Q. I was recently informed that I was a FERCCA and had an option to select CSRS Offset. I was also told that the 1 percent and matching in my Thrift Savings Plan would be removed if I selected CSRS Offset. My human resources office told me that it would be the exact amount that was put into my TSP. If it made money, I would be able to keep the difference. Likewise, if it lost money, I would have to make up the difference. So I selected CSRS Offset. Now they are beginning to remove the 1 percent by pay period, but they are removing the amount plus interest. What are they supposed to be removing from the TSP if you switch from FERS to CSRS Offset under the Federal Erroneous Retirement Coverage Corrections Act?
A. If you were erroneously covered by FERS and now switch to CSRS Offset, you will keep the investments you made into your TSP account, even if they exceeded the CSRS maximum under the policy in effect before 2005. However, all of your agency’s contributions and the attributable earnings will be removed from your account.
