Pre-Retirement

You are entitled to the actuarial reduction for any unpaid CSRS deposit, redeposit or Post 56 military deposit if your retirement coverage is corrected in one of these ways:

Original Retirement Coverage

Correct Retirement Coverage

Elected Retirement Coverage

FERS

Should have been CSRS Offset

FERS (with a CSRS Component)

FERS

Should have been CSRS Offset

CSRS Offset

FERS

Should have been CSRS

FERS (with a CSRS Component)

FERS

Should have been CSRS

CSRS

FERS

Should have been Social Security Only

FERS (with a CSRS Component)

CSRS

Should have been FERS

CSRS Offset

CSRS Offset

Should have been FERS

CSRS Offset

An actuarial reduction allows you to receive benefits without having to pay an amount due in a lump sum. OPM reduces your annuity in a way that, on average, allows the Fund to recover the amount of the missing lump sum over your lifetime. The actuarial reduction becomes a permanent reduction in your benefit. The amount of the reduction depends on your age and the amount of the lump sum you would otherwise have to pay at that time. To compute an actuarial reduction, OPM divides the lump sum amount by the present value factor for your age at retirement.