Civil Service 

Retirement 

System 

Federal Employees’ 

Group Life 

Insurance Program 

Federal Employees 

Health Benefits 

Program 

Federal Employees 

Retirement 

System 

Federal 

Long Term 

Care Insurance 

Program 

United States 

Office of 

Personnel Management 

The Federal Government’s Human Resources Agency

Retirement and Insurance Service 

Benefits Administration Letter 

Number: 02-312 Date: June 7, 2002 

Subject: Changes to CSRS and FERS Contribution Rates 

In FY 2003, agency payroll offices (APOs) must implement changes in the agency 

contribution rates for the Civil Service Retirement System (CSRS) and the Federal 

Employees Retirement System (FERS). In addition, the CSRS and FERS withholding 

rates for Members of Congress will change in January 2003. 

CSRS AGENCY CONTRIBUTION RATES 

P.L. 106-346, signed into law on October 23, 2000, requires that the CSRS agency 

contribution rate changes two separate times during FY 2003 for all employees, except 

those of the U.S. Postal Service and the Metropolitan Washington Airports Authority. 

Effective with the first day of the first pay period beginning in October 

2002, the CSRS agency contribution rates must be reduced to 0.5 percent 

above the respective employee withholding rate. 

Effective with the first day of the first pay period in January 2003, the CSRS 

agency contribution rate will be reduced again to equal the employee 

withholding rate. 

Thus, for most (or ”regular”) CSRS employees, the agency contribution rate will be 

reduced from the current 8.51 percent of basic pay to 7.5 percent in 

October 2002 and to 7.0 percent in January 2003. The following table summarizes the 

two separate changes to CSRS agency contribution rates that APOs must implement in 

FY 2003 for all categories of CSRS coverage: 
2

CSRS Agency Contribution Rate (%) 

Effective the first day 

of first pay period 

beginning in: 

CPDF 

Code Current 

10/2002 1/2003 

Regular 1, C, R 8.51 7.5 7.0 

Air Traffic Controller NONE 8.51 7.5 7.0 

Law Enforcement Officer 

Firefighter 6, E, T 9.01 8.0 7.5 

Capitol Police NONE 9.01 8.0 7.5 

Congressional Employee NONE 9.01 8.0 7.5 

Nuclear Materials Courier NONE 9.01 8.0 7.5 

Member of Congress 

Judges1

 NONE 9.51 8.5 8.0 

1

 Bankruptcy, U.S. Court of Appeals for the Armed Forces, U.S. Magistrate, and Court of 

Federal Claims. 

FERS AGENCY CONTRIBUTION RATES 

The amount that agencies must contribute to the cost of the FERS-coverage of their 

employees is based on the normal cost of FERS (which is the actual cost to the 

Government to provide a FERS benefit). New FERS normal costs, effective on October 

1, 2002, were announced in the Federal Register. The normal cost for most (or 

“regular”) FERS-covered employees will remain at 11.5 percent of basic pay, but the 

normal cost for other categories of FERS coverage will change. Accordingly, effective 

with the first day of the first pay period in October 2002, FERS agency contribution 

rates for certain categories of FERS coverage will change. The following table 

summarizes the changes to the FERS agency contribution rates: 
3

FERS Agency Contribution Rate (%)

CPDF 

Code Current 10/2002 

Regular K 10.7 10.7 

Law Enforcement Officer 

Firefighter M 23.3 22.7 

Capitol Police NONE 15.4 15.9 

Nuclear Materials Courier NONE 23.3 22.7 

Air Traffic Controller L 21.8 21.9 

Military Reserve Technician N 11.1 13.2 

Employees under section 302 of 

the CIA Act of 1964 for certain 

employees (when serving abroad) 

NONE 23.3 22.7 

Employees under section 303 of 

the CIA Act of 1964 for certain 

employees (when serving abroad) 

NONE 15.5 15.7 

Member of Congress NONE 15.2 15.8 

Congressional Employee NONE 15.4 15.9 

CSRS AND FERS WITHHOLDING RATES FOR MEMBERS OF CONGRESS 

Effective with the first day of the first pay period beginning in January 2003, the 

following changes must be made to the CSRS and FERS withholding rates for 

Members of Congress: 

Current 1/2003 

CSRS 8.5 8.0 

FERS 1.8 1.3 
4

If you have any questions regarding this information, we would prefer that you email us 

at finance@opm.gov, so we have a record of our communication. You may also phone 

us on (202) 606-0606. 

 Robert A. Yuran, Chief 

 Financial Policy Staff 

 Retirement and Insurance Service