Retirement Benefits

RETIREMENT BENEFITS - Permanent Employees Only

FERS

CSRS

• FERS (Federal Employees Retirement System)

The Federal Employees Retirement System (FERS) is a three-tiered retirement plan and covers most federal employess hired after 1984. The three components are Social Security, the Basic Benefit Plan and the Thrift Savings Plan (TSP). You pay full Social Security taxes and a small contribution to the Basic Benefit Plan.

In addition, your agency puts an amount equal to 1% of your basic pay each pay period into your TSP account. You are also able to make tax-deferred contributions to the TSP and a portion of that amount is matched by the Government.

The three components of FERS work together to give you a strong financial foundation for your retirement years. Benefits are generally available upon retirement at age 60 with 20 years of service or at an earlier age with 30 years of service. Reduced benefits may be available with fewer years of service.

• CSRS (Civil Service Retirement System)

The Civil Service Retirement System (CSRS) was established in 1920 as a comprehensive system of entitlements granting Federal workers a full range of pension benefits. Most Federal employees hired prior to 1984 are covered by CSRS.

Employees who did not elect FERS coverage and who have no breaks in service since 1/1/84, remain covered by CSRS. Most CSRS employees contribute 7% of base pay towards retirement and are excluded from Social Security taxes. CSRS employees may contribute a limited amount of their base pay toward the TSP, but receive no matching government contribution.

•Pamphlets (available on OPM website)

• FERS Designation of Beneficiary

• CSRS Designation of Beneficiary

•TSP (Thrift Savings Plan) (401k)

The Thrift Savings Plan (TSP) is a retirement savings and investment plan for career Federal employees. The purpose of the TSP is to provide retirement income. It offers Federal civilian employees the same type of savings and tax benefits that many private corporations offer their employees under so-called 401-k plans.

Employees covered by the Federal Employees’ Retirement System (FERS) and the Civil Service Retirement System can contribute to the TSP. The participation rules are different for FERS and CSRS employees.

The TSP is a defined contribution plan. The retirement income that you receive from your TSP account will depend on how much you (and your agency if you are a FERS employee) have contributed to your account during your working years and the earnings on those contributions. The contributions that you make to your TSP account are voluntary and are separate from your contributions to your FERS Basic Annuity or CSRS annuity.

• Booklet

• TSP-1 Election Form

• TSP-3 Designation of Beneficiary Form

• TSP website