Retirement

Detailed retirement information
  Civil Service Retirement System (CSRS) Federal Employees Retirement System (FERS)
  • Contributions
  • 5 USC 8334
  • 5 USC 8422
  • 5 CFR 531.1003
  • 5 CFR 841.503
  • Handbook - Chapter 30

CSRS = 7%

CSRS-Offset = .8% to Civil Service Retirement and Disability Fund and 6.2% to Social Security up to the Maximum Earnings then the CSRS contribution changes to 7% for the remainder of the year

FERS = 4.9%* to Civil Service Retirement and Disability Fund and 6.2% to Social Security up to the Maximum Earnings *Hired prior to 2013 is 1.3%; in 2013 3.6%; 2014 and later 4.9%

  • Definition of Salary for High-3 Purposes
  • Handbook Chap 30

Includes: Basic Salary and Locality Pay

Does not include overtime, premium pay, night differential

Includes: Basic Salary and Locality Pay

Does not include overtime, premium pay, night differential

  • Eligibility
  • 5 USC 8336 (e)
  • 5 USC 8412 (e)
  • 5 CFR 842.207
  • Handbook Chap 46

Age 50 with 20 years good time OR Any age with 25 years good time

Age 50 with 20 years good time OR Any age with 25 years good time

  • Computation for Full-time Employees
  • 5 USC 8339(e)
  • 5 USC 8415(d)
  • 5 USC 8415 (g)
  • 5 CFR 842.405
  • 5 USC 8412(a)
  • Handbook Chap 54

1.5% x first 5 years

1.75% x next 5 years

2% x over 10 years (x high-3)

Guaranteed 50% of high-3. Reduction in annuity that applies to employees who retire under age 55 does not apply if retire under special provisions.

1.7% x high-3 x years of good time (up to 20 years FERS good time) plus 1% for each year over 20 years. If 30+ years good time, 1.7% x all creditable years.

Transfers - CSRS good time use CSRS regular formula - no guaranteed 50%. Not eligible for 1.1 % calculation for annuity.

  • Computation for Part-time Employees
  • 5 USC 8415(e)
  • 5 CFR 831.703

Apply regular part-time computation rules - Guaranteed 50% of high-3 is based on high-3 computation from actual salary received.

Apply regular part-time computation rules; high-3 is based on deemed full-time salary.

  • Annuity Supplement
  • 5 USC 8421(a)
  • 5 USC 8422(b)

Not Applicable

Individual is eligible for annuity supplement until the age of 62. The supplement approximates the amount of FERS benefit that is payable in the Social Security Benefit.

Once the individual reaches his/her MRA, subject to outside earnings test.

  • Intermittent service
  • Chapter 20

Credit only the days worked

Credit only the days worked

  • Deposit service
  • Handbook - Chapter 21

The reduction in annuity that applies for deposit service performed prior to 10/1/82, does not apply in the computation of the ATC benefit if it brings the annuity below the guaranteed minimum 50% of high-3 average salary.

Unpaid nondeduction service performed on or after 10/1/82, counts towards eligibility to retire but is not used to compute the benefit Guaranteed 50% minimum benefit still applies whether or not they pay the deposit for post 9-30-82 service.

Unpaid & performed prior to 1/1/89 - not creditable for eligibility or computation, but used to determine mandatory separation.

Unpaid & performed on or after 1/1/89, not creditable for any purpose (including mandatory separation).

If you have a CSRS component, and have deposit service, follow the CSRS deposit rules. Guaranteed 50% minimum doesn't apply.

If deposit period of civilian service was performed prior to 10/1/82, the reduction in the CSRS annuity is 10% of the amount owed.

  • Redeposit service
  • 5 USC 8339(e)
  • Handbook - Chapter 21

Unpaid refunded ATC service that ended before 10/1/90 will have the service credited as paid, but the 50% guaranteed minimum annuity, if applicable, will be actuarially reduced

Unpaid refunded ATC service ending on or after 10/1/90 is not used to compute the annuity-no guaranteed 50% annuity.

Unpaid refunded non-ATC service that ended before 10/1/90 is creditable in computation of annuity subject to an actuarial reduction. Actuarial reduction cannot bring benefit below guaranteed 50% minimum annuity.

Unpaid refunded non-ATC service that ended on or after 10/1/90 is not used to compute the annuity but will not prevent individual from receiving guaranteed 50% minimum benefit.

Refunded FERS service is not creditable & is not counted in good time (including mandatory separation).

Refunded CSRS ATC service that is credited under FERS rules is not creditable for eligibility or computation if unpaid, but is used to determine 20 years of good time for mandatory separation purposes

Refunded CSRS component service, follow the CSRS redeposit rules. The guaranteed 50% minimum doesn't apply.

Unpaid CSRS refunded service that ended before 10/1/90 is creditable in computation of annuity subject to an actuarial reduction. Unpaid CSRS refunded service that ended on or after 10/1/90 is not used to compute the annuity.

  • Military service
  • 5 USC 8332(c)
  • 5 USC 8411(c)
  • 5 USC 8422(e)
  • 5 CFR 831.301
  • 5 CFR 831.2101
  • 5 CFR 842.306

Military service does not count as "good" service unless the service interrupts civilian ATC service and employee exercised reemployment rights.

If first employed subject to CSRS prior to 10/1/82, an unpaid military deposit is potentially creditable for length of service and computation. If eligible for Social Security, at age 62 (or retirement if later) the annuity will be recomputed without military service unless the deposit made.

If first employed on or after 10/1/82, an unpaid military deposit for military service is not creditable for computation or length of service unless deposit made.

Annuity will never be below 50% of high-3.

Military service does not count as "good" time unless the service interrupts civilian ATC service and employee exercised reemployment rights. If deposit is not paid, the military service is not creditable for eligibility or computation.

If the employee exercised reemployment rights, the service is potentially creditable and used for mandatory separation.

  • Mandatory Separation
  • 5 USC 8335(a)
  • 5 USC 8425(a)
  • 5 CFR 831.502
  • 5 CFR 842.806
  • Handbook - Chapter 46

Age 56 unless meets one of the exceptions:

  1. Air traffic controllers who were first appointed by the Department of Transportation before 05/16/72; OR
  2. Air traffic controllers who were first appointed by the Department of Defense before 09/12/80; OR
  3. Flight service station specialists who were first appointed before 01/01/87
  4. Effective 11/12/01, ATCs are allowed to stay on duty until they qualify for an immediate retirement under any provision of the CSRS law.

All potentially creditable service is used for determining mandatory separation even if a deposit/redeposit is not paid.

Must be separated on the last day of the month in which he/she reaches Age 56 if the individual has 20 years of service under the special provisions. OR;

If ATC reaches age 56 and has not yet completed 20 years of special provision service, he/she must be separated on the last day of the month in which he/she completes 20 years of ATC service.

All potentially creditable ATC service is used for determining mandatory separation even if a deposit/redeposit is not paid.

ATC temporary service on or after 1/1/89 that is subject to FERS rules is not included in determining mandatory separation. There are no exceptions to mandatory separation as under CSRS.

Visit the OPM CSRS and FERS webpages for additional information.

Updated 12-Oct-2018

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