United States 

Office of 

Personnel Management 

The Federal Government’s Human Resources Agency

Benefits Administration Letter 

Number: 08-304 Date: August, 2008 

Subject: Fiscal Year 2008 Factors for Calculating Imputed Costs

This Letter provides the fiscal year (FY) 2008 cost factors for the Federal civilian benefit 

programs. Agencies will use these factors to calculate their imputed costs relating to the 

“pensions” (the Civil Service Retirement and Federal Employees’ Retirement Systems), the 

Federal Employees Health Benefits Program and the Federal Employees Group Life Insurance 

Program. 

Benefits Administration Letter 03-309, dated September 15, 2003, provides detailed 

instructions for the computation and accounting for these imputed costs; see 

http://www.opm.gov/asd/htm/bal03.asp. 

COST FACTORS 

Pensions. For most Civil Service Retirement System (CSRS) covered employees, the FY 2008 

cost factor will be 25.2 percent of basic pay, a 0.2 percent increase from FY 2007. The FY 2008 

cost factors for all categories of CSRS coverage are attached and reflect increases from FY 2007. 

For most Federal Employees Retirement System (FERS) covered employees, the FY 2008 cost 

factor will be 12.0 percent, the same as for FY 2007. The cost factors for all categories of FERS 

coverage are attached and reflect increases from FY 2007. 

Federal Employees Health Benefits Program. For FY 2008, the cost factor is $5,220 per enrolled 

employee: 

Quarter Factor 

1st $1,272

2nd 1,294

3rd 1,316

4th 1,338

FY 2008 $5,220

Federal Employees Group Life Insurance Program. The FY 2008 cost factor for the Federal 
Employees Group Life Insurance Program (FEGLI) is 0.02 percent of basic pay, the same as in 

previous years. 

ASSURANCE FOR AUDITORS 

The cost factors provided in this letter are being issued before an opinion by OPM’s independent 

public accounting firm can be received. Nonetheless, the FY 2007 cost factors for “regular” 

CSRS and FERS coverage, as well as those for the FEHB and FEGLI Programs were disclosed in 

the footnotes accompanying OPM’s consolidated FY 2007 financial statements; these statements 

received an unqualified opinion. The policies, procedures and controls pertaining to the 

calculations of the cost factors did not change from FY 2007. In addition, the “regular” FERS 

cost factor and the Life Insurance Program cost factors were unchanged from FY 2007. 

Consequently, auditors of FY 2008 financial statements can rely upon the disclosures in OPM’s 

FY 2007 financial statements and the related audit opinion. 

INQUIRIES 

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

finance@opm.gov, so we have a record of our communication. You may also phone us on (202) 

606-0606. 

 

 

 Keith Willingham 

 Associate Chief Financial Officer 

 Center for Financial Services 

 

Attachment
Attachment 

2008 COST FACTORS FOR THE CSRS AND FERS 

CSRS 

CATEGORY COST FACTOR (%) 

Regular 25.2 

Regular Offset 19.5 

Law Enforcement Officers 42.5 

Law Enforcement Officers - Offset 38.0 

Air Traffic Controllers 38.9 

Air Traffic Controllers – Offset 34.6 

Members of Congress 29.4 

Members of Congress – Offset 27.1 

Congressional Employees 34.9 

Congressional Employees – Offset 29.9

FERS 

CATEGORY COST FACTOR (%) 

Regular 12.0 

Law Enforcement Officers 26.2 

Air Traffic Controllers 25.8 

Members of Congress 18.6 

Congressional Employees 17.1 

Military Reserve Technicians 14.8