FRC FEDERAL RETIREMENT CONSULTANT PRACTICE EXAM QUESTIONS AND CORRECT
ANSWERS GRADE A
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Q1. Under FERS, what is the minimum age and service requirement for an immediate
unreduced retirement?
A) Age 55 with 30 years
B) Age 60 with 20 years
C) Age 62 with 5 years
D) Age 50 with 20 years
Answer: B
Explanation: FERS offers immediate unreduced retirement at: 1) Age 62 with 5 years, 2) Age
60 with 20 years, 3) MRA with 30 years, or 4) MRA with 10 years (with reduction).
Q2. What is the CSRS annuity computation formula for a retiree with 30 years of service?
A) 1.5% x high-3 x first 5 years + 1.75% x high-3 x next 5 years + 2.0% x high-3 x remaining
years
B) 2.0% x high-3 x first 10 years + 2.5% x high-3 x remaining years
C) 1.0% x high-3 x all years of service
D) 1.5% x high-3 x first 20 years + 1.75% x high-3 x remaining years
Answer: A
Explanation: CSRS uses: 1.5% x high-3 x first 5 years + 1.75% x high-3 x next 5 years + 2.0%
x high-3 x all years over 10.
Q3. What is the FERS Basic Annuity formula for employees retiring at age 62 or later with
20+ years?
,A) 1.0% x high-3 x years of service
B) 1.1% x high-3 x years of service
C) 1.5% x high-3 x years of service
D) 2.0% x high-3 x years of service
Answer: B
Explanation: FERS uses 1.0% x high-3 x years of service, except 1.1% if retiring at age 62+
with 20+ years.
Q4. What is the Minimum Retirement Age (MRA) for employees born in 1970 or later?
A) 55
B) 56
C) 57
D) 60
Answer: C
Explanation: MRA is 57 for those born in 1970 or later, following the phased increase
schedule.
Q5. How is the FERS Special Retirement Supplement calculated?
A) Fixed amount based on years of service
B) Social Security benefit earned while a FERS employee
C) Estimated Social Security benefit at age 62 based on FERS service
D) Percentage of high-3 salary
Answer: C
,Explanation: The Special Retirement Supplement approximates the Social Security benefit
earned during FERS service, payable until age 62.
Q6. What is the maximum number of hours of unused sick leave that can be credited
toward retirement?
A) 2087 hours (one year)
B) Unlimited
C) 1043 hours (six months)
D) 520 hours (three months)
Answer: B
Explanation: There is no limit on crediting unused sick leave for retirement computation
under both FERS and CSRS.
Q7. Under FERS, what is the reduction for early retirement at MRA with 10 years but less
than 30?
A) 3% per year under age 60
B) 5% per year under age 62
C) 10% per year under MRA
D) 2% per year under age 62
Answer: B
Explanation: Early retirement at MRA with 10+ years but less than 30 incurs a 5% per year
reduction for each year under age 62.
Q8. What is the TSP withdrawal option that provides payments over the employee's life
expectancy?
A) Single Life Annuity
, B) Substantially Equal Periodic Payments (SEPP)
C) Life Expectancy Method
D) Systematic Withdrawals
Answer: C
Explanation: The Life Expectancy Method allows withdrawals based on IRS life expectancy
tables, recalculated annually.
Q9. What is the "CSRS Offset" provision?
A) CSRS employees who switch to FERS
B) CSRS employees covered by Social Security for part of their career
C) Reduction in CSRS annuity at age 62 for Social Security coverage
D) Both B and C
Answer: D
Explanation: CSRS Offset applies to employees covered by CSRS and Social Security
simultaneously; their CSRS annuity is reduced at age 62 by the Social Security benefit
earned during offset service.
Q10. What is the survivor annuity percentage for a spouse under FERS if elected at
retirement?
