Credit for Military Service under CSRS and FERS
FERS Transfer Consideration
Question: If I transfer to FERS, what happens to credit for my military service?
Answer: Except for a very small category of employees described in paragraph 2 (below), nothing will change. It will continue to be creditable in a CSRS component of your benefit, and the same rules that applied when you were under CSRS will continue to apply. These basic rules are:
- Military service performed before your transfer from CSRS to FERS:
- If you were first employed in a position covered by CSRS before October 1, 1982:
An individual first employed in a position covered by CSRS before October 1, 1982, may receive credit for post-1956 military service if he or she retires from civilian service prior to age 62. However, if the employee does not make a military deposit, military service will be deleted from the computation of CSRS benefits when the employee reaches age 62, reducing the annuity, if he or she is entitled (or upon proper application would be entitled) to Social Security benefits at the time.
Therefore, if you were under CSRS before October 1, 1982, and you haven't paid a deposit of 7% of your military basic pay and you switch to FERS, you should think about paying a deposit because the likelihood of your earning a Social Security benefit is now greater.
- b. If you were first employed in a position covered by CSRS on or after October 1, 1982:
Employees first hired in positions subject to CSRS after September 30, 1982, do not receive credit for post-1956 military service for any purpose unless they make a military service deposit covering the service prior to separation from Federal employment. If a deposit is not made for such service, it is not creditable for either annuity computation or retirement eligibility purposes.
Therefore, if you are CSRS or CSRS Offset with a CSRS component after your switch to FERS, you must make a military deposit if you have not already done so to receive credit for post-1956 military service.
- For employees in CSRS Offset with less than 5 years of non-offset service, all of their service becomes subject to FERS rules, which require that a military deposit (normally 3% of military basic pay) be paid prior to separation to receive credit for post-1956 military service for any purpose.
- Military service performed after your transfer from CSRS to FERS is credited under FERS rules -- and requires a deposit that is normally 3% of basic military pay.
For further details about crediting of military service see the pamphlet: Retirement Facts 2: Military Service Credit Under the Civil Service Retirement System (RI83-2).
U.S. Office of Personnel Management
May 1998