Redeposit on retirement


Q. I had cashed out the five years of FERS service from May 1987 through August 1992. I was reinstated in November 2005 and been with the federal government since.

I just received a letter from the Office of Personnel Management that I would have to pay $1,973 for FERS redeposit and $3,541 for the interest — a total of $5514. The date shown is Nov. 14, 2013.

I wonder if redeposit is a good approach at this time? Please explain the benefit of having this redeposit made vs. not doing anything.

And, for future reference, where can I tap on for more info on FERS retirement?

I plan on retiring in 2026.

Is there any other smarter way of analyzing the situation?

If I pay the total amount, what is the due date without further due on interest?

A. If you make the deposit, you’ll get credit for those five years in determining your length of service and have them used in your annuity computation. Doing so would increase your annuity by 5 percent.


About Author

Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to

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