I’m on FERS FRAE and imo it’s a horrible deal, especially for those who are either planning on retiring early or don’t end up spending their entire career with the gov. If I’ve done my math right, my 4.4% contribution would be better invested rather than put in the pension in every scenario except staying until MRA at 57. If we were able to opt out or even better opt out for an extra TSP match, I would do it in a heartbeat. I plan on withdrawing my contributions when I leave and rolling them over into my TSP.

15 years of service, full deferred annuity at 62 is $20,887/year not accounting for 23 years of inflation then eating away at it. My 4.4% contribution if invested instead would be $647,709 or 4% yearly draw of $25,908 - and this takes inflation into account.

20 years of service, full deferred annuity at 60 is $29,139/year not accounting for 16 years of inflation. My 4.4% contribution if invested: $679,444 or $27,177/year - accounts for inflation.

25 years of service, full deferred annuity at 60 is $37,714/year not accounting for 8 years of inflation. I believe 8 years of 3% inflation would make it valued at $29,562/year. My 4.4% contribution if invested: $766,216 or $30,648/year - accounts for inflation.

33 years of service, immediate annuity at 57 is $49,782 - no inflation gap since immediate annuity with COLA. My 4.4% contribution if invested: $698,721 or $27,948/year - accounts for inflation. If instead of a pension with me contributing 4.4% and gov 9.6%, I got to keep and invest 4.4% and gov added another 5% TSP match, then additional 5% match would be $794,001. 5% additional match plus my 4.4% invested = $1,492,7722 or $59,708/year.