FERS contribution rate


Q. If a fed changes agencies or takes a new position and has less than five years of service when making that change, would they be shifted to the new 4.4 percent contribution since they would be hired after 2014 into their new agency/position? Is the five-year rule meant for noncontinuous service, or does it apply to continuous, as well?

A. When switching agencies, there’s no break in service. That portion of the rule applies to those who had fewer than five years of continuous service when they left and are rehired on or after the effective date.


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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