Excess retirement contributions


Q. I’m a current CSRS GS employee with a total of 36 years of service that includes 4 years active-duty military (credit is paid back). I plan to work beyond the 41 years, 11 months of service. (80 percent retirement benefit) I understand that payroll will take employee 7 percent retirement contributions. What happens to that 7 percent contribution money when I retire? Will the 4 years of military service have any negative impact on the 7 percent employee contributions refund after reaching 41 years, 11 months of service?

A. You’ll be offered a refund of your excess retirement contributions, plus accrued interest, with the option of purchasing additional annuity that isn’t subject to the 80 percent limit.


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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