The Federal Employees Retirement System (FERS), established by Congress in 1986 and effective from January 1, 1987, is the retirement plan covering most new Federal civilian employees. Administered under the broader umbrella of Opm Retirement Services, FERS is designed to provide a secure retirement for those dedicated to public service.
FERS operates as a three-tiered retirement system, ensuring benefits come from diverse sources: the FERS Basic Benefit Plan, Social Security, and the Thrift Savings Plan (TSP). For employees considering future career moves, it’s important to note that Social Security and the TSP are portable, meaning they can continue to benefit you even if you leave federal service before retirement. Participation in the Basic Benefit and Social Security components of FERS involves payroll deductions, with both employee and agency contributing to secure your future benefits. Upon retirement, this system ensures a regular annuity payment for life.
A cornerstone of OPM retirement services under FERS is the Thrift Savings Plan (TSP). Upon joining federal service, an account is automatically created for you, with your agency contributing an amount equal to 1% of your basic pay each pay period. Beyond this automatic contribution, employees can personally contribute to their TSP accounts, with agencies providing matching contributions, further enhancing retirement savings. These contributions are tax-deferred, offering immediate tax advantages. The TSP is expertly managed by the Federal Retirement Thrift Investment Board, ensuring prudent investment and growth.
For detailed information regarding the TSP and to maximize your OPM retirement services benefits related to it, please visit the TSP website. To understand the Social Security aspect of your retirement benefits under FERS and OPM retirement services, comprehensive details are available on the SSA website.
This overview provides a foundational understanding of the Federal Employees Retirement System and how it operates within OPM retirement services. For deeper insights into specific aspects of FERS retirement, the resources mentioned and further exploration of the OPM retirement services offerings are highly recommended.
