The Office of Personnel Management (OPM) governs your federal retirement benefits. We break down the rules into plain English — with direct links to official OPM sources so you can fact-check everything.
Every resource below includes a direct link to the official OPM source. We interpret the rules — you verify them. No gatekeeping.
Click any official source link to verify directly on OPM.gov or SSA.gov.
Your FERS basic annuity is calculated as: High-3 Average Salary × Years of Service × Multiplier (1% or 1.1% if 62+). Understanding this formula is the foundation of your federal retirement plan.
Scott's Take
Many federal employees don't realize that working just one more year past age 62 increases their multiplier from 1% to 1.1% — a 10% pension boost for life. This is one of the easiest "wins" in federal retirement planning.
Your High-3 is the average of your highest pay rates over any 3 consecutive years of federal service — not necessarily your last 3 years. Pay increases, step increases, and promotions all factor in.
Scott's Take
If you're 2-3 years from retirement, a strategic promotion or detail assignment can raise your High-3 and compound through your entire pension. We review this with every federal client.
You can carry your FEHB health insurance into retirement if you meet the "5-year rule" — enrolled in FEHB for the 5 years immediately before retirement (or from first opportunity).
Scott's Take
This is one of the most valuable federal benefits — keeping employer-subsidized health insurance into retirement. If you're considering dropping FEHB, don't. The 5-year rule is strict and irreversible.
FEGLI provides life insurance that can continue into retirement, but coverage typically reduces with age. When you retire, you choose a reduction election for Basic and Option B coverage — the default is automatic reduction starting at age 65.
Scott's Take
FEGLI gets very expensive as you age, and coverage shrinks. Many federal employees are overpaying for life insurance in retirement without realizing it. We do a full FEGLI vs. private policy comparison.
FERS is a three-tier system: FERS Pension + TSP + Social Security. Federal employees under FERS pay into Social Security and are eligible for full benefits, unlike CSRS employees.
Scott's Take
The interaction between your FERS pension, Social Security claiming age, and TSP withdrawal strategy is where most federal retirees lose money. Timing matters — claiming Social Security at 62 vs. 70 can mean $100K+ difference in lifetime benefits.
You can elect a survivor annuity for your spouse — typically 50% of your unreduced pension. This reduces your monthly pension by 10% but provides lifetime income for your surviving spouse.
Scott's Take
The survivor benefit election is permanent and affects both your income and your spouse's security. We help clients compare the cost of the FERS survivor benefit vs. purchasing a private life insurance policy — the math often favors private insurance.
FERS has multiple paths to retirement. The key milestones: MRA+10 (reduced), Age 62+5 years, Age 60+20 years, MRA+30 years (unreduced), and Age 55+30 for special groups.
Scott's Take
Choosing the wrong retirement date can permanently reduce your pension by 5% per year. We run a full "best date to retire" analysis for every federal client — factoring in pension, TSP, Social Security, and tax implications.
FEDVIP (Federal Employees Dental and Vision Insurance Program) is separate from FEHB and can continue into retirement. Premiums are 100% employee-paid but group rates are competitive.
Scott's Take
FEDVIP doesn't have the 5-year requirement like FEHB — but if you're already enrolled, keeping it into retirement is usually cheaper than finding private dental coverage.
What you should be doing at each stage of your federal career.
Reading the rules is step one. Applying them to your specific situation is where we add value. Book a free strategy session with Scott.
Disclosures
Smart Life Financial LLC is an independent insurance agency. Scott Borhauer, NPN 20016169.
Smart Life Financial is not affiliated with, endorsed by, or authorized by the United States Government, the Office of Personnel Management, the Social Security Administration, the Department of Veterans Affairs, the Federal Retirement Thrift Investment Board, or the Thrift Savings Plan. Any links to government resources are provided for convenience and do not imply any relationship.
This material is for informational purposes and does not constitute tax, legal, or investment advice. Federal retirement elections are generally irrevocable. Consult your agency benefits officer, a qualified tax professional, and an attorney regarding your specific situation.
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