| Provision | Civil Service
Retirement System
(CSRS) | Federal Employees
Retirement System
(FERS) |
| Basic Annuity: Retirement |
| Basic plan design | Defined benefit | Defined benefit not “integrated,” i.e., it is fully added to Social Security |
| Required employee pay retirement contributions | 7.0% retirement contribution plus 1.45% Medicare on all pay | Social Security tax (normally 6.2%; 4.2% in 2011-Feb. 2012, subject to extension at the lower level) up to $110,100, plus 1.45% Medicare on all pay, plus 0.8% retirement contribution |
| Vesting (retirement) | 5 yrs. for retirement | Same as CSRS |
| Salary base | Avg. of high-3 yrs. salary | Same as CSRS |
Retirement benefit
(accrual rate) | 1.5% x first 5 yrs. of service; 1.75% x second 5 yrs. of service; 2.0% x yrs. of service beyond 10 | High-3 years average salary formula times 1%, times years of service, or 1.1% at age 62 with 20 years of service |
| Unreduced retirement benefits | Age 55 with 30 yrs. of service; age 60 with 20 yrs. of service; age 62 with 5 yrs. of service | Age 62 and 5 yrs. of service; age 60 and 20 yrs. of service; or “minimum retirement age” (MRA) plus 30 years |
| | | MRA = 1987-2002, age 55; 2002-2008, increases 2 mos. per yr., 2009-2020, age 56; 2021-2026 increases 2 mos. per yr.; 2027 and after, age 57 |
| Reduced retirement benefits | 2% reduction for taking early retirement before age 55 | MRA and 10 yrs. of service. Reduced by 5% for yrs. under age 62 |
| Optional (RIFs or reorganizations) or involuntary early retirement; age and reductions | Age 50 with 20 yrs. of service; any age with 25 yrs. of service. Benefit reduced 2.0% for each yr. under age 55 | Unreduced benefits at age 50 with 20 yrs. of service; any age with 25 yrs. of service |
| Deferred retirement | At least 5 yrs. of service; accrued benefit payable at age 62 | Unreduced benefit at age 62, if employee had 5 yrs. of civilian service at termination and did not get refund of contributions, or upon attaining the MRA and had 30 yrs. of service at separation, or is age 60 with 20 yrs. of service at separation. Reduced benefit available upon reaching the MRA to vested employee with 10 yrs. of service |
| Pre-62 supplement for early retirement | N/A | Payable at retirement (but no earlier than MRA) until age 62; approximately equal to projected Social Security benefit payable at age 62, attributable to federal service Supplement is subject to earnings test, similar to the test used by Social Security at age 62, reducing supplement if retiree has earned income in excess of an annually adjusted exempt amount ($14,160 in 2011, wage- indexed) |
| Refunds | Option to withdraw sums contributed at separation with benefits forfeited, unless subsequently made redeposit when reemployed in a covered position. May elect actuarial reduction for refunded service that ended before March 1, 1991 | Option to withdraw sums contributed at separation with benefits forfeited, unless subsequently made redeposit when reemployed in a position. May elect actuarial reduction for refunded service that ended before March 1, 1991 |
| Cost-of-living adjustments (COLAs) | Payable to all annuitants. Annually, full rate of inflation measured by CPI-W | Payable only to regular retirees over age 62, or disabled (after first yr.) and survivors at any age
| Increase in CPI-W | Annual COLA percentage | | Up to 2% | Same as CPI-W increase | | 2% to 3% | 2% | | 3%+ | CPI-W increase minus one percentage point |
|
| Provision | Civil Service
Retirement System
(CSRS) | Federal Employees
Retirement System
(FERS) |
| Disability Benefits |
| Vesting (disability) | 5 yrs. of service | 18 mos. of service |
| Definition of disability | Unable to do own job or vacant position at same grade or pay level in same agency and commuting area | Same as CSRS |
| Disability benefit amounts | Annuity earned at onset, or if greater, the lower of (1) 40% of salary base, or (2) the annuity that would be paid projecting service to age 60 at the same salary base. Benefits increased annually by full CPI-W | For the first yr. of eligibility, 60% of high-3 pay minus 100% of any Social Security payable. After the first yr., 40% of high-3 pay minus 60% of any Social Security payable. No COLAs provided first yr.; thereafter, COLAs provided on the same basis as for retirees aged 62 and over |
