One of the most overlooked and least understood provisions of federal retirement is the annuity limit. The bad news is that does exist. The good news is that it applies only to a minority of potential retirees and even then has certain loopholes.

The annuity limit applies only under CSRS. There is no such limit under FERS.

Under CSRS, the dollar amount of your annuity cannot exceed 80 percent of your high-3 average salary. That