Q. I worked for the Postal Service for two years and eight months, and left in the early 1970s to raise my child. At that time, I withdrew my contributions. When I returned to federal service (not the post office) in 1987, I was told I was not vested in CSRS and therefore had to be enrolled in FERS. I was credited with my post office service, so my service computation date is Dec. 7, 1984, rather than February 1987, when I was hired.
I would like to know if I should have been offered the opportunity to repay my withdrawn funds and re-enroll in CSRS. I believe this would be of benefit to me as I will be retiring within the next two to five years. What is your advice on this?
A. Because you didn’t have five years of service under CSRS, you were automatically placed in FERS. Making a re-deposit wouldn’t change that. You do, however, have a choice. You can either re-deposit the money you took out, plus accrued interest, and get credit for that time in your annuity computation or not make the re-deposit and have your annuity actuarially reduced based on how much you owe and your age at retirement.