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Employee Benefits - Civil Service Retirement System (CSRS) Employee Separation from Federal Service (other than retirement)

(1) Retirement Information

CSRS Retirement Benefit - You are probably aware that while you were employed in the Federal government, you contributed to the Civil Service Retirement System (CSRS) through biweekly payroll deductions. You have the following options with respect to your retirement benefits:

  1. Deferred annuity - You may leave your money in the retirement fund and apply for a deferred annuity at age 62. The annuity is calculated under the general formula for CSRS as if you were actually retiring now. This means that in calculating this future retirement benefit, OPM will use you salary in today’s dollar value.

    If you die before you are eligible for an annuity, your retirement contributions, plus interest, are payable in a lump sum to your beneficiary. To update your designation of beneficiary, complete a SF-2808 and submit it to OPM at the address on the form. Forms can be obtained from http://www.opm.gov/forms/pdf_fill/sf2808.pdf. If you do not file a designation of beneficiary, your benefits will be paid in the normal order of precedence (spouse; children; parents; executor of estate; next of kin).

  2. Refund of Retirement Deductions - If you are not interested in a deferred annuity, you may instead request a refund of the amount of money you have contributed to the retirement system. No interest is payable on this refund. Your receipt of the refund will void your right to a deferred annuity unless you are subsequently reemployed in the Federal government under CSRS. If you receive a refund and are subsequently reemployed in the Federal government you must repay the refund with interest in order to receive retirement credit for the amount of time on which the refund is based. Also, you may not be paid the refund if you will be reemployed in the Federal government within 31 days after your current employment ends.

    If you wish to request a refund, complete the Standard Form (SF) 2802, Application for Refund of Retirement Deductions. Forms can be obtained from http://www.opm.gov/forms/pdf_fill/sf2802.pdf or the Benefits & Payroll Liaison Branch (BPLB). If you request a refund within 30 days of your separation, return the form to BPLB. After 30 days, forward the form to OPM at the address on the form.

(2) Social Security/Medicare

All Federal employees paid Medicare hospital insurance taxes. You earned Medicare credits in the same manner and at the same rates as individuals in private industry and, therefore, those credits will be added to any past or future credits to establish eligibility for Medicare benefits. If you qualify, you may begin collecting Medicare benefits at age 65. You should contact the Social Security Administration for further information. (www.ssa.gov or 1-800-772-1213)

In addition, if you were a CSRS-Offset employee, you paid Social Security taxes. As such, you also earned Social Security credits in the same manner and at the same rate as individuals in private industry and, therefore, those credits will be added to any past or future credits to establish eligibility for Social Security benefits. If you qualify, you may apply for Social Security benefits at age 62.

(3) Thrift Savings Plan (TSP)

If you participated in the TSP, you are fully vested in your own contributions plus any earnings.

You have the following withdrawal options with respect to your TSP account balance.

  1. You may transfer your account balance to an Individual Retirement Account (IRA) or other eligible retirement plan.
  2. You may receive a life annuity. You must have at least $3,500 in your account at the time the annuity is purchased.
  3. You may receive payment of your entire account balance in a lump sum or in a series of monthly payments.
  4. You may receive a partial payment or partial transfer of your account to an IRA.

The money in your TSP account has never been taxed, so before electing an option, please refer to the Tax Notice: Important Tax Information About Payments From Your Account (which will be provided to you). To request a full withdrawal, complete a TSP-70.  To request a one time partial withdrawal, complete a TSP-77.  Forward completed forms to the TSP Service Office, no sooner than 30 days after separation. Forms can be obtained from http://www.tsp.gov/forms/index.html.

When you die, any contributions remaining in your account are payable in a lump sum to your beneficiary. To update your designation of beneficiary, complete a TSP-3 and submit it to the TS`P Service Office at the address on the form.  Forms can be obtained from http://tsp.gov/cgi-bin/byteserver.cgi/forms/tsp-3.pdf.  If you do not file a designation of beneficiary, your benefits will be paid in the normal order of precedence (spouse; children; parents; executor of estate; next of kin).

If you have an outstanding TSP loan (s), you’ll have the opportunity to pay it off in full or consider it a taxable distribution in the year you separate.

(4) Notice To Federal Employee About Unemployment Insurance

If you are not going to another job immediately after your employment with NIH, you may be eligible for unemployment insurance from your local Public Employment Service Office. You will receive an SF-8, which provides further information.

(5) Federal Employees Group Life Insurance (FEGLI)

If you are covered by the FEGLI, your life insurance coverage will continue for 31 calendar days after your employment ends. There is no cost for you for this coverage. During the 31-day period you may convert your coverage under Basic Life, Option A, Option B, and/or Option C, if participating, to an individual policy. In addition, if you do not convert Option C, your eligible spouse and/or eligible children may convert Option C to an individual policy. If you convert to any individual policy, you will pay the entire cost of the premium, that is, the government will not contribute to the cost of the premium as it does (for Basic Life) while you are employed.

