The Real Numbers: What is the Average CSRS Pension in 2025?

Are you a remaining Civil Service Retirement System (CSRS) worker who is getting ready to retire? Or are you just interested in federal retirement benefits? Either way, you may have wondered: what is the average CSRS pension?

I’ve researched the latest data and compiled everything you need to know about CSRS pensions, their average amounts, and how they compare to other retirement systems. Let’s dive in!

CSRS Pension Amounts: The Bottom Line Up Front

If you’re just looking for the quick answer here it is

• The average monthly CSRS pension benefit is about $4,000 (or $48,000 annually)
• The median CSRS benefit (where half are below and half are above) is approximately $3,500 monthly ($42,000 annually)
• More recent data from fiscal year 2022 shows the average monthly CSRS annuity payment has increased to about $5,447 per month

Now, let’s talk about why CSRS pensions are usually so generous and what factors determine how much you get.

What is the CSRS Pension System Anyway?

Before we go deeper into the numbers, let’s make sure we’re on the same page about what CSRS actually is.

In 1920, the Civil Service Retirement System was made so that government workers could get pensions like people in the private sector. It was made so that career civil servants could get a generous lifetime annuity based on

• Age at retirement
• Years of service
• High-3 average salary

What makes CSRS unique is that it predated Social Security. When the Social Security Administration was created in 1935, federal workers who were covered by CSRS were not eligible for Social Security benefits because they already got a large pension.

This changed in 1987 when President Reagan established the Federal Employees Retirement System (FERS). All federal employees hired after 1983 were automatically enrolled in FERS instead of CSRS.

Who Still Has CSRS Today?

You might be wondering how many people are still covered by CSRS. As of 2022, only about 1.6% of active federal employees (approximately 44,000 workers) remain enrolled in CSRS. These are employees who:

1. Were hired before 1983
2. Chose not to switch to FERS when given the option

This number continues to decline each year as more CSRS employees retire. The vast majority of federal workers today (98.4%) are covered under the newer FERS system.

How CSRS Pensions Are Calculated

One reason CSRS pensions are typically higher than other retirement benefits is the generous calculation formula. Your CSRS annuity is computed using this three-part formula:

1. 1.5% × high-3 average salary × first 5 years of service
2. PLUS 1.75% × high-3 average salary × next 5 years of service
3. PLUS 2% × high-3 average salary × all years beyond 10 years

So, the longer you work, the higher percentage of your salary you’ll receive. With 30 years of service, you would receive approximately 56.25% of your high-3 average salary.

The maximum CSRS annuity cannot exceed 80% of your high-3 average salary (excluding unused sick leave). You typically reach this 80% cap after about 41 years and 11 months of service.

Average CSRS Pension vs. FERS Benefits

CSRS provides significantly higher pension benefits than the newer FERS system. Here’s how they compare:

However, FERS employees have advantages that CSRS employees don’t:

• Social Security eligibility
• Up to 5% matching contributions to the Thrift Savings Plan (TSP)
• Often retire with double the savings that CSRS workers accumulate

Factors That Affect Your CSRS Pension Amount

Your specific CSRS pension could be higher or lower than the average depending on several factors:

• Length of service: More years = higher percentage of high-3 salary
• Salary level: Higher salaries throughout your career result in a higher high-3 average
• Retirement age: Different retirement options have different eligibility requirements
• Special provisions: Certain jobs (like air traffic controllers) have special retirement provisions
• CSRS Offset: If you’re under CSRS Offset, your pension will be reduced when you start receiving Social Security

Retirement Options Under CSRS

CSRS provides five different types of retirement, each with specific eligibility requirements:

1. Optional Retirement

   • Age 55 with 30 years of service, OR
   • Age 60 with 20 years of service, OR
   • Age 62 with 5 years of service

2. Disability Retirement

   • For employees who become unable to perform their duties
   • Requires at least 5 years of service
   • Strict medical documentation requirements

3. Discontinued Service Retirement

   • For positions eliminated or made redundant
   • Requires 25 years of service, or 20 years if over age 50
   • Cannot be related to misconduct

