FERS vs CSRS in 2026: Which Federal Retirement System Pays More?

Last Updated: February 11, 2026 Reading Time: 10 min

CSRS pays a bigger pension. FERS provides more total retirement income when you add Social Security and TSP matching. That's the one-sentence answer to the FERS vs CSRS question.

But the right answer depends on your career length, retirement age, and how much market risk you're comfortable with. Here's the full comparison for 2026 with pension formulas, dollar examples, and the differences that actually affect your paycheck in retirement.

Key Takeaways

• CSRS provides a 56.25% pension at 30 years of service, nearly double the FERS basic pension of 30%
• FERS makes up the gap through Social Security (~$25,000-35,000/year) and TSP matching (5% of salary)
• CSRS retirees get full COLAs immediately; FERS retirees wait until age 62 and receive capped COLAs
• The last chance to switch from CSRS to FERS was the 1998 open season, which is permanently closed
• Only about 44,000 active CSRS employees remain, down from over 2 million in the 1980s

The Fundamental Difference: One Pension vs Three Legs

CSRS is a single defined-benefit pension. Created in 1920 and closed to new hires on January 1, 1987, it pays a generous pension based entirely on your years of service and high-3 average salary. No Social Security. No TSP matching.

FERS replaced CSRS in 1987 with a three-part system:

1. Basic annuity (smaller pension, 1% per year)
2. Social Security (full coverage, 6.2% tax)
3. TSP with 5% agency match (1% automatic + 4% matching)

About 98.4% of the current federal workforce is under FERS. The roughly 44,000 remaining CSRS employees have all been in federal service since at least 1987.

Pension Formula Comparison

This is where the difference hits hardest. CSRS uses a tiered formula that rewards long careers. FERS uses a flat 1% multiplier.

CSRS Formula

• First 5 years: 1.5% of high-3 per year
• Years 6-10: 1.75% of high-3 per year
• Years 11+: 2.0% of high-3 per year
• Cap: 80% of high-3 (excluding sick leave credit)

FERS Formula

• All years: 1.0% of high-3 per year
• Bonus: 1.1% per year if you retire at age 62+ with 20+ years of service
• No cap

Dollar-for-Dollar: Pension on a $100,000 High-3 Salary

Years of Service	CSRS Pension	FERS Pension (1%)	FERS Pension (1.1% bonus)
10	$16,250	$10,000	$11,000
20	$36,250	$20,000	$22,000
25	$46,250	$25,000	$27,500
30	$56,250	$30,000	$33,000
35	$66,250	$35,000	$38,500

The CSRS pension at 30 years is nearly double the standard FERS pension. But pension alone does not tell the full story.

A FERS employee at 30 years also collects Social Security (roughly $25,000-35,000 per year for most federal retirees) and draws from a TSP balance that could exceed $1 million with disciplined contributions and 5% agency matching.

Use the FERS Retirement Calculator to model your specific numbers.

What You Pay Into Each System

CSRS employees pay 7% of their salary toward their pension. FERS employees pay less, and the exact rate depends on when they were hired:

Hire Date	FERS Contribution Rate
Before 2013	0.8%
2013 (FERS-RAE)	3.1%
2014 and after (FERS-FRAE)	4.4%

FERS employees also pay 6.2% in Social Security taxes on earnings up to $184,500 (2026 wage base). CSRS employees do not pay Social Security tax at all.

A House committee has proposed increasing all FERS rates to 4.4%, but this has not been enacted as of February 2026. Current rates remain unchanged.

COLA: The Hidden Advantage for CSRS

COLAs might be the most underrated difference between the two systems.

Feature	CSRS	FERS
Formula	Full CPI-W, no cap	Capped: CPI-1% if CPI exceeds 3%
When it starts	Immediately at retirement	Age 62 for most retirees
2026 COLA	2.8%	2.0%

A CSRS retiree who leaves at 55 gets full inflation protection from day one. A FERS retiree at 55 waits seven years before receiving any COLA, and then gets a smaller adjustment.

During high-inflation years, this gap compounds fast. If inflation averages 3% and you retired at 55, by age 62 a CSRS retiree's pension has grown 23% while a FERS retiree's pension has stayed flat.

TSP: Where FERS Catches Up

FERS employees receive 5% agency matching in the Thrift Savings Plan (1% automatic contribution plus up to 4% matching). CSRS employees can contribute to the TSP but receive zero agency matching.

Both systems share the same 2026 TSP contribution limits:

Category	Limit
Regular contributions	$24,500
Catch-up (age 50+)	+$8,000
Super catch-up (ages 60-63)	+$11,250

Do the math on a 30-year career: if a GS-13 contributes 5% and gets the 5% match, that's roughly $10,000/year going into TSP. With average market returns, that balance can reach $1 million or more by retirement. See our TSP Calculator to project your balance.

That's the core trade-off. CSRS gives you a bigger guaranteed pension. FERS gives you a smaller pension plus a matched retirement account with growth potential and market risk.

Survivor Benefits Side by Side

Feature	CSRS	FERS
Maximum benefit	55% of annuity	50% of annuity
Cost to retiree	~2.5% of first $3,600 + 10% above	10% flat reduction
Partial option	Flexible base amount	25% option at 5% reduction

Both systems require spousal consent to waive survivor benefits. CSRS pays a slightly higher maximum (55% vs 50%) but uses a more complex cost formula. FERS is simpler: 10% flat reduction for the full 50% benefit.