If covered, you will be provided with a Notice of Conversion Privilege (SF-2819) for further information about converting to an individual policy. You will also be provided with an Agency Certification of Insurance Status (SF-2821). To convert to an individual policy, submit both forms to the Office of FEGLI at the address on the SF-2819.

(6) Federal Employees Health Benefits Program (FEHB)

If you are enrolled in the FEHB program, your health benefits coverage will continue for 31 days after the last day of the pay period in which you separate. If you are confined in a hospital on the 31st day, the benefits under your FEHB plan will continue for up to 60 more days of continuous confinement.  This temporary 31-day extension of your health benefits coverage (and 60-day extension if necessary) is without cost to you.  The coverage also applies to your family members if they are covered under your health benefits when your employment ends.

You have the following options for continuing your health coverage:

  1. Converting to an individual (non-group) health policy. In order to convert to an individual health benefits policy, you must submit SF-2810, Notice of Change in Health Benefits Enrollment (which will be provide to you), to your present health benefits carrier within 31 calendar days from the date your employment ends. Further information about converting is on SF-2810. Contact your health benefits carrier for further information concerning cost and benefits.
    2. OR
  2. Temporarily continuing your FEHB coverage (Temporary Continuation of Coverage, or TCC) for up to 18 months after your separation, if you meet the eligibility requirements under TCC. You may select any plan in the FEHB program in which to continue your coverage if you are eligible to enroll in the plan. To continue your coverage, you must pay the full amount of the premium (both the employee and Government shares) plus a 2 percent administrative charge. If you choose to continue your coverage, during the first 31 days you have the free coverage described above. For a copy of the FEHB Guide for TCC enrollments you can go to 70-05 or request from BPLB. Your enrollment charges begin on the 32nd day after the end of the pay period in which your employment ends. If you continue the coverage to the end of the 18-month period, you will have another 31-day temporary extension of coverage for conversion to a non-group contract.

If you wish to continue your FEHB coverage under TCC, complete SF-2809 and return it to BPLB. Forms must be returned within 60 calendar days after the date of your separation. Be sure to write "TCC" on the top of the form.

(7) Flexible Spending Account (FSA)

If you have a Health Care Flexible Spending Account, your contributions will terminate on the date of your separation, but any expenses incurred before that will still be reimbursed. If you have a Dependent Care Flexible Spending Account, your contributions will terminate, but you may continue to be reimbursed for expenses until the end of the benefit period or until your account balance is exhausted; whichever is sooner.

(8) Federal EMployees' Vision and Dental Insurance Program (FEDVIP)

If you are enrolled in FEDVIP, your coverage terminates at the end of the pay period in which you separate. There is no extension of coverage or opportunity to convert to an individual policy.

(9) Long Term Care (LTC)

If you are enrolled in LTC, it is fully portable as long as you continue paying premiums. If you are paying premiums through payroll deductions, you must switch to another payment plan. To change payment plans, call the LTC Partners at 1-800-LTC-FEDS (1-800-582-3337) and press 3 for customer service; or complete a Billing Change form. (http://www.ltcfeds.com/documents/files/BillingChangeForm.pdf)

(10) Post-1956 Military Service

If you are planning to apply for a deferred retirement benefit and you have Post-1956 military service, you may need to make a deposit to the CSRS in order to receive credit for that service in the computation of the deferred benefit.  The deposit is 7% of the basic military pay you received (plus interest as applicable) and the deposit must be paid before your employment ends (unless you are subsequently reemployed in the Federal government).

If you wish to make the deposit, please notify BPLB immediately.

(11) Leave

If you have any annual leave that you have accrued but have not used prior to the end of your employment, you will be paid the accumulated leave in a lump sum. You will receive this payment during the pay period that your separation action is processed.  If the separation action is processed late, the payment will also be late.  The lump sum annual leave payment will follow the same electronic deposit as your salary check.

You will not be paid for any sick leave you have accrued but have not used prior to the end of your employment. If you return to the Federal Government, your accrued sick leave will be re-credited to your sick leave account.

(12) myPay

You will continue to have access to your myPay account for up to one year after you separate. You will use myPay to access your final Leave and Earnings Statement to review the salary and lump sum annual leave as well as to obtain your W-2.

QUESTIONS?

If you have any questions about any of this information or need forms, please contact the NIH Benefits & Payroll Liaison Branch at 31 Center Drive, Room B3C23, Bethesda, MD 20892-2215 or call at 301-496-4556.