BAL 10-104: Appendix VII: Erroneous FERS Coverage Employee Belongs in Social 

Security: Election Between FERS and Social Security Only 

VII. ERRONEOUS FERS COVERAGE EMPLOYEE BELONGS 

IN SOCIAL SECURITY: ELECTION BETWEEN FERS AND 

SOCIAL SECURITY 

This section is divided into subsections. The titles to the subsections are also the names 

of the items that are necessary to include in a decision package. This is both a check list 

for the agency for what to put in the decision package as well as a table of contents for 

this document. 

Have you included 

this document in 

the decision 

package? 

Document needed for decision package 

A. Cover Letter 

B. Annuity Estimates and TSP Estimates 

C. Comparison Sheets 

D. FERCCA Fact Sheets 

E. FERCCA Election Form 

F. Preparing for Your Counseling Session 

The last subsection is not something you include in the decision package. Section G is 

for your use. It is a Fact Sheet for you to use to counsel the employee about their 

FERCCA decision. 

Do not include this 

document in the 

decision package 

G. FERCCA Counseling Fact Sheets for Agency Human 

Resource Specialists 

A. Cover Letter 

What is the Cover Letter? 

The cover letter is the first document in the decision package. You will include a cover 

letter in every decision package regardless of the error type. However, the sample cover 

letter that follows is just that, a sample. You can change this letter to suit your 

employee’s and your agency’s needs. The only paragraph required is the last paragraph 

providing the default information for FERCCA elections. 

You should find this letter meets your needs except in the employee contact information 

section. Your agency may have procedures for contacting employees. If that is the case 

you’ll want to follow your agency’s procedures. 

1
BAL 10-104: Appendix VII: Erroneous FERS Coverage Employee Belongs in Social 

Security: Election Between FERS and Social Security Only 

How do I complete the Cover Letter? 

As you read through the sample cover letter you will see more information is needed in 

order for it to be complete. The numbering on the left is to make it easier to understand 

the instructions in this section. 

Section 1: This section is self explanatory. One item to note is the date. When you read 

the last paragraph of the cover letter you will see that the employee’s right to a waiver of 

the six month time limit to make their FERCCA election is based on the date of the cover 

letter. 

Section 2: You will find a sentence that says “Within the next 15 business days your 

agency retirement counselor will contact you...” You can adjust that number to any 

number that is appropriate for your employee and your agency. You will also need to 

provide the name of the agency retirement counselor if it is different from the person who 

signs the letter. If the person signing the letter is the retirement counselor just change this 

sentence to read “I will contact you...” 

Section 3: You enter the work phone and email you have for the employee. If you do not 

have this information delete this section and ask the employee to provide the agency with 

their preferred method of contact in the next paragraph in the cover letter. Provide the 

contact information of the agency retirement counselor who will be assisting the 

employee in this section. 

Section 4: You must provide your agency’s name and your agency’s address. The 

address is very important because this is how the employee will provide you with copies 

of their signed FERCCA election form. Also, if they need to submit a waiver of the six 

month time limit to make a FERCCA decision they will do it using this address. You 

may want to provide the employee with your email and fax number as well, in case the 

employee wants an additional way to send his election back to you. 

Section 5: Include the employee’s name on the second page either at the top of the page, 

or at the end, or in both places. Do not forget to include the appropriate enclosures, 

FERCCA Annuity Estimates, FERCCA Comparison Sheets, FERCCA Fact Sheet, 

FERCCA Election Form, and Preparing for Your Counseling Session. 

2 
 

 

 

BAL 10-104: Appendix VII: Erroneous FERS Coverage Employee Belongs in Social 

Security: Election Between FERS and Social Security Only 

##Insert agency letterhead##

 ##Date##

1 

##name## 

##address## 

Dear ##name##: 

Previously, we notified you that a review of your official personnel records showed a 

retirement coverage error. We found you were erroneously placed in the Federal 

Employees Retirement System (FERS) when you should have been placed in Social 

Security. As a result of this error, you are being given an opportunity to choose 

between FERS or Social Security retirement plans as provided for in the Federal 

Erroneous Retirement Coverage Correction Act (FERCCA) legislation and Office of 

Personnel Management (OPM) regulations. 

