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 EMPLOYEE DEDUCTIONS

FERS is a defined benefit, contributory retirement system. Employees share in the expense of the annuities to which they become entitled. The exact amount of retirement deductions to the Civil Service Retirement and Disability Fund withheld from basic pay is set by law.

Retirement Group % of Basic Pay to FERS Basic Retirement Benefit % of Basic Pay to Social Security (through the end of 2013) % of Basic Pay to Medicare
FERS(Retirement code K) 0.8% 6.2% 1.45%
FERS RAE*(Retirement code KR) 3.1% 6.2% 1.45%
FERS Law Enforcement Officers and Firefighters (Retirement code M) 1.3% 6.2% 1.45%
FERS Law Enforcement Officers and Firefighters RAE* (Retirement code MR) 3.6% 6.2% 1.45%
FERS Air Traffic Controllers (Retirement code L) 1.3% 6.2% 1.45%
FERS Air Traffic Controllers RAE* (Retirement code LR) 3.6% 6.2% 1.45%

* Revised Annuity Employees (RAE) are employees hired after December 31, 2012.

** An additional 0.9% Additional Medicare Tax applies to an employee’s wages that exceeds a threshold amount based on the employee’s filing status. The threshold amounts are $250,000 for married taxpayers who file jointly, $125,000 for married taxpayers who file separately, and $200,000 for all other taxpayers.
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