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Glossary

Retirement words, explained

Rules checked October 18, 2026

Short, plain-English definitions of the words you'll see on pension statements, retirement applications, Social Security letters and Medicare notices, each linked to the official source and to our guides.

Numbers

403(b) plan
A savings plan for employees of public schools and some nonprofits, common among teachers. You save from each paycheck before tax or as Roth. The 2026 limit is $24,500, the same as a 401(k), 457(b) or the TSP. Learn more: 457(b) deferred compensation · IRS: 2026 limits
457(b) plan
A savings plan offered by state and local governments, also called deferred compensation because you put off getting part of your pay, and the tax on it, until later. Examples are the Oregon Savings Growth Plan and Washington's Deferred Compensation Program. You can put in up to $24,500 in 2026, plus catch-up contributions from age 50. Learn more: 457(b) deferred compensation · Oregon Savings Growth Plan · IRS: 457(b) plans · DRS: Deferred Compensation Program

A

Actuarial equivalency factors (AEFs)
The tables Oregon PERS uses to turn account balances into monthly payments and to adjust a pension for early retirement or a survivor option. Under the tables effective January 1, 2026, retiring one year before full-benefit age keeps about 91.8% of the pension, and three years early about 77.5%. Learn more: When can I retire from PERS? · PERS survivor options · PERS: factors effective January 1, 2026
Annuity
A series of payments, usually monthly, that lasts for life or for a set period. Under FERS your pension is called the basic annuity, and at retirement you can also use TSP money to buy a life annuity. Learn more: Lump sum or monthly pension? · TSP withdrawal options · TSP: withdrawals in retirement
Assumed earnings rate
The yearly return a pension system expects its investments to earn over the long run. Oregon PERS credits Tier One member accounts with this rate, currently 6.9% a year, while Tier Two accounts get actual returns. Learn more: Tier One, Tier Two and OPSRP · PERS: Tier One/Tier Two benefit calculation
Average final compensation (AFC)
Washington DRS's name for the pay figure in your pension formula. For Plan 2 and Plan 3 it's the average of your highest-paid 60 months in a row, which can fall anywhere in your career. For Plan 1 it's your highest 24 months in a row. Learn more: DRS Plans 1, 2 and 3 · DRS: PERS Plan 2
Average indexed monthly earnings (AIME)
Social Security's monthly average of your 35 highest years of earnings, adjusted for wage growth. Years with no earnings count as zero. Your AIME runs through the bend-point formula to set your primary insurance amount. Learn more: Social Security explained · SSA: benefit formula

B

Basic annuity (FERS)
The pension part of FERS: your high-3 times your years of service times 1%, or 1.1% if you retire at 62 or older with at least 20 years. For example, a $90,000 high-3 and 25 years at 1% gives $22,500 a year. Learn more: FERS explained · When can I retire under FERS? · OPM: computation
Bend points
The dollar amounts where Social Security's benefit formula changes rate. For people who turn 62 in 2027, the formula pays 90% of the first $1,340 of AIME, 32% of the amount up to $8,077, and 15% above that. That's why lower earners get back a larger share of their pay. Learn more: Social Security explained · Does a pension reduce Social Security? · SSA: bend points · SSA: benefit formula
Beneficiary
The person, trust, estate or charity you name to receive a benefit after you die, such as a survivor pension, an account balance or life insurance. Keep each beneficiary form up to date. A pension survivor choice usually can't be changed once payments start. Learn more: PERS survivor options · Single life or survivor pension? · PERS: all about beneficiaries
Benefit factor (age factor)
In CalPERS and CalSTRS, the percentage of pay you earn for each year of service, which rises with your age at retirement. CalSTRS members hired on or after January 1, 2013 get 2% at 62, rising to a maximum of 2.4% at 65. Learn more: CalPERS explained · CalSTRS explained · CalSTRS: two benefit structures

