BAL 10-104: Appendix V: Erroneous FERS Coverage Employee Belongs in CSRS: 

Election Between FERS and CSRS 

V. ERRONEOUS FERS COVERAGE EMPLOYEE BELONGS IN 

CSRS: ELECTION BETWEEN FERS AND CSRS 

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 

that provides 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 V: Erroneous FERS Coverage Employee Belongs in CSRS: 

Election Between FERS and CSRS 

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 there 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: Enter the work phone and email you have for the employee. If you do not 

have this information simply 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, 

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 V: Erroneous FERS Coverage Employee Belongs in CSRS: 

Election Between FERS and CSRS 

##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 the 

Civil Service Retirement System (CSRS). As a result of this error, you are being 

given an opportunity to choose between CSRS or FERS 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 

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

3
 

 

 

BAL 10-104: Appendix V: Erroneous FERS Coverage Employee Belongs in CSRS: 

Election Between FERS and CSRS 

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 V: Erroneous FERS Coverage Employee Belongs in CSRS: 

Election Between FERS and CSRS 

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. If the person has deposits and/or redeposits that fall under the FERCCA 

actuarial reduction rules then you will need to follow the instructions in Section C 

Comparison Sheets. 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 chose to or 

if they request it. 

Thrift Savings Plan Estimates 

The TSP estimates for CSRS will need to reflect the employees balance if the agency 

contributions both automatic and matching and their earnings were removed from the 

account. The FERS TSP balance remains the same as the employee’s current TSP balance. 

5 
BAL 10-104: Appendix V: Erroneous FERS Coverage Employee Belongs in CSRS: 

Election Between FERS and CSRS 

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 then 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 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/or redeposits not paid: 

If employee elects CSRS If employee elects FERS 

Annuity Commencing 

Date 

Use the first date the employee is 

eligible for a retirement benefit. 

Use the first date the employee 

is eligible for a retirement 

benefit 

Age at retirement Use the age that the employee is 

first eligible for a benefit. 

Use the age that the employee 

is first eligible for a benefit. 

Annuity at Retirement 

with FERCCA Actuarial 

Reduction for unpaid 

deposits and/or redeposits 

Eligibility for Actuarial 

reduction 

Use the gross monthly annuity 

amount from the annuity 

estimate. 

Employee will be subject to 

actuarial reduction for any 

deposits or redeposits. For more 

information concerning when to 

Use the gross monthly annuity 

amount from the annuity 

estimate. 

Not eligible for Actuarial 

reduction unless the employee 

has a CSRS component. Put 

“N/A” in this section of the 

6
 
 

BAL 10-104: Appendix V: Erroneous FERS Coverage Employee Belongs in CSRS: 

Election Between FERS and CSRS 

apply the actuarial reduction see 

CFR 839.1113 - 839.1119 

Comparison sheet if the 

employee is straight FERS. 

How the annuity is 

reduced for the actuarial 

reduction 

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 

If the employee has a CSRS 

component then follow the 

instructions for the actuarial 

reduction in the CSRS column 

of this comparison sheet. 

Actuarial Reduction 

Amount 

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. 

Follow the instructions in the 

CSRS column if the employee 

has a CSRS component. 

Survivor Benefits Use figures from annuity 

estimates 

Use figures from annuity 

estimates 

Annuity Supplement N/A Use figures from annuity 

estimate 

TSP If employee elects CSRS 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 annuity to age 62 and 

use that gross monthly annuity 

amount from the annuity 

estimate. 

Project the annuity to age 62 

and use that gross monthly 

annuity amount from the 

annuity estimate. 

7
 
BAL 10-104: Appendix V: Erroneous FERS Coverage Employee Belongs in CSRS: 

Election Between FERS and CSRS 

Annuity Supplement N/A Annuity supplement stops at 

age 62. 

SSA benefit at age 62 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. 

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 with 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 would like. 

