1

United States 

Office of 

Personnel Management 

The Federal Government’s Human Resources Agency

Benefits Administration Letter

Number 14 - 107 Date: August 14, 2014

Subject: Federal Employees Retirement System-Further Revised Annuity 

Employees (FRAE) Coverage Determination Guidance 

Purpose: The purpose of this Benefits Administration Letter (BAL) is to provide 

coverage determination guidance concerning employees and Members of Congress who 

will be covered under the Federal Employees Retirement System (FERS) as Further 

Revised Annuity Employees (FRAE), FERS-FRAE. This guidance only applies to automatic 

FERS coverage determinations. Employees who are subject to CSRS, CSRS-Offset, or 

FICA-only coverage and who have an opportunity to elect to transfer to FERS will be 

subject to FERS, not FERS-FRAE, if they elect to transfer to FERS. 

Background: 

Public Law 112-96, Section 5001, the “Middle Class Tax Relief and Job Creation Act of 

2012,” established FERS-Revised Annuity Employee (FERS-RAE). In general, employees 

hired after December 31, 2012, who were not excluded from FERS coverage became 

subject to FERS-RAE coverage and paid significantly higher employee contributions for 

the FERS basic benefit than employees subject to the original FERS coverage. (With one 

exception, the amounts of benefits payable under FERS did not change. There was a 

change, though, to the FERS basic benefit payable to congressional employees and 

Members of Congress.) The FERS-RAE provisions, however, included three exceptions 

whereby employees hired after December 31, 2012, would be subject to the original 

FERS coverage (and the lower employee contribution rate). The employee’s status on 

December 31, 2012, was crucial in determining if the employee could retain coverage 

under original FERS. Benefits Administration Letter (BAL) 13-102, outlined the rules for 

determining if an employee hired after December 31, 2012, could retain original FERS 

coverage. 

Section 401 of the “Bipartisan Budget Act of 2013, signed into law by the President on 

December 26, 2013, created another class of FERS coverage, FERS-Further Revised 

Annuity Employee (FERS-FRAE). In general, employees hired after December 31, 2013, 

who are not excluded from FERS coverage become subject to FERS-FRAE coverage and 

must pay even higher employee contributions for the FERS basic benefit than FERS-RAE 

employees. Employees who meet the requirements to retain original FERS coverage 

based on their status as of December 31, 2012, will continue to be subject to original 
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FERS coverage. Employees who are not eligible for original FERS coverage may still be 

eligible for FERS-RAE coverage based on their status as of December 31, 2013. 

The basic FERS benefits for congressional employees and Members of Congress covered 

under FERS-FRAE are the same as the benefits those groups receive under FERS-RAE. 

Coverage Determination: 

In general, employees hired after December 31, 2013, who are not excluded from FERS 

coverage will be subject to FERS-FRAE, unless they meet specific service requirements as 

of December 31, 2012, that would allow them to be subject to original FERS, or unless 

they meet specific service requirements as of December 31, 2103, that would allow 

them to be subject to FERS-RAE. 

An individual hired in 2014 or later will be subject to original FERS coverage if any of 

these exceptions apply: 

1. the individual on December 31, 2012, was covered under FERS; or 

2. the individual on December 31, 2012, was performing civilian service which is 

creditable or potentially creditable service under FERS (for example, the 

individual may have been performing service as a Peace Corps volunteer or may 

have been covered under another retirement system from which service credit 

may be transferred to FERS,, such as CSRS, CSRS-Offset, Foreign Service, Federal 

Reserve, or CIARDS), or 

3. the individual on December 31, 2012, was not covered under FERS and was not 

performing civilian service which is creditable or potentially creditable service 

under FERS, but as of December 31, 2012, had performed at least five years of 

civilian service creditable or potentially creditable under FERS, including service 

subject to CSRS or CSRS-Offset. 

See BAL 13-102 for additional details relating to an employee’s status on December 31, 

2012.

