CSRS Creditable Service

• CSRS Civilian Service
• CSRS Military Service
• FERS Civilian Service
• FERS Military Service

CSRS Civilian Service

Creditable service under CSRS usually includes-

• Federal "covered service", that is, service in which the individual's pay is subject to CSRS retirement deductions, such as service under a career or career conditional appointment,
• Federal service where an employee's pay is not subject to retirement deductions, such as, service under a temporary appointment,
• service for which a specific statue allows credit or allows credit for the service, such as-
  • Peace Corps enrollment
  • Certain pre-1969 National Guard technician service
• Service for which a specific statute allows an individual to be subject to CSRS deductions during his/her employment with a specified entity or under a specific program or type of appointment, such as-
  • Employees of Gallaudet University or D.C. Government,  Federal employees who receive assignments under the Intergovernmental Personnel Act, or employees serving as full-time officers or employees of an employee organization.

If Retirement Deductions Were Not Withheld During Service-

table service is not limited to service covered by retirement deductions.  It can also include service where an employee's pay is not subject to retirement deductions.  In some cases, you must pay back the retirement deductions (plus interest) to credit this service in the computation of your benefit.  This repayment amount is called a deposit.  If the service was performed before 10/1/82, you do not have to pay back the deductions.  Your annuity will be subject to a reduction based on the amount of the unpaid retirement deductions, if you do not pay the deposit.

Deposit: A deposit is the payment of the retirement deductions, plus interest, that would have been withheld from your pay if you had been covered by the Civil Service Retirement System (CSRS) or Federal Employees Retirement System (FERS) during a period of employment when retirement deductions were not withheld from your salary.  You are not required to make this type of payment.

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 1, 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 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 1, 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 your annuity computation.  The service will still be used to determine your eligibility to retire, even if you do not make the deposit.  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 you received a refund of your CSRS retirement deductions

If you received a refund for service that ended on or after October 1, 1990, the service covered by the refund cannot be included in computing your annuity, unless the refund is repaid after you become reemployed.  This repayment is called a redeposit .  It will still be used toward the service used to qualify for retirement.  If you received a refund for service that ended before October 1, 1990, and did not repay the refund, the service will still be credited when you retire, however, it will cause an actuarial reduction in your annuity.  The reduction is based on the amount of the redeposit and your age at the time of retirement.  This exception to the redeposit requirement does not apply if you retire for disability.

Redeposit: A redeposit is the repayment of retirement deductions that were previously withheld and refunded to you, plus interest. You are not required to make this type of payment.

Redeposit Service Ending before October 1, 1990 and Covered by CSRS:   You can repay the refund you received for periods of civilian service ending before October 1, 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. Interest is applied at the rates described in the table.

Redeposit Service Ending on/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.

Making Payment to Get Credit for Service-
You should apply to make a deposit or redeposit payment by completing a Standard Form 2803 [511 KB] "Application to Make Deposit or Redeposit/CSRS".

If you are a Federal employee-

• send your completed application to your department or agency because they must certify it.  Please do not file an application if you plan to retire within six months.  OPM will give you an opportunity to make payment when it computes our annuity.

If you are not currently a Federal employee-

• send your completed application directly to:

  OPM
  Retirement Operations Center
  Deposit Section
  P.O. Box 45
  Boyers, PA 16017-0045

If you are within six months of retirement-

submit your request to make the deposit or redeposit at the same time you submit your application for retirement.  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.

CSRS Military Service

Credit for Military Service-

As a general rule, military service in the Armed Forces of the United States is creditable for retirement purposes if it was active service terminated under honorable conditions, and performed prior to your separation from civilian service for retirement.

Service Performed Before 1957-

• creditable without deposit

Service Performed on or after January 1, 1957-

• normally creditable for Social Security benefits at age 62
• a deposit may be due to credit the service.

If you were first employed before October 1, 1982, you can either:

• Make a 7 percent deposit for post-1956 military service, thereby avoiding a reduction in your annuity at age 62, or
• Not make the deposit and have your annuity reduced at age 62 if you are then eligible for Social Security benefits.

If you were first hired by the Federal Government on or after October 1, 1982, you must:

• make the deposit or receive no credit at all for military service, including eligibility to retire.

Military deposits include interest unless they are paid within a grace period.  Payments must be made to your employing agency before you separate.  They cannot be paid to the U.S. Office of Personnel Management.

FERS Civilian Service

Creditable service under FERS usually includes-

• Federal "covered service", that is, service in which the individual's pay is subject to CSRS retirement deductions, such as service under a career or career conditional appointment,
• Federal service performed before 1989, where an employee's pay is not subject to retirement deductions, such as, service under a temporary appointment, as long as a deposit is paid.  There are a few exceptions to the rule that the service must have been performed before 1989.  The only exceptions are:

• U.S. Senate Child Care Center service
• Peace Corps/VISTA service
• service under the Foreign Service Pension System (FSPS)
• service performed before 12/31/90 with the Democratic or Republican Senatorial Campaign Committee or the Democratic or Republican National Congressional Committee, and
• service with the Library of Congress Child Development Center prior to 12/21/00.

Deposit:  A deposit is the payment of the retirement deductions, plus interest, that would have been withheld from your pay if you had been covered by the Civil Service Retirement System (CSRS) or Federal Employees Retirement System (FERS) during a period of employment when retirement deductions were not withheld from your salary.  You are not required to make this type of payment.

Retirement Deductions Never Withheld-
Generally, nondeduction service cannot be credited unless it was performed before 1989 and a deposit is made. 

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.  Interest is applied at the rates described in the table below.  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 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 after January 1, 1989.

Redeposit: A redeposit is the repayment of retirement deductions that were previously withheld and refunded to you, plus interest.

Refunds-

Refund Received After FERS Coverage Began-
If you receive a refund of FERS deductions after the effective date of your FERS coverage, you can never redeposit these funds, and the period covered by the refund will not be creditable for the purposes of entitlement or computation of your annuity.

Refund Received Before FERS Coverage Began-
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 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. Click here for interest rates.  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.

Making Payment to Get Credit for Service-

You should apply to make a payment by completing a Standard Form 3108 [491 KB] (Application to Make Service Credit Payment/FERS).

If you are a Federal employee-

• send your completed application to your department or agency because they must certify it.  Please do not file an application if you plan to retire within six months.  OPM will give you an opportunity to make payment when it computes our annuity.

If you are not currently a Federal employee-

• send your completed application directly to:

OPM
Retirement Operations Center
Deposit Section
P.O. Box 45
Boyers, PA  16017-0045

If you are within six months of retirement-

• submit your request to make the deposit or redeposit at the same time you submit your application for retirement.  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.

FERS Military Service

Credit for Military Service-

As a general rule, military service in the Armed Forces of the United States is creditable for retirement purposes if it was active service terminated under honorable conditions, and performed prior to your separation from civilian service for retirement.

Service Performed Before 1957-

• creditable without deposit

Service Performed on or after January 1, 1957-

• a deposit must be paid to credit the service to establish title to an annuity or to compute your annuity

Exception for individuals with a portion of their FERS annuity computed under CSRS rules-
If your military service was performed before the effective date of your FERS coverage, the military service will be credited under CSRS rules.