Q. I had 16 years of CSRS from 1980-1996. I left federal service in 1996 and took my money out. The amount to pay it back with interest is too much. I then returned to federal service in 2010 and have become part of CSRS Offset. I plan to work for 10 more years, which will give me 15 years of CSRS Offset. How much will my annuity be reduced by not paying back the 16 years of CSRS I had?
A. At retirement, your annuity will be actuarially reduced. The reduction will be based on how much you owe and your age when you retire. The reduction is calculated so that over a typical actuarial lifetime, the total difference in an annuity will equal the outstanding amount. When your retirement papers reach OPM, they will let you know what the reduction would be and offer you an opportunity to repay the amount you took out, including accrued interest.