CSRS and annuities


Q: I’m under the Civil Service Retirement System plan. I would like to know if the retirement contributions, taken out of our checks every payday, have anything to do with the amount of money we will receive when we retire, or is it based on our high-3 and the number of years we have in, including military time?

A: CSRS and Federal Employees Retirement System annuities are defined benefit plans. As such, they are not based on the amount employees and agencies contribute to the retirement fund. Instead, they are based on formulas that include a multiplier (or multipliers), the highest three years of average salary, and years and full months of creditable service, including any active-duty military service for which a deposit has been made.


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Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.

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