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It is possible that because of a retirement coverage error, you paid either too much or too little for your military service.
Under FERCCA, if you paid too much, you can receive a refund, plus interest, of any money that you paid over the amount needed to pay for your military service.
Also, if you now owe more for your military service, you can get credit for your military service by taking an actuarial reduction instead of having to pay additional money. If you die before retiring, we will apply the actuarial reduction to your survivor's benefit.
Yes, if you choose CSRS Offset coverage, you can get credit for that deposit service by taking an actuarial reduction. That's because the nature of the service changes from FERS to CSRS time when you elect CSRS Offset coverage. If you remain in FERS, you will have to pay a FERS deposit before you can get credit for the service time. You would not be eligible for the actuarial reduction.
Before you're asked to choose retirement plans, OPM will give you information about your benefits under both CSRS and FERS. They will tell you how much you owe under both. They will also explain how payment of a deposit and the actuarial reduction will affect your benefit.
Wait until you choose retirement plans to pay the military deposit. You'll have an opportunity to pay your military deposit once you've received detailed information about your benefits options and made your choice. It won't matter that you're a retiree, and no longer a Federal employee. Before you're asked to choose retirement plans, OPM will give you information about your benefits under both CSRS and FERS. They will tell you how much you owe under both. They will also explain how payment of a deposit will affect your benefit, and let you know whether you will be able to receive credit for the service by taking an actuarial reduction in your annuity.
If, in the meantime, you want to know how much you'll owe so you can put the money aside, ask your agency to estimate the deposit under both CSRS and FERS rules.
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