How Does the Federal Employee Retirement System (FERS) Work?
What Exactly Is the Federal Employee Retirement System? FERS provides financial security to federal employees after they’ve completed their government service. Unlike private-sector retirement options that often rely heavily on employee contributions and market performance, FERS takes a more balanced approach with guaranteed benefits alongside investment opportunities. The system covers employees across all three branches of the federal government. It marked a major shift in federal retirement philosophy when it was introduced, moving from a single pension system to a multi-faceted approach that shares responsibility between the …