FERS Normal Cost Percentages Revised for 2026
Published Date: 6/23/2026
Notice
Summary
Starting October 1, 2026, the government is updating the cost percentages it uses to fund federal employees' retirement under FERS. This change affects most federal workers hired after 1983 and means agencies might see shifts in how much they pay toward retirement benefits. Agencies have until December 23, 2026, to appeal these new cost numbers if they think something’s off.
Analyzed Economic Effects
2 provisions identified: 0 benefits, 2 costs, 0 mixed.
Large employer costs for high‑cost job groups
The notice sets much higher normal cost percentages for certain job groups. For example, air traffic controllers have normal costs of 39.9%, 40.2%, and 40.5% (for FERS, FERS-RAE, and FERS-FRAE respectively), and several law-enforcement and similar categories (Capitol Police; firefighters; customs and border protection officers) show normal costs around 38.9%–39.5%. These percentages become effective on or after October 1, 2026.
FERS normal cost percentages updated
Starting with the first pay period on or after October 1, 2026, OPM revised the normal cost percentages used to fund the Federal Employees Retirement System (FERS). These revised percentages determine how much employing agencies must pay toward retirement for employees covered by FERS, FERS-RAE, and FERS-FRAE (the notice lists specific percentages for each group).
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Key Dates
Department and Agencies
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