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Federal Employee Financial Planning: FERS Part 1 (EP5)

Congress created the Federal Employees Retirement System (FERS) in 1986, and since that time, new federal civilian employees who have retirement coverage are covered by this system. FERS provides retirement benefits from three sources: a Basic Annuity, Social Security, and the Thrift Savings Plan (TSP). However, many federal employees who have worked in the industry for years are still uncertain about what their benefits are going to be. So, in this episode, Michael, Tommy, and John will be discussing everything you need to know about FERS, including several surprising benefits you may not be aware of.

Listen as they explain the difference between FERS and TSP, as well as how long you have to be a federal employee in order to receive a FERS annuity. You will learn one of the best kept secrets in the system, why it has been on the verge of being cut for so many years, and why FERS is so much more than a retirement system.

Listen to the full episode here:

What you will learn:

  • Why FERS is not just a retirement plan. (1:49)
  • The three legs of the FERS retirement stool. (4:33)
  • Years of service to be vested in a FERS retirement. (7:02)
  • The best kept secret in the FERS system. (9:00)
  • How to calculate your FERS retirement. (15:50)
  • How to make the most of your FERS benefits. (21:00)
  • How long-term employees can retire without a reduction in net pay. (24:45)

Ideas worth sharing:

“Most people just focus on the retirement piece, but it’s more than just a retirement system.” - Mason & Associates, LLC

“Cash flow is the heartbeat of retirement.” - Mason & Associates, LLC

“A retirement plan should replace actual current income, not gross income - you can't win this game without first knowing the score!”  - Mason & Associates, LLC 

Resources from this episode:


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