The material in the enclosed election summary package is designed to help you make 2 an informed choice about which option to elect. For example, the package includes a 

comparison of your retirement benefits calculated under each option as well as a 

comparison of your Thrift Savings Plan (TSP) benefits under the two options. Also 

included are the assumptions we used in preparing these estimates. 

We ask that you review the material in this package carefully before making a 

decision. Within the next 15 business days, ##your agency retirement counselor## 

will contact you by telephone to confirm that you have received and reviewed the 

package and answer any questions you may have about your election options. The 

counselor is prepared to assist you in making a decision but will not advise you on 

which option to choose. 

The contact information we have on file for you is: 3 

Work Phone: 

##Work Phone## 

Work email: 

##Work email## 

If our information is not current, a counselor will not be able to contact you to assist 

3
 

 

 

BAL 10-104: Appendix VII: Erroneous FERS Coverage Employee Belongs in Social 

Security: Election Between FERS and Social Security Only 

you in this process. Please forward your correct contact information to ##email and 

phone number of counselor who will provide assistance##. 

Your election is irrevocable once it is received by ##your agency name##. Once

4 you have received sufficient information to make an informed decision, please 

complete the applicable forms and return them as soon as possible to: 

##your agency’s mailing address goes here and/or email and/or fax## 

You will have six months from the date of this letter to elect your coverage option. If 

you fail to make an election before the time limit has expired, your default retirement 

coverage will be FERS. We can waive the time limit for making an election if you 

request such a waiver in writing. We would have to determine that you exercised due 

diligence, but could not make an election within the time limit because of 

circumstances beyond your control. These circumstances need to be well 

documented. In six months if you need to request a waiver please submit it in 

writing with any supporting documentation to the address provided above. 

Sincerely, 

5 

##Your name and contact information ## 

Name: ##Employee’s name## 

Enclosures: 

Retirement System Annuity Estimates 

Retirement System Comparison Sheets 

FERCCA Fact Sheet 

FERCCA Election Form 

Preparing for Your Counseling Session 

4 
BAL 10-104: Appendix VII: Erroneous FERS Coverage Employee Belongs in Social 

Security: Election Between FERS and Social Security Only 

B. Annuity Estimates and Thrift Savings Plan Estimates 

Annuity Estimates 

Prepare the annuity estimates as you normally would. It is important to include a service 

history in the estimate for the employee so that they can understand where the FERCCA 

error occurred. The employee’s Social Security estimate will not have a FERCCA actuarial 

reduction, however if the employee later acquires CSRS or CSRS Offset coverage they may 

be eligible for the FERCCA actuarial reduction. The employee’s FERS service may be 

eligible for the FERCCA actuarial reduction if they have a CSRS component. FERCCA 

actuarial reduction calculations may already be included in your estimates if your calculator 

provides them. Provide the employee with the completed comparison sheets or you can 

provide the actual estimates to the employee if you choose to or if they request it. 

Thrift Savings Plan (TSP) Estimates 

You will not have to provide any TSP estimates for this error type. The TSP estimates for 

FERS will need to reflect the employee’s current balance. The TSP for Social Security 

only will also only show the employee current balance. Any contributions the employee 

may have already made to the TSP and their earnings will remain in their account. 

However, the employee will not be allowed to continue to participate in TSP if he or she 

chooses Social Security only. 

5 
BAL 10-104: Appendix VII: Erroneous FERS Coverage Employee Belongs in Social 

Security: Election Between FERS and Social Security Only 

C. Retirement System Comparison Sheets 

What are the Retirement System Comparisons Sheets? 