C

CalPERS
The California Public Employees' Retirement System, which covers state workers, many local government workers and school staff who aren't teachers. The pension is service credit times a benefit factor times final compensation. Learn more: CalPERS explained · CalPERS: planning your service retirement
CalSTRS
The California State Teachers' Retirement System. Members first hired on or before December 31, 2012 are in the 2% at 60 structure, and members hired on or after January 1, 2013 are in 2% at 62. Learn more: CalSTRS explained · CalSTRS: two benefit structures
Catch-up contributions
Extra savings allowed in a 401(k), 403(b), governmental 457(b) or TSP once you're 50 or older: $8,000 on top of the $24,500 limit in 2026. If you turn 60, 61, 62 or 63 during the year, the extra is $11,250. Starting in 2026, if your wages from that employer were over $150,000 the year before, catch-ups must go in as Roth. Learn more: 457(b) deferred compensation · IRS: catch-up contributions
Civil Service Retirement System (CSRS)
The older federal pension system for employees hired before 1984. Most federal civilian workers today are covered by FERS instead. Learn more: FERS explained · OPM: types of retirement
Classic member (CalPERS)
A CalPERS member whose membership date is December 31, 2012 or earlier. Classic members keep their older formulas. Most people who first joined on or after January 1, 2013 are PEPRA members instead. Learn more: CalPERS explained · CalPERS: planning your service retirement
COBRA
A federal law that lets you keep your job's health plan after you leave, usually for up to 18 months, if you pay the full cost plus 2%. You have 60 days to choose it. It covers most state and local government plans, but not federal FEHB plans. Learn more: Health insurance before 65 · Labor Department: COBRA guide
Combined income
The figure Social Security uses to decide whether your benefits are taxed: adjusted gross income, plus tax-exempt interest, plus half your Social Security. Above $25,000 on a single return or $32,000 on a joint return, part of your benefit becomes taxable, up to 85% at higher incomes. Learn more: Is Social Security taxed? · SSA: taxes on benefits
Cost-of-living adjustment (COLA)
A yearly raise to a pension or Social Security to help it keep up with prices. Social Security's COLA for 2027 is 3.6%. Pension COLAs follow each plan's own rules: FERS retirees got 2.0% for 2026, and Oregon PERS raises are capped at 2% a year. Learn more: FERS cost-of-living raises · Oregon PERS explained · SSA: 2027 COLA · OPM: COLAs · PERS: COLA
Creditable drug coverage
Prescription coverage that is at least as good as Medicare Part D, such as many job-based plans. Having it lets you wait to join Part D without a late penalty. Learn more: When to sign up for Medicare · Medicare: drug coverage costs

D

Deferred retirement
Leaving a job before you can retire and starting the pension later. A FERS deferred annuity starts at 62 with 5 years, or at your MRA with 10 years (with a cut), but you can't get FEHB or FEGLI back. Vested Oregon PERS and Washington DRS members who leave early also keep the right to a pension later. Learn more: FERS deferred and postponed retirement · OPM: types of retirement
Defined benefit plan
A pension that promises a set monthly payment from a formula, usually a percentage times years of service times pay. Oregon PERS, Washington DRS, CalPERS, CalSTRS, PERSI and the FERS basic annuity are defined benefit plans. Learn more: Where to begin
Defined contribution plan
A savings account where what you end up with depends on how much goes in and how the investments do. Examples are the TSP, a 457(b), the Oregon PERS IAP and the Washington Plan 3 investment account. Learn more: Where to begin
Delayed retirement credits
The increase Social Security adds when you start after full retirement age: 2/3 of 1% for each month, or 8% a year, up to age 70. Waiting from 67 to 70 pays 124% of your full amount for life. Learn more: When to start Social Security · SSA: delayed retirement credits
Disability retirement
A pension paid early because an illness or injury keeps you from doing your job. Under FERS you need at least 18 months of federal civilian service, and you must also apply for Social Security disability. Learn more: FERS explained · OPM: types of retirement

E

Early retirement factor (ERF)
The number Washington DRS multiplies your pension by when you retire early. For PERS Plan 2 members with 30 years who were hired before May 1, 2013, it's 0.80 at 55, rising 0.03 a year to 1.00 at 62. Members hired on or after that date lose 5% for each year under 65. Learn more: When can I retire from DRS? · DRS: PERS Plan 2 · DRS: early retirement factors
Early retirement reduction
The permanent cut to a pension that starts before the plan's full-benefit age. It's 5% a year under 62 for a FERS MRA+10 annuity, and 3% a year for the first five years early under PERSI. Social Security started at 62 pays 30% less than at 67 for people born in 1960 or later. Learn more: When can I retire from PERS? · When can I retire under FERS? · OPM: eligibility · SSA: early retirement
Earnings test
If you start Social Security before full retirement age and keep working, it holds back $1 for every $2 you earn over $25,560 in 2027. In the year you reach full retirement age, it holds back $1 for every $3 over $67,920. The money isn't lost: your benefit goes up at full retirement age to make up for it. Learn more: Social Security earnings test · SSA: earnings test amounts · SSA: 2027 figures
Employee Pension Stability Account (EPSA)
An Oregon PERS account created by Senate Bill 1049. Since July 1, 2020, if you earn more than a monthly threshold ($3,890 in 2026), part of your 6% IAP contribution goes here instead: 2.5% of pay for Tier One and Tier Two, 0.75% for OPSRP. It helps pay for your pension. Learn more: IAP payout options · PERS: member redirect