8
 
 

 

BAL 10-104: Appendix V: Erroneous FERS Coverage Employee Belongs in CSRS: 

Election Between FERS and CSRS 

Retirement System Comparison Sheet 

In FERS belongs in CSRS 

Choice between CSRS and FERS 

Deposits and/or Redeposits Not Paid 

[Name] 

Current Benefits without deposits and/or redeposits paid: 

If I Elect CSRS 

Annuity Commencing Date Month xx, xxxx 

Age at Retirement xx 

Annuity at Retirement with $x,xxx.00/month 

FERCCA Actuarial 

Reduction for unpaid 

deposits and/or redeposits 

Actuarial Reduction amount $xxx.00/month or 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 CSRS 

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 

N/A 

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

9
 
 

 

 

BAL 10-104: Appendix V: Erroneous FERS Coverage Employee Belongs in CSRS: 

Election Between FERS and CSRS 

Retirement System Comparison Sheet 

In FERS belongs in CSRS 

Choice between CSRS and FERS 

Deposits and/or Redeposits Paid 

[Name] 

Current Benefits with deposits and/or redeposits paid: 

If I Elect CSRS 

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 CSRS Offset 

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 

N/A 

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

10
 
BAL 10-104: Appendix V: Erroneous FERS Coverage Employee Belongs in CSRS: 

Election Between FERS and CSRS 

D. FERCCA Fact Sheets 

The following fact sheet you should provide to the employee as part of their decision 

package. It compares the major points of consideration for someone who is making a 

decision between CSRS and FERS. 

11 
 

BAL 10-104: Appendix V: Erroneous FERS Coverage Employee Belongs in CSRS: 

Election Between FERS and CSRS 

FERCCA FACT SHEET 

CSRS FERS 

Annuity The formula for basic benefit for a regular FERS provides a basic retirement benefit 

Benefits voluntary retirement under CSRS is. 

1.5% of the high 3 average pay multiplied by 

service up to 5 years; plus, 

1.75% percent of high-3 average pay 

multiplied by the number of years of service 

between 5 and 10 years; plus, 

2 percent of the high-3 average pay multiplied 

by all remaining service over 10 years 

The Minimum Retirement Age (MRA) under 

CSRS for a regular voluntary retirement is 55. 

Your CSRS annuity and your Social Security 

payments are generally adjusted by cost of 

living increases. 

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. 

The FERS Minimum Retirement Age (MRA) 

is based on your age. 

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 V: Erroneous FERS Coverage Employee Belongs in CSRS: 

Election Between FERS and CSRS 

CSRS FERS 

Survivor Under CSRS you can elect a spousal benefit Under FERS you can elect a spousal benefit 

Elections up to 55% of the amount of your annuity before 

the survivor reduction is applied. You can also 

elect any percentage or dollar amount lower 

then 55%. Of course any legal court order 

from a former spouse will be honored by OPM. 

of either 50% or 25% of the amount of your 

annuity before the survivor reduction is 

applied. No other amounts can be elected. 

Of course any legal court order from a former 

spouse will be honored by OPM. 

Thrift If you elect to switch to CSRS, only your If you elect to retain FERS coverage, your 

Savings contributions and earnings remain in your TSP opportunity to participate in the TSP will not 

Plan account. All Government contributions change. 

(TSP) (Agency Automatic 1% and matching 

contributions), and their earnings, will be 

removed from your TSP account. 

Social If you elect CSRS coverage you will not be You will have Social Security coverage 

Security covered by Social Security. 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 V: Erroneous FERS Coverage Employee Belongs in CSRS: 

Election Between FERS and CSRS 

E. FERCCA Election Form 

The FERCCA election form should be part of every FERCCA decision package. No other 

election form should be used for FERCCA elections. All FERCCA elections can be made 

using form R I10-125. 

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 V: Erroneous FERS Coverage Employee Belongs in CSRS: 

Election Between FERS and CSRS 

F. Preparing for your Counseling Session (for employees) 

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

package for the employee so the employee can prepare for their FERCCA counseling 

session. This information sheet was created to assist the employee in thinking about what 

to ask their Human Resource Specialist during their initial FERCCA counseling session. 

The counseling session is explained in the FERCCA cover letter. 

15
 

BAL 10-104: Appendix V: Erroneous FERS Coverage Employee Belongs in CSRS: 

Election Between FERS and CSRS 

Preparing for Your Counseling Session 

For employee in FERS who should be CSRS 

Before the counselor calls, we ask that you 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 for more 

flexibility for those who move in and out of Federal service. However, if you plan to stay 

with the Federal Government for your entire career, CSRS will most likely provide you 

with a larger annuity benefit. 

