History Library Hybrid Conference Conference Guidelines/Processing Research, Research & More Research Custom Technology / Custom Approach Revised PowerPoint

Topics Covered Overview of Federal Retirement Systems. Eligibility Requirements. Creditability of civilian and military service. How annuity is calculated. Survivor Benefits. Health & Life Insurance in Retirement. References to Calculators and Web Sites. Revised PowerPoint

Retirement Systems Revised PowerPoint CSRS Hired prior to 1/1/84 Created in 1920 Stand alone – defined benefit plan Employee contributes 7% to CSRS Medicare Tax 1.45% FERS Hired after 1/1/1984 Effective 1/1/1987 Result of the Social Security Amendment Act of Employee Contributes anywhere from 0.8% - 4.4% depending on when hired. CSRS Offset Rehired after 1/1/1984 o With 5 or more years creditable civilian service under CSRS. o Break in service exceeded 1 year. Interim period 1/1/1984 to 12/31/1986 Employee contributes 0.8% to CSRS Social Security Tax 6.2% Medicare Tax 1.45% Annuity offset at age 62 o CSRS annuity reduced by amount of social security attributable to offset service.

Disability Retirement Criteria The employee is unable to perform useful and efficient service because of disease or injury: o In your current position. o Or in a vacant position in the same agency and same grade or pay level for which qualified for reassignment. Disability is expected to last at least 1 year. The employee is responsible for furnishing sufficient medical evidence to support his or her application for disability retirement. OPM’s disability division will issue a decision either allowing or disallowing the disability application. FERS and CSRS Offset employees –Required to file for Social Security Disability. Revised PowerPoint

CSRS General Formula Revised PowerPoint 1.50% X high-3 x 1 st 5 years of service. 1.75% x high-3 x 2 nd 5 years of service. 2.00% x high-3 x years/months over 10. Maximum 80% (41 years; 11 months) however sick leave can be used to exceed 80%. Shortcut: Years of service x 2 – 4 + ¼ Example: 30 years x 2 = 60 – 4 = 56 + ¼ = 56¼% CSRS with 30 years = 56¼% of high 3 average salary $50,000 high 3 x 56¼% = $28,125 annually ($2343 monthly)

Revised PowerPoint