Interest payment after retirement


Q. I recently retired from a federal ARS position having 35 years, three months and nine days of creditable service. I was informed for the first time to pay an accrued interest of $955 for FICA service ($529) for a period when I was first employed back in 1976, which I did.

I have requested that OPM review this interest charge, but I have not gotten a response. This service period doesn’t appear to me to have been included in computing my CSRS computation service for retirement or my buyout payment — which I find questionable.

Because I was never informed that I owed a deposit on the FICA service or that there was an accumulating interest, I feel this amount due is unjustified.

My personnel agency representative said if I had changed agencies, then I would have been informed, but because I stayed in ARS throughout my federal employment, I was never notified.

A. If you complete the required deposit before the final adjudication of your retirement application, you’ll get credit for that time in your annuity computation. If you don’t, you won’t, and the amount you already deposited will be refunded to you. The payment of interest is required by law and based on rates published by the Department of the Treasury. It’s unfortunate that you weren’t informed about the deposit requirement; however, no provision in law would permit the amount you owe to be reduced or waived.


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Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to

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