CSRS/FERS Retirement & Benefits
CSRS Eligibility AGE YEARS OF SERVICE 55 30 60 20 62 5 FERS Eligibility AGE YEARS OF SERVICE MRA 10 MRA 30 60 20 62 5
Minimum Retirement Age (FERS) IF YOU WERE BORN YOUR MRA IS BEFORE 1948 55 YEARS 1948 55 YRS 2 MONTHS 1949 55 YRS 4 MONTHS 1950 55 YRS 6 MONTHS 1951 55 YRS 8 MONTHS 1952 55 YRS 10 MONTHS 1953 TO 1964 56 YRS 1965 56 YRS 2 MONTHS 1966 56 YRS 4 MONTHS 1967 56 YRS 6 MONTHS 1968 56 YRS 8 MONTHS 1969 56 YRS 10 MONTHS AFTER 1969 57 YEARS
FERS ELIGIBILITY *If retiring at MRA +10, (but less than 30 years) it is a reduced benefit. Your benefit will be reduced at the rate of 5/12 s of 1% for each month (5% for each year) you are under age 62
BASIC COMPONENTS OF THE ANNUITY The amount of the annuity benefit is based upon: High 3-years average salary And Length of creditable service
BASIC COMPONENTS OF THE ANNUITY FERS is a three tier retirement system consisting of: 1. FERS basic benefit 2. Social Security 3. Thrift Savings Plan
ANNUITY COMPUTATION Shortcut formula: Years of service - 2 x 2 = Basic annuity expressed as % of high-3 Example: 30 years of service 2 = 28 X 2 = 56 Basic annuity = 56% of high - 3
ANNUITY COMPUTATION (FERS) FERS Basic Benefit Plan 1% of your high-3 average pay times your years of creditable service If you retire at age 62 or later with at least 20 years of service, a factor of 1.1.% is used rather than 1%
ANNUITY ESTIMATES Estimates can also be viewed online via eretire from the LITEBLUE LINK: Under Employee App Select eretire
Part-time service: For Internal Use Only ANNUITY ESTIMATES (CSRS) Performed before April 7, 1986 treated as full-time service for annuity computation On or after April 6, 1986 is subject to a different annuity formula using proration factor
ANNUITY ESTIMATES (CON T) Proration factor is generally the number of hours a part-time employee works divided by the number of hours an employee would have worked if full-time Part time computation requires a manual annuity estimate
UNUSED SICK LEAVE Unused sick leave is added to your length of service in computing the annuity benefit ($$). Unused sick leave is not included in determining eligibility.
SPECIAL RETIREMENT SUPPLEMENT (FERS) Eligible if you retire voluntarily on an annuity that is not reduced for age. Hypothetical Social Security benefit based on your pay during civilian service creditable under FERS After MRA with 30 years of service At age 60 with 20 years of service
SPECIAL RETIREMENT SUPPLEMENT (FERS) Result is your special retirement supplement prior to any reductions Your retirement supplement is subject to an earnings test. Reduced $1 for every $2 you earn over social security allowance. You would need to check with social security each year for the new earnings limit. (2017 - $16,920) FERS basic benefit does not count as earnings. Supplement ends at age 62
SPECIAL RETIREMENT SUPPLEMENT (FERS) Example: Your estimated full career social security benefit would be $1,000 and you had worked 30 years under FERS Divide 30 by 40 (.75) and multiply ($1,000 x.75 = $750).
SURVIVOR ANNUITY (CSRS) 1. The maximum survivor annuity is 55% of your annuity 2. You may elect any dollar amount less than the basic annuity (partial survivor benefit) 3. You may elect to provide no survivor benefit
SURVIVOR ANNUITY (FERS) 1. The maximum survivor annuity is 50% of your annuity. 2. You may elect a partial survivor benefit which equals 25% of your annuity. 3. You may elect to provide no survivor benefit
SURVIVOR ANNUITY (CON T) If you elect less than the full survivor benefit, the law requires your spouse s written and notarized consent. If you elect no survivor benefit for a current spouse upon your death that spouse will not receive a monthly annuity or health insurance coverage. This survivor election also requires your spouse s written and notarized consent.
SURVIVOR ANNUITY (CON T) When the 30-day period following the date of your first regular monthly payment has past you cannot change your election except under the circumstances below: You may change your decision not to provide a survivor annuity for your spouse at retirement or you may increase the survivor annuity amount for your spouse at retirement if you request a change in writing no later than 18 months after the commencing date of your annuity. You must also pay a deposit with interest representing the difference between the reduction for the new survivor election and the original survivor election plus a charge.
