match.

FERS Pension Annuity

As a federal employee, you are entitled to a pension annuity based on your years of service, the  “high-3” average salary, and your job type. 

The “high-3” average pay is your highest average base pay you earned during any 3 consecutive years of service. Your basic pay is the basic salary you earn for your position excluding payments for overtime and bonuses.

The Basic FERS Annuity Formula:

Age	Formula
Under Age 62 at Separation for Retirement, OR Age 62 or Older With Less Than 20 Years of Service	1 percent of your high-3 average salary for each year of service
Age 62 or Older at Separation With 20 or More Years of Service	1.1 percent of your high-3 average salary for each year of service

Certain government employees receive a pension annuity under the following provisions:

Special Provision for Air Traffic Controllers, Firefighters, Law Enforcement Officers, Capitol Police, Supreme Court Police, or Nuclear Materials Couriers

• 1.7% of your high-3 average salary multiplied by your years of service which do not exceed 20, PLUS
• 1% of your high-3 average salary multiplied by your service exceeding 20 years

Member of Congress or Congressional Employee (or any combination of the two) must have at least 5 years of service as a Member of Congress and/or Congressional Employee

• 1.7% of your high-3 average salary multiplied by your years of service as a Member of Congress or Congressional Employee which do not exceed 20, PLUS
• 1% of your high-3 average salary multiplied by your years of other service

CSRS Pension Annuity

The CSRS annuity is a defined benefit, contributory retirement plan.  If you are a CSRS federal employee, you must share in the expense of your annuity pension. You can contribute 7%, 7.5%, or 8% of your pay to CSRS. Your federal agency will match your CSRS contribution.  Furthermore, CSRS employees do not pay a Social Security tax and are not eligible for Social Security benefits.

CSRS Annuity Formula

Years of Service	What You Receive
First 5 years of service	1.5 percent of your high-3 average salary for each year
Second 5 years of service	Plus 1.75 percent of your high-3 average salary for each year
For all years of service over 10	Plus 2 percent of your high-3 average salary for each year.

Social Security

All FERS employees receive social security benefits based on your annual income and years of service. Check the Social Security Administration website for your most up-to-date benefits.  Most retirees will receive their social security paycheck at their full retirement age of 67. You can choose to delay collecting your social security benefits beyond your full retirement age, The amount of your retirement benefit will continue to increase up until age 70 by 8% annually if you are born after 1943. You can elect to receive your social security benefits as early as age 62.  In this case, you will receive a reduced benefit. A Federal employee’s spouse is also eligible for Social Security benefits. He or she can receive  50% of the primary insurance amount.

Insurance

As a federal government employee, you are a member of the largest group life insurance program in the world,  the Federal Employees’ Government Life Insurance (FEGLI). The Federal life insurance program covers over 4 million Federal employees and retirees, as well as many of their family members.  Most federal employees are eligible for basic insurance coverage. You are responsible for the 2/3 of the total cost and the Government pays 1/3. Your age does not affect the cost of Basic insurance. Additionally, you can choose Option B, which allows you to increase your coverage by equal to one, two, three, four, or five times your annual basic pay. With Option C, you can add other family members to your insurance plan.

Health Care Benefits

Federal employees have the largest selection of healthcare plans covering you and your family. You can choose between Consumer-Driven and High Deductible plans, Fee-for-Service (FFS) plans without a Preferred Provider Organizations (PPO) option, or Health Maintenance Organizations (HMO). You can enroll in a tax-deductible Flexible Spending Account or triple tax-advantaged Health Spending Account (HSA), available to high-deductible plans only. You are also eligible for Dental and Vision insurance.