Q. I am retiring under CSRS offset. In 2007, I worked as a temporary employee for four months. During that time I paid FICA, but not the additional 0.8 percent toward my retirement. OPM states that I need to pay the full 7 percent to get full credit toward my retirement.
Given that the CSRS offset contribution is 7 percent, divided by 6.2 percent toward FICA and 0.8 percent toward CSRS, wouldn’t paying an additional 7 percent be a double payment toward FICA? Shouldn’t I just be liable for the 0.8 percent deposit? If I must pay a full 7 percent, will this affect my SS offset amount?
A. By law, you are required to pay the 7 percent, plus accrued interest, if you want to get credit for that period of nondeposit service. Paying the deposit will not affect the amount your CSRS annuity will be reduced at age 62, if you are retired, or when you retire if after age 62.
The offset will be based on the amount of Social Security benefit you earned while a CSRS offset employee.