I Worked Part Time Under FERS; How Does This Affect My Annuity?

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By on October 10, 2017 in Q&A, Retirement with 0 Comments

Words 'part time job' written on a yellow sticky note on a desk in front of a computer keyboard and mouse

Q: I’m a FERS employee who has worked part time for part of my federal career. How does this affect my length of service and the way my FERS annuity is computed?

A: First, the good news. Your part time schedule will not affect your length of service at all. If you’ve worked 10 years on a part time schedule, it’s 10 years of service; it will not change your service computation date or require you to work any longer in order to retire.

Second, the less good news. Your annuity will be computed as if you had worked a full time schedule, but will be prorated based on a factor derived by dividing the number of hours you actually worked by the number of hours that you could have worked if you had been a full time employee for your entire career.

The example in the following table can be found in the retirement coursebooks used by Federal Career Experts in the retirement classes that they deliver to federal agencies as well as in FERSGUIDE. I use it with permission of FERSGUIDE and Dan Jamison.

Period # of years Hours worked per week Annual hours possible Annual hours worked
1990-2002 12 40 25,044 25,044
2003-2015 13 24 27,131 16,224
2016 1 16 2,087 832
Total Hours → 54,262 42,100

The proration factor in this example is 77.59%, so if the individual was entitled to a FERS pension of $40,000, the proration would reduce it to $31,036.

Agencies can request to have John Grobe, or another of Federal Career Experts' qualified instructors, deliver a retirement or transition seminar to their employees. FCE instructors are not financial advisers and will not sell or recommend financial products to class participants. Agency Benefits Officers can contact John Grobe at [email protected] to discuss schedules and costs.

© 2017 John Grobe. All rights reserved. This article may not be reproduced without express written consent from John Grobe.

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About the Author

John Grobe is President of Federal Career Experts, a consulting firm that specializes in federal retirement and career transition issues. He is also affiliated with TSP Safety Net. John retired from federal service after 25 years of progressively more responsible human resources positions. He is the author of Understanding the Federal Retirement Systems and Career Transition: A Guide for Federal Employees, both published by the Federal Management Institute. Federal Career Experts provides pre-retirement seminars for a wide variety of federal agencies.

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