Service Credit

• Civilian Service
• Military Service

Civilian Service

Under FERS, you can make a payment for the following types of service, in order to credit it toward your retirement:

• Any period of creditable civilian service performed before 1989 during which no retirement deductions were withheld from your pay.
• Any period of civilian service during which retirement deductions were withheld from your pay and refunded to you based on an application you filed before you became covered by FERS.
• Any period of Peace Corps or VISTA volunteer service (excluding training time) regardless of when the service was performed.

Payment cannot be made for:

• Any period of service under FERS for which you received a refund of your retirement deductions based on an application you filed after you had been covered by FERS.
• Temporary or intermittent service which you performed after 1988. Temporary service means an appointment which is limited to one year or less. Intermittent service means an appointment with no scheduled tour of duty.
• Any other service which is not creditable under FERS.
• Periods of leave without pay.
• Time covered by a lump sum leave payment.

If retirement deductions were not withheld during the period of service-

You can pay a deposit for the service, if it was performed before 1989.  FERS deposits (excluding Peace Corps and VISTA volunteer service) are normally 1.3 percent of your basic pay for the service, plus interest.  The 1.3 percent rate applies regardless of whether deductions would have been taken at that rate, if they had been taken at the time the service was performed. 

Deposit for Service Ending before January 1, 1989 and Covered by FERS

You can make a deposit for creditable Federal Employees Retirement System (FERS) service you performed before 1989 during which retirement deductions were not withheld from your pay.  Interest is charged from the midpoint of periods of service and is compounded annually.  Interest is charged to the date the deposit is paid in full or annuity begins, whichever is earlier.  If you do not pay for a period of this type of service, you will not receive credit in determining your eligibility to retire or in computing your retirement benefit.

Deposit for Service Ending on/after January 1, 1989 and Covered by FERS

With certain minor exceptions, a Federal Employees Retirement System (FERS) employee cannot make a deposit for non-contributory service performed on/after January 1, 1989.

If you transferred to FERS from CSRS, the following rules apply to the CSRS portion of your annuity-

Deposit for Service Ending before October 1, 1982 and Covered by CSRS

You can make a deposit for creditable Civil Service Retirement System (CSRS) service you performed before October 1982 during which retirement deductions were not withheld from your pay.  You will receive retirement credit for all of this service whether or not you pay the deposit.  However, unless you pay the deposit in full, your annual benefit will be reduced by 10 percent of the deposit amount due at retirement.  Also, any annuity due your surviving spouse will be reduced proportionately. Interest is charged from the midpoint of periods of service through the date of the bill.  If full payment is received within 30 days after the bill is issued, no additional interest is charged.   Otherwise, interest will be computed after each payment at the rate of 3 percent for the interval since the most recent payment you have made.  You may pay installments of $50 or more, but paying the full amount minimizes further interest charges.  After each payment we will send you an updated account statement.

Deposit for Service Ending on/after October 1, 1982 and Covered by CSRS

You can make a deposit for creditable Civil Service Retirement System (CSRS) service you performed on or after October 1982 during which retirement deductions were not withheld from your pay.  Unless you pay the deposit in full, you will not receive credit for the service in the computation of your annuity.   Interest is charged from the midpoint of periods of service and is compounded annually.  Interest is charged through December 31 of the year before the year in which the bill is being issued. If full payment is received by December 31 of the year in which the bill is issued, no additional interest will be charged. If not, interest will be computed once each year as of December 31 based on the unpaid balance at that time. 

If retirement deductions were withheld from your pay and later refunded to you—

Redeposit Service and Covered by FERS

You can repay any refund you received for any period of civilian service during which retirement deductions were withheld from your pay and later returned to you before you were covered by the Federal Employees Retirement System (FERS). Interest is charged from the date of the refund and compounded annually.  Interest is charged to the date full payment is made or the date annuity begins, whichever is earlier.  If you do not pay for a period of this type of service, you will not receive credit in determining your eligibility to retire or in computing your retirement benefit.

Redeposit Service Ending before October 1990 and Covered by CSRS

You can repay the refund you received for periods of civilian service ending before October 1990 during which retirement deductions were withheld from your pay and later refunded to you.  However, you will receive credit for all of this service whether or not you make the payment (unless you retire under the disability provisions of the law).  Your annuity will be subject to a permanent actuarial reduction based on the amount of redeposit and interest due and your age at retirement.  The actuarial reduction will not be applied to any annuity due your surviving spouse.  You can avoid the reduction by repaying the refund.

If the refund was paid before October 1, 1982, interest is charged up through the billing date.  If full payment is received within 30 days after the bill is issued, no additional interest will be charged.  Otherwise, interest will be computed after each payment at the rate of 3 percent for the interval since the most recent payment.

If the refund was paid on or after October 1, 1982, interest is compounded annually and charged through December 31 of the year before the year in which this bill is being issued.  If full payment is received by December 31 of the year in which this bill is issued, no additional interest will be charged.   If not, interest will be computed once each year as of December 31 based on the unpaid balance at that time.

Redeposit Service Ending on or after October 1, 1990 and Covered by CSRS

You can repay the refund you received for periods of civilian service ending on or after October 1, 1990, during which retirement deductions were withheld from your pay and later refunded to you.  Unless you pay the redeposit in full, you will not receive credit for this service in the computation of your annuity. Consequently, your annuity, as well as any annuity due your surviving spouse, will be reduced.  For refunds paid on or after October 1, 1982, interest is compounded annually and charged through December 31 of the year before the year in which this bill is being issued.  If full payment is received by December 31 of the year in which this bill is issued, no additional interest will be charged.  If not, interest will be computed once each year as of December 31 based on the unpaid balance at that time.  Interest is applied at the rated described in the table.

Procedures for paying a deposit or redeposit-

You should apply to make a payment by completng a Standard Form 3108 [491 KB] Application to Make Service Credit/FERS.  If you are within six months of retirement, you should submit your request to make the deposit or redeposit at the same time you submit your application for retirement.  You can use a form or letter to do this.  We will notify you of any amounts due so you can decide whether or not to make the payment.  We cannot, however, authorize your regular annuity payments until we have your decision about the payment.

Military Service

Credit for Military Service performed after 1956-

To receive FERS credit for military service performed after 1956, you must pay a deposit.   The amount of the deposit is:

Dates of Service	Amount of Deposit Due
Through 12/31/98	3% of military basic pay
1/1/99 through 12/31/99	3.25% of military basic pay
1/1/00 through 12/31/00	3.4% of military basic pay
1/1/01 to the present	3% of military basic pay

 

If you are entitled to have part of your retirement computed under CSRS Rules, military service performed prior to your transfer to FERS comes under the following CSRS deposit rules:

The CSRS deposit is 7 percent of your military basic pay

• If you were first employed in a civilian position before October 1, 1982, you do not pay the deposit and you are eligible for a Social Security benefit at age 62, the CSRS part of your annuity will be recomputed at age 62 to delete credit for the post-1956 military service.
• If you were first hired on or after October 1, 1982, you will not receive any credit for post-1956 military service if you do not make the deposit for it.

Procedures for paying the post-1956 military service deposit-

You must make the deposit payment for your post-1956 military service before you stop working for the government. It is paid to your employing agency.  You should ask your local servicing personnel center for help in determining whether to make this payment.  They can provide personalized assistance because they have your employment records.