Retirement

Facts

9

Refunds

Under the

Civil Service

Retirement

System

This is a non-technical summary of the laws and

regulations on the subject. It should not be relied upon

as a sole source of information.

United States

Office of

Personnel

Management

Retirement

and

Insurance

Service

RI 83-9

March 1995

The June 1992 edition is usable
2

The information in this publication is a

non-technical summary of the relevant laws and

regulations dealing with this subject. It should

not be relied upon as a sole source of information.

For further information concerning refunds of CSRS

contributions, you should contact your current or

last employing office.

Other titles in the Retirement Facts Series:

1.The Civil Service Retirement System

2.Military Service Credit Under the Civil

 Service Retirement System

3.Deposits and Redeposits Under the Civil

 Service Retirement System

4.Disability Retirement Under the Civil

 Service Retirement System

5.Survivor Benefits Under the Civil Service

 Retirement System

6.Early Retirement Under the Civil Service

 Retirement System

7.Computing Retirement Benefits Under the

 Civil Service Retirement System

8.Credit for Unused Sick Leave Under the Civil

 Service Retirement System

10.Voluntary Contributions Under the Civil

 Service Retirement System

11.Information for Separating CSRS Employees

 Who Are Not Eligible for an Immediate

 Annuity

12.Information About Reemployment for CSRS

 Annuitants

If you want information on the Federal Employees

Retirement System (FERS), ask your employing

office for a copy of “FERS” (RI90-1).
3

Eligibility Requirements

You may receive a refund of your Civil Service

Retirement System (CSRS) contributions if:

(1) You separate from Federal service for at least

31 consecutive days; or you transfer to a

position in which you are not subject to

CSRS deductions or deductions under the

Federal Employees Retirement System, and

you remain in such a position for at least 31

consecutive days;

(2) You file an application for a refund of your

retirement contributions with OPM;

(3) You are not reemployed in a position

subject to CSRS deductions at the time you file an

application for a refund;

(4) You will not become eligible to receive an

annuity within 31 days after filing the

application;

(5) You notify your spouse and any former

spouse that you have filed an application

for a refund (Note: you do not have to notify

a former spouse if you were divorced before

May 7, 1985, or if your marriage to that

person lasted less than 9 months, or if you

had less than 18 months of CSRS-covered

service); and

(6) Your receipt of the refund would not end the

court-ordered right of any spouse or former

spouse to future benefits based on your

service.

Regardless of your length of service, if you leave

Government service for any reason or transfer to

another Federal job under another retirement

system, you may withdraw your CSRS

contributions under the above conditions.

Generally speaking, your receipt of a refund of

retirement contributions voids any future annuity

rights unless you are later reemployed under the

CSRS or FERS and work long enough to earn

New retirement rights. Remember that only the

Amount you have paid in can be refunded to you - the

agency contribution remains in the Retirement

Fund.
4

Possible Advantage of leaving

Contributions in the Fund

Employees with 5 years or more under the CSRS

have title to a deferred annuity at age 62. You may

find that the value of the deferred annuity will

exceed the amount of your refund.

There are additional Retirement Facts publications

on computing the amount of retirement benefits

and deposits and redeposits; these should help

you decide whether to withdraw your contributions

or leave them in for a deferred annuity. You should

also check on “government pension offset” and

“windfall elimination” which may effect your

Social Security benefits, if you are eligible for

CSRS annuity, with your Social Security office.

Leaving the contributions in does not prevent

You from requesting a future refund, provided you

file an application for refund with OPM at least 31

days before the commencing date of your

deferred annuity.

If you have not withdrawn your contributions

And should die before attaining age 62, a lump sum

of the total of your contributions would be paid to

your survivors as a death benefit.

Interest

You are not paid interest on a refund of CSRS

contributions if the contributions cover a

period(s) of service totaling less than 1 year or if

you have more than 5 years of total service (unless the

service was performed prior to December 31,

1956). In other words, interest is generally

payable on a refund of contributions covering service

of 1 to 5 years. Any interest due you is paid at the rate

of 3 percent, compounded annually, to the date

you separated or became eligible for a refund by

virtue of a transfer. Interest does not accrue after

your separation or transfer. No additional interest

would be due you, for example, if you waited 2

years before applying for a refund.
5

How to Obtain a Refund

The application form is available from your former

agency and should be filed through that agency if

you have been separated for less than 30 days. If

you have been separated for more than 30 days,

the form should be submitted to the Office of

Personnel Management, Civil Service Retirement

System, Boyers, PA 16017. Refund application

forms can also be requested from this address.

If you meet the eligibility requirements for a

refund and want to apply for a return of your

contributions, you should file an Application

for Refund of Retirement Contributions, Standard

Form 2802.

The application form is available from your former

agency and should be filed through that agency if

you have been separated for more than 30 days,

the form should be submitted to the Office of

Personnel Management, Civil Service Retirement

Systems, Boyers, PA 16017. Refund application

forms can also be requested from this address.