Quick Decision

If you believe any of the following statements to be true for your situation, you may well have a clear-cut decision. However, no one knows your situation as well as you. The statements listed below, while being critical, each represent only one factor in this decision. You may have other considerations which aren't covered here, in which case you should explore the FERS Transfer Handbook and other areas of this website for information which is relevant to your decision.

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I plan to retire from my Federal job in the not too distant future.

In general, CSRS is better if you are sure that you will retire from the Federal Government after a long career -- 20 or 30 years and before age 62. Caution: there are Social Security implications that may make FERS a better choice. MORE

I want to keep my options open because I expect (or want) to leave my Federal job before I am eligible to retire.

If you aren't sure what your future holds FERS is probably better. MORE

My agency may be downsizingand I don't meet age andservice requirements for retirement.

If you think you may leave Government service involuntarily and you will not meet the age and service requirements for early voluntary or involuntary retirement, FERS is probably the better choice. MORE

My agency may be downsizing and I do meet age andservice requirements for retirement.

If you think you may leave Government service involuntarily and you do meet the age and service requirements for early voluntary or involuntary retirement, CSRS is probably the better choice. MORE

I want to be eligible to retire earlier than I can under CSRS rules.

FERS does allow more flexibility in deciding when you want to retire. MORE

I am participating in the Thrift Savings Plan and want to get matching contributions.

CSRS does not offer matching contributions for TSP; FERS does. Read all about it in the link below. MORE

I don't expect to be able to save very much extra money for my retirement for a long time.

If you are unable to contribute to the TSP, switching to FERS could be a mistake. MORE

I do expect to be able to save very much extra money for my retirement for a long time.

With its matching contributions, the TSP under FERS is very generous. If you can take full advantage of the TSP under FERS, than FERS may be best for you. MORE

I don't have any Social Security credits and don't expect to work long enough to earn a benefit.

In general, switching to FERS can be a mistake if you are not able to earn the 10 years or 40 quarters of Social Security coverage that will allow you to receive a Social Security benefit. Exception: FERS may be the better choice if you are hoping to avoid the Government Pension Offset. Find out why in the link below. MORE

I would like to earn a Social Security benefit.

If you are covered under CSRS, you do not have Social Security coverage. If this is your only consideration, then FERS may be best for you. Note: CSRS Offset employees do have Social Security coverage. MORE

I would like to increase the Social Security benefit I already have earned.

The Social Security credits you earn as a Federal employee are added to those you have earned in other employment throughout your career. Only CSRS Offset and FERS employees earn Social Security credits. MORE

I would like the portability that Social Security gives me in case I change jobs.

Only CSRS Offset and FERS employees earn Social Security credits. The Social Security credits you earn as a Federal employee are added to those you have earned in other employment throughout your career. MORE

I don't expect to have my own Social Security benefit, but want to be able to receive one based on my spouse's (or former spouse's) work.

If you retire under CSRS and are also eligible for Social Security benefits as a spouse, former spouse, or survivor, your Social Security benefit will be reduced. It is reduced because you are receiving a pension from the Federal Government based on earnings that are not covered by Social Security. For every $3 you receive from your CSRS annuity, your Social Security spousal benefit will be reduced by $2. This is called the Government Pension Offset.

Employees who transfer and work at least 5 years under FERS before retiring are exempt from the Government Pension Offset. Reading more on this subject would be a good idea. MORE

My health is a concern to me.

In general, the combined FERS and Social Security disability benefit (if you qualify for the Social Security benefit, which is difficult) will be larger than the CSRS benefit. Caution: there are Social Security and length-of-service implications of which you should be aware. MORE

I want to provide maximum survivor benefits to my spouse.

Generally, surviving spouses who will receive a substantial spousal Social Security benefit will be better protected by FERS. You must have 10 years of service before your spouse can receive a survivor annuity under FERS. Surviving spouses who are employed and/or earn a Social Security benefit on their own will receive greater benefits from CSRS. MORE

I am a long-service employeewho is at or near maximumCSRS benefits, so I would like a way to continue to increase my retirement benefit.

Because of its portability and flexibility FERS offers you more control over the amount of your retirement benefits. MORE

I already have a substantial number of years under CSRS Offset coverage and don't want to lose the CSRS benefit I already have.

If you transfer to FERS, any CSRS Offset service will change to FERS service. Only if you have at least 5 years of non-Offset service are you eligible for an annuity with a component computed under CSRS rules. Since FERS pays a lower percentage of your "high 3" average salary, this could make a significant difference in the amount of your Federal retirement benefits. Recommendation: read more about it. MORE

I would like a tax break on my savings.

TSP contributions under both CSRS and FERS are pre-tax dollars. However, your contributions under FERS can amount to 10% of your basic pay per pay period, while your contributions under CSRS can only amount to 5%. TSP under FERS also offers matching contributions; there are no TSP matching contributions under CSRS. MORE

I am concerned about having as much of my retirement income protected from inflation as is possible.

CSRS may be best for you because it provides complete protection against inflation. For example, if the increase in the CPI is 5%, then you will receive a 5% COLA in your retirement benefit. If you're not sure what these terms mean, you need to read. MORE

I want more control over planning for my retirement and the amount of my retirement income.

FERS provides you with more control over the amount of your retirement benefits and deciding when to retire. MORE