US Defined Benefit Pension Calculator — 2026
Figure out what your FERS, CalPERS, military or state teacher pension pays in retirement.
Estimate your defined benefit pension: FERS (federal), CSRS (legacy federal), CalPERS / NYSLRS / state teacher (TRS), military (BRS and legacy High-3), or a private sector DB plan. Model survivor benefit, FERS supplement, and federal income tax on pension income.
Estimates only. Scheme rules and COLA vary. Always check your scheme’s annual benefits statement and consult a financial advisor before retirement decisions.
How US defined benefit pensions are calculated
The defined benefit formula
Annual pension = High-3 (or final average) salary × Years of service × Pension multiplier. The multiplier depends on your scheme and sometimes your age at retirement — e.g. FERS pays 1% of high-3 per year of service, rising to 1.1% if you retire at age 62+ with at least 20 years of service. CalPERS “2% at 55” pays 2% per year at age 55; younger reduces, older can increase up to 2.5%.
| Example | Pension |
|---|---|
| FERS · $95,000 high-3 · 30 years at age 62 | $95,000 × 30 × 1.1% = $31,350/yr (33% replacement) |
| CSRS · $90,000 high-3 · 30 years | 5×1.5% + 5×1.75% + 20×2% = 56.25% → $50,625/yr |
| CalPERS “2% at 55” · $85,000 · 30 years at 55 | 2% × 30 × $85,000 = $51,000/yr (60% replacement) |
| Military legacy · 20-year O-5 · $100,000 base | 2.5% × 20 = 50% → $50,000/yr |
| Military BRS · 20 years · $100,000 base | 2.0% × 20 = 40% → $40,000/yr (plus matched TSP) |
| Texas TRS · $55,000 · 30 years | 2.3% × 30 × $55,000 = $37,950/yr |
High-3 vs final average
FERS and CSRS use the average of the three highest-earning consecutive years. Military BRS/legacy uses the average of the 36 highest-earning months of basic pay (shorter if less service). Most state schemes use 3-year or 5-year final average compensation; newer tiers (PEPRA in California, NYSLRS Tier 6, Massachusetts tier 4) often use 5-year averages with pensionable cap.
COLA — cost of living adjustment
FERS uses a “diet COLA”: CPI if below 2%, CPI-1% if CPI is 2–3%, capped at 2% if CPI above 3%. CSRS, military retirement pay, and most state schemes receive full CPI-based COLAs. Private sector DB plans rarely include COLAs.
FERS, CSRS, CalPERS, NYSLRS, TRS, military — scheme details
| Scheme | Key details |
|---|---|
| FERS (federal post-1987) | 1% × high-3 × years (1.1% if age 62+ with 20+ years) · Minimum retirement age 57 (MRA) → Diet COLA. Three-legged stool: FERS annuity + TSP + Social Security. FERS supplement bridges to age 62. |
| CSRS (federal legacy, pre-1987) | 1.5%/1.75%/2.0% tiered · Full CPI COLA · Retire 55/30 or 62/5 → CSRS members not in Social Security for federal service. Much richer than FERS but no SS credit. |
| CalPERS Classic (pre-2013) | 2% at 55, 2.5% at 55, 3% at 50 (safety) or 3% at 60 · Full CPI COLA capped 2% → Over 2 million members. Final-year compensation (one-year highest). |
| CalPERS PEPRA (post-2013) | 2% at 62, 2.5% at 67 (most), 2.7% at 57 (safety) · 3-year final comp → Pensionable salary cap ($151,446 in 2024 for Social Security members). |
| NYSLRS Tier 6 (post-April 2012) | 1.66% years 1-20, 2% years 21+, + 1.5% per year above 20 · 5-year FAS → Normal retirement 63. Member contributions 3-6% of salary tiered. |
| Texas TRS | 2.3% × final 5-year average × years · Rule of 80 (age + years ≥ 80) → Non-SS covered for teachers — WEP/GPO repealed Jan 2025 means full SS from other work. |
| Ohio STRS / Illinois TRS / other state TRS | 2.2%–2.67% varies by state · Non-SS (teachers opted out in many states) → Significant variation. Some COLA-indexed, some flat-dollar COLA, some none. |
| Military BRS (post-2018) | 2.0% × 36-month high base × years · Plus matched TSP 5% → Lump-sum option at retirement (25%/50% commutation at actuarial reduction). Full CPI COLA. |
| Military Legacy High-3 (pre-2018) | 2.5% × 36-month high base × years · 20 YOS minimum → More generous than BRS but no TSP match. Closed to new entrants Jan 2018. |
| Private sector DB (generic) | Typically 1.0–1.5% × final average pay × years · Mostly frozen → PBGC-insured. Most large employers froze DB plans 2000-2015 in favor of 401(k). |
State scheme multipliers, pensionable salary caps, and COLA provisions change each legislative cycle. Consult your plan’s benefits calculator for current numbers and run your specific scenario.
Survivor benefit options across US DB schemes
FERS survivor annuity
Three options: full survivor (50% of pension, cost ~10% of retiree’s annuity), partial (25% survivor, cost ~5%), or none. Spouse consent required to elect less than full. On death before retirement, spouse receives a basic employee death benefit ($36,965 in 2024) plus 50% of annuity.