The Retirement System Comparison Sheets have been designed so the employee can 

compare at a glance the pertinent parts of their annuity estimates rather then have them 

decipher the annuity estimates for themselves. If you do two annuity estimates for an 

error type, one showing deposits and redeposit paid, and one without the deposits and 

redeposits paid the employee would have a lot of annuity estimates to try and understand. 

Employees may have difficultly figuring out their annuity estimates since these are 

documents they do not normally have to interpret. This is why the Retirement System 

Comparison Sheets have been designed. You can use these sheets as part of the decision 

package and attach the annuity estimates so the employee can look at them if they need 

to. 

How do I complete the Retirement System Comparison Sheets? 

Use the annuity estimates you prepared and the instructions provided in this section to 

prepare the Retirement System Comparison Sheets. 

On the following pages are two Retirement System Comparison Sheets, one sheet 

compares the employee’s annuity amounts with deposits and/or redeposits not paid; the 

other one compares the employee’s annuity amounts with the deposits and/or redeposits 

paid. 

The chart below provides instructions on how to complete the comparison sheet with 

deposits and redeposits not paid: 

If employee elects Social 

Security 

If employee elects FERS 

Annuity Commencing 

Date 

Use the first date the employee is 

eligible for a Social Security 

benefit. If they are not eligible 

until 62 then write” not eligible 

until 62”. 

Use the first date that the 

employee is eligible for a 

retirement benefit 

Age at retirement The employee may not be 

eligible for Social Security 

benefits when they are first 

eligible for retirement benefits. 

Use the age the employee is 

first eligible for a retirement 

benefit. 

Annuity at Retirement 

with FERCCA Actuarial 

Reduction for unpaid 

Use the gross monthly annuity 

amount from the annuity estimate 

if there is one. 

Use the gross monthly annuity 

amount from the annuity 

estimate. 

6
 
BAL 10-104: Appendix VII: Erroneous FERS Coverage Employee Belongs in Social 

Security: Election Between FERS and Social Security Only 

deposits and/or redeposits 

Eligibility for Actuarial 

reduction 

How the annuity is 

reduced for the actuarial 

reduction 

Employee will not be eligible for 

the actuarial reduction for any 

deposits or redeposits. 

Not eligible for Actuarial 

reduction unless the employee 

has a CSRS component. Put 

“N/A” in this section of the 

Comparison sheet if the 

employee is straight FERS. 

For more information 

concerning when to apply the 

actuarial reduction see CFR 

839.1113 - 839.1119. 

If the employee has a CSRS 

component then: 

Gross monthly annuity amount 

with no reductions for deposits 

or redeposits 

- Actuarial reduction amount 

= Annuity at retirement with 

FERCCA actuarial reduction 

for unpaid deposits or 

redeposits 

Actuarial Reduction 

Amount 

N/A The calculator you use to 

provide annuity estimates may 

automatically reduce for the 

FERCCA actuarial reduction. 

If it does not, use the following 

formula: 

Deposit or redeposit amount 

with interest / (divide by) 

present value factor for retirees 

age at retirement = actuarial 

reduction amount (rounded up 

to the nearest dollar amount) 

Note: Present Value Factors 

can be obtained in Appendix 

A. 

Survivor Benefits Use figures from annuity 

estimates 

Use figures from annuity 

estimates 

7
 
 

 

 

 

BAL 10-104: Appendix VII: Erroneous FERS Coverage Employee Belongs in Social 

Security: Election Between FERS and Social Security Only 

Annuity Supplement N/A Use figures from annuity 

estimate 

TSP If employee elects Social 

Security the agency automatic 

and matching contributions need 

to be removed from the 

employee’s account. 

If the employee elects FERS 

the employee’s current TSP 

balance will not change. 

Benefits at age 62 

Projected annuity at Age 

62 

Project the Social Security 

benefit to age 62 or use that gross 

monthly annuity amount from the 

Social Security statement. 

Project the annuity to age 62 

and use that gross monthly 

annuity amount from the 

annuity estimate. 

Annuity Supplement N/A Annuity supplement stops at 

age 62. 