F

Federal Employees Health Benefits (FEHB)
The health insurance program for federal workers. You can keep it in retirement, with the government still paying its share, if you were enrolled for the 5 years of service just before you retire, or for all your service if that's shorter. Learn more: FEHB and FEGLI in retirement · Health insurance before 65 · 5 U.S.C. 8905
Federal Employees Retirement System (FERS)
The retirement system for most federal civilian employees hired in 1984 or later. It has three parts: the basic annuity (a pension), the Thrift Savings Plan, and Social Security. Learn more: FERS explained · OPM: FERS eligibility
Federal Employees' Group Life Insurance (FEGLI)
Life insurance for federal workers. To keep it in retirement you generally need coverage for the 5 years of service before you retire. At 65 or retirement, whichever is later, Basic coverage starts to shrink unless you pay extra; the default 75% reduction is free once reductions begin. Learn more: FEHB and FEGLI in retirement · OPM: FEGLI Basic in retirement · OPM: five-year rule
FERS supplement
A monthly payment until 62 for FERS retirees who leave at their MRA with 30 years, at 60 with 20 years, or under special provisions. It's roughly your Social Security estimate at 62 times your years of FERS service, divided by 40. It's reduced if you work and earn more than Social Security's yearly limit. Learn more: FERS supplement earnings test · 5 U.S.C. 8421
15-year certain
An Oregon PERS Tier One and Tier Two payout that pays for your life. If you die before receiving 180 monthly payments, your beneficiary gets the rest. Learn more: PERS survivor options · PERS: Tier One/Tier Two preretirement guide
Final average salary (FAS)
Oregon PERS's pay figure for the pension formula. For Tier One and Tier Two it's your three best years of pay; for OPSRP it's your best three years in a row. Pay above a yearly limit, listed by PERS as $245,724, doesn't count. Learn more: Oregon PERS explained · PERS: Tier One/Tier Two benefit calculation · PERS: salary limit
Final compensation (CalPERS)
CalPERS's pay figure: your highest average yearly pay over 12 or 36 months in a row, depending on your employer's contract and when you joined. PEPRA members always use at least 36 months. Learn more: CalPERS explained · CalPERS: planning your service retirement
Formula Plus Annuity
A third way Oregon PERS can figure a Tier One pension, for members who made contributions before August 21, 1981. PERS checks every method you qualify for and pays the highest. Learn more: Tier One, Tier Two and OPSRP · PERS: Tier One/Tier Two benefit calculation
Full Formula
Oregon PERS's main pension calculation: formula rate times years of service times final average salary. The rate is 1.67% for Tier One and Tier Two general service and 2.0% for police and fire. Example: 28 years and $81,000 at 1.67% gives $37,876 a year. Learn more: Tier One, Tier Two and OPSRP · PERS: benefit component comparisons
Full retirement age (FRA)
The age when you get your full Social Security amount: 67 if you were born in 1960 or later, and between 66 and 67 for birth years 1955 to 1959. Starting at 62 pays 70% of the full amount when your full retirement age is 67. Learn more: When to start Social Security · SSA: retirement age

G

Government Pension Offset (GPO)
A rule that used to cut Social Security spouse and widow(er) benefits for people with a pension from a job that didn't pay Social Security tax. The Social Security Fairness Act ended it for benefits payable for January 2024 and later. Learn more: Does a pension reduce Social Security? · SSA: Social Security Fairness Act

H

High-3
Your highest average basic pay over any three years in a row, the pay figure in the FERS annuity formula. For many people it's their last three years, but it doesn't have to be. Learn more: FERS explained · When can I retire under FERS? · OPM: computation

