CSRS Offset refund

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Q. I left government service in October 1984 and drew out my $11,500 retirement contribution. I returned to government service in October 1987 but have not repaid the refund.

1. If my annuity is reduced permanently due to lack of refund repayment and I die, will my wife’s survivorship election be affected by the annuity reduction continuing until her death?

2. The variable interest rate applied to an early CSRS refund is decided by whom, decided when, and posted when and where? I would like to be able to find it as soon as it is decided and posted in case the interest begins to jump up.

A. If you don’t redeposit the amount you owe, you’ll receive credit for the time. However, your annuity will be actuarially reduced based on the amount you owe, plus accrued interest. If you were to die, your wife’s survivor annuity would be a percentage of the annuity you are entitled to, normally 55 percent. To find out what you owe, you’ll have to complete a Standard Form 2803, Application to Make Deposit or Redeposit, and send it to the Office of Personnel Management. If you decide to redeposit the amount you owe, you can do that through your payroll office. The form is available at www.opm.gov, click on Forms.

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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 fedexperts@federaltimes.com.

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