Plan Overview
FEGLI
Federal Group Life Insurance Plan
Federal Employees’ Group Life Insurance (FEGLI) is the largest group life insurance program in the world. It provides group term life insurance, consisting of Basic insurance and three Optional varieties: Option A (Standard), Option B (Additional), and Option C (Family).
Basic insurance is what you are automatically enrolled in unless you choose to waive it. The coverage amount is equal to your annual basic pay rounded up to the nearest $1,000, plus $2,000. For employees under age 45, an Extra Benefit is included at no additional cost to provide greater protection early in their careers.
Optional insurance is paid entirely by the employee. As you approach retirement, it is important to review the increasing premiums associated with Optional insurance—particularly Option B. Strategically adjusting your coverage ensures that your benefits remain cost-effective throughout your retirement years.
FERS
Federal Employees Retirement Systems
The Federal Employees Retirement System (FERS) is a modern retirement plan that provides benefits from three diverse sources: a Basic Benefit Plan (pension annuity), Social Security, and the Thrift Savings Plan (TSP). These components work together to provide a robust retirement income.
FERS is designed to be a flexible and portable system. If you leave federal service before retirement, you can take your Social Security and TSP contributions with you. While the Basic Benefit and Social Security parts require mandatory payroll contributions, the TSP is a voluntary savings plan with generous government matching contributions.
Program Requirements
Eligibility for a FERS retirement annuity is determined by your age and years of creditable federal service. The most common eligibility threshold is reaching the Minimum Retirement Age (MRA) with at least 30 years of service, though age 62 with 5 years or age 60 with 20 years also qualify for an immediate annuity.
CSRS
The Civil Service Retirement System
The Civil Service Retirement System (CSRS) is a defined benefit, contributory retirement system. Employees generally do not contribute to Social Security, and instead pay a fixed percentage of their salary into the CSRS pension fund, which provides a guaranteed lifetime annuity based on high-3 salary and service time.
Program Requirements
To be eligible for retirement benefits under CSRS, an employee must meet the criteria associated with one of several annuity categories. The general requirements for optional retirement are age 55 with 30 years of service, age 60 with 20 years, or age 62 with 5 years.
- Optional: Available when full age and service requirements are met.
- Special Optional: Designed for specific high-risk groups such as firefighters and law enforcement.
- Early Optional: Offered during major organizational restructuring or workforce reductions.
- Discontinued Service: Retirement available following an involuntary separation not based on misconduct.
- Disability: Available for employees who become unable to perform their duties due to medical reasons.