Basic Benefits Plan
U.S. Office of Personnel Management
The basic benefit portion is financed by a very small contribution from the employee and from the Government. Basic Plan Benefits are a monthly payment depending on the employee’s pay and length of service. As in most retirement plans, a formula is used to compute the payments under the Basic Benefit Plan. The Government averages the highest 3 consecutive years of basic pay. This “high-3” average pay, together with the employees length of service are used in the benefit formula. Employees who meet the criteria also receive a “Special Retirement Supplement” which is paid as a monthly benefit until the employee reaches age 62. This supplement approximates the Social Security benefit earned by the employee while they were employed by the Federal government.
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