An individual hired in 2014 or later who is not subject to original FERS coverage will be 

subject to FERS-RAE coverage if any of these exceptions apply: 

1. the individual on December 31, 2013, was covered under FERS-RAE; or 

2. the individual on December 31, 2013, was performing civilian service which is 

creditable or potentially creditable service under FERS (for example, the 

individual may have been performing service as a Peace Corps volunteer or may 

have been covered under another retirement system from which service credit 

may be transferred to FERS,, such as CSRS, CSRS-Offset, Foreign Service, Federal 

Reserve, or CIARDS), or 
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3. the individual on December 31, 2013, was not covered under FERS and was not 

performing civilian service which is creditable or potentially creditable service 

under FERS, but as of December 31, 2013, had performed at least five years of 

civilian service creditable or potentially creditable under FERS, including service 

subject to CSRS or CSRS-Offset. 

We have provided Retirement Coverage Determination tables to help you make the 

coverage decision in Attachment 1 of this BAL. 

Potentially Creditable Service 

Certain categories of service become fully creditable only if the employee takes certain 

actions, such as applying to pay for the service by a deadline established in law or 

waiving rights to benefits under another retirement system for Federal employees. For 

example, service covered by the Foreign Service Pension System (FSPS) is potentially 

(but not fully) creditable until an employee has waived his or her rights to benefits 

under that system and made the necessary deposit to OPM. Peace Corps volunteer 

service is another example. In making coverage determinations count all creditable 

civilian service that is potentially creditable on the effective date of the personnel action 

requiring the coverage determination. The resulting coverage decision remains valid 

even though the employee may never ever take all the actions needed for the service to 

become fully creditable. 

Military service for which a deposit has been paid is not considered creditable for 

determining the five years of service for exemption from FERS-RAE or FERS-FRAE. 

Break in Service of Three Days or Less that Spans December 31, 2013 

If an individual leaves a FERS-RAE covered position immediately before December 31, 

2013, and returns to a FERS covered position after a break of three days or less, the 

employee will continue to be covered under FERS-RAE even if the employee returns 

after December 31, 2013. A break in FERS-RAE coverage of three days or less is not 

considered to be a separation from service and the individual is considered to be 

covered under FERS-RAE on December 31, 2013. 

Receipt of Compensation Benefits While Separated from Service on December 31, 2013 

When an individual returns to Federal service following a separation during which he or 

she was receiving compensation benefits under the Federal Employees’ Compensation 

Act (FECA) from the Office of Workers’ Compensation Programs (OWCP), the individual 

is deemed, for service credit purposes, to have been on a leave of absence without pay 

for the period during which he or she was receiving the compensation benefits and that 

period is creditable service under FERS. If an individual is separated from Federal 

service on December 31, 2013, but is never-the-less entitled to service credit for that 
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day because he or she was receiving FECA benefits, the individual is considered to have 

been performing civilian service creditable under FERS on December 31, 2013, and is 

excluded from FERS-FRAE coverage. 

Performing Active Duty Military Service on December 31, 2013, Following a Separation 

from Civilian Service 

If a FERS-RAE covered employee separates from Federal service before December 31, 

2013 to enter active duty military service, and returns to Federal service after December 

31, 2013, after exercising his or her reemployment rights under 38 U.S.C. § 4312, the 

employee is not considered to be separated from Federal service for purposes of 

determining FERS-FRAE coverage. Under specific provision of the Uniformed Services 

Employment and Reemployment Rights Act (USERRA), individuals reemployed with the 

Government under chapter 43 of title 38 must be treated as not having a break in 

service. 

FERS Employees in a Leave Without Pay Status On December 31, 2013 

FERS-RAE employees who are not separated from Federal service but who on December 

31, 2013, are in a leave without pay status are excluded from FERS-FRAE coverage, even 

if: 

 the employee has been on leave without pay for more than six months in 2013, 

and does not receive service credit for December 31, 2013, or 

 the employee has been on leave without pay while performing active duty 

military service and does not return to the Federal civilian service by exercising 

his or her reemployment rights. 

Coverage Examples 

1. Employee receives a FERS covered appointment effective January 1, 2014. This 

is a first hire – employee had no prior civilian service with the Federal 

Government. 

Employee is subject to FERS-FRAE coverage. 

2. Employee receives a FERS covered appointment effective February 9, 2014. 

Employee had one previous period of civilian service with the Federal 

Government covered under FERS-RAE from February 2, 2013, through January 4, 

2014. 

