What is the Federal Severance Pay Calculator?
The Federal Severance Pay Calculator is a tool designed to help eligible federal employees estimate the severance pay they might qualify for if they were to be separated from federal service. Severance pay is calculated based on several factors, including your length of service, age, and basic pay rate. This calculator simplifies the process, giving you an estimate of the severance pay you may be entitled to, based on the guidelines provided by the Office of Personnel Management (OPM).
How it Works
To use the calculator, simply input your length of federal service and basic pay information. The tool will calculate an estimated severance pay amount based on OPM’s guidelines. Please note that this is an estimate, and actual severance pay may vary depending on your agency’s policies or the nature of your separation. For the most accurate information, consult your HR department.
Example Calculation (Direct from OPM!)
Let’s say an employee meets the following criteria at the time of separation:
- Basic pay: $1,500 per week
- Creditable service: 20 years, 4 months (the 4 months counts as 1 full quarter-year)
- Age: 45 years and 8 months (the 8 months counts as 2 full quarter-years)
Basic Allowance Calculation:
- First 10 years × $1,500 = $15,000
- 10 additional full years × 2 × $1,500 = $30,000
- 1 quarter-year × 25% × 2 × $1,500 = $750
Total Basic Allowance: $45,750
Age Adjustment Allowance:
- 5 years over 40 = 20 quarter-years
- Additional 8 months = 2 quarter-years
- 22 quarter-years × 2.5% × $45,750 = $25,162.50
Total Severance Pay: $45,750 + $25,162.50 = $70,912.50 (47.275 weeks)
This is just an example to illustrate how the calculation works. Use the calculator to get your own estimate based on your specific situation.