Offset Reduction usually 

begins at age 62 

Use figures from annuity 

estimate 

N/A 

SSA benefit at age 62 Provide an estimate or use the 

amount on the Social Security 

statement. 

Make sure the figures from 

annuity estimate reflect the 

Windfall Elimination 

Provision if it applies. The 

employee’s SSA statement will 

not reflect the Windfall 

Elimination Provision. See 

Section G “FERCCA 

counseling Fact sheet for 

Human Resource Specialists” 

for more information on Social 

Security. 

Retirement System Comparison Sheets Deposits and/or Redeposits paid 

The comparison sheet with deposits and/or redeposits paid is very similar to the 

comparison sheet deposits and/or redeposits not paid except there is no actuarial 

reduction section and you will now put the total deposit and/or redeposit owed. You can 

break up the deposits and/or redeposits to show pre and post 10-1-1982 deposits or pre 

and post 3-1-1991 redeposits if you prefer. 

8
 
 

 

BAL 10-104: Appendix VII: Erroneous FERS Coverage Employee Belongs in Social 

Security: Election Between FERS and Social Security Only 

Retirement System Comparison Sheet 

In FERS belongs in Social Security 

Choice between FERS and Social Security 

Deposits and/or Redeposits Not Paid 

[Name] 

Current Benefits without deposits and/or redeposits paid: 

If I Elect Social Security 

Annuity Commencing Date Month xx, xxxx 

Age at Retirement xx 

Annuity at Retirement with N/A 

FERCCA Actuarial 

Reduction for unpaid 

deposits and/or redeposits 

Actuarial Reduction amount N/A 

Survivor Benefit $xxx.00/month or N/A 

Annuity Supplement N/A 

TSP (##Provide TSP Balance with 

agency contributions

removed##) 

Benefits at Age 62: 

If I Elect Social Security 

Projected Annuity at Age 62 $x,xxx.00/month 

Annuity Supplement N/A 

SSA Benefit $x,xxx.00/month or N/A 

If I Elect FERS 

Month xx, xxxx 

xx 

$x,xxx.00/month 

$xxx.00/month or N/A 

$xxx.00/month or N/A 

$x,xxx.00/month or N/A 

(##Provide Current TSP Balance##)) 

If I Elect FERS 

$x,xxx.00/month 

N/A 

$x,xxx.00/month or N/A 

9
 
 

 

 

BAL 10-104: Appendix VII: Erroneous FERS Coverage Employee Belongs in Social 

Security: Election Between FERS and Social Security Only 

Retirement System Comparison Sheet 

In FERS belongs in Social Security 

Choice between FERS and Social Security 

Deposits and/or Redeposits Paid 

[Name] 

Current Benefits with deposits and/or redeposits paid: 

If I Elect Social Security 

Annuity Commencing Month xx, xxxx 

Date 

Deposit and/or 

Redeposit amounts 

Age at Retirement xx 

Annuity at Retirement $x,xxx.00/month 

Survivor Benefit $xxx.00/month or N/A 

Annuity Supplement N/A 

TSP (##Provide TSP Balance 

with agency contributions 

removed##) 

Benefits at Age 62: 

If I Elect Social Security 

Projected Annuity at $x,xxx.00/month 

Age 62 

Annuity Supplement N/A 

SSA Benefit $x,xxx.00/month or N/A 

If I Elect FERS 

Month xx, xxxx 

xx 

$x,xxx.00/month 

$xxx.00/month or N/A 

$x,xxx.00/month or N/A 

(##Provide Current TSP Balance##) 

If I Elect FERS 

$x,xxx.00/month 

N/A 

$x,xxx.00/month or N/A 

10
 
BAL 10-104: Appendix VII: Erroneous FERS Coverage Employee Belongs in Social 

Security: Election Between FERS and Social Security Only 

D. FERCCA Fact Sheets 

The following fact sheet compares the major points of consideration for an employee 

making a decision between Social Security and FERS. 

