Federal Benefit Solutions

Civil Service Retirement System (CSRS) FAQ’s

Click on the question of interest to learn more information about CSRS.

Q: When can I retire under CSRS or CSRS Offset?

The following chart gives age and service requirements.

To retire under CSRS or CSRS Offset, and receive an immediate annuity, you must separate from a position subject to retirement deductions and meet the requirements shown in the chart. Additionally, you must be covered by CSRS or CSRS Offset for at least 1 year out of the last 2 years immediately preceding your separation.

Q: How is my annuity computed?

Your basic annuity is computed by multiplying the highest 3 years’ average salary by the years of service using a percentage factor 1.5% for the first 5 years, 1.75% for the next 5 years, and 2% for the remaining years.

Example: An employee with 32 years of service and High 3 of $56,000
1.5% * $56,000 = $840 * 5 yrs = $4,200
+ 1.75% * $56,000 = $980 * 5yrs = $ 4,900
+ 2% * $56,000 = $1,120 * 22 yrs = $24,640
Basic Annuity = 33,740/yr or $2,812/month

Note: For employees retiring under Firefighter or Law Enforcement provisions, the percentage factor for special service is 2.5% for the first 20 years plus 2% for years over 20. Unpaid deposits, redeposits and early retirement penalties impact annuities.

Q: I am a CSRS Offset employee. How is my annuity computed?

Your annuity is computed just as if you were covered by CSRS alone, except that the annuity will be reduced (or offset) when you become eligible for Social Security at age 62. Many employees mistakenly believe the civil service annuity is reduced dollar for dollar by the Social Security benefit -- this is not true. The CSRS annuity offset is the lesser of:

1) The Social Security benefit you earned while covered by CSRS Offset
or
2) The entire Social Security benefit (earned over your Social Security covered work lifetime) multiplied by a fraction obtained by placing the number of years in CSRS Offset, over the number 40. The number 40 represents the potential work lifetime--every year from age 22 to 62. The “Lesser of” rule guarantees the amount of the Social Security benefit used to reduce your Civil Service benefit will be related to the number of years you were in CSRS Offset.

Example: A 55-year old employee retires with 8 years of Offset service and an earned Social Security benefit at age 62 of $600 per month.
8/40=20% * $600= $120 Offset to CSRS

The full CSRS benefit is received for 7 years (until age 62). At 62, the Social Security benefit begins and the CSRS annuity is reduced by $120. The offset would not apply if the employee never becomes eligible for Social Security. The offset is made when the basic requirements for Social Security are met, usually at age 62. The amount of the offset is the amount of Social Security directly attributable to your federal service after 1983, which was covered by both CSRS and Social Security. Unpaid deposits, redeposits, and early retirement penalties impact annuities.

Q: Is my annuity reduced if I retire before age 55 during a major reorganization, reduction-in-force, or transfer of function?

Yes, Your basic annuity is reduced by 1/6 of 1% for each full month you are under the age of 55 (2% for each full year). The reduction is permanent.

Q: I am currently enrolled in the Federal Employees’ Health Benefits (FEHB) program. Am I eligible to continue this benefit at retirement?

Your enrollment will continue with benefits and costs the same as a working employee if you have been continuously enrolled in the FEHB program for the 5 years of service immediately prior to retirement; or if fewer than 5 years, all service since your first opportunity to enroll.
Note: Although you must be enrolled in the FEHB program for 5 years, there is no requirement to remain with the same health company for 5 years.