I

Income-related monthly adjustment amount (IRMAA)
An extra charge on Medicare Part B and Part D premiums for people with higher income, based on your tax return from two years earlier. For 2026 it starts above $109,000 of income for a single person or $218,000 for a married couple filing jointly. At the first tier, Part B goes from $202.90 to $284.10 a month and Part D adds $14.50. Learn more: Medicare IRMAA · Medicare: 2026 costs
Individual Account Program (IAP)
The Oregon PERS savings account that has received members' 6% contributions (often paid by the employer) since 2004. It rises and falls with PERS investments. At retirement you can take it as a lump sum, in installments over 5, 10, 15 or 20 years, or over your expected lifetime. Learn more: IAP payout options · Oregon PERS explained · PERS: What is the IAP?
Initial Enrollment Period (Medicare)
Your first chance to sign up for Medicare: about 7 months, starting 3 months before the month you turn 65 and ending 3 months after it. Learn more: When to sign up for Medicare · Medicare: when you can sign up

J

Joint and survivor option
A pension payout that keeps paying your survivor after you die, in exchange for a smaller payment while you're alive. Survivors commonly get 100%, two-thirds or half of your amount; Washington DRS Plan 2 offers all three. Learn more: Single life or survivor pension? · DRS survivor options · DRS: PERS Plan 2

L

Lump sum
A one-time payment of all or part of a benefit instead of monthly payments. Oregon PERS Tier One and Tier Two members can choose a total lump sum of their member account plus a matching employer amount, with no monthly pension afterward. Learn more: Lump sum or monthly pension? · PERS: Tier One/Tier Two preretirement guide

M

Medicare
Federal health insurance that can start at 65 no matter when you retire. Part A covers hospital care, Part B covers doctors and outpatient care, and Part D covers prescriptions. Medicare Advantage is a private plan that takes the place of Parts A and B. Learn more: When to sign up for Medicare · Health insurance before 65 · Medicare: when you can sign up
Medicare Advantage (Part C)
A private, Medicare-approved plan you can choose in place of Original Medicare Parts A and B. You can't be sold a Medigap policy while you're in one. Learn more: When to sign up for Medicare · Medicare: when to buy Medigap
Medigap (Medicare Supplement Insurance)
A private policy that helps pay what Original Medicare leaves to you, such as deductibles and coinsurance. The best time to buy is your 6-month Medigap open enrollment period, which starts the month you're 65 or older and enrolled in Part B. During that window an insurer must sell you any policy it offers in your state, whatever your health. Learn more: When to sign up for Medicare · Medicare: when to buy Medigap
Member account (Oregon PERS)
The Tier One or Tier Two account built from your own contributions made before 2004. PERS uses it in the Money Match calculation, and under a refund annuity any balance left at your death goes to your beneficiary. Learn more: Tier One, Tier Two and OPSRP · PERS: Tier One/Tier Two benefit calculation
Military service deposit
A payment that lets federal workers count post-1956 active military service toward their FERS annuity. It's usually 3% of your military basic pay, and you must pay it to your agency before you leave federal service. Learn more: FERS military buyback · OPM: service credit
Minimum Retirement Age (MRA)
The earliest age you can retire under FERS with an immediate annuity. It's 56 for people born 1953 to 1964 and 57 for people born in 1970 or later, going up 2 months per birth year in between (55 if born before 1948). Learn more: When can I retire under FERS? · OPM: eligibility
Money Match
An Oregon PERS Tier One and Tier Two calculation that doubles your member account (your employer matches it) and turns the total into a monthly payment using PERS's age factors. PERS pays this or the Full Formula, whichever is higher. PERS says it's rarely higher for Tier Two members. Learn more: Tier One, Tier Two and OPSRP · PERS: Tier One/Tier Two benefit calculation
MRA+10
A FERS retirement at your Minimum Retirement Age with 10 to 29 years of service. Your annuity is cut 5% for each year you're under 62 unless you postpone its start, and you don't get the FERS supplement. Learn more: When can I retire under FERS? · FERS deferred and postponed retirement · OPM: computation

N

Normal retirement age
The age when a pension plan pays its full, unreduced benefit. It's 65 for OPSRP general service and Washington PERS Plan 2 and Plan 3, for example. Many plans also allow a full pension earlier with enough years of service. Learn more: When can I retire from PERS? · When can I retire from DRS? · PERS: benefit component comparisons