11 
BAL 10-104: Appendix VII: Erroneous FERS Coverage Employee Belongs in Social 

Security: Election Between FERS and Social Security Only 

FERCCA FACT SHEET 

Social Security FERS 

Annuity Social Security provides a single monthly FERS provides a basic retirement benefit 

and a Social Security benefit, disability and 

survivor benefits. The basic benefit for a 

regular voluntary retirement is 1% of the 

high-three average salary times the total 

years of creditable Federal service. 

Depending on the type of retirement you are 

eligible for you may receive an annuity 

supplement until you reach age 62. The 

supplement approximates the Social 

Security benefits you earned while working 

for the Government. 

Benefits benefit if you retire, become disabled or die. It 

is not intended to be the only source of 

retirement income and thus, as a general rule, 

pays lower monthly benefits to employees and 

survivors then Social Security retirement. 

Usually you can qualify for Social Security 

benefits if you have at least 10 years of paying 

Social Security taxes and have therefore 

acquired the needed 40 credits. 

Full retirement age is based on your year of 

birth, for example if you were born in 1960 or 

later your full retirement age is 67, if you were 

born in 1937 or earlier your full retirement age 

is 65. If you were born some where in between 

1937 and 1960 then your full retirement varies 

depending on your year of birth. Everyone can 

retire at age 62 but their Social Security 

benefits will be permanently reduced based on 

the number of months they receive checks 

before reaching their full retirement age. 

Each year, Social Security annuities are 

adjusted by cost of living increases that match 

the Consumer Price Index (CPI). 

The FERS Minimum Retirement Age (MRA) 

is based on your year of birth. 

If you were born: Your MRA is: 

Before 1948 55 

1948 55 and 2 months 

1949 55 and 4 months 

1950 55 and 6 months 

1951 55 and 8 months 

1952 55 and 10 months 

1953 to 1964 56 

1965 56 and 2 months 

1966 56 and 4 months 

1967 56 and 6 months 

1968 56 and 8 months 

1969 56 and 10 months 

1970 and after 57 

Annuities are adjusted by a cost of living 

adjustment (COLA) annually, based on the 

Consumer Price Index usually at age 62. 

Increase in CPI Annual COLA 

Percentage 

Up to 2% Same as CPI increase 

2%to 3% 2% 

3% or more CPI increase minus 1% 

12
BAL 10-104: Appendix VII: Erroneous FERS Coverage Employee Belongs in Social 

Security: Election Between FERS and Social Security Only 

Social Security FERS 

Thrift If you elect Social Security coverage, any If you elect to retain FERS coverage, your 

Savings 

Plan 

(TSP) 

contributions that you may have already made to the 

TSP and their earnings will remain in your account. 

You will not be allowed to continue to participate. 

Also, all Government contributions (Agency 

Automatic 1% and matching contributions), and 

their earnings, will be removed from your TSP 

account. 

opportunity to participate in the TSP will not 

change. 

Social You will have Social Security coverage You will have Social Security coverage 

Security regardless of your election and the normal 

rules concerning the Windfall Elimination 

provision may apply to your Social Security 

benefit. 

regardless of your election and the normal 

rules concerning the Windfall Elimination 

provision may apply to your Social Security 

benefit. 

Credit for FERCCA offers a variety of options for crediting service for which a deposit or redeposit has 

civilian or been paid, partially paid or remains unpaid. Options for individual cases depend on a number 

military of factors. Your comparison computations will include your options and your Human Resource 

deposit office is prepared to discuss these with you. service 

13
 
 

BAL 10-104: Appendix VII: Erroneous FERS Coverage Employee Belongs in Social 

Security: Election Between FERS and Social Security Only 

E. FERCCA Election Form 

The FERCCA election form must be used for FERCCA elections. All FERCCA elections 

can be made using form RI 10-125. 

Please fill in the “Retirement Plan Name” that the employee can choose from in section 5 of 

RI 10-125. 

