For those employees who elect to transfer to FERS, an important decision will be when to make the transfer effective. Elections to transfer are effective on the first day of the pay period beginning after the date the election and any required supporting documents are received by the employing agency. Employees should consider several factors to determine when it is beneficial for them to transfer to FERS.

An early effective date will:

• Allow you to begin receiving an agency's automatic 1% contribution to the Thrift Savings Plan (TSP) sooner.

• Allow you to receive the agency's matching contribution to the TSP if you are already contributing sooner.

• Permit you to increase your contribution to the TSP to a maximum of 10% of basic pay per pay period if you are already contributing sooner.

• Allow you to begin accumulating Social Security credits that will be added to those earned in other employment throughout your career.

• Begin accumulating 5 years of FERS service in order to become exempt from the Government Pension (Social Security) Offset rule.

A later effective date will:

• Allow you to add to your CSRS service time that in turn will increase the CSRS portion of your total retirement annuity (unless you are in CSRS Offset).

• Provide an opportunity for you to reconsider your decision should major changes occur in your financial, health, or family situation.

• Provide necessary time to complete any legal issues pertinent to your situation, such as a court order awarding benefits to a former spouse. However, an extension is available if necessary.

An effective date on or before December 31st, of any year will:

• Start your coverage under FERS prior to January 1st of the following year, earning you one calendar year of FERS service during that year for eligibility for the FERS Special Retirement Supplement, which is important if you anticipate retiring before you reach the age of 62.

Two points to remember:

• Whatever date you choose, once effective, an election of FERS coverage is irrevocable.

• If you are planning to leave the Federal service as a FERS employee, your transfer must have become effective prior to your separation.