Recently hired career employees fall into one or two categories under the Federal Employees Retirement System (FERS). The date of the career employee’s appointment will determine in which category they will be placed.
Employees hired on or after January 1, 2013, with no previous Federal service, or who had less than five years of creditable career service, are covered under a retirement plan known as FERS-Revised Annuity Employee (RAE). FERS-RAE employees are required to pay 3.1% of their basic pay towards their retirement contributions.
Employees hired on or after January 1, 2014, with no previous Federal service, or who had less than five years of creditable career service, are covered under a retirement plan known as FERS-Further Revised Annuity Employee (FRAE). FERS-FRAE employees are required to pay 4.4% of their basic pay towards their retirement contributions.
One exception to the above contribution requirements is for law enforcement officers, who are required to pay 3.6% of their basic pay under FERS-RAE and 4.9% of their basic pay under FERS-FRAE.
Rules for retirement eligibility under FERS remain the same for both FERS-RAE and FERS-FRAE. To learn more about preparing for retirement, visit https://liteblue.usps.gov/humanresources/retirement/home.shtml.
— Compensation and Benefits,
Human Resources, 9-3-15