CSRS survivor
Full survivor: 55% of pension, cost about 10% of unreduced annuity. Partial option available.
Military SBP
Survivor Benefit Plan: up to 55% of base pension amount to surviving spouse. Premium: 6.5% of elected base. If you pick $1 as base, the premium is very low and survivor gets a small token; most elect full base to provide meaningful income. SBP benefits are indexed with COLAs. Former-spouse SBP and child-only options available.
CalPERS options
Seven named options: “Option 1” (return of unused contributions), “Option 2” (100% continuing to beneficiary), “Option 3” (50% continuing), “Option 4” (custom), and Option 2W/3W with pop-up (reverts to unmodified if beneficiary predeceases). Each carries an actuarial reduction.
Dual-income households — do you need survivor coverage?
If your spouse has their own significant pension or other income, partial or no survivor may be appropriate. If you are the primary earner, 50–100% survivor is usually prudent even at the premium cost.
Federal and state income tax on US pension income
Federal income tax
Pension income is taxed as ordinary income at 2026 IRS brackets. No FICA (Social Security or Medicare) tax is withheld on pension payments — those taxes only apply to wages, not retirement income.
| Rate | Single | MFJ |
|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 |
| 12% | $12,400 – $50,400 | $24,800 – $100,800 |
| 22% | $50,400 – $105,700 | $100,800 – $211,400 |
| 24% | $105,700 – $201,775 | $211,400 – $403,550 |
| 32% | $201,775 – $256,225 | $403,550 – $512,450 |
| 35% | $256,225 – $640,600 | $512,450 – $768,700 |
| 37% | $640,600+ | $768,700+ |
Standard deduction 2026: $16,100 single, $32,200 MFJ. Plus additional standard deduction for age 65+: +$2,050 single, +$1,650 each spouse MFJ.
State income tax
Varies widely. States exempting most/all retirement income: Alabama, Hawaii, Illinois, Mississippi, Pennsylvania. States with no income tax (so pension tax-free): Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, New Hampshire. Others tax partially — e.g. Georgia exempts $65,000/yr retirement income for age 65+.
Simplified Method — basis recovery
If you made after-tax contributions (most CSRS employees, some private DB plans), a portion of each pension payment is tax-free return of your cost basis. IRS Form 1099-R Box 2a shows taxable amount; Box 5 shows nontaxable. The Simplified Method divides your basis by a number of expected payments based on your age.
The repeal of WEP and GPO
The Social Security Fairness Act (signed Jan 2025, effective from Jan 2024 payments) repealed the Windfall Elimination Provision and Government Pension Offset. If you receive a pension from work not covered by Social Security (CSRS, some state teachers, some police/fire), your Social Security benefits are no longer reduced. SSA is processing recalculations through 2025.
❓ Frequently asked Frequently asked questions
How is a US defined benefit pension calculated?
Annual pension = High-3 or final average salary × Years of service × Pension multiplier. FERS uses 1% (1.1% at 62+/20yr). CSRS tiers 1.5/1.75/2%. CalPERS 2%-3% by age. Texas TRS 2.3%. Military 2.5% legacy / 2% BRS. Check your plan’s Summary Plan Description for the exact formula.
Is my US pension taxed?
Yes — taxed as ordinary income federally at your marginal rate. No FICA (Social Security + Medicare) on pension income. State tax varies: 14 states exempt public pensions fully; 9 states have no income tax. Alabama, Hawaii, Illinois, Mississippi, and Pennsylvania exempt most retirement income.
What is the FERS supplement?
An annuity supplement paid from retirement (at MRA with 30 years, or age 60 with 20) until age 62 when Social Security becomes available. Approximates the SS benefit earned from FERS-covered service. Subject to the same earnings test as pre-FRA Social Security, so post-retirement work can reduce or eliminate it.
Should I take a lump-sum buyout if offered?
Some private sector DB plans offer lump-sum buyouts. Compare the lump sum to the present value of the pension stream. At a conservative 4% real return, break-even with a COLA-linked pension is around 18–22 years of retirement. Most healthy retirees will come out ahead keeping the pension. Most federal and state pensions do NOT offer a lump-sum option.
Is my pension safe if my employer fails?
Federal schemes (FERS, CSRS, military) are backed by the federal government. State pensions are backed by state law and general funds (some state plans are underfunded — Illinois and Kentucky are notable examples). Private DB plans are insured by the Pension Benefit Guaranty Corporation (PBGC), which pays up to statutory maximums if the plan fails — currently about $85,300/yr for a 65-year-old in 2025.
What is the difference between FERS and CSRS?
CSRS: pre-1987 federal hires, no Social Security, richer annuity (up to ~56% of high-3 for 30 years), full CPI COLA. FERS: post-1987, Social Security + smaller annuity (~30-33% of high-3 for 30 years) + TSP with match. Three-legged stool design. Most current federal employees are FERS.
Can I combine service from multiple pensions?
FERS/CSRS: yes, service credits can transfer between federal agencies. Military service can be bought back in FERS/CSRS for credit (requires depositing 3% of military pay). State-to-state: rare — a few reciprocity agreements exist (e.g. California counties, Massachusetts system). Generally you’ll have separate pensions from each system.