Cumulative retirement


Q. A federal employee who has worked for the Social Security Administration under CSRS since 1975 has, according to the earnings and leave statement, $103,887.34 in cumulative retirement. What does that figure represent?

A. That figure represents the amount of money you have contributed to the retirement fund. When you retire, you’ll receive an annuity based on the following formula:

.015 x your high-3 x 5 years of service, plus

.0175 x your high-3 x 5 years of service, plus

.02 x your high-3 x all remaining years and full months of service

When you file your federal income tax return, a portion of your retirement contributions will be tax free because you already paid taxes on them while you were working. To learn more about this, go to and download a copy of IRS Publication 721.


About Author

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

Leave A Reply