Employee is subject to FERS-RAE coverage. Employee was covered by FERS-RAE 

on December 31, 2013. 
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3. Employee receives a FERS covered appointment effective January 2, 2014. 

Employee had one previous period of civilian service with the Federal 

Government covered under FERS from September 14, 2009, to 

December 29, 2013. 

Employee is subject to FERS coverage. 

Employee was covered by FERS Regular on 12/31/2012. 

4. Employee receives a FERS covered appointment effective January 2, 2014. 

Employee had one previous period of civilian service with the Federal 

Government covered under FERS-RAE from January 5, 2013, to December 29, 

2013.

Employee is subject to FERS-RAE coverage

Although the employee was not employed by the Government on December 31, 

2013, the break between the end of the employee’s FERS-RAE appointment 

(December 29, 2013) is only three days. The break is not considered to be a 

separation from service and the employee is considered to have been covered 

under FERS-RAE on December 31, 2013. 

5. Employee receives a FERS covered appointment effective January 14, 2014. 

Employee had one previous period of civilian service with the Federal 

Government covered under FERS from September 14, 2009, to December 29, 

2012. 

Employee is subject to FERS-FRAE coverage. 

On December 31, 2012, the employee did not meet the requirements that would 

permit coverage under original FERS. The employee was not covered under FERS 

and was not performing civilian service that was creditable or potentially 

creditable under FERS on December 31, 2012, nor did the employee have at least 

5 years of creditable or potentially creditable civilian service as of December 31, 

2012. Likewise, as of December 31, 2013, the employee did not meet the 

requirement that would permit coverage under FERS-RAE. The employee was not 

covered under FERS-RAE and was not performing civilian service that was 

creditable or potentially creditable under FERS on December 31, 2013, nor did the 

employee have at least 5 years of creditable or potentially creditable civilian 

service as of December 31, 2013. 
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6. Employee receives a FERS covered appointment effective April 29, 2014. 

Employee had one previous period of civilian service with the Federal 

Government from September 14, 2008, to January 5, 2013. The employee was 

covered under FERS throughout that previous period of service. 

Employee is subject to FERS coverage 

The employee was employed in a civilian position subject to FERS on December 

31, 2012. 

7. Employee receives a FERS covered appointment effective January 5, 2014. 

Employee had previous civilian service that was covered under the Foreign 

Service Pension System (FSPS) from February 12, 2012, through January 4, 2014. 

Employee is subject to FERS coverage 

The employee was working in a position on December 31, 2012, which is 

potentially creditable under FERS. 

8. Employee receives a FERS covered appointment effective May 5, 2014. 

Employee previously had civilian service that was covered under FERS from June 

3, 2001, through June 21, 2008. 

Employee is subject to FERS coverage on May 5, 2014. 

Although the employee was not employed with the Federal Government on 

December 31, 2012, the employee had performed at least 5 years of creditable 

civilian service as of December 31, 2012. 

9. Employee receives a FERS covered appointment effective May 5, 2014. 

Employee previously had civilian service that was covered under the Foreign 

Service Pension System (FSPS) from June 3, 2001, through June 21, 2008. 

Employee is subject to FERS coverage on May 5, 2014. 

Although the employee was not employed with the Federal Government on 

December 31, 2012, the employee had performed at least 5 years of potentially 

creditable civilian service as of December 31, 2012. 
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10. Employee receives a FERS covered appointment effective June 15, 2014. 

Employee previously had performed Federal service under FERS from December 

10, 2008, through June 22, 2011, when the employee’s agency took action to 

separate the employee from service because she was receiving FECA 

compensation benefits from the Office or Workers’ Compensation Programs. 

The employee continued receiving compensation benefits after the separation 

from service until she returned to Federal service on June 15, 2014. 

Employee is subject to FERS coverage. 

Although employee was separated from Federal service on December 31, 2012 

and 2013, she is entitled to service credit for the period of separation during 

which she received the FECA benefits and, therefore, is considered to be 

performing civilian service creditable under FERS on December 31, 2012. 

