FERS Transfer Handbook

The FERS Transfer Handbook is available in the following formats:

Note: The material in this publication is based on the law in effect at the time it went to publication.

Under the Balanced Budget Act of 1997, Public Law 105-33 for fiscal year 1998, employee retirement contributions will increase as follows. Deductions for the Civil Service Retirement System and the Federal Employees Retirement System would be increased by 0.25% in January 1999, by an additional 0.15% in January 2000, and by 0.1% more in January 2001, for a total increase of 0.5%. These higher contribution rates would be in effect through 2002.

Table of Contents

Introduction

• Introduction
• Your Chance to Choose
• Simplifying Your Decision
• What Happens If I Do Nothing?
• How This Handbook is Organized
• What Things Do You Need To Make Your Choice?

Federal Employees Retirement System (FERS)

• Overview
• When You Can Receive Retirement Benefits
• Social Security
• How Much You Will Receive After Retirement
• Cost-of-Living Adjustments (COLA's)
• Cost to Participate
• Thrift Savings Plan for FERS
• Important Conclusions About FERS

Civil Service Retirement System (CSRS)

• Overview
• When You Can Receive Retirement Benefits
• How Much You Will Receive After Retirement
• Cost-of-Living Adjustments (COLA's)
• Cost to Participate
• Thrift Savings Plan for CSRS
• Voluntary Contributions for CSRS
• Important Conclusions About CSRS
• CSRS Offset Benefits
• Important Conclusions About CSRS Offset

Special Transfer Rules: CSRS to FERS

• Overview
• When You Can Receive Retirement Benefits
• How Much You Will Receive After Retirement
• Cost-of-Living Adjustment (COLA's)
• Disability Benefits
• How CSRS Offset Service Is Credited
• Cost to Participate
• Survivor Benefits
• Important Conclusions

Making Your Decision

• Introduction
• Choosing Based on When You Expect to Retire
• A Special Note for Career Couples Near Retirement
• Close to Retirement Age
• Far From Retirement Age
• In Between -- Neither Close to Retirement nor Far From It
• The Trade-offs
• FERS Flexibility
• Some Important Cautions
• If You Are Unable To Meet Social Security Eligibility Requirements
• If You Are Unable To Contribute Enough To The Thrift Savings Plan
• If You Should Die Soon After Choosing
• Summary of Situations That Could Make Switching to FERS a Problem

Disability Benefits Under CSRS and FERS

• Introduction
• Eligibility
• Definition of Disability
• How Much Disability Benefits Will Be
• Continuing Eligibility for Disability Payments
• Conclusion

Survivor Benefits Under CSRS and FERS

• Introduction
• Recipients of Survivor Benefits
• If You Die as an Employee
• If You Die After You Retire
• If You Die After You Leave Federal Service, But Before You Retire Under FERS
• Transfer Considerations
• Conclusion

Involuntary Retirement and "Early-Out" Retirement

• Introduction
• Special Transfer Rules
• Transfer Considerations for Involuntary Retirees and Early Voluntary Retirees

Brief Description of the Social Security Program

• Introduction
• How the Program Is Financed
• Qualifying for Benefits
• Who Is Eligible for Benefits
• Benefits to Family Members
• Amount of Social Security Benefits
• Taxation of Social Security Benefits
• Social Security Earnings Test
• What Is The Social Security Earnings Test?
• Who Is Affected?
• How The Social Security Earnings Test Works
• Conclusion
• Windfall Elimination Provision
• What the Windfall Elimination Provision Is
• Who Is Affected
• How the Windfall Elimination Provision Works
• Conclusion
• How to Estimate the Reduction in your Social Security Benefit Resulting from the Windfall Elimination Provision
• Use of PEBES Benefit Estimates to Estimate CSRS-Offset Reductions
• Government Pension Offset
• What the Government Pension Offset Is
• Who Is Affected?
• What Is a Social Security Spouse or Survivor Benefit?
• How the Government Pension Offset Works
• What Is the Effect of Transferring to FERS?
• Conclusion

Special Employee Groups

• Law Enforcement and Firefighting Personnel
• Special Transfer Rules
• Transfer Considerations for Law Enforcement and Firefighting Personnel
• Air Traffic Controllers
• Special Transfer Rules
• Transfer Considerations for Controllers
• Military Reserve Technicians
• Thrift Savings Plan Considerations for Special Groups

Service Credit Deposits and Refunds

• Civilian Service
• Military Service
• Service in the National Guard
• Conclusion

Additional Information

• Glossary
• Acronyms
• Examples
• Comparison Table