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You are here: Home / FAQs: CSRS

FAQs: CSRS

Choose from the subcategories below to review the Frequently Asked Questions.  Click on a question to expose the answer below.   

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General

I am trying to certify my service.  I tried to submit the "SF-2801-1 Certified Summary of Federal Service," but my HR told me I can only submit this when I apply to retire.  What should I tell them so that I can get the information I need?

In the instructions on the SF-2801-1, it emphasizes that this document can be used for retirement counseling purposes or to respond to an employee's request for a record of creditable service.  

Employees are permitted to submit this document at any time during their career.  If you had to wait until the end of your career to do this and you discovered a piece of service that required a deposit, imagine all of the extra interest that would have accrued.

Eligibility

I'm a CSRS Offset.  Do I follow eligibility rules like regular CSRS employees?

Yes.  CSRS Offsets follow eligibility rules for regular CSRS employees.

Contributions into the Retirement System

How much do I contribute to the CSRS retirement system?

Regular CSRS employees contribute 7% of their pay each pay period to CSRS.  

CSRS Offset employees contribute .8% of their pay each pay period to CSRS.

Special Provision employees contribute an extra .5% of their pay each pay period to CSRS.

Is the money I contribute to CSRS taxed?

Yes.  When you contribute to CSRS each pay period, the money you contribute is "after tax" money.

I will have more than 41y 11m of CSRS service when I retire.  Do I keep contributing to CSRS after that point? 

Yes.  You will continue to contribute to CSRS each pay period until you retire. Upon retirement, the excess contributions will be refunded to you.

Non-Deduction Service

I had federal service in a temporary position, but I don't recall the dates. How can I know for sure?

Periods of temporary service (along with other types of service) will be identified on the SF-2801-1 Certified Summary of Federal Service.  If you had a period of temporary service (where no retirement deductions were withheld from your pay), you will see that this service is labeled as "not funded" or "deposit owed".

Refunded Service

I had a federal service in a permanent position, but quit.  Now that I have returned to federal service, I don't recall the dates or if I took a refund of my CSRS retirement contributions.  How can I know for sure?

Periods of refunded service (along with other types of service) will be identified on the SF-2801-1 Certified Summary of Federal Service.  If you had a period of service for which you received a refund upon leaving federal service, you will see that this service is labeled as "refunded service" or "redeposit owed".

Military Service

What is the process to get credit for my military service under CSRS?

CSRS employees with military service for which they have NOT yet made a deposit for, follow this step-by-step process below:

Step 1: Completes RI 20-97 Estimated Earnings During Military Service and submit to the appropriate DFAS facility identified in form instructions (each service’s form goes to a different place).

Step 2: RI 20-97 is completed by DFAS and is returned to you. It reports the total amount of military earnings (basic pay, not allowances) received during that period of military service.

Step 3: Complete SF-2803 Application to Make Deposit or Redeposit (FERS) and submits this document to your HR department. 

Step 4: Takes the completed forms (RI 20-97 and SF-2803) to your agency to calculate the deposit owed (with interest).

Step 5: Your agency provides a letter to you notifying you of your payment options (either lump-sum or payroll deduction), and election instructions.

This above process will be used to determine the deposit owed so you can decide if it is “worth it” to make the deposit for your military service.

Cost of Living Adjustments

How does my pension change in retirement?

Your CSRS pension will increased based on a figure called the CPI-W.  The Consumer Price Index (CPI-W) is released in October of a given year by the U.S. Department of Labor, Bureau of Labor Statistics and goes into affect the following January.

Will I get a COLA right away?

CSRS retirees receive COLAs right away regardless of their age at the time they retire.

Taxes

Is my pension taxed at the federal level?

Yes.  The vast majority of the CSRS pension will be taxable at the federal level. There will be a small percentage of your pension that is tax-free to you in retirement and that represents the money you paid into CSRS being paid back to you.  Since you already paid tax on that money when you contributed it to the FERS program, it is not taxed again when it comes to you in the form of your CSRS pension.

Is my pension taxed at the state level?

Maybe.  We encourage you to watch the short video on taxes which includes the states which give special preferential treatment to federal retirees.

Beneficiaries

Under CSRS, what forms do I use to update my beneficiaries?

Under CSRS, use the following forms to update your beneficiaries:

SF-1152 Unpaid Compensation Beneficiary
SF-2808 Designation of Beneficiary (FERS)

See also the FEGLI Designation of Beneficiary and the TSP Designation of Beneficiary.

Leave

How is unused sick leave treated when I retire?

Your unused sick leave hours are converted into YY/MM/DD and added to the total amount of service creditable in your pension calculation.  For instance, if you had 30 years of service and a year of sick leave, your pension would be calculated as if you had 31 years of service.  Just remember, unused sick leave does not help you to retire sooner (it just increases the amount paid to you in your pension).

How is unused annual leave treated when I retire?

Your annual leave balance will be paid to you in lump sum after leaving federal service.  The hours of annual leave are multiplied by your final hourly rate.  The lump sum is taxable and typically paid to you with a few weeks of retiring.

If I have a choice to take annual leave or sick leave near the end of my career, which should I choose?

As you get closer to retiring, it is typically most advantageous for you to use your sick leave first.  The reason is that although sick leave is valuable (as it increases your pension), the annual leave is more valuable since you are paid out this money in lump sum upon retiring from federal service.  

How quickly is annual leave paid out once I retire?

The payment of your annual leave is made by your agency and typically arrives within a few weeks of retiring.  Some agencies are even able to get it paid in your last pay check.

Am I allowed to cash out my sick leave when I retire?

No.  Sick leave cannot be "cashed out" upon retiring.  You either use it or it is converted into YY/MM/DD and that time is added in your pension calculation.

How much of my sick leave can count toward my pension?

All of it.  Both CSRS and FERS employees can accumulate an unlimited number of hours of sick leave and apply them to their pension calculation upon retiring. 

Can I have my annual leave balance applied to my pension instead of receiving a lump-sum?

No.  Annual leave balances are always paid out in lump sum upon retiring.  You are not permitted to use the annual leave hours to increase your pension. Frankly, it is more advantageous to cash them out and receive the lump sum payout shortly after you retire.

For my sick leave hours, how do I convert them from "hours" into "years, months and days" so I know how much extra service I can add into my pension?

To convert your hours of unused sick leave into months and days, use the 2087 Sick Leave Conversion Chart.  If you have more than 2,087 hours of sick leave, that equals one year.  Use this chart to calculate parts of a year.

CSRS Offset Employees

How is CSRS Offset different than a regular CSRS employee?

Regular CSRS employees do not pay into Social Security as part of the government service.  However, CSRS Offset employees do contribute to Social Security (OASDI).  Upon retiring from federal service, their pension will be reduced (or "offset") based on the length of time they had as an Offset and the amount of Social Security they are eligible to receive at age 62 (or retirement, if later).  This reduced the amount of the CSRS pension – NOT the Social Security payment.

How do I know what my "CSRS Offset" date is?

Your CSRS Offset date is the date you returned to federal service and began contributing to the Social Security program.  If you are unclear when you returned, you should submit the SF-2801-1 Certified Summary of Federal Service.

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