11. Employee receives a FERS covered appointment effective June 15, 2014. 

Employee previously had performed Federal service under FERS from May 11, 

2009, through June 22, 2011, when the employee separated from Federal 

service to enter active duty in the military. The individual performed active duty 

service with the military from June 23, 2011, through May 30, 2014, when he 

received an honorable discharge. He was reemployed by his former agency 

effective June 15, 2014, after exercising his reemployment rights under chapter 

43 of title 38. 

Employee is subject to FERS coverage. 

Although the employee was not a civilian employee of the Federal Government 

on December 31, 2012, he returned to Federal service after exercising his 

reemployment rights under chapter 43 of title 38 and therefore, for purposes of 

determining his coverage, the employee must be treated as though he were not 

separated from his FERS civilian employment on December 31, 2012. 

12. Employee received a FERS covered appointment effective June 16, 2014. 

Employee previously had performed Federal service under CSRS from June 13, 

1977, through September 21, 1981. 

Employee is subject to FERS-FRAE Coverage. 

Employee was not an employee of the Federal government on December 31, 

2012 and did not have 5 years of prior CSRS covered creditable service making 

him ineligible for FERS Regular coverage. The employee was not an employee on 

December 31, 2013 and did not have the 5 years of creditable service on that 

date making him ineligible for FERS-RAE coverage. 
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Under-collection of retirement contributions 

Agencies were advised in BAL 14-102 dated January 30, 2014, to process new 

employees and rehired former FERS and FERS-RAE employees hired after December 31, 

2013, by placing them in FERS or FERS-RAE until additional guidance was provided and 

the agency human resource and payroll systems were updated with the FERS-FRAE 

codes. All new employees were advised that retirement contributions were being 

withheld at either the FERS or FERS-RAE rates which are lower than the FERS-FRAE rate 

and will result in underpaid retirement contributions and an overpayment of salary to 

the employee. 

The agencies now have all the information they need to determine if an employee is 

covered under FERS-FRAE. The Office of Personnel Management must receive the 

correct contribution amount from the agency for the employee and the agency portion 

for all types of retirement contributions including FERS FRAE. The Office of Personnel 

Management will not waive these contributions for any agency or employee. It is the 

responsibility of the agency to collect the overpayment of salary debt according to their 

own policies of debt collection and to submit the full FERS-FRAE retirement 

contributions to OPM. If you have further questions about overpayments of salary 

please contact OPM’s Pay Policy section in the Employment Service 202-606-2858 or 

pay-leave-policy@opm.gov . 

Guide to Processing Personnel Actions (GPPA) 

The GPPA remarks will be addressed when the GPPA is next updated. 

Attachments: 

Attachment 1 provides revisions to the retirement coverage determination tables from 

Chapter 10 of the CSRS and FERS Handbook for Personnel and Payroll Offices to 

incorporate FERS-FRAE coverage to assist you in determining the correct coverage. 

Attachment 2 provides the FERS, FERS-RAE and FERS-FRAE contribution tables with the 

percentages for both the employee and agency contributions. Please note that the 

agency contribution percentages did not change under FERS-FRAE. 

If you have any questions concerning this BAL, you may contact the Retirement Services, 

Benefits Officers Training and Development at 202-606-0788 or Benefits@opm.gov. 

 Kenneth J Zawodny Jr, Associate Director 

 Retirement Services 
9

BAL 14-107

Attachment 1 

Retirement Coverage 

Determination Tables 
10

Retirement Coverage Determination Tables

New Hires (presumes no prior Federal service under FERS or any other retirement system)

Step Decision Factor If Yes... If No...

1 Does employee have prior non-Federal service that was 

covered by or creditable under CSRS? (See section 

10A1.3-3B) 

Go to Step 2 Go to Step 5 

2 Does employee meet 5 year test? (See section 10A1.1-

2I) 

Go to Step 3 Skip to Step 5

3 Is current appointment excluded from CSRS? (See 

section 10A1.3-3) 

Go to Step 4 Coverage under 

CSRS Offset with 

option to elect 

FERS 

4 Is current appointment excluded from FERS? (See 

section 10A1.3-5) Coverage under 

FICA only (unless 

not applicable) 

Covered by FICA 

with option to 

elect FERS 

5 Is appointment excluded from FERS by law or 

regulation? (See section 10A1.3-5) 

Coverage under 

FICA only (unless 

not applicable) 

Go to Step 6

6. Is appointment effective before January 1, 2013? Coverage Under 

FERS

Go to Step 7

7. Was employee on December 31, 2012, performing 

civilian service that was creditable or potentially 

creditable under FERS (e.g. Peace Corp volunteer 

service or service covered under another retirement 

system for which credit may be transferred to FERS, 

such as Foreign Service, Federal Reserve, or CIARDS?)

