Federal Retirement Terminology Glossary
Federal retirement planning has its own vocabulary. Some of these terms are unique to the federal system (like FERS Supplement or MRA). Others are common tax and retirement concepts that behave slightly differently for federal employees (like IRMAA or RMDs). This glossary defines the terms that come up most often in federal retirement conversations, with each one explained in plain language.
A
Annuity. A monthly payment for life, guaranteed by an insurer, employer, or the U.S. government. Your FERS or CSRS pension is a federal government annuity — you receive a monthly check for the rest of your life once you retire.
Annual Leave. Federal-employee vacation time. Unused annual leave at retirement is paid out as a lump-sum check, calculated at your final hourly rate.
B
Basic Life (FEGLI). The base tier of federal employee life insurance. Coverage equal to your salary rounded up to the next $1,000, plus $2,000. Automatically enrolled unless you opt out.
Beneficiary Participant Account. A special TSP account established when a spouse beneficiary inherits a deceased federal employee’s TSP balance. Has different rules than a beneficiary IRA.
C
CSRS — Civil Service Retirement System. The pre-1984 federal retirement system. Federal employees hired before 1984 are covered under CSRS. Provides a larger pension than FERS but no Social Security (employees didn’t pay into Social Security while under CSRS).
CSRS Offset. A hybrid system for federal employees who had CSRS service but were rehired after 1984. Their CSRS pension is reduced (offset) by the Social Security they earned during their offset service.
D
Deferred Retirement. Retiring by leaving federal service before eligibility for immediate retirement, then collecting the pension later. Available with 5+ years of service. The retiree does NOT receive the FERS Supplement, FEHB, or FEGLI in retirement — those benefits require immediate retirement.
Discontinued Service Retirement (DSR). A form of immediate retirement offered during workforce restructuring or reduction. Preserves FEHB, FEGLI, and (for eligible ages) the FERS Supplement.
F
FEGLI — Federal Employees’ Group Life Insurance. The federal life insurance program. Includes Basic Life plus optional Option A ($10,000 flat), Option B (1-5x salary), and Option C (family coverage).
FEHB — Federal Employees Health Benefits. The federal health insurance program. Includes prescription drug coverage in most plans. Federal retirees can carry FEHB into retirement if they were enrolled continuously for the five years before retirement.
FERS — Federal Employees Retirement System. The post-1984 federal retirement system. Provides a smaller pension than CSRS but is paired with Social Security and TSP. Nearly all federal employees hired after 1984 are covered under FERS.
FERS Supplement. Also called the Special Retirement Supplement (SRS). A monthly payment to FERS retirees who leave federal service before age 62. Bridges the gap until Social Security begins. Ends the month you turn 62.
Full Retirement Age (FRA). The Social Security age at which you’re entitled to 100% of your Primary Insurance Amount. For most federal employees retiring now, FRA is 67.
H
High-3. The average of your three highest consecutive years of federal basic pay. Used in the FERS and CSRS pension calculations. For most retirees, the high-3 is your final three years.
I
Immediate Annuity / Immediate Retirement. Retiring under FERS or CSRS with a pension that begins the month after retirement. Requires meeting age and service requirements. Distinct from deferred retirement.
IRMAA — Income-Related Monthly Adjustment Amount. A Medicare Part B and Part D premium surcharge for higher-income retirees. Calculated on a two-year look-back of your Modified Adjusted Gross Income.
IRA — Individual Retirement Account. A private retirement account (traditional or Roth). Federal retirees frequently roll TSP balances into IRAs at retirement — though not always to their benefit.
L
Lump-Sum Payment. Any single-payment distribution from a retirement account. TSP lump-sum distributions are usually taxed heavily; TSP annual leave lump-sum payments are taxed as ordinary income.
M
Medicare Part A. Hospital insurance under Medicare. Free for anyone who paid Medicare taxes for 40+ quarters (including virtually every federal employee since 1983).
Medicare Part B. Medical insurance under Medicare, covering doctor visits and outpatient care. Costs a monthly premium ($185/month standard in 2026, more for IRMAA-affected retirees).
Medicare Part D. Prescription drug coverage under Medicare. Most federal retirees skip Part D because FEHB includes drug coverage.
MRA — Minimum Retirement Age. The earliest age at which a FERS employee with sufficient service years can retire under an immediate annuity. Ranges from 55 to 57 depending on birth year.
MRA+10. A FERS retirement option: retire at your MRA with 10-29 years of service. Requires immediate annuity but with a reduction of 5% per year for each year under age 62 (or 60 with 20 years).
O
Option A / B / C (FEGLI). The three optional tiers of federal employee life insurance. Option A: flat $10,000. Option B: 1-5x salary. Option C: family coverage.
OPM — Office of Personnel Management. The federal agency that administers federal retirement, including FERS and CSRS pensions, FEHB, FEGLI, and TSP oversight.
P
PIA — Primary Insurance Amount. The Social Security benefit you would receive if you claimed at Full Retirement Age. All other claim ages (early or delayed) are calculated as adjustments to your PIA.
Post-56 Military Service Deposit. Federal employees with military service after 1956 can pay a deposit to have that military time count toward their FERS or CSRS pension calculation.
R
Reduction Election (FEGLI). The choice at retirement for how FEGLI coverage will change over time. Options include 75% Reduction, 50% Reduction, and No Reduction.
Required Minimum Distributions (RMDs). Mandatory withdrawals from traditional retirement accounts (traditional TSP, traditional IRA) starting at age 73. Roth IRAs have no lifetime RMDs.
Roth Conversion. Moving funds from a traditional (pre-tax) retirement account to a Roth (post-tax) account. Taxable in the year of conversion, but future growth and qualified withdrawals are tax-free.
Roth TSP. The Roth (post-tax) portion of the Thrift Savings Plan. Contributions are made with after-tax dollars; qualified withdrawals are tax-free.
S
SBP — Survivor Benefit Plan. A federal option to reduce your pension in exchange for a monthly payment to your surviving spouse after your death. Elections are irrevocable at retirement.
SIRA — Special Investment Retirement Account. Not a real term — occasionally used informally, but not a formal federal designation.
Social Security Earnings Test. A rule that reduces Social Security (and the FERS Supplement) if you earn income above an annual threshold before Full Retirement Age.
Special Retirement Supplement (SRS). See FERS Supplement.
Special Category Employees. Law enforcement officers, firefighters, air traffic controllers, and other special-category federal employees. They have different retirement age requirements and receive an enhanced pension formula.
T
Thrift Savings Plan (TSP). The federal 401(k)-equivalent retirement account. Offers traditional (pre-tax) and Roth (post-tax) contribution options plus various fund choices with very low expense ratios.
TSP Life Annuity. A TSP payout option that converts part or all of your TSP balance into a lifetime monthly annuity. Historically rare choice; most retirees choose other withdrawal options.
Trustee-to-Trustee Transfer. A direct rollover between two retirement account custodians. Preferred over indirect rollovers because it avoids the 60-day deadline trap.
What’s Next
If you’re planning federal retirement and want a personalized walkthrough of how these concepts apply to your specific situation, you can request a free Federal Retirement Report. Every Federal Retirement Report includes a personalized breakdown of your FERS pension, TSP strategy, Social Security timing, FEHB and Medicare coordination, and FEGLI decision.