Disability retirement and redeposit


Q. I am a CSRS employee and withdrew all pension contributions in 1995 after 15  years of service.  No redeposit has been made.  I now have another 15 years of continuous service since that withdrawal and I am now 57  years old. If a redeposit is not made:  (1) Since I am over 55 with more than 30 years of service, can I receive a disability retirement if approved or must I take a regular retirement; and (2) what is the impact on the annuity for a disability retirement (assuming it would be authorized and approved), if no redeposit is made?

A. If you were approved for disability retirement, your annuity would first be computed under the general formula, as follows:

0.015 x your high-3 x 5 years of service, plus
0.0175 x your high-3 x 5 years of service, plus
0.02 x your high-3 x your remaining years of service (5 years+)
Since that amount would be less than the guaranteed minimum, you would instead receive the lesser of:
– 40 percent of your high-3, or
– the amount obtained under the general formula after increasing your actual creditable service (15+ years) by the time remaining from the commencing date of your annuity to the date of your 60th birthday.

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.

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