The 5-year test is used to determine the proper retirement coverage of individuals who are being hired, transferred, or converted to a permanent position in the Federal service. It applies to all retirement coverage determinations made after January 1, 1987. If the 5-year test is met, an individual is not automatically covered by FERS. This means the individual would retain CSRS or CSRS Offset retirement coverage depending on the length of separation.
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