Deferred annuities for CSRS/CSRS Offset employees are calculated the same as those who take immediate or early retirement. In other words, a deferred annuity is determined by the following formula:

• 1.5% x high-3 x first 5 years of creditable service,
• + 1.75% x high-3 x next 5 years of service,
• + 2.0% x high-3 x all years of service over 10.

Note: The high-3 used will be the one in effect when the employee left government. It is not adjusted upward for any inflation that may have occurred between the time the employee left government and the time he or she applied for an annuity.

### Example 1:

Age: 62

High-3: \$28,000

Service: 5 years

.015 x 5 x \$28,000 = \$ 2,100 (7.5% of high-3)

### Example 2:

Age: 62

High-3: \$32,000

Service: 23 years

.015 x 5 x \$32,000 = \$ 2,400

.0175 x 5 x \$32,000 = \$ 2,800

.02 x 13 x \$32,000 = \$ 8,320

Result: \$13,520 (42.25% of high-3)

Under FERS, just as with an immediate or early retirement annuity, a deferred annuity benefit will be based on the high-3 average salary. The benefit is calculated according to this formula: .01 x high-3 x years of creditable service.

Those who retire at age 62 or later with at least 20 years of service will have a factor of 1.1 percent used rather than 1 percent.

Age: 60