Deposits for nondeduction service

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Q. I have just short of five years of service as a part-time substitute rural carrier, beginning in 1979 and ending in 1984, followed by full time service as a regular rural carrier from 1984 to the present with no break in service. I am being told that my part-time years are nondeduction service and that I must make a deposit for if I want full credit for retirement. Payments for Social Security were deducted from my paychecks as a part-time employee. I must pay 7 percent of my salary for that period for Social Security. This looks like paying double to me.

A. Let’s cut to the chase. To get credit for your nearly five years of nondeduction service in the computation of your annuity, you’ll have to deposit 7 percent of your base pay, plus accrued interest. No additional money will be due for FICA or Medicare.

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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.

2 Comments

    • If your period of employment was on or after January 1, 1989, you can’t make a deposit to get credit for that time.

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