SURVIVOR ANNUITY (CON T) If you marry after retirement, you may elect, within 2 years after the marriage, a reduced annuity to provide a current spouse benefit. The reduction in your annuity is effective no earlier than the first of the month beginning 9 months after the date of marriage. The premiums paid are retroactive to your date of retirement. This deposit is paid by a permanent actuarial reduction. Marriage Certificate required
MAXIMUM ANNUITY (CSRS) 41 years and 11 months of service earns the maximum annuity of 80% (of high 3) Unused sick leave is credited in addition to the 80% maximum Excess CSRS contributions can be refunded or used as voluntary contributions to increase your annuity
CIVILIAN SERVICE Deposit or non-deduction service Generally non-career time spent as a casual, rural carrier associate or non-career employee with another federal agency that was classified as a temporary or indefinite appointment
CIVILIAN SERVICE PRIOR TO 10/1/82 (CSRS) If performed prior to October 1, 1982 it is fully creditable for eligibility regardless of whether you have made deposit for that time. However, if you decide not to make a deposit your actual annuity will be reduced by 10% of the deposit due. The reduction is in effect for the life of your annuity.
CIVILIAN SERVICE ON OR AFTER 10/1/82 (CSRS) Service performed on or after 10/1/82 is creditable in full for eligibility but not creditable for annuity computation ($$) unless the deposit is made. Interest on deposit service after 10/1/82 is computed at 3% through 1984 and at a variable rate starting in 1985. Variable rate is determined by Secretary of the Treasury.
REFUNDED / REDEPOSIT SERVICE (CSRS) Period of service for which retirement deductions were withheld but later refunded by OPM to an employee. (Ex: employee resigned and withdrew retirement contributions). Credit for eligibility and annuity if refunded service ended before 3/1/91. Annuity is actuarially reduced. Must pay 3% interest from the date of receipt of the refund to the date redeposit is completed.
REFUNDED / REDEPOSIT SERVICE (CSRS) If refunded service ended on or after 3/1/91 - creditable for eligibility - not creditable for annuity unless redeposit is made. Interest will be calculated at 3% through 12/31/84. Variable interest rate applies to refunds received after 12/31/84.
Prior to 01/01/1989 For Internal Use Only CIVILIAN SERVICE (FERS) Non Career Appointment Deposit made credit for eligibility and annuity Deposit not made no credit for eligibility or annuity On or after 01/01/89 No credit deposit is not allowed
CIVILIAN SERVICE (FERS) PRIOR CAREER APPOINTMENTS Contributions not refunded credit for eligibility and annuity Contributions refunded credit for eligibility. Not creditable for annuity unless redeposit is made
MILITARY BUY BACK (CSRS) Employed prior to 10/1/82: Post 1956 military service is creditable in the computation of your annuity. At age 62, if eligible for social security benefits, your annuity is recomputed. CSRS annuity is reduced 2% for each year of military service. Reduction can be avoided by completing the military deposit.
MILITARY BUY BACK (CSRS) Employed on or after 10/1/82 You do not receive credit for post-1956 military service unless you make a military deposit
MILITARY BUY BACK (FERS) Military service performed before 1957 is creditable for retirement purposes Military service performed after 1956 is creditable only if you pay a deposit for the service
MILITARY BUY BACK (CON T) If in receipt of military retired pay, military service is not creditable unless: It was awarded due to service-connected disability incurred in combat; or Caused by an instrumentality of war and incurred in the line of duty during a period of war; or
MILITARY BUY BACK (CON T) Awarded under reserve retiree provisions under Chapter 67, Title 10, USC ; or You waive your military retired pay
LIFE INSURANCE (FEGLI) A retiring employee is eligible to continue life insurance coverage if: Insured on the date of retirement Enrolled in FEGLI for five (5) consecutive years prior to retirement or first opportunity to enroll
LIFE INSURANCE (CON T) Basic Life Insurance = Basic salary rounded up to next $1000, plus $2000 Option A Standard - $10,000 Option B Additional 1-5 times basic salary (Rounded Up To Next $1000) Option C 1-5 Multiples of $5000 for spouse and $2500 for each dependent child
LIFE INSURANCE (CON T) Use the FEGLI calculator available on OPM S website. This tool will help you determine the costs for various levels of life insurance coverage: www.opm.gov/calculator/worksheet.asp