O

OASDI
Old-Age, Survivors, and Disability Insurance, the formal name for Social Security. If you see it on your pay stub, that job pays Social Security tax. Learn more: Social Security explained · SSA: 2027 figures
Oregon PERS
The Oregon Public Employees Retirement System, which covers most state workers, teachers and school staff, and many city, county and special district workers. Most members get a pension, an IAP account and Social Security. Learn more: Oregon PERS explained · PERS: benefit component comparisons
Oregon Public Service Retirement Plan (OPSRP)
The Oregon PERS pension for members who started on or after August 29, 2003. General service members earn 1.5% of final average salary per year of service (1.8% for police and fire), with a full pension at 65, or at 58 with 30 years. Learn more: Tier One, Tier Two and OPSRP · PERS: OPSRP overview
Oregon Savings Growth Plan (OSGP)
Oregon's voluntary 457(b) plan for public employees whose employers take part, overseen by the PERS Board. You can save before tax or as Roth, starting at $25 a pay period. Learn more: Oregon Savings Growth Plan · PERS: OSGP

P

Medicare Part A
Hospital insurance, covering inpatient stays and related care. In 2026 the deductible is $1,736 per benefit period. Learn more: When to sign up for Medicare · Medicare: 2026 costs
Medicare Part B
Medical insurance for doctors, outpatient care and tests. The standard premium is $202.90 a month in 2026, with a $283 yearly deductible. Signing up late can add 10% to the premium for each full year you could have had it, for as long as you have Part B. Learn more: When to sign up for Medicare · Medicare IRMAA · Medicare: 2026 costs · Medicare: avoiding penalties
Medicare Part D
Prescription drug coverage sold by private plans. In 2026 the deductible is at most $615, and what you pay for covered drugs is capped at $2,100 for the year. Going 63 days or more in a row without Part D or creditable drug coverage after you're first eligible adds a late penalty, usually for as long as you have Part D. Learn more: When to sign up for Medicare · Medicare: drug coverage costs
Pension
A monthly payment for life from a former employer's retirement plan, figured from your years of service and pay. Pensions are generally taxed as income by the federal government; state rules vary. Learn more: How pensions are taxed · State tax on public pensions
PEPRA (California Public Employees' Pension Reform Act)
A California law that applies to most people who first joined CalPERS or another California public system on or after January 1, 2013. For non-safety members it set a 2% at 62 formula with an earliest retirement age of 52, final compensation over at least 36 months, and a cap on pensionable pay. Learn more: CalPERS explained · CalSTRS explained · CalPERS: PEPRA summary
PERS Health Insurance Program (PHIP)
Oregon PERS's health plans for retirees, their spouses and eligible dependents. It includes plans for people not yet on Medicare and plans that work with Medicare. Learn more: PERS retiree health insurance · Health insurance before 65 · PERS: PHIP
PERSI
The Public Employee Retirement System of Idaho. General members earn 2% of average monthly salary (the highest 42 months in a row) per year of service, and police and fire 2.3%. The full pension starts at 65, or earlier under the Rule of 90. Learn more: Idaho PERSI explained · PERSI: member handbook
Plan 1 (Washington DRS)
The first Washington DRS plans. PERS Plan 1 pays 2% times years of service times AFC (your highest 24 months in a row), up to 60% of AFC. You can retire at any age with 30 years, at 55 with 25, or at 60 with 5. Learn more: DRS Plans 1, 2 and 3 · DRS: PERS Plan 1
Plan 2 (Washington DRS)
A Washington DRS pension that pays 2% of AFC for each year of service, with a full benefit at 65, or at 62 with 30 years. Example from DRS: 23 years with a $5,400 AFC pays $2,484 a month. You can retire early from 55 with 20 years, with a reduction. Learn more: DRS Plans 1, 2 and 3 · When can I retire from DRS? · DRS: PERS Plan 2
Plan 3 (Washington DRS)
A Washington DRS plan with two parts: an employer-funded pension of 1% of AFC per year of service, and an investment account you fund with 5% to 15% of pay. The pension is full at 65; you can take money from the investment account any time after you leave your job. Learn more: DRS Plans 1, 2 and 3 · DRS: PERS Plan 3
Postponed retirement (FERS)
Leaving federal service at your MRA with 10 to 29 years and waiting to start your MRA+10 annuity, which shrinks or erases the 5% a year cut. Unlike deferred retirement, you can get FEHB back when the annuity starts if you had it for the 5 years before you left. Learn more: FERS deferred and postponed retirement · OPM: types of retirement
Pre-tax (traditional) contributions
Savings taken from your pay before income tax, which lowers your taxable income now. You pay income tax when you take the money out, and required minimum distributions apply. Learn more: How pensions are taxed · IRS: required minimum distributions
Primary insurance amount (PIA)
Your Social Security benefit at full retirement age, before any cut for starting early or credit for waiting. It comes from running your AIME through the bend-point formula. Learn more: Social Security explained · When to start Social Security · SSA: benefit formula
Public Employees Benefits Board (PEBB)
Washington's public employee insurance program, run by the Health Care Authority, which offers retiree health coverage to eligible retirees. You must enroll, or defer, within 60 days after your employer-paid coverage ends. Once you're on Medicare you must keep Parts A and B; in 2026 the state lowers Medicare retiree premiums by up to $183 a month. Learn more: Washington DRS explained · Health insurance before 65 · HCA: retiree eligibility · HCA: 2026 retiree enrollment guide