2. When do I plan to retire? Both retirement systems have different types of 

retirements, some early retirements have an annuity reduction. 

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 CSRS 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. 

5. Am I aware of the benefits for my spouse and/or survivors? Do you expect to 

receive Social Security based on your spouse’s earnings? If so you may be impacted by 

the Government Pension Offset. 

16 
BAL 10-104: Appendix V: Erroneous FERS Coverage Employee Belongs in CSRS: 

Election Between FERS and CSRS 

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 V: Erroneous FERS Coverage Employee Belongs in CSRS: 

Election Between FERS and CSRS 

CSRS Counseling Points 

Annuity Review the comparison sheet or annuity estimates with the 

employee 

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

requirements voluntary retirement is different under CSRS than FERS. 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. Eligibility requirements are 

explained in Chapters 40 through 46 of the CSRS and FERS 

Handbook for Personnel and Payroll Offices. 

Unused Sick Leave Make sure the employee knows that unused sick leave can be 

Credit credited under CSRS. 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 they will receive a full COLA 

as soon as they retire under CSRS. COLA’s are explained in 

Chapter 2 of the CSRS and FERS Handbook for Personnel and 

Payroll Offices. 

Survivor Benefits The employee will want to know they can elect a maximum of 

55% or any other percentage or dollar amount below 55%. 

Survivor elections are covered in Chapter 2 of the CSRS and 

FERS Handbook for Personnel and Payroll Offices. 

Military Deposit In some cases FERCCA allows for an actuarial reduction on the 

gross annuity instead of the employee paying a post 1956 military 

deposit. 

The actuarial reduction is limited to deposits for service that was 

once under FERS rules and now falls under CSRS rules, when the 

employee elects CSRS. 

Deposits and Redeposits Many redeposits can be subject to actuarial reduction under the 

normal CSRS redeposit rules that are explained in Chapter 21 of 

the CSRS and FERS Handbook for Personnel and Payroll Offices. 

The FERCCA actuarial reduction is calculated in the same way 

that a CSRS redeposit actuarial reduction is calculated. 

In this case FERCCA allows for an actuarial reduction on the 

gross annuity instead of the employee paying a civilian deposit or 

redeposit. 

18
 
 

BAL 10-104: Appendix V: Erroneous FERS Coverage Employee Belongs in CSRS: 

Election Between FERS and CSRS 

Thrift Savings Plan If the employee is in FERS and elects CSRS, all of the agency 

(TSP) contributions, both automatic and matching, as well as the 

earnings on those contributions will be removed from the 

employee account. 

Social Security If the employee chooses CSRS their Social Security benefits may 

Administration (SSA) still be impacted by the WEP, but years of substantial earnings 

under Social Security reduce the impact of the WEP. If they have 

at least 30 years of substantial social security earnings the WEP is 

eliminated. The longer the employee is covered by Social 

Security as an employee the smaller the reduction from the WEP. 

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. For more information about the GPO see the 

Social Security publication “Government Pension Offset”. 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 CSRS must 

make a choice between CSRS and FERS. 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 within 6 

months of your providing them with the FERCCA election 

package then 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 V: Erroneous FERS Coverage Employee Belongs in CSRS: 

Election Between FERS and CSRS 

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. 

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

requirements voluntary retirement is different under FERS than CSRS. 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 CSRS is the MRA +10 retirements. This type 

of retirement is not available under CSRS. 

 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 will want to know that they can only elect no 

survivor election, or, survivor benefit equal to 25% or 50% of their 

20
 
BAL 10-104: Appendix V: Erroneous FERS Coverage Employee Belongs in CSRS: 

Election Between FERS and CSRS 

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

the employee: they can not choose a dollar amount like they can 

under CSRS. 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 

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 CSRS must 

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BAL 10-104: Appendix V: Erroneous FERS Coverage Employee Belongs in CSRS: 

Election Between FERS and CSRS 

make a choice between CSRS and FERS. They must make this 

choice using the FERCCA election form RI 10-125. 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 then 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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