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Generally, when a retired employee returns to work for the Federal Government under conditions that do not terminate the retirement benefit, the employee should be covered under the same retirement plan he or she had at retirement. Since you retired under CSRS, you should have retained your CSRS coverage upon reemployment. (However, if you received an appointment as a Senior Official, you would be subject to automatic Social Security coverage and your retirement coverage would be CSRS Offset.)
When your agency corrected your retirement coverage to FERS, it also should have contributed make-up agency contributions and lost earnings on those contributions to your TSP account.
If you now choose CSRS Offset, no adjustments will be made to your TSP account. Instead, OPM will find out how much of your TSP account is based on what your agency contributed (this includes the earnings on those contributions). That dollar amount will form the basis for an actuarial reduction in your CSRS Offset retirement benefit.
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