Coverage Under 

FERS Go to Step 8

8. Does employee as of December 31, 2012, have at least 

5-years of creditable or potentially creditable service 

under FERS?

Coverage under 

FERS Go To Step 9

9. Is appointment effective on or after January 1, 2013, 

and before January 1, 2014?

Coverage under 

FERS-RAE Go to Step 10

10. Was employee on December 31, 2013, performing 

civilian service that was creditable or potentially 

creditable under FERS (e.g. Peace Corp volunteer 

service or service covered under another retirement 

system for which credit may be transferred to FERS, 

such as Foreign Service, Federal Reserve, or CIARDS)?

Coverage under 

FERS-RAE Go to Step 11
11

11. Does employee as of December 31, 2013, have at least 

5-years of creditable or potentially creditable service 

under FERS?

Coverage under 

FERS-RAE

Coverage under 

FERS-FRAE
12

Transfers / Conversions

Step Decision Factor If Yes... If No...

1 Does employee qualify as a senior official? (See section 

10A1.3-6C) 

See Chapter 101 Go to Step 2 

2 Was last employment under another Federal 

retirement system (for example, FSRS)? 

Go to Step 5 Go to Step 3 

3 

Was last appointment covered by OASDI (FICA) only? 

Go to Step 4 Employee retains 

previous 

coverage 

4 Did employee previously have FERS (i.e. FERS/FERSRAE/FERS-FRAE) coverage? Go to Step 11 Go to Step 5 

5 Was employee first hired after December 31, 1983? Go to Step 20 Go to Step 6 

6 Is the current appointment temporary NTE 1 year or 

intermittent and not career or career conditional? 

Employee covered 

under FICA only 

Go to Step 7 

7 Is the current appointment excluded from CSRS by law 

or regulation? (See section 10A1.3-3) 

Go to Step 8 Go to Step 9 

8 Does employee meet the 5-year test? (See section 

10A1.1-2I) 

Employee covered 

under FICA only 

with option to 

elect FERS 

Go to Step 21

9 Is current appointment now subject to FICA? (See 

section 10A1.3-6) 

Go to Step 10 Employee 

covered under 

CSRS with option 

to elect FERS*

10 Does employee meet the 5-year test? (See section 

10A1.1-2I) 

Employee covered 

under CSRS Offset 

with option to 

elect FERS 

Go to Step 21

11. Is the current appointment temporary NTE 1 year or 

intermittent and not career or career conditional (that 

is, excluded from FERS)? 

Employee covered 

under FICA only 

Go to Step 12

12 Is current appointment effective before January 1, 

2013?

Employee covered 

under FERS

Go to Step 13

13 Was employee covered under FERS on December 31, 

2012?

Employee covered 

under FERS

Go to Step 14

14 Was employee on December 31, 2012, performing 

civilian service that was creditable or potentially 

creditable under FERS (e.g. Peace Corp volunteer 

service or service covered under another retirement 

system for which credit may be transferred to FERS, 

such as Foreign Service, Federal Reserve, or CIARDS

Employee covered 

under FERS

Go to Step 15

15 Does employee as of December 31, 2012, have at least 

5-years of creditable or potentially creditable service 

under FERS?

Employee covered 

under FERS

Go to Step 16

16. Is current appointment effective on or after January 1, 

2013, and before January 1, 2014?

Employee is 

covered under 

FERS-RAE

Go to Step 17
13

Step Decision Factor If Yes... If No...

17. Was employee covered under FERS-RAE on December 

31, 2013?

