For Personnelists

U.S. Office of Personnel Management
FERS Election Opportunities

For Personnelists

CSRS Individual Retirement Records and FERS

Registers of Separations and Transfers

Chapter 81
Attachment C

Section 81A2.2-3 Frozen SF 2806's and Redesignating the SF 2806

A. General Rule

When a CSRS employee elects to become covered by FERS, the SF 2806 must be "frozen" or "redesignated." Whether the SF 2806 is "frozen" or "redesignated" depends on whether the employee had enough prior service to have a CSRS component in a future annuity.
Use the following table to determine the appropriate action.

IF AT TIME OF TRANSFER TO FERS:
The employee has a total of at least 5 years of potentially creditable non-offset civilian service under CSRS rules.
THEN THE AGENCY:
Freezes the SF 2806 for just the CSRS non-offset covered years (see paragraph B below) and initiates an SF 3100.

IF AT TIME OF TRANSFER TO FERS:
The employee has less than 5 years of potentially creditable non-offset civilian service under CSRS rules.
THEN THE AGENCY:
Transfers all information from the previous SF 2806 to a redesignated SF 3100. In some cases, this may result in employees' eligibility for a refund of excess retirement contributions. (See paragraph C below and Chapter 33, Return of Excess Contributions.)

NOTE: If the employee entered service for the first time on or after 1-1-84, but before 1-1-87, he or she was automatically transferred to FERS without any voluntary action. The SF 2806 was redesignated as an SF 3100 effective January 1, 1987.

B. Procedures for "Frozen" SF 2806

General Rule --
The "frozen" SF 2806 is used for employees who transfer to FERS with

5 or more years of creditable civilian service other than CSRS Interim or CSRS Offset Plans as of the effective date of the election to transfer to FERS. A frozen record does not impart FERS credit.
The table below outlines the procedures an agency must follow to "freeze" the SF 2806.
STEP    ACTION
1    Stop posting the SF 2806 at the end of the pay period in which the election to transfer to FERS is made. Post the effective date of the transfer, the final balance of the employee's retirement withholdings, and the employee's sick leave balance to the frozen SF 2806.
2    Start a new SF 3100 that begins with the first pay period after receipt of the election to transfer to FERS. The 3100 should be notated with the effective date of conversion.
3    Enter "FROZEN RETIREMENT RECORD" on the "Do Not Use" portion of the SF 2806.
4    Transfer the applicable SF 2806's from the CSRS withholding control account to the FERS withholding control account.
NOTE:    Examples 16 and 17 illustrate the SF 2806 and SF 3100 in the case of frozen service.

C. Procedures for Redesignating SF 2806

Agencies must redesignate the SF 2806 as an SF 3100 when an employee transfers to FERS with less than 5 years of creditable non-offset CSRS service. (This usually applies to certain CSRS Offset employees who elect to transfer to FERS.) In such cases, all prior CSRS service covered by the record becomes subject to FERS rules and the employee may request a refund of excess contributions, if there are excess contributions.
The table below outlines the procedures an agency must follow to redesignate the SF 2806 as an SF 3100.
STEP    ACTION
1    Stop posting the SF 2806 at the end of the pay period in which the election to FERS is received by the agency. Agencies maintaining hard copy SF 2806's should strike a total on the actual record as of the end of the pay period in which the election was received.
2    Initiate a new FERS Individual Retirement Record on an SF 3100 for the transferring employee. Total the accumulated salary deductions through the election period and redesignate the SF 2806 as an SF 3100.
3    Annotate the redesignated CSRS record in the REMARKS column (4) as follows: "Elected FERS Effective, (date)." Enter in the "Do Not Use" portion of the SF 2806 the following: "FERS RETIREMENT RECORD."
4    Indicate the effective date of transfer to FERS on both the redesignated SF 2806 and the new SF 3100.
5    Transfer the redesignated CSRS Individual Retirement Record account balance to the agency's FERS control account.
NOTE:    Examples 18 and 19 illustrate an SF 2806 redesignated as an SF 3100.

D. Automatic Redesignations

Automatic redesignations were required for employees --

    Who first entered Federal service on or after January 1, 1984, but before January 1, 1987; or
    Who were covered by CSRS Interim rules and who had less than
5 years of creditable civilian service by January 1, 1987.
    For the history on the FERS open season see the appendix of Chapter 11, Elections of FERS Coverage. For special rules and election opportunities that applied to certain high level officials, see Chapter 101, Special Retirement Provisions for Senior Officials.

Updated 14 May 1998

A. General Rule
When a CSRS employee elects to become covered by FERS, the SF 2806 must be "frozen" or "redesignated." Whether the SF 2806 is "frozen" or "redesignated" depends on whether the employee had enough prior service to have a CSRS component in a future annuity. Use the following table to determine the appropriate action.
IF AT TIME OF TRANSFER TO FERS: The employee has a total of at least 5 years of potentially creditable non-offset civilian service under CSRS rules.	THEN THE AGENCY: Freezes the SF 2806 for just the CSRS non-offset covered years (see paragraph B below) and initiates an SF 3100.
IF AT TIME OF TRANSFER TO FERS: The employee has less than 5 years of potentially creditable non-offset civilian service under CSRS rules.	THEN THE AGENCY: Transfers all information from the previous SF 2806 to a redesignated SF 3100. In some cases, this may result in employees' eligibility for a refund of excess retirement contributions. (See paragraph C below and Chapter 33, Return of Excess Contributions.)
NOTE: If the employee entered service for the first time on or after 1-1-84, but before 1-1-87, he or she was automatically transferred to FERS without any voluntary action. The SF 2806 was redesignated as an SF 3100 effective January 1, 1987.