| Retirement benefits after disability | Disability pension continues for life unless 1) restored to earning capacity before age 60 or 2) no recovery before normal retirement age | At age 62 the annuity will be recomputed. For the retirement recomputation, the per. of disability would be credited toward yrs. of service, and average pay would be increased to reflect COLAs applicable during that period |
| Death Benefits |
| Preretirement death benefit—spouse | At death of worker with at least 18 mos. of service, surviving spouse receives 55% of the accrued benefit, or, if larger, the lesser of (1) 55% of 40% of salary base, or (2) 55% of the accrued annuity with service projected to age 60 at same high-3 | At death of worker with at least 18 mos. but less than 10 yrs. of service, the benefit is a one-time payment of $29,722.95 plus one-half of the deceased worker’s final annual pay. If the deceased worker had 10 or more yrs. of service, an annuity is also payable equal to 50% of the accrued annuity |
| Preretirement death benefit—children | Unrelated to annuity. Annually adjusted amount varies by number of children and whether or not orphaned by one or both parents. Children must be (1) unmarried, (2) under age 18 or 22 if in school, or (3) any age and incapable of self-support if disability started before age 18 | The amount in excess, if any, of payments to children under CSRS (to all children in family) over the children’s Social Security benefits |
| Postretirement death benefit—spouse | Annuity to married retiree automatically reduced by 2.5% of first $300 monthly plus 10% of remainder unless jointly waived, but raised to unreduced level after death or divorce of spouse (unless otherwise stipulated in a divorce decree)
Benefit equal to 55% of the annuity received by the retiree at the time of death, excluding the reduction for survivor election and including any reduction for involuntary early retirement. No Social Security for federal employment | Annuity to retiree reduced by 10% (or 5% if lower benefit is jointly elected) to provide a survivor annuity, unless jointly waived but raised to unreduced level after death or divorce of the spouse, unless otherwise stipulated in a divorce decree
If the survivor is under age 60 and Social Security survivor benefits are not payable, benefits are lesser of (1) current CSRS or (2) 50% (25% if elected) of accrued annuity plus a Social Security “equivalent.” When Soc. Sec. survivor benefits are payable, FERS pays 50% (25% if elected) of the deceased retiree’s annuity |
| Postretirement death benefits—children | Same as preretirement death | Same as preretirement death |
| Provision | Civil Service
Retirement System
(CSRS) | Federal Employees
Retirement System
(FERS) |
| Thrift Savings Plan (TSP) |
| Eligibility | Employees may begin or change contributions at any time | Same as CSRS |
| Contributions: | | |
by employees
| Employees may contribute up to $16,500; Those 50 and older in a year may contribute an additional $5,500 | Same as CSRS |
by agencies
| none | Agency automatically contributes amount equal to 1% of pay into each employee’s account
Agency also matches employee contributions: 1st 3% of pay = $1 per $1; next 2% of pay = $0.50 per $1 |
| Vesting | Full and immediate vesting | Full and immediate vesting of all except the 1% automatic agency contribution, which becomes vested at 3 yrs. of service for career civil servants, 2 yrs. for non-career senior executive and political (Schedule C) appointees, Members and congressional staff |
Investment options
(both systems): | G Fund: special government securities |
| | F Fund: Bond index fund consisting of US. Treasury, corporate, and federally sponsored agency notes and bonds and mortgage-backed securities |
| | C Fund: a stock index fund (invested in diversified common stock portfolio designed to replicate Standard & Poor’s 500 stock index) |
| | I Fund: international stock index fund invested in the shares of Barclays EAFE Index Fund, which holds common stocks of all the companies represented in the Europe, Australasia, and Far East stock index, and whose contributions are invested in the EAFE Index Fund |
| | S Fund: medium and small company stock fund that tracks the returns of the Wilshire 4500 stock index, which includes those U.S. stocks that are not found in the S&P 500 index. It invests in shares of the Barclays Extended Market Index Fund, which holds common stocks of companies in the Wilshire 4500 index |
| | L Funds: Invest in the other TSP funds in ratios set according to projected withdrawal dates of 2020, 2030, 2040 or 2050. Also has a current income fund for those already making withdrawals, or expecting to do so soon |