Employee is 

covered under 

FERS-RAE

Go to Step 18

18. Was employee on December 31, 2013, performing 

civilian service that was creditable or potentially 

creditable under FERS (e.g. Peace Corp volunteer 

service or service covered under another retirement 

system for which credit may be transferred to FERS, 

such as Foreign Service, Federal Reserve, or CIARDS)?

Employee is 

covered under 

FERS-RAE

Go to Step 19

19. Does employee as of December 31, 2013, have at least 

5-years of creditable or potentially creditable service 

under FERS?

Employee is 

covered under 

FERS-RAE

Employee is 

covered under 

FERS-FRAE

20 Is the current appointment temporary NTE 1 year or 

intermittent and not career or career conditional (that 

is, excluded from FERS)? 

Employee covered 

under FICA only 

Go to Step 21

21. Is current appointment effective before 

January 1, 2013?

Employee covered 

under FERS

Go to Step 22

22 Was employee on December 31, 2012, performing 

civilian service that was creditable or potentially 

creditable under FERS (e.g. Peace Corp volunteer 

service or service covered under another retirement 

system for which credit may be transferred to FERS, 

such as Foreign Service, Federal Reserve, or CIARDS)?

Employee covered 

under FERS

Go to Step 23

23 Does employee as of December 31, 2012, have at least 

5-years of creditable or potentially creditable service 

under FERS?

Employee covered 

under FERS

Go to Step 24

24 Is current appointment effective on or after January 1, 

2013, and before January 1, 2014?

Employee is 

covered under 

FERS-RAE

Go to Step 25

25 Was employee on December 31, 2013, performing 

civilian service that was creditable or potentially 

creditable under FERS (e.g. Peace Corp volunteer 

service or service covered under another retirement 

system for which credit may be transferred to FERS, 

such as Foreign Service, Federal Reserve, or CIARDS)?

Employee is 

covered under 

FERS-RAE

Go to Step 26

26 Does employee as of December 31, 2013, have at least 

5-years of creditable or potentially creditable service 

under FERS?

Employee is 

covered under 

FERS-RAE

Employee is 

covered under 

FERS-FRAE
14

Rehires

Step Decision Factor If Yes... If No...

1 Does employee qualify as a senior official? (See 

section 10A1.3-6C) 

See Chapter 101 Go to Step 2 

2 Did employee previously have FERS (i.e. FERS/FERSRAE/FERS-FRAE) coverage? Go to Step 10 Go to Step 3 

3 Was employee first hired after December 31, 1983? Go to Step 9 Go to Step 4 

4 Is current appointment temporary NTE 1 year or 

intermittent and not career or career-conditional? 

Coverage under FICA 

only 

Go to Step 5 

5 Is employee's current appointment excluded from 

CSRS by law or regulation? (See section 10A1.3-3) 

Go to Step 6 Go to Step 7 

6 Does employee meet 5-year test? (See section 

10A1.1-2I) 

FICA only with option to 

elect FERS 

Go to Step 19

7 Is current appointment now subject to FICA? (See 

section 10A1.3-6) 

Go to Step 8 Coverage under CSRS with 

option to elect FERS 

8 Does employee meet the 5-year test? (See section 

10A1.1-2I) 

Coverage under CSRS 

Offset with option to 

elect FERS 

Go to Step 19

9 Is the current appointment temporary NTE 1 year or 

intermittent and not career or career conditional 

(that is, excluded from FERS)? 

Coverage under FICA 

only 

Go to Step 19

10 Is the current appointment temporary NTE 1 year or 

intermittent and not career or career conditional 

(that is, excluded from FERS)?

Coverage under FICA

only

Go to Step 11

11 Is current appointment effective before January 1, 

2013?

Coverage under FERS Go to Step 12

12 Was employee covered under FERS on December 31, 

2012?

Employee covered under 

FERS

Go to Step 13

13 Was employee on December 31, 2012, performing 

civilian service that was creditable or potentially 

creditable under FERS (e.g. Peace Corp volunteer 

service or service covered under another retirement 

system for which credit may be transferred to FERS, 

such as Foreign Service, Federal Reserve, or CIARDS)?

Employee covered under 

FERS

Go to Step 14

14 Does employee as of December 31, 2012, have at 

least 5-years of creditable or potentially creditable 

service under FERS?

