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Retirement

Federal Employees Retirement System (FERS)

The Federal Employees Retirement System (FERS) is a retirement plan that provides benefits from three different sources: a Basic Benefit Plan, Social Security and the Thrift Savings Plan (TSP). Two of the three parts of FERS (Social Security and the TSP) can go with you to your next job if you leave the federal government before retirement. The Basic Benefit and Social Security parts of FERS require you to pay your share each pay period. Your agency withholds the cost of the Basic Benefit and Social Security from your pay as payroll deductions. Your agency pays its part too. Then, after you retire, you receive annuity payments each month for the rest of your life.

Civil Service Retirement System (CSRS)

The Civil Service Retirement System (CSRS) is a defined benefit, contributory retirement system, which became effective on August 1, 1920. CSRS was replaced by the Federal Employees Retirement System (FERS) for federal employees who first entered covered service on and after January 1, 1987. Please note that if you entered the government after this date, you are not eligible for CSRS.

Phased Retirement

*CBP Employees are not eligible for Phased Retirement at this time.

Phased retirement is a human resources tool for federal agencies to retain employees who would have fully retired, but who are willing to continue in federal service for a period of time on a part-time schedule while engaging in mentoring. Employees participating in phased retirement will be paid for the part-time service they continue to provide to the government and will receive additional credit for that service toward their full retirement. These employees will also begin receiving partial annuity payments, pro-rated based on the portion of the workweek that they are not scheduled to work.

How Phased Retirement Works

An employee electing phased retirement continues to work as an employee of the federal government but under a part-time work schedule. At the same time, the employee receives annuity benefit equal to a fraction of the annuity that would have been paid had the employee fully retired. Currently, this means employees will be receiving half of their pay and approximately half of their annuity because currently the only working percentage allowable by regulation is 50 percent.

CSRS Phased Employee

The example below is for a Civil Service Retirement System (CSRS) employee with 35 years and nine months of service.

CSRS Phased Retirement Income

 AnnualMonthly
Current Salary $68,275 * 50%$34,137$2,844.75
Current Annual Annuity $45,296.30 * 50%$22,648$1,877
Total Employee Income in Phased Retirement$56,785$4,731.75

FERS Phased Employee

The example below is for a Federal Employees Retirement System (FERS) employee with 35 years and nine months of service. 

FERS Phased Retirement Income

 AnnualMonthly
Current Salary $34,137 * 50%$34,137$2,844.75
Current Annual Annuity $23,868 * 50%$11,934$994.50
Total Employee Income in Phased Retirement$46,071$3,838.75

Note: No FERS annuity supplement is payable in phased retirement.​ ​ ​

Employment as a Phased Retiree Frequently Asked Questions

Special Note: The employing agency continues to maintain the employee's federal insurance coverage. The employee may continue to contribute to the federal Thrift Savings Plan. If the employee dies while in phased retirement status, death benefits are based on CSRS and FERS provisions for deceased employees.

Last modified: 
September 22, 2020