Federal retirement glossary

Terms, A to Z of your paperwork

High-3

High-3 is the average of a federal employee's highest 36 consecutive months of basic pay, and it is the figure a FERS or CSRS pension is calculated from rather than final salary. Overtime and most bonuses are excluded from basic pay.

Creditable Service

Creditable service is the total federal service that counts toward a federal retirement benefit, including eligibility and the years used in the pension formula. Some periods, such as certain temporary service or unpaid deposits, count only if a deposit is made.

MRA (Minimum Retirement Age)

The FERS Minimum Retirement Age is the earliest age at which a FERS employee can retire with an immediate annuity if the service requirement is met, and it falls between 55 and 57 depending on year of birth. It reaches 57 for employees born in 1970 or later.

FERS Supplement

The FERS Supplement, formally the Special Retirement Supplement, is a payment to eligible FERS employees who retire before age 62 and approximates the Social Security benefit earned during federal service. It stops at age 62.

Survivor Election

A survivor election is the choice a retiring federal employee makes to provide a continuing annuity to a spouse or other eligible survivor, funded by a permanent reduction to the retiree's own annuity. It is generally locked in once retirement is finalized and often determines whether a surviving spouse keeps FEHB.

COLA (Cost-of-Living Adjustment)

A COLA is the annual inflation adjustment applied to federal annuities. CSRS and FERS COLAs are calculated under different rules, and FERS COLAs generally begin later and can be smaller than the measured inflation rate.

FEGLI

FEGLI is the Federal Employees' Group Life Insurance program, which offers Basic coverage plus optional coverage including Option B. Option B premiums increase in five-year age brackets, and reductions or cancellations made at retirement are difficult to reverse.

FEHB

FEHB is the Federal Employees Health Benefits program, which can continue into retirement if enrollment rules are met and coordinates with Medicare beginning at age 65. Continued coverage for a surviving spouse generally depends on the survivor election made at retirement.

TSP (Thrift Savings Plan)

The Thrift Savings Plan is the federal government's defined-contribution retirement savings plan, comparable to a private-sector 401(k) and offering traditional and Roth balances. How money is contributed and how it is later withdrawn are separate decisions with separate tax consequences.

Not affiliated with, endorsed by, or authorized by the U.S. Office of Personnel Management, the Thrift Savings Plan, the Social Security Administration, or any U.S. government agency. Educational only — not investment, tax, or legal advice. No outcome or benefit amount is promised.