R

Refund annuity
An Oregon PERS Tier One and Tier Two payout that pays a monthly pension for your life. After you die, any member account balance not yet paid out goes to your beneficiary in one payment. Learn more: PERS survivor options · PERS: Tier One/Tier Two preretirement guide
Required minimum distribution (RMD)
The amount the IRS requires you to take out each year from traditional retirement accounts, generally starting at 73. Some job plans let you wait until you retire if you're still working. Missing an RMD can cost a 25% tax on the shortfall, or 10% if you fix it within 2 years. Learn more: TSP withdrawal options · 457(b) deferred compensation · IRS: required minimum distributions
Retiree Health Insurance Premium Account (RHIPA)
An Oregon PERS subsidy for State of Oregon retirees not yet eligible for Medicare who buy PHIP coverage. The amount depends on your years of state service. Learn more: PERS retiree health insurance · PERS: supplementary accounts
Retirement Health Insurance Account (RHIA)
An Oregon PERS subsidy of $60 a month toward the premium of a PHIP Medicare plan for eligible Tier One and Tier Two retirees. Learn more: PERS retiree health insurance · PERS: supplementary accounts
Roth contributions
Savings put in after tax. If you meet the rules, withdrawals of both contributions and earnings are tax-free later. Roth money in a job plan such as the TSP or a 457(b) has no required minimum distributions while you're alive. Learn more: 457(b) deferred compensation · TSP withdrawal options · IRS: required minimum distributions
Rule of 90 (Idaho PERSI)
Idaho PERSI's test for a full pension before 65: your age plus years of service adds up to 90, such as age 60 with 30 years. Police and firefighters use the Rule of 80. PERSI counts both in months, so each month you work adds two months to the total. Learn more: Idaho PERSI explained · PERSI: early retirement

S

Salary limit (Oregon PERS)
Since 2020, pay above a yearly cap doesn't count toward an Oregon PERS pension. PERS lists the limit as $245,724. CalPERS PEPRA members have a similar cap on pensionable pay. Learn more: Oregon PERS explained · PERS: salary limit
Service credit
The years and months of work that count toward your pension. Most formulas multiply it directly, so 25 years at 2% gives 50% of your pay. Some plans let you add credit by paying for past service, such as military time under FERS. Learn more: Oregon PERS explained · FERS military buyback · OPM: service credit
Single life option
A pension paid only for your lifetime, with nothing to anyone after you die. It's the largest monthly amount a plan offers. Oregon PERS calls it Option 1 and CalPERS calls it the Unmodified Allowance; Washington DRS needs a spouse's notarized consent to choose it. Learn more: Single life or survivor pension? · DRS: PERS Plan 2
Social Security credits
Units of work that qualify you for Social Security. You need 40 credits, about 10 years of work that paid Social Security tax, for a retirement benefit. In 2027 you earn one credit for each $1,970 of earnings. Learn more: Social Security explained · SSA: credits · SSA: 2027 figures
Social Security Fairness Act
A law signed January 5, 2025 that ended the Windfall Elimination Provision and Government Pension Offset. They no longer apply to benefits payable for January 2024 and later, so a public pension no longer reduces your Social Security. Learn more: Does a pension reduce Social Security? · SSA: Social Security Fairness Act
Special Enrollment Period (Medicare)
An 8-month window to sign up for Part B without a penalty after you or your spouse stop working, or lose job-based coverage. The clock starts when the job ends even if you take COBRA, so COBRA doesn't extend it. Learn more: When to sign up for Medicare · Medicare: when you can sign up
Special provisions (FERS)
Rules for federal law enforcement officers, firefighters and air traffic controllers, who can retire at 50 with 20 years of covered service or at any age with 25. Their annuity is 1.7% of high-3 for each of the first 20 years and 1% after that, and their COLAs start right away. Learn more: FERS special provisions · OPM: eligibility
Spousal benefit
A Social Security benefit paid on your spouse's work record, worth up to half of your spouse's full-retirement-age amount if that's more than your own benefit. It's smaller if you start it before your own full retirement age. Learn more: Spousal benefits · SSA: benefits for a spouse
Written permission from your spouse that many plans require before you choose a pension with a smaller survivor benefit or none at all. FERS requires it to choose no survivor annuity, and Washington DRS requires notarized consent for a single life pension. Learn more: Single life or survivor pension? · FERS survivor benefit · OPM: computation
Survivor annuity (FERS)
A FERS pension for your spouse after you die. A full survivor annuity costs 10% of your annuity and pays your spouse 50% of your unreduced annuity for life. A partial one costs 5% and pays 25%. Learn more: FERS survivor benefit · OPM: computation
Survivor benefit (Social Security)
Monthly Social Security for a widow or widower, based on the deceased spouse's record. It can start as early as 60 at 71.5% of the spouse's benefit and reaches 100% at the survivor's full retirement age. Learn more: Survivor benefits · SSA: survivor benefit amounts

