Q. I was hired at the Defense Department in October 2012, and thus I contributed .8 percent of my pay to FERS. I transferred to VA in April 2014 with no break in service and now have 3.1 percent of my pay deducted, and I am told that it is increasing to 4.4 percent of my pay, as this rate applies to new hires after January 2014. Is it correct that I should be treated as a new hire, despite in all other areas being treated as a transfer (leave carried forward, no ability to change benefits until open season)? I checked and my SF-50 reflects the correct service computation date from 2012. My HR representative has informed me that I will be in the 4.4 percent group when I questioned why I was already paying the 3.1 percent.
A. Your HR representative is mistaken. Your deduction rate should be .8 percent. Only those who were first hired, or rehired after a break in service, which you didn’t have, would pay 3.1 percent. And the 4.4 rate applies solely to someone first hired in 2014, which doesn’t apply in your case.
FERS rate following transfer
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