CSRS Offset retirement


Q. Why do former military (not retired military) have to pay a deposit back into the retirement fund, especially if they’re offset? I am a CSRS offset employee, and my retirement annuity will decrease when I turn 62, when my Social Security will kick in.

A. Anyone first hired on or after Oct. 1, 1982, has the option of making a deposit for active-duty service to get retirement credit for that time. Anyone first hired before that can make the deposit or not. For anyone who doesn’t, retires before age 62 and is eligible for a Social Security benefit at age 62, those years of active-duty service will be subtracted and the annuity recomputed without them. For anyone who retires at age 62 or later, the reduction will occur on the day of retirement. Note: Retired military can make a deposit to get credit for active-duty service; however, in most instances when they retire, they will be required to waive their military retired pay.

As a CSRS Offset employee, you are contributing 0.08 percent to the Civil Service Retirement and Disability Fund and 6.2 percent to Social Security. If you are retired before age 62 and are eligible for a Social Security benefit, your CSRS annuity will be offset by the amount of Social Security benefit you earned while covered by CSRS Offset. You will receive about as much. It will just come from two places: the Office of Personnel Management and the Social Security Administration. If you retire at or after age 62, the offset will occur on the day you retire.


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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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