HEALTH INSURANCE (FEHB) To continue health insurance as a retiree, you must be covered by FEHB for five (5) consecutive years - or - first opportunity prior to retirement: You must be enrolled in a FEHB at time of retirement You do not have to be enrolled in the same FEHB plan for five (5) years You must have been enrolled in any FEHB plan for the five (5) years prior to retirement
HEALTH INSURANCE (CON T) FEHB changes allowed in retirement: 1. FEHB cost to increase Change from family to self-only or suspend/cancel 2. Move to a different geographical location (health maintenance organization - HMO) 3. Change from one plan or option during open season or due to a qualifying life event (QLE) 4. Annuitant rates for FEHB reverts to the government s rate and causes your share of the of the FEHB cost to increase
FEDERAL LONG TERM CARE INSURANCE PROGRAM (FLTCIP) You automatically continue coverage into retirement, as long as you continue to pay applicable premiums. If you are currently paying premiums by payroll deductions, you must arrange to pay premiums another way - either by deductions from your annuity, through automatic bank debit or direct bill. Contact FLTCIP partners @ 1-800-582-3337 to make payment arrangements
BENEFEDS (Dental / Vision) If you are currently enrolled in the extra dental and vision coverage (BENEFEDS): You are not required to contact Benefeds when you retire to make arrangements for premiums. However, you can speed along the process by contacting them at 1-877-888-3337 (tty 1-877-889-5680) Find additional information at: WWW.OPM.GOV You can also enroll during open season as a retiree Retirements is not a QLE to cancel coverage
BENEFEDS (Dental / Vision) CON T You can only cancel your coverage during open season You cannot cancel coverage just because you can no longer afford the premiums Benefeds does not adhere to the Healthcare Reform Act which means that children over the age of 22 are no longer covered unless incapable of self support
FLEXIBLE SPENDING ACCOUNT (FSA) Participation in FSA ends the day after your retirement date You may file a claim for the expenses of eligible services or items received up to and including your retirement date Any service or items received after that date are not eligible for payment You cannot continue FSA coverage after retirement Deadline for submitting withdrawal request is April 30 th of the following year.
THRIFT SAVINGS PLAN Withdrawal options: Receive a lump-sum payment Transfer your account to an IRA or other qualified retirement fund Receive your account balance in equal monthly installment payments Receive a life annuity single or joint Leave the entire account balance in the Thrift Savings Plan.
THRIFT SAVINGS PLAN You are required to withdraw your account balance in a single payment, begin receiving monthly payments - or - begin receiving annuity payments by April 1: The year after you become age 70 ½
THRIFT SAVINGS PLAN (CON T) If you have an outstanding TSP loan at the time of your separation, the TSP service office will notify you about repaying the loan. Loan must be closed in one of the following ways within approximately 90 days from separation: Prepay your loan in full or partially prepay your loan, and receive a taxable distribution on the outstanding balance
PREPARING FOR RETIREMENT (CON T) Check any designations of beneficiary you may have on file to be sure that they reflect your current wishes. Sign-up to receive your Social Security Statement online.
PREPARING FOR RETIREMENT (CON T) Retirement information available 24 HOURS A DAY WWW.LITEBLUE.USPS.GOV MY HR Retirements Watch Retirement Videos It is recommended that you view the retirement seminars on-line. The seminars are divided into sections for ease of use. You can view all or just those sections you have questions about
FREQUENTLY ASKED QUESTIONS (CON T) What about cost of living increases? It will be prorated based on how long you were retired before it is given. 1/12 of the increase for each month benefits were received. How much annual leave can I get paid for? Craft employees maximum is 440 hours, EAS 560 hours plus what has been earned for the year. What is the best day of the month to retire? (CSRS) The last day of the month or 1 st, 2 nd or 3 rd. (FERS) The last day of the month
FREQUENTLY ASKED QUESTIONS (CON T) How much will my interim payments be? Approx. 80%, may be less if deposit/redeposit service is involved or court order. What kind of things will be withheld from my annuity payments? Federal taxes, state taxes (if applicable), health benefit, life insurance premiums, Benefeds and LTC if applicable.
AVAILABLE RESOURCES WWW.OPM.GOV Office of Personnel Management WWW.SOCIALSECURITY.GOV Social Security Administration WWW.TSP.GOV Thrift Savings Plan WWW.IRS.GOV Internal Revenue Service WWW.FIRSTGOV.GOV US Government