Employee covered under 

FERS

Go to Step 15

15 Is current appointment effective on or after January 

1, 2013, and before January 1, 2014?

Employee is covered 

under FERS-RAE

Go to Step 16

16. Was employee covered under FERS-RAE on 

December 31, 2013?

Employee is covered 

under FERS-RAE

Go to Step 17

17. Was employee on December 31, 2013, performing 

civilian service that was creditable or potentially 

creditable under FERS (e.g. Peace Corp volunteer 

service or service covered under another retirement 

system for which credit may be transferred to FERS, 

such as Foreign Service, Federal Reserve, or CIARDS)?

Employee is covered 

under FERS-RAE

Go to Step 18

18. Does employee as of December 31, 2013, have at 

least 5-years of creditable or potentially creditable 

service under FERS?

Employee is covered 

under FERS-RAE

Employee is covered under 

FERS-FRAE
15

Step Decision Factor If Yes... If No...

19. Is current appointment effective before January 1, 

2013?

Coverage under FERS Go to Step 20

20 Was employee on December 31, 2012, performing 

civilian service that was creditable or potentially 

creditable under FERS (e.g. Peace Corp volunteer 

service or service covered under another retirement 

system for which credit may be transferred to FERS, 

such as Foreign Service, Federal Reserve, or CIARDS)?

Employee covered under 

FERS

Go to Step 21

21. Does employee as of December 31, 2012, have at 

least 5-years of creditable or potentially creditable 

service under FERS?

Employee covered under 

FERS

Go to Step 22

22 Is current appointment effective on or after January 

1, 2013, and before January 1, 2014?

Employee is covered 

under FERS-RAE

Go to Step 23

23 Was employee on December 31, 2013, performing 

civilian service that was creditable or potentially 

creditable under FERS (e.g. Peace Corp volunteer 

service or service covered under another retirement 

system for which credit may be transferred to FERS, 

such as Foreign Service, Federal Reserve, or CIARDS)?

Employee is covered 

under FERS-RAE

Go to Step 24

24 Does employee as of December 31, 2013, have at 

least 5-years of creditable or potentially creditable 

service under FERS?

Employee is covered 

under FERS-RAE

Employee is covered under 

FERS-FRAE
16

BAL 14-107

Attachment 2

Contribution Rate 

Tables
17

FERS/FERS-RAE/FERS-FRAE Contribution Rates (After October 1, 2014) 

Retirement Groups FERS-Regular Employees FERS-RAE Employees FERS-FRAE Employees

Retirement 

Plan Code

Normal 

Cost %

Employee 

%

Agency 

%

Retirement 

Plan Code

Normal 

Cost %

Employee 

%

Agency 

%

Retirement 

Plan Code

Normal 

Cost %

Employee 

%

Agency 

%

Regular K 14.0 0.8 13.2 KR 14.2 3.1 11.1 KF 14.2 4.4 11.1*

Law Enforcement 

Officer, Firefighter, 

Member of the 

Supreme Court 

Police

M 30.1 1.3 28.8 MR 30.1 3.6 26.5 MF 30.1 4.9 26.5*

Air Traffic Controller L 32.4 1.3 31.1 LR 32.5 3.6 28.9 LF 32.5 4.9 28.9*

Military Reserve 

Tech N 17.7 0.8 16.9 NR 18.1 3.1 15.0 NF 18.1 4.4 15.0*

Customers and 

Border Protection 

Officers

O 30.1 1.3 28.8 OR 30.1 3.6 26.5 OF 30.1 4.9 26.5*

Employees under 

section 303 of the 

CIA Act of 1964 

(when serving 

abroad)

19.7 0.8 18.9 19.9 3.1 16.8 19.9 4.4 16.8*

Member of Congress 21.5 1.3 20.2 14.2 3.1 11.1 14.2 4.4 11.1*

Member of Capitol 

Police 19.7 1.3 18.4 19.7 3.6 16.1 19.7 4.9 16.1*

Congressional 

Employee** 19.7 1.3 18.4 14.2 3.1 11.1 14.2 4.4 11.1*

U.S. Postal Service/ 

Postal Regulatory 

Commission –

Regular

K 14.0 0.8 13.2 KR 14.2 3.1 11.1 KF 14.2 4.4 9.8*

U.S. Postal Service/ 

Postal Regulatory 

Commission - Law 

Enforcement Officer

M 30.1 1.3 28.8 MR 30.1 3.6 26.5 MF 30.1 4.9 25.2*

* Amendments made by the Section 401 of the Bipartisan Budget Act of 2013 provides that the employee and the agency contributions combined for FERS-FRAE employees are 

in excess of the normal cost percentage. USPS agency contribution rates differ for FERS-FRAE. 