14 
BAL 10-104: Appendix VII: Erroneous FERS Coverage Employee Belongs in Social 

Security: Election Between FERS and Social Security Only 

F. Preparing for your Counseling Session (for employees) 

On the following page is an information sheet that can be included in the decision 

package so the employee can prepare for his or her FERCCA counseling session. This 

information sheet was created to assist the employee in thinking about what to ask the 

Human Resource Specialist during their initial FERCCA counseling session. The 

counseling session is explained in the FERCCA cover letter. 

15
 

BAL 10-104: Appendix VII: Erroneous FERS Coverage Employee Belongs in Social 

Security: Election Between FERS and Social Security Only 

F. Preparing for your Counseling Session 

For employee in FERS who should be Social Security 

Before the counselor calls, you should carefully read all the material in the package and 

check to ensure all of the information is correct. 

 Review your name, address, social security number, etc. for accuracy. 

 Review the service history in your annuity estimate for accuracy. 

 Review the information about any civilian or military deposits. 

 If any data is incorrect, please inform your human resource specialist 

Consider the following to prepare for your FERCCA counseling session: 

1. Do I plan to retire from the Federal Government? FERS allows more 

flexibility for those who move in and out of Federal service. 

2. When do I plan to retire? Do you plan to acquire Federal retirement coverage 

in the future? 

3. How much can I contribute to the Thrift Savings Plan (TSP)? Your ability to 

contribute to TSP is a major factor in deciding which retirement plan is best for you. 

FERS has agency contributions and Social Security does not. 

4. If I have not already made deposits, do I plan to make deposits for military 

and/or civilian temporary service? Payment of deposits and redeposits may determine 

if that service can be used in your annuity calculation or whether your annuity 

computation is reduced to account for the non-payment. 

16 
BAL 10-104: Appendix VII: Erroneous FERS Coverage Employee Belongs in Social 

Security: Election Between FERS and Social Security Only 

G. FERCCA Counseling Fact Sheets for agency Human Resource Specialists 

Counseling someone on a FERCCA decision is very similar to ordinary retirement 

counseling. There are three areas where FERCCA counseling is very different from the 

type of retirement counseling you normally do. The areas where there are differences 

are: 

1.	 FERCCA actuarial reduction on military and civilian deposits and civilian 

redeposits 

2.	 TSP considerations 

3.	 Making the election or understanding the default election 

Otherwise you are comparing the two systems the employee is making a decision 

between. You need to emphasize the difference between the systems such as the age 

requirements for retirement, how cost of living adjustments are different between the two 

systems and other major differences. 

17 
 

BAL 10-104: Appendix VII: Erroneous FERS Coverage Employee Belongs in Social 

Security: Election Between FERS and Social Security Only 

Social Security Counseling Points 

Annuity Review the comparison sheet or annuity estimates with the 

employee. You can either ask the employee to bring in their 

annual Social Security statement or you can use the retirement 

calculator you have available to you to make Social Security 

estimates. Most retirement calculators require the Social Security 

earnings to do a Social Security estimate. The Social Security 

earnings can be obtained from the employee’s Social Security 

statement. In most cases you will need the employee to provide 

you with a copy of their Social Security statement in order to 

provide them with any estimates on their Social Security benefits. 

Employee’s who are in FERS but belong in Social Security 

sometimes have more to consider then just deciding between 

Social Security and FERS. Generally what they are considering is 

a choice between FERS and Social Security during the beginning 

of their error but if they subsequently receive an appointment that 

is not excluded by CSRS they may really be choosing between 

FERS and CSRS Offset. Because if they chose FERS for their 

initial error then they will be in FERS regardless of what 

appointments they have received or will receive after they chose 

FERS but if they chose Social Security only and qualify for CSRS 

Offset they may be able to be CSRS Offset. If the employee is in 

this situation then you need to provide the employee information 

in this BAL for employee’s who is in FERS and should be in 

CSRS Offset so they can think about that decision as well as their 

choice between FERS and Social Security. 

