United States 

Office of 

Personnel Management 

The Federal Government’s Human Resources Agency

Benefits Administration Letter

Number: 11- 111 Date: December 22, 2011

Subject: Revised Present Value Factors and Discount Factors 

The Office of Personnel Management (OPM) uses present value factors in a variety of 

civil service retirement computations. Present value factors change periodically to 

conform to changes in economic assumptions and demographic factors adopted by the 

Board of Actuaries of the Civil Service Retirement System. Discount factors also change 

when the Board of Actuaries changes economic assumptions related to the expected rate 

of investment return earned by the retirement fund. We are issuing this Benefits 

Administration Letter (BAL) to inform agencies that the present value factors and the 

discount factors have been revised as of October 1, 2011. The revised factors were 

published in the Federal Register on June 3, 2011. You can access CSRS and FERS 

Present Value Factors Effective October 1, 2011 at http://www.gpo.gov/fdsys/pkg/FR2011-06-03/pdf/2011-13707.pdf, and http://www.gpo.gov/fdsys/pkg/FR-2011-06-

03/pdf/2011-13708.pdf). 

OPM uses present value factors to compute reductions to: 

• Civil Service Retirement System (CSRS) and Federal Employees Retirement 

System (FERS) retirees’ benefits when the retirees elect the Alternative Form of 

Annuity; 

• CSRS and FERS benefits with a CSRS component when the retirees elect to credit 

refunded service that ended before March 1, 1991, without paying the redeposit 

owed for the service; 

• CSRS and FERS benefits when the retirees marry after retirement and elect to 

provide survivor annuity benefits; 

• Retirees’ benefits when the retirees elect to credit Nonappropriated Fund 

Instrumentality (NAF) service for retirement purposes under Public Law 104-106 

or Public Law 107-107; and, 

• Retirement benefits for individuals with certain types of retirement coverage errors 

who can receive credit for service by taking an actuarial reduction under the 

provisions of the Federal Erroneous Retirement Coverage Correction Act. 

OPM also uses discount factors to compute the reduction to annuity benefits when 

retirees elect to credit their NAF service under either of the aforementioned public laws. 
See Benefits Administration Letters 03-102, dated January 22, 2003, and 96-108, dated 

September 6, 1996 for details about the NAF computations.) The revised Discount 

Factors are attached. 

Kenneth J. Zawodny Jr. 

Associate Director, 

Retirement Services 

Attachment: Discount Factors Effective October 1, 2011
Attachment: Discount Factors Chart

Factors for Determining Reduction in a CSRS or FERS Annuity

When Individual Elects to Credit NAF Service to Qualify for Immediate CSRS/FERS Retirement Under Public Law 107-107

Factors Derived from An Assumed 5.75% Rate of Investment Return Earned by the CSRS Fund

Use these factors when the annuity begins on or after 10/01/2011

Find the factor that corresponds to the number of whole years and full months between the date the immediate retirement (with credit for NAF service) begins and 

the date the deferred retirement (without credit for NAF service) would normally begin.

0 Months 1 Months 2 Months 3 Months 4 Months 5 Months 6 Months 7 Months 8 Months 9 Months 10 Months 11 Months

0 Years.... 1.000000 0.995352 0.990725 0.986120 0.981537 0.976974 0.972433 0.967913 0.963414 0.958936 0.954479 0.950042

1 Year..... 0.945626 0.941231 0.936856 0.932501 0.928167 0.923853 0.919559 0.915284 0.911030 0.906795 0.902581 0.898385

2 Years... 0.894209 0.890053 0.885916 0.881798 0.877699 0.873620 0.869559 0.865517 0.861494 0.857490 0.853504 0.849537

3 Years... 0.845588 0.841658 0.837746 0.833852 0.829976 0.826118 0.822278 0.818456 0.814652 0.810865 0.807096 0.803345

4 Years... 0.799611 0.795894 0.792194 0.788512 0.784847 0.781199 0.777568 0.773954 0.770356 0.766775 0.763211 0.759664

5 Years... 0.756133 0.752618 0.749120 0.745638 0.742172 0.738722 0.735289 0.731871 0.728469 0.725083 0.721713 0.718358

6 Years... 0.715019 0.711696 0.708388 0.705095 0.701818 0.698556 0.695309 0.692077 0.688860 0.685658 0.682471 0.679299

7 Years... 0.676141 0.672998 0.669870 0.666757 0.663657 0.660573 0.657502 0.654446 0.651404 0.648376 0.645362 0.642363

8 Years... 0.639377 0.636405 0.633447 0.630503 0.627572 0.624655 0.621751 0.618861 0.615985 0.613122 0.610272 0.607435

9 Years... 0.604612 0.601801 0.599004 0.596220 0.593449 0.590690 0.587945 0.585212 0.582492 0.579784 0.577089 0.574407

10 Years... 0.571737 0.569079 0.566434 0.563801 0.561181 0.558572 0.555976 0.553392 0.550820 0.548259 0.545711 0.543174

11 Years... 0.540650 0.538137 0.535635 0.533146 0.530667 0.528201 0.525746 0.523302 0.520870 0.518448 0.516039 0.513640

12 Years... 0.511253 0.508876 0.506511 0.504157 0.501813 0.499481 0.497159 0.494848 0.492548 0.490259 0.487980 0.485712

13 Years... 0.483454 0.481207 0.478970 0.476744 0.474528 0.472322 0.470127 0.467941 0.465766 0.463601 0.461447 0.459302

14 Years... 0.457167 0.455042 0.452927 0.450822 0.448726 0.446640 0.444564 0.442498 0.440441 0.438394 0.436356 0.434328

15 Years... 0.432309 0.430300 0.428300 0.426309 0.424327 0.422355 0.420392 0.418438 0.416493 0.414557 0.412630 0.410712

16 Years... 0.408803 0.406903 0.405011 0.403129 0.401255 0.399390 0.397534 0.395686 0.393847 0.392016 0.390194 0.388380

17 Years... 0.386575 0.384778 0.382990 0.381209 0.379437 0.377674 0.375918 0.374171 0.372432 0.370701 0.368978 0.367263

18 Years... 0.365555 0.363856 0.362165 0.360482 0.358806 0.357138 0.355478 0.353826 0.352181 0.350544 0.348915 0.347293

19 Years... 0.345679 0.344072 0.342473 0.340881 0.339297 0.337719 0.336150 0.334587 0.333032 0.331484 0.329943 0.328410

20 Years... 0.326883 0.325364 0.323851 0.322346 0.320848 0.319356 0.317872 0.316395 0.314924 0.313460 0.312003 0.310553

21 Years... 0.309109 0.307673 0.306242 0.304819 0.303402 0.301992 0.300588 0.299191 0.297800 0.296416 0.295038 0.293667

22 Years... 0.292302 0.290943 0.289591 0.288245 0.286905 0.285572 0.284244 0.282923 0.281608 0.280299 0.278996 0.277699

23 Years 0.276408 0.275124 0.273845 0.272572 0.271305 0.270044 0.268789 0.267539 0.266296 0.265058 0.263826 0.262600

24 Years 0.261379 0.260164 0.258955 0.257751 0.256553 0.255361 0.254174 0.252992 0.251816 0.250646 0.249481 0.248321

25 Years 0.247167 0.246018 0.244875 0.243736 0.242604 0.241476 0.240353 0.239236 0.238124 0.237017 0.235916 0.234819