How part-time work affects your FERS pension

Sentinel

Part-time federal employment under FERS counts towards retirement eligibility, meaning it does not delay when an employee can retire. However, actual FERS pension payments will be reduced by a proration factor based on the ratio of hours worked part-time versus full-time. While the high-3 salary used for pension calculation considers full-time equivalent pay, the proration factor is applied afterward to reduce the final pension amount. The FERS supplement and survivor benefits are also subject to this reduction, but retirement health insurance benefits are unaffected. Thrift Savings Plan contributions may be lower in dollar amount due to reduced part-time pay. Employees considering part-time work should evaluate the potential pension loss, impact on sick leave accrual, and overall affordability, and are advised to consult a financial professional for personalized calculations.