The Federal Employees Retirement System (FERS) was established by Public Law 99-335 in Chapter 84 of title 5, U.S. Code and effective January 1, 1987. Most new Federal employees hired after December 31, 1983 are automatically covered by FERS. Certain other Federal employees not covered by FERS have the option to transfer into the plan. Individuals covered under FERS pay Social Security taxes and FERS basic benefit deductions. FERS coverage is documented on the SF 50 in box 30 with codes K, L, M, or N.