I should have been CSRS. Instead, I paid into Social Security. What happens to the Social Security taxes I paid when my agency corrects my retirement coverage to CSRS?

Except for the last 3 years, the money you erroneously paid into Social Security will remain to your credit in the Social Security fund. The Social Security Administration will include all but those last 3 years in determining your eligibility for, and the amount of, future benefits.

The amount you paid into Social Security for the last 3 years will be transferred to your account in the Civil Service Retirement fund. Your employing agency will pay all additional retirement contributions owed for your CSRS time. It may not go back and bill you for additional retirement deductions when it corrects the error.

I was in CSRS Offset. That was a mistake. I belonged in FERS. My agency corrected my retirement coverage to FERS a while ago. Under FERCCA, I can choose between FERS and CSRS Offset. If I choose CSRS Offset, the deposit I owe for the time I worked before I came under a retirement plan will be a lot greater than what I owe under FERS. Can I get credit for that time by taking an actuarial reduction?

Yes, if you choose CSRS Offset coverage, you can get credit for that deposit service by taking an actuarial reduction. That's because the nature of the service changes from FERS to CSRS time when you elect CSRS Offset coverage. If you remain in FERS, you will have to pay a FERS deposit before you can get credit for the service time. You would not be eligible for the actuarial reduction

Before you're asked to choose retirement plans, OPM will give you information about your benefits under both CSRS Offset and FERS. They will tell you how much you owe under both. They will also explain how payment of a deposit and the actuarial reduction will affect your benefit.

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