Service deposit following FERCCA

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Q. I recently had to choose between CSRS Offset and FERS due to an error made in my human resources department. I was classified as an intern or temp for the years 1982 through 1984 and erroneously put in CSRS versus FERS. I have since chosen CSRS Offset.

As a result of their mistake, it has been brought to my attention that this error has also uncovered two years where I did not contribute to a retirement system (only FICA). I now have the option of buying back the two years. However, what was once an $800 bill, has now ballooned to $5,000 due to 30 years of interest. Is my agency responsible/capable for waiving part or all of the interest accrued due to the error it made?

A. No, there isn’t any provision in law that would permit the waiver of all or part of the payment due.

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About Author

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

  1. I was told that thru congressional action, a waiver can be requested in unusual circumsances.
    I have clear documentation that HR and OPM were not talking to one another. I was stuck in the middle. It wasn’t until I raised it to the level of management, and set up a conference line was it resolved for me to receipt a service computation date and calculate my deposit. what was once an $175 bill, has now ballooned to $1100 due to accural of interest. Surely I should have the waiving of all, or at least part of the interest accrued while staff failed to process my application as clearly requested 2 years and 8 months earlier?

    • Any citizen can ask his or her Representative or Senator to introduce a personal relief bill. You’ll have to get in touch with their offices to see if they’d be willing to do that. Failing that, someone in their offices can always check with OPM to see if any administrative relief is possible.

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