The Federal Government will Become America's Model Employer for the 21st Century.
Recruit, Retain and Honor a World-Class Workforce to Serve the American People.
Find out more about Federal compensation throughout your career and around the world.
Staffing to align with your agency's mission
Review the new 2014 Federal Employees' Group Life Insurance (FEGLI) Handbook
Answering your questions about Healthcare and Insurance
Manage your retirement online.
Human Resources and Security Specialists should use this tool to determine the correct investigation level for any covered position within the U.S. Federal Government.
OPM’s Human Resources Solutions organization can help your agency answer this critically important question.
Developing senior leaders in the U.S. Government through Leadership for a Democratic Society, Custom Programs and Interagency Courses.
Visit this federal site to search for our regulatory notices, proposed and final rules.
See the latest tweets on our Twitter feed, like our Facebook pages, watch our YouTube videos, and page through our Flickr photos.
The content available is no longer being updated and as a result you may encounter hyperlinks which no longer function. You should also bear in mind that this content may contain text and references which are no longer applicable as a result of changes in law, regulation and/or administration.
Date: October 22, 2004
The Treasury has announced that the calendar year 2005 interest rate applicable to "post-1956" military service credit accounts is 4.375 percent. This is the rate that OPM will also apply to civilian service credit and voluntary contribution accounts.
Employing agencies must assess interest on the unpaid balance in post-1956 military service credit accounts on the employees' "interest accrual date" (IAD). Interest is compounded annually and is assessed at the rate of 3.000 percent through 1984 and thereafter, as follows:
The interest rate that is actually applied is a "composite" rate, based on the rates in effect during the 12-month period preceding the IAD. Thus, it has components of both the current and previous year’s interest rates. For instance, the rate that will be applied on October 1, 2005 reflects a composite interest rate of 4.250 % [three months at 3.875% and nine months at 4.375%].
Chapter 23 of the Civil Service Retirement System/Federal Employees Retirement System (CSRS/FERS) Handbook contains guidance for computing interest on military service credit deposits, including the determination of the IAD and the formula for composite interest rates. For your convenience, we have also attached an Excel spreadsheet containing the composite interest rates for each IAD through December 31, 2005.
To reduce the unpaid balance in a military service credit account prior to the assessment of interest, a remittance must be timely received. To be considered timely, remittances must be physically in the possession of the agency official authorized to receive them by the close of business on the last regular business day before the IAD. Thus, for deposits sent by mail, the date on the postmark does not constitute the date of remittance.
If you have any questions about this letter, we would prefer that you email us at email@example.com, so we have a record of them. You may of course call us on 202-606-0606.
Robert A. Yuran, Manager Financial Policy Group Center for Financial Services