4. Special/Early Optional Retirement

   • For agencies undergoing reorganization or reduction
   • 25 years of service, or 20 years if over age 50
   • Reduced annuity if retiring before age 50

5. Special Provision Retirement

   • For specialized careers (air traffic controllers, Capitol Police, etc.)
   • Usually available at age 50 with 20 years of service

Taxation of CSRS Pensions

Another important consideration is how much of your CSRS pension will be taxed. Generally:

• About 90% to 98% of your CSRS pension is taxable
• Your contributions (which were already taxed when you earned them) amount to about 5% to 10% of your annual pension income
• This contrasts with FERS, where only about 2% to 5% of contributions make up your pension

CSRS and Social Security: Can You Get Both?

This is a common question with a somewhat complicated answer:

• CSRS employees do not have Social Security taxes deducted from their paychecks
• They don’t earn Social Security credits through their federal employment
• However, some CSRS employees may be eligible for Social Security benefits through:
  • A spouse’s record
  • Prior employment in the private sector
  • Work done after federal retirement

It’s important to note that if you do qualify for Social Security based on non-CSRS employment, your benefits may be reduced due to the Windfall Elimination Provision (WEP).

CSRS and Medicare Coverage

The good news is that all federal employees, including those under CSRS, pay the Medicare tax (1.45% of gross income). This means CSRS retirees are eligible for Medicare benefits at age 65, just like other retirees.

The Survival of CSRS: Is It a Better Deal Than FERS?

Many financial experts consider CSRS to be “a very generous annuity” compared to FERS. The CSRS pension was designed to fully fund retirement on its own, while FERS provides a smaller pension supplemented by Social Security and TSP savings.

Here’s why some consider CSRS the better deal:

• Larger pension benefit
• Full inflation protection
• Less reliance on market performance (unlike TSP funds)
• No need to navigate Social Security claiming strategies

However, FERS has its advantages too:

• Access to Social Security benefits
• Employer matching contributions to TSP
• More flexibility if you want to work after federal retirement
• Often results in higher total retirement assets

What CSRS Retirees Should Know About Their Benefits

If you’re a CSRS employee approaching retirement, here are some key points to remember:

• Survivor Benefits: CSRS provides a survivor benefit equal to 55% of your unreduced annual benefit to your surviving spouse or child
• Death Benefit: If your heirs aren’t eligible for survivor benefits, they may receive a lump-sum payment equal to your total CSRS contributions
• COLA Adjustments: CSRS pensions receive full cost-of-living adjustments, unlike FERS which may provide reduced COLAs
• 80% Cap: Your CSRS annuity cannot exceed 80% of your high-3 salary (not counting unused sick leave)

Final Thoughts: Is the Average CSRS Pension Enough?

While the average CSRS pension of $4,000 to $5,447 per month is generous compared to many private-sector retirement plans, whether it’s “enough” depends on your individual circumstances:

• Where you plan to live during retirement
• Your expected expenses
• Other sources of income
• Healthcare costs
• Long-term care needs
• Inflation over time

Many financial advisors recommend having multiple sources of retirement income, even with a generous CSRS pension. This might include personal savings, part-time work, rental property income, or other investments.

The Future of CSRS Pensions

As the number of active CSRS employees continues to decline (remember, only 1.6% of federal workers are still in CSRS), the system will eventually phase out completely as the last CSRS employee retires.

However, the government will continue paying CSRS annuities to retirees and their survivors for many decades to come. The benefits promised under CSRS are secure and protected by law.

The average CSRS pension ranges from $4,000 to $5,447 monthly, providing a generous retirement benefit that exceeds what many Americans receive from Social Security alone. If you’re one of the remaining CSRS employees, you’re in a relatively advantageous position for retirement.

While CSRS has been replaced by FERS for newer federal employees, those still covered under the original system can look forward to a secure retirement benefit that will last throughout their lifetime.

Do you have experience with CSRS or questions about federal retirement benefits? I’d love to hear your thoughts in the comments below!