** Congressional Employee category includes civilian Capitol Police employees who are not subject to an enhanced benefit
18

FERS Contribution Rates (through September 30, 2014)

Category

FERS Contribution Rates (%)

Retirement 

Plan Code

Normal Cost 

%

Employee 

%

Agency 

%

Regular K 12.7 .8 11.9

Law Enforcement Officer, 

Firefighter, Member of the 

Supreme Court Police

M 27.6 1.3 26.3

Air Traffic Controller L 27.3 1.3 26.0

Military Reserve Tech N 15.7 .8 14.9

Customs and Border 

Protection Officers

O 27.6 1.3 26.3

Employees under section 

303 of the CIA Act of 1964 

(when serving abroad)

18.0 .8 17.2 

Member of Congress 19.6 1.3 18.3

Member of Capitol Police 18.0 1.3 16.7

Congressional Employee, 

Civilian Capitol Police 

Employee

18.0 1.3 16.7
19

FERS-RAE Contribution Rates (Through September 30, 2014)

Category

FERS RAE Contribution Rates (%)

Retirement 

Plan Code

Normal Cost 

%

Employee 

%

Agency 

%

Regular KR 12.7 3.1 9.6

Law Enforcement Officer, 

Firefighter, Member of the 

Supreme Court Police **

MR 27.6 3.6 24.0

Air Traffic Controller LR 27.3 3.6 23.7

Military Reserve Tech NR 15.7 3.1 12.6

Customs and Border 

Protection Officers

OR 27.6 3.6 24.0

Employees under section 

303 of the CIA Act of 1964 

(when serving abroad)

18.0 3.1 14.9 

Member of Congress 12.7 3.1 9.6

Member of Capitol Police 18.0 3.6 14.4

Congressional Employee, 

Civilian Capitol Police 

Employee

12.7 3.1 9.6
20

FERS-FRAE Contribution Rates (Through September 30, 2014)

Category

FERS FRAE Contribution Rates (%)

Retirement 

Plan Code

Normal Cost 

%

Employee 

%

Agency 

%

Regular KF 12.7 4.4 9.6

Law Enforcement Officer, 

Firefighter, Member of the 

Supreme Court Police 

MF 27.6 4.9 24.0

Air Traffic Controller LF 27.3 4.9 23.7

Military Reserve Tech NF 15.7 4.4 12.6

Customs and Border 

Protection Officers

OF 27.6 4.9 24.0

Employees under section 

303 of the CIA Act of 1964 

(when serving abroad)

18.0 4.4 14.9 

Member of Congress 12.7 4.4 9.6

Member of Capitol Police 18.0 4.9 14.4

Congressional Employee, 

Civilian Capitol Police 

Employee

12.7 4.4 9.6

United States Postal 

Service (USPS) - Regular

KF 12.7 4.4 8.3

United States Postal 

Service (USPS) – Law 

Enforcement 

MF 27.6 4.9 22.7

Postal Regulatory 

Commission (PRC) -

Regular

KF 12.7 4.4 8.3

Postal Regulatory 

Commission (PRC) – Law 

Enforcement

MF 27.6 4.9 22.7

Amendments made by the Section 401 of the Bipartisan Budget Act of 2013 provides that the employee 

and the agency contributions combined paid for FERS-FRAE employees are in excess of the normal cost 

percentage. However, the U.S. Postal Service and Postal Regulatory Commission are not included in this 

provision, and the percentages that will be paid by U.S. Postal Service (USPS) and Postal Regulatory 

Commission (PRC) are 1.3 percent lower.