A) 25% of the employee's annuity
B) 50% of the employee's annuity
C) 55% of the employee's annuity
D) 100% of the employee's annuity
Answer: B
ANSWERS GRADE A
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Q1. Under FERS, what is the minimum age and service requirement for an immediate
unreduced retirement?
A) Age 55 with 30 years
B) Age 60 with 20 years
C) Age 62 with 5 years
D) Age 50 with 20 years
Answer: B
Explanation: FERS offers immediate unreduced retirement at: 1) Age 62 with 5 years, 2) Age
60 with 20 years, 3) MRA with 30 years, or 4) MRA with 10 years (with reduction).
Q2. What is the CSRS annuity computation formula for a retiree with 30 years of service?
A) 1.5% x high-3 x first 5 years + 1.75% x high-3 x next 5 years + 2.0% x high-3 x remaining
years
B) 2.0% x high-3 x first 10 years + 2.5% x high-3 x remaining years
C) 1.0% x high-3 x all years of service
D) 1.5% x high-3 x first 20 years + 1.75% x high-3 x remaining years
Answer: A
Explanation: CSRS uses: 1.5% x high-3 x first 5 years + 1.75% x high-3 x next 5 years + 2.0%
x high-3 x all years over 10.
Q3. What is the FERS Basic Annuity formula for employees retiring at age 62 or later with
20+ years?
,A) 1.0% x high-3 x years of service
B) 1.1% x high-3 x years of service
C) 1.5% x high-3 x years of service
D) 2.0% x high-3 x years of service
Answer: B
Explanation: FERS uses 1.0% x high-3 x years of service, except 1.1% if retiring at age 62+
with 20+ years.
Q4. What is the Minimum Retirement Age (MRA) for employees born in 1970 or later?
A) 55
B) 56
C) 57
D) 60
Answer: C
Explanation: MRA is 57 for those born in 1970 or later, following the phased increase
schedule.
Q5. How is the FERS Special Retirement Supplement calculated?
A) Fixed amount based on years of service
B) Social Security benefit earned while a FERS employee
C) Estimated Social Security benefit at age 62 based on FERS service
D) Percentage of high-3 salary
Answer: C
,Explanation: The Special Retirement Supplement approximates the Social Security benefit
earned during FERS service, payable until age 62.
Q6. What is the maximum number of hours of unused sick leave that can be credited
toward retirement?
A) 2087 hours (one year)
B) Unlimited
C) 1043 hours (six months)
D) 520 hours (three months)
Answer: B
Explanation: There is no limit on crediting unused sick leave for retirement computation
under both FERS and CSRS.
Q7. Under FERS, what is the reduction for early retirement at MRA with 10 years but less
than 30?
A) 3% per year under age 60
B) 5% per year under age 62
C) 10% per year under MRA
D) 2% per year under age 62
Answer: B
Explanation: Early retirement at MRA with 10+ years but less than 30 incurs a 5% per year
reduction for each year under age 62.
Q8. What is the TSP withdrawal option that provides payments over the employee's life
expectancy?
A) Single Life Annuity
, B) Substantially Equal Periodic Payments (SEPP)
C) Life Expectancy Method
D) Systematic Withdrawals
Answer: C
Explanation: The Life Expectancy Method allows withdrawals based on IRS life expectancy
tables, recalculated annually.
Q9. What is the "CSRS Offset" provision?
A) CSRS employees who switch to FERS
B) CSRS employees covered by Social Security for part of their career
C) Reduction in CSRS annuity at age 62 for Social Security coverage
D) Both B and C
Answer: D
Explanation: CSRS Offset applies to employees covered by CSRS and Social Security
simultaneously; their CSRS annuity is reduced at age 62 by the Social Security benefit
earned during offset service.
Q10. What is the survivor annuity percentage for a spouse under FERS if elected at
retirement?
A) 25% of the employee's annuity
B) 50% of the employee's annuity
C) 55% of the employee's annuity
D) 100% of the employee's annuity
Answer: B
