Federal Employee Retirement System (FERS)

The Federal Employee Retirement System (FERS) is a retirement plan for U.S. federal employees. Established in 1986, it combines three components: Social Security benefits, a Basic Benefit Plan that offers a pension based on salary and years of service, and a Thrift Savings Plan (TSP) that functions like a 401(k), allowing employees to save for retirement with government matching contributions. FERS aims to provide federal workers a stable income after they retire, encouraging long-term service and ensuring financial security for their later years. Eligibility and benefits depend on factors like years of service and age at retirement.