Pension Payout Calculator
Monthly annuity from salary, service, and tier.
What it does
Defined benefit pensions pay a formula, not a balance: average salary times service years times a multiplier, split into twelve checks. Small tier and year differences compound into hundreds a month.
The tool above takes high average salary, service years, and the multiplier tier. It returns monthly pension with the annual figure beside it, FERS style.
The defaults ($80,000 high-3, 25 years, 1%) pay $20,000.00 a year, $1,666.67 a month. The 1.1% tier for 62 plus with 20 plus years lifts the same record to $22,000.00 a year, $1,833.33 a month.
The tiers follow OPM FERS computation: 1% standard with 1.1% at 62 plus 20 years, on high-3 basic pay. PBGC guaranteed benefit rules frame the same defined benefit promise behind private plans.
How to use
- Enter high average basic salary.
- Enter creditable service years.
- Pick the 1% or 1.1% tier.
- Read monthly pension first.
- Read annual beside it.
- Price survivor cuts separately.
Formula
- salary
- High-3 average basic pay, overtime excluded.
- years
- Creditable service, part time prorated.
- tier
- 1% standard, 1.1% at 62+ with 20+ years.
Simple estimate only: early reductions, survivor elections, sick leave credit, COLA, and tax sit outside. Special groups like law enforcement use richer tier ladders instead of these two.
Worked example
Example: $80,000, 25 years, 1%
Defaults: salary 80000, service 25 years, tier 1%.
- Annual: 80,000 x 25 x 0.01 = $20,000.00.
- Monthly: 20,000 / 12 = $1,666.67.
- Tool shows $1,666.67 a month, $20,000.00 a year.
- Tier 1.1%: 80,000 x 25 x 0.011 = $22,000.00.
- That tier pays $1,833.33 a month.
- Survivor and tax cuts come after this line.
Reference table
| Service | Annual | Monthly |
|---|---|---|
| 10 years | $8,000.00 | $666.67 |
| 20 years | $16,000.00 | $1,333.33 |
| 25 years | $20,000.00 | $1,666.67 |
| 30 years | $24,000.00 | $2,000.00 |
Limits
- FERS style tiers assumed.
- Survivor elections cut checks.
- Early retirement reduces rates.
- COLA and tax excluded.
Common mistakes
- Including overtime in salary.
- Counting uncredited service.
- Assuming 1.1% without 62 and 20.
- Forgetting survivor reductions.
- Skipping tax withholding plans.
Try it yourself
Quick checks. Answers sit tucked under each question.
$80k, 25 years, tier 1.1%?
$22,000.00 a year, $1,833.33 a month.
$80k, 30 years at 1%?
$24,000.00 a year, $2,000.00 a month.
Overtime in salary?
No, basic pay only under high-3 rules.
Questions
How is a pension figured?
Salary times years times multiplier, divided by 12 monthly.
What is high-3?
Highest 3 consecutive years of basic pay, usually the last three.
When does 1.1% apply?
Age 62 plus with 20 plus years under FERS.
Survivor benefit cost?
About 10% cut for a 50% survivor annuity.
Early retirement cut?
Roughly 5% per year under 62 for MRA+10 cases.
Private plans same?
Same shape, own tiers; PBGC backstops basic benefits within limits.