Federal Employee Retirement System

The Federal Employee Retirement System (FERS) is the retirement plan for most U.S. federal employees. It combines three components: a Social Security benefit, a personal savings plan called the Thrift Savings Plan (similar to a 401(k)), and a pension funded by the government based on years of service and salary. Employees contribute a portion of their paycheck, and the government also contributes. FERS provides retirement income to help federal employees financially after they leave government service, typically starting at age 60 or 62, with additional benefits for those with longer service.