United States 

Office of 

Personnel Management 

The Federal Government’s Human Resources Agency

Benefits Administration Letter

 

Number: 12-304 Date: February 2012

Subject: Instructions Regarding New Requirement for Agencies’ Payments to the CSRDF 

in FY 2012 for VSIPs and VERAs Processing Costs 

PURPOSE 

In January 2012, the Office of Personnel Management issued BAL 12-302 - New Requirement 

for Agencies’ Payments to the Civil Service Retirement and Disability Fund (CSRDF) in FY 2012 

for Voluntary Separation Incentive Payment (VSIP), Voluntary Early Retirement Authority 

(VERA) Processing Costs per P.L. 112-74, the “Consolidated Appropriations Act, 2012,”

notifying agencies of this new requirement. 

The purpose of this letter is to provide instructions on the method your agency will remit payment 

in FY 2012 to OPM for deposit into the Civil Service Retirement and Disability Fund for VSIPs 

and VERAs processing costs.

BACKGROUND 

Section 741 of Division C of the “Consolidated Appropriations Act, 2012,” Public Law 112-74,

approved December 23, 2011, includes the following: 

SEC. 741. During fiscal year 2012, for each employee who 

 (1) retires under section 8336(d)(2) or 8414(b)(l)(B) of title 5, United States Code, 

or 

 (2) retires under any other provision of sub-chapter III of chapter 83 or chapter 84 of 

such title 5 and receives a payment as an incentive to separate, the separating agency shall 

remit to the Civil Service Retirement and Disability Fund an amount equal to the Office of 

Personnel Management’s average unit cost of processing a retirement claim for the 

preceding fiscal year. Such amounts shall be available until expended to the Office of 

Personnel Management and shall be deemed to be an administrative expense under section 

8348(a)(l)(B) of title 5, United States Code. 
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INSTRUCTIONS FOR AGENCY REMITTANCES IN FY 2012 

FOR VSIPs and VERAs PROCESSING COSTS

For FY 2012 (retroactively to October 1, 2011), P.L. 112-74 requires agencies to remit to the 

Office of Personnel Management (OPM) for deposit into the CSRDF an amount equal to the 

FY 2011 average unit cost of processing annuity cases ($107.62) if an employee retires under the 

following conditions:

1) a CSRS or FERS Voluntary Early Retirement Authority (VERA), including voluntary 

early retirements authorized under 5 U.S.C. § 9902, or 

2) any other CSRS or FERS provision and receives a Voluntary Separation Incentive 

Payment (VSIP), or 

3) any other form of monetary separation incentive (i.e., any form of buyout).

Please Note: We prefer to have individual agencies submit the remittances rather than payroll 

providers to facilitate the reconciliation of payments. If payroll providers submit payments, it is 

important that they indicate the ALC(s) and Payroll Office for which agency(ies) they are 

submitting. 

Remittances via IPAC

Agencies having access to Treasury’s Intra-governmental Payment and Collection (IPAC) 

Systems must remit $107.62 per VERA and VSIP case to OPM using the following IPAC 

parameters:

Agency Location Code (ALC): 24000002

Receiver’s Treasury Account Symbol (TAS): AID: 024 Main: 8135 A: X Sub: 000

Receiver’s Business Event Type Code (BETC): COLL

Receiver’s Standard General Ledger: Debit 1010 and Credit 5400

Description: VERA/VSIP and total amounts applicable to CSRS and FERS respectively.

Point of Contact: Include the name and email address of the person who is familiar with paying 

the VERA/VSIP costs.

In addition, a scanned copy of the remittance, along with the appropriate Remittance Report, (See 

Attachments 1A, 1B and 1C) must be sent to the email addresses identified in the “Remittance 

Report” section of this BAL.

Remittances via Electronic Funds Transfer (EFT)

Agencies that do not have access to IPAC should remit via EFT for the amount due, noting the 

purpose, e.g., VERA/VSIP. A scanned copy of the remittance, along with the appropriate 

Remittance Report, must be sent to the email addresses identified in the “Remittance Report” 
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section of this BAL. The EFT information is as follows:

Office of Personnel Management

Account Number: 5300445258

ABA Number: 054000030

Tax ID Number: 52-6083699

Remittances via Check

Agencies that do not have access to IPAC or EFT should remit a check for the amount due, noting 

the purpose, e.g.,VERA/VSIP. The check, along with the appropriate Remittance Report, must 

be sent to:

Office of Personnel Management

Attention: FY 2012 VERAs/VSIPs

Post Office Box 582

Washington, DC 20044

To validate proof of payment, please submit a scanned copy of the remittance, along with the 

appropriate Remittance Report, to the email addresses identified in the “Remittance Report” 

section of this BAL.

Payment Timing

Payments, regardless of the method, should be sent no later than 45 calendar days after the end of 

the month in which the employee retires. Payments for retirements between October 1, 2011, and 

January 31, 2012, are due NLT March 15, 2012. Subsequent payments should be submitted 

monthly. For example, payments for retirements between February 1 and February 29, 2012, 

should be sent by April 16, 2012.

Individual Retirement Records

Agencies must annotate the Individual Retirement Records (SF 2806 and SF 3100) in the remarks 

column under the “Service History” section with the legal authority for each VERA or VSIP when 

submitting retirement paperwork.

Remittance Report

All agencies must submit certified Remittance Reports using the Enclosure, which shows the 

payroll office number(s) and Agency Location Code (ALC) for which the remittance is being sent. 

Please note – the 3-page Enclosure has separate Remittance Report forms for FY 2012 VERAs, 

FY 2012 VSIPs, and FY 2012 VERAs with VSIPs. The totals on each Remittance Report must 

agree with the amount of the IPAC, EFT, or check remittance. OPM will use these reports for 

validation purposes to ensure payments have been remitted correctly.
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All reports, along with a copy of the remittance, must be emailed to OPM within five (5) business 

days from the date of the IPAC, EFT, or check remittance using the following email addresses: 

Priscilla.Holland@opm.gov, with a cc: to FinancialBALs@opm.gov. 

Inquiries 

If you have any questions about this new requirement, please call us on (202) 606-0606 or send an 

email to FinancialBals@opm.gov. 

 Sincerely, 

 

 Emily Dean 

 Associate Chief Financial Officer 

 Financial Services 

Attachment (1A,1B, & 1C)