T

Taxable maximum
The most earnings each year that pay Social Security tax and count toward your benefit: $184,500 in 2026 and $192,300 in 2027. Learn more: Social Security explained · SSA: 2027 figures
Thrift Savings Plan (TSP)
The federal savings plan, like a 401(k). Your agency adds 1% of pay automatically and matches up to 4% more when you save 5%. In 2026 you can put in up to $24,500. At retirement you can take installments, single withdrawals, a life annuity or a mix. Learn more: TSP withdrawal options · FERS explained · TSP: contributions · TSP: withdrawals in retirement
Tier One
Oregon PERS members who started a PERS job before January 1, 1996. General service members get a full pension at 58, or at any age with 30 years. Their member accounts are credited the assumed earnings rate. Learn more: Tier One, Tier Two and OPSRP · PERS: benefit component comparisons
Tier Two
Oregon PERS members who started from January 1, 1996 to August 28, 2003. General service members get a full pension at 60, or at any age with 30 years. Their member accounts earn actual investment returns, which can go up or down. Learn more: Tier One, Tier Two and OPSRP · PERS: benefit component comparisons

U

Unmodified Allowance (CalPERS)
The highest CalPERS monthly payment, paid for your life only. Nothing continues to a beneficiary and unused contributions aren't returned. Learn more: CalPERS explained · Single life or survivor pension? · CalPERS: planning your service retirement
Unused sick leave credit
Some plans turn leftover sick leave into a bigger pension. FERS adds it to your service for the annuity formula, but not to reach retirement eligibility. Oregon PERS adds half of unused hours to final average salary for Tier One and Tier Two members whose employer takes part; OPSRP members don't get it. Learn more: FERS sick leave credit · PERS unused sick leave · 5 U.S.C. 8415 · PERS: unused sick leave

V

Vesting
Earning a lasting right to a pension even if you leave the job. It takes 5 years in Washington PERS Plan 2, and 60 months for most PERSI members. OPSRP members vest after 600 hours in each of five calendar years, or by being an active member at 65. Learn more: Where to begin · PERS: OPSRP eligibility · DRS: PERS Plan 2
Voluntary Early Retirement Authority (VERA)
An early-out OPM can approve for a federal agency during a reorganization, reduction in force or transfer of function. Eligible employees can retire at 50 with 20 years, or at any age with 25. Learn more: When can I retire under FERS? · OPM: types of retirement

W

Windfall Elimination Provision (WEP)
A rule that used to reduce your own Social Security if you also had a pension from a job that didn't pay Social Security tax. The Social Security Fairness Act ended it for benefits payable for January 2024 and later. Learn more: Does a pension reduce Social Security? · SSA: Social Security Fairness Act
Working after retirement
Rules on taking a job after you retire. Oregon PERS lets most people who retired at normal retirement age work for a PERS employer with no PERS limits for calendar years through 2034. Early retirees need a break of at least six full months first. Learn more: Working after retiring from PERS · PERS: Tier One/Tier Two preretirement guide

General information, not advice. We aren't part of any retirement system or government agency. Rules and dollar amounts change, many of them every January, so check the linked official page or ask your retirement system, Social Security or Medicare before you decide.