Age and service The employee needs to know FERS and Social Security have 

requirements different retirement ages. Most people are eligible for a reduced 

Social Security benefit at age 62 and a full social security benefit 

at their full retirement age. The Social Security full retirement age 

is based on the employee’s date of birth. Check the employee’s 

annual Social Security statement or the Social Security website 

(www.ssa.gov) for more information on Social Security benefits. 

COLAs Each year Social Security Annuities are adjusted for cost of living 

increases. See the Social Security website for more information. 

Survivor Benefits There are survivor benefits under Social Security but the rules are 

very different from FERS. A living spouse may be entitled to a 

18
 
 

BAL 10-104: Appendix VII: Erroneous FERS Coverage Employee Belongs in Social 

Security: Election Between FERS and Social Security Only 

spousal benefit under Social Security but if a spouse works and 

earns their own Social Security they may only receive their own 

Social Security benefit and never be entitled to a spousal or widow 

or widower benefit. The employee needs to understand their own 

Social Security statement as well as their spouses in order to make 

an informed decision. 

TSP If employee is currently in FERS and elects Social Security 

coverage, any contributions that you may have already made to the 

TSP and their earnings will remain in their account. However, 

you will not be allowed to continue to participate and their agency 

and matching contributions will be removed from their account. 

SSA Employees who do not receive an annuity under FERS are not 

impacted by the Windfall Elimination Provision (WEP). 

Election All employees who are in FERS and should be in Social Security 

must make a choice between FERS and Social Security. They 

must make this choice using the FERCCA election form RI10-

125. Other election forms, such as a FERS election form should 

not used. 

Default If the employee does not make a FERCCA election with in 6 

months of your providing them with the FERCCA election 

package the employee must be placed in their FERRCA default 

election which is FERS. 

Correction Process BAL 05-103 “Retirement Coverage Error Correction: Correction 

of Errors that Provide an Election” discusses what actions the 

agencies must make to correct an error. You will need to use this 

BAL to answer any questions the employee may have on how his 

error will be corrected. The correction process should not impact 

the employee’s decision to make a retirement coverage choice. 

None of the corrections will negatively impact the employee. 

19
 
 

BAL 10-104: Appendix VII: Erroneous FERS Coverage Employee Belongs in Social 

Security: Election Between FERS and Social Security Only 

FERS Counseling points 

Annuity Review the comparison sheet or annuity estimates with the 

employee 

Be sure to include information on the FERS annuity supplement. 

Make sure the employee understands when the supplement will 

start. The start date depends on which type of retirement they 

chose early optional, regular optional etc. There is no FERS 

annuity supplement for disability or Minimum Retirement Age 

(MRA) +10 retirements. All FERS annuity supplements stop 

when the employee turns age 62 regardless of whether the 

employee chooses to receive Social Security at 62 or not. The 

FERS annuity supplement is subject to an earnings test. There is 

more information on the FERS annuity supplement in Chapter 51 

of the CSRS and FERS Handbook for Personnel and Payroll 

Offices. 

Employee’s who are in FERS but belong in Social Security 

sometimes have more to consider then just deciding between 

Social Security and FERS. Generally what they are considering is 

a choice between FERS and Social Security during the beginning 

of their error but if they subsequently receive an appointment that 

is not excluded by CSRS they may really be choosing between 

FERS and CSRS Offset. Because if they chose FERS for their 

initial error then they will be in FERS regardless of what 

appointments they have received or will receive after they chose 

FERS but if they chose Social Security only and qualify for CSRS 

Offset they may be able to be CSRS Offset. If the employee is in 

this situation then you need to provide the employee information 

in this BAL for employee’s who is in FERS and should be in 

CSRS Offset so they can think about that decision as well as their 

choice between FERS and Social Security. 

Age and service The employee needs to understand the retirement age for a 

requirements voluntary retirement is different under FERS then Social Security. 

If the employee is interested in a different type of retirement make 

sure they understand the eligibility requirements for that 

retirement i.e. disability, law enforcement, etc. The other major 

difference between FERS and Social Security is the MRA +10 

retirement. This type of retirement is not available under Social 

Security. 

