Q. I entered federal service under a temporary appointment on March 16, 1981, until being converted to a career-conditional appointment on Jan. 12, 1982. The Office of Personnel Management has calculated that I owe a CSRS pre-10/01/1982 deposit of $878.88 and interest of $1,398.85 for a total of $2,277.73. If I understand it correctly, unless I pay the deposit in full, my annual annuity will be reduced by 10 percent of the amount of the unpaid balance at retirement. In this case, my annual annuity would be reduced approximately $227.77 or $18.98 per month. Does this reduction ever change? Are there ramifications other than this reduction to be considered, i.e. cost-of-living adjustments, etc.?
A. The reduction is permanent and does not change. There are no other ramifications from not making the deposit.