CSRS Offset: The Hybrid System

CSRS Offset is the version most people haven't heard of. It applies to employees who had 5+ years of CSRS service before 1987, left government for more than a year, and came back. Your pension is calculated using the same CSRS formula, but there's a catch.

At age 62, your annuity is automatically reduced by the Social Security benefit earned during your Offset service period. This reduction applies even if you do not claim Social Security at 62.

The Social Security Fairness Act (signed January 5, 2025) repealed WEP and GPO, so CSRS Offset retirees with Social Security credits from non-federal employment now receive their full benefit. Read more in our Social Security Fairness Act guide.

Which System Is Better? Four Scenarios

Short Career (10-15 years): FERS Wins

FERS provides full Social Security portability, a transferable TSP balance, and 5% matching. If you leave government mid-career, your CSRS options are limited to a refund of contributions (with just 3% interest) or a deferred annuity at 62 based on your pay at separation, not inflation-adjusted.

Full Career (30+ years): CSRS for Guaranteed Income

CSRS at 30 years pays $56,250/year on a $100K salary. FERS at 30 years pays $30,000 in pension plus ~$30,000 in Social Security plus TSP withdrawals. CSRS provides more certainty. FERS provides more total potential income but depends on your TSP investment performance.

Early Retirement (55-57): CSRS Has the COLA Edge

CSRS retirees at 55 get full COLA protection immediately. FERS retirees at the same age get the FERS Special Retirement Supplement until 62 but no COLA adjustments until then. During inflationary periods, CSRS early retirees keep up with prices while FERS early retirees fall behind.

Mid-Career Departure: FERS Wins by a Mile

FERS employees who leave government keep their Social Security credits and can roll their TSP into any 401(k) or IRA. CSRS employees face a deferred annuity calculated on their salary at separation, which erodes over decades of inflation before collection at age 62.

Can You Switch from CSRS to FERS?

No. The last opportunity was the 1998 open season (July 1 through December 31, 1998). The decision was irrevocable. About 1 million CSRS employees had the chance. Most employees with 15+ years of service were advised to stay in CSRS because the higher pension multiplier outweighed TSP matching.

There were two open seasons in total: 1987 (when FERS launched) and 1998. Both are permanently closed. No legislation is pending to reopen transfers.

The FERS 1.1% Bonus: A Common Misconception

Many federal employees think the FERS 1.1% multiplier only applies to years worked after age 62. That's wrong.

If you retire at age 62 or later with at least 20 years of service, the 1.1% applies to ALL your years of creditable service. So 30 years at 1.1% gives you 33% of your high-3 instead of 30%. That is a 10% boost to your total pension.

If you're a FERS employee with 25+ years, that 0.1% difference across all those years adds up to real money. Use the FERS Retirement Calculator to compare your pension at different retirement ages.

Run Your Own Numbers

Plug in your years of service, high-3 salary, and retirement age with the free FERS Retirement Calculator. It shows the difference between retiring before and after age 62, including the 1.1% multiplier.

Two other tools worth running: the High-3 Salary Calculator to nail down your high-3 average, and the TSP Calculator to see where your TSP balance lands at retirement.

Frequently Asked Questions

Can I switch from CSRS to FERS in 2026?

No. The last opportunity to transfer was the 1998 open season (July through December 1998). That election was irrevocable, and no new transfer windows have been created. There is no pending legislation to reopen transfers.

Which system provides a better retirement at 30 years of service?

It depends on what you value. CSRS provides a guaranteed pension of 56.25% of your high-3 salary, about $56,250 per year on a $100K salary. FERS provides a 30% pension ($30,000) plus Social Security ($25,000-35,000 per year) plus your TSP balance (potentially $1M+ with consistent investing). CSRS offers more guaranteed income. FERS potentially offers more total income but requires investment discipline.

Do CSRS employees get Social Security?

CSRS employees do not pay Social Security tax and do not earn credits for their federal service. They may qualify through other employment (private sector, military). The Social Security Fairness Act (signed January 5, 2025) repealed WEP and GPO, so CSRS retirees with outside Social Security credits now receive their full benefit.

What is CSRS Offset?

CSRS Offset applies to employees who had 5+ years of CSRS service before 1987, left government for more than 1 year, and returned. Your pension uses the same CSRS formula, but at age 62 it is automatically reduced by the Social Security benefit earned during your Offset service period, even if you do not claim Social Security.

Does the FERS 1.1% multiplier apply to all my years?

Yes. If you retire at age 62 or later with at least 20 years of service, the 1.1% multiplier applies to ALL years of creditable service, not just years worked after 62. This means 30 years at 1.1% equals 33% of your high-3 instead of 30%.

Related Resources

• FERS Retirement Calculator: Estimate your FERS pension and total income
• FERS vs CSRS Comparison Guide: Full side-by-side resource page with all data tables
• FERS Retirement Guide: Comprehensive FERS eligibility, formulas, and planning
• FERS Special Retirement Supplement Guide: Supplement eligibility, calculation, and earnings test
• TSP Guide 2026: Contribution limits, fund options, and withdrawal strategies

Sources: OPM.gov Retirement Center, OPM CSRS Computation, OPM FERS Computation, TSP.gov, SSA.gov