20
 
BAL 10-104: Appendix VII: Erroneous FERS Coverage Employee Belongs in Social 

Security: Election Between FERS and Social Security Only 

 Eligibility requirements are explained in Chapters 40 through 46 

of the CSRS and FERS Handbook for Personnel and Payroll 

Offices. 

Unused Sick Leave 

Credit 

Make sure the employee knows that 50% of the unused sick leave 

balance can be credited under FERS effective 10-28-09 and 100% 

of the sick leave will credited in the computation effective 1-1-14. 

Unused sick leave is explained in Chapter 20 of the CSRS and 

FERS Handbook for Personnel and Payroll Offices. 

COLAs 

The employee needs to understand that they will not receive a full 

COLA under FERS and in most cases the COLA will not start 

until the employee turns 62. COLA’s are explained in Chapter 2 

of the CSRS and FERS Handbook for Personnel and Payroll 

Offices. 

Survivor Benefits The employee should know that they can only elect no survivor 

election, or, a survivor benefits equal to 25% or 50% of their self 

only rate. No other survivor election options are available to the 

employee for survivor elections. Survivor elections are covered in 

Chapter 2 of the CSRS and FERS Handbook for Personnel and 

Payroll Offices. 

Military Deposit If the employee elects FERS they will have to pay their post 1956 

military deposit to receive credit for that service. There is no 

FERCCA actuarial reduction for employees who elect FERS. The 

rules for military service deposits are explained in Chapter 22 and 

23 of the CSRS and FERS Handbook for Personnel and Payroll 

Offices. 

Deposits and Redeposits If the employee elects FERS they will not be eligible for the 

FERCCA actuarial reduction unless they have a CSRS component. 

The rules for civilian deposits and redeposits are explained in 

Chapter 21 of the CSRS and FERS Handbook for Personnel and 

Payroll Offices. 

TSP Since the employee is currently in FERS if they elect FERS their 

TSP balance will not change. 

SSA Employees who do not have a CSRS component in their FERS 

annuity are not impacted by the Windfall Elimination Provision 

(WEP). 

Employees who receive Social Security and FERS annuities with a 

CSRS component may be impacted by the WEP. This means that 

their Social Security benefits may be reduced. However, years of 

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BAL 10-104: Appendix VII: Erroneous FERS Coverage Employee Belongs in Social 

Security: Election Between FERS and Social Security Only 

substantial earnings under Social Security reduce the impact of 

WEP. If the employee have at least 30 years of substantial Social 

Security earnings the WEP is eliminated. The employee is 

covered by Social Security the smaller the reduction from the 

WEP is. The Social Security Administration has a factsheet on the 

WEP available on their website in their publications section at 

www.SSA.gov. The publication is called “Windfall Elimination 

Provision” and the publication number is 05-10045. 

The Government Pension Offset (GPO) is a Social Security 

reduction that can affect recipients of Social Security widow or 

widowers benefits. FERS retirees are not impacted by the GPO. 

For more information about the GPO see the Social Security 

publication “Government Pension Offset” and the publication 

number is 05-10007, which is available on the Social Security 

website, www.SSA.gov. 

Election All employees who are in FERS and should be in Social Security 

must make a choice between FERS and Social Security. They 

must make this choice using the FERCCA election form RI10-

125. Other election forms, such as a FERS election form should 

not be used. 

Default If the employee does not make a FERCCA election with in 6 

months of your providing them with the FERCCA election 

package the employee must be placed in their FERRCA default 

election which is FERS. 

Correction Process BAL 05-103 “Retirement Coverage Error Correction: Correction 

of Errors that Provide an Election” discusses what actions the 

agencies must make to correct an error. You will need to use this 

BAL to answer any questions the employee may have on how his 

error will be corrected. The correction process should not impact 

the employee’s decision to make a retirement coverage choice. 

None of the corrections will negatively impact the employee. 

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