Information & Instructions



for Completing an



Application for



Phased Retirement



under the



Federal Employees
 


Retirement System (FERS)



SF 3117 

October 2014 
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Introduction .............................

Phased Retirement Annuity .....................

Phased Retirement Formula .....................

Basic Annuity Computation ...................

High-3 Average Pay .......................

Phased Retirement Formula for a Regular FERS employee. ..

Phased Retirement Formula for a FERS employee with a CSRS c

Reductions for Deposits and Redeposits ..............

Straight FERS Case .......................

FERS Cases with a CSRS Component .............

Post 1956 Military Deposits .....................

Military Service Credited under FERS Rules ..........

Military Service Credited under CSRS Rules (in a Component Ca

Cost of Living Adjustment (COLA) . .................

Insurance: FEHB and FEGLI .....................

Federal Long Term Care Insurance Program (FLTCIP), Federal Dent

Vision Program (FEDVIP), and Flexible Spending Account (FSA) .

Court Orders .............................

Commencing Date of Phased Retirement Annuity .........

Death While in Phased Employment/Phased Retirement ......

Withdrawing an Application for Phased Employment/Phased Retirem

Instructions for Completing the Application for Phased Retirement 

Section A - Identifying Information. ...............

Section B - Federal Service ...................

Section C - Marital Information .................

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Section G - Information about Children .............

Section H - Direct Deposit and Tax Withholding Information ..

Section I - Applicant’s Certification ...............

Schedule A - Military Service Information ............

Schedule B - Military Retired Pay ................

Schedule C - Federal Employees’ Compensation Information .

Applicant’s Certification .......................

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They should be used in conjunction with the instructions for the App

Retirement, Federal Employees Retirement System, Standard Form (

covered by the Civil Service Retirement System, you must use SF 2

with SF 2801 to apply for a phased retirement. 

In addition to completing the application for phased retirement, you 

SF 3116, Phased Employment/Phased Retirement Election form and 

the appropriate official in your agency. 

Phased Retirement Annuity 

The computation of a phased retirement annuity is based on the ap

multiplied by the phased retirement percentage. (See next section f

explanation.) 

The percentage used to calculate the phased retirement annuity (th

percentage) is determined by subtracting the working percentage fr

The working percentage is the result after dividing the number of ho

you are scheduled to work during phased employment by the numb

period you would have been scheduled to work under a full time wo

Unused sick leave is not used in the computation of the phased reti

Unused sick leave will continue to accrue during phased employme

part time schedule and will be available for you to use until you fully 

unused sick leave to your credit at the time you fully retire will be us

of your composite retirement annuity. 

Phased retirement annuity is not subject to a survivor reduction and 

election for a survivor can be made in the phased retirement portion 

You must make an annuity election of a survivor benefit upon fully re

composite retirement annuity. If you should die while in phased em

retirement status, survivor benefits will be based on provisions that a

death. 

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Phased Retirement Formula 

The phased retirement benefit is based on a percentage of your bas

computation adjusted for deposit and/or redeposit, if applicable. 

Basic Annuity computation – The amount of your annuity depends 

“high-3” average pay, length of service and retirement percentage. 

High-3 Average Pay – The high-3 average pay is the highest pay o

averaging the rates of basic pay in effect during any 3 consecutive y

each rate weighted by the time it was in effect. 

Phased Retirement Formula for a Regular FERS employee – The 

regular FERS employees under age 62 is: 

1% x “high-3” average pay x years & months of credit

For employees age 62 or over, the formula is: 

1.1% x “high-3” average pay x years and months of cred

(Note: Certain types of employees who perform service at a differen

rate will be credited with 1.7% of average salary multiplied by the ye

enhanced service.) 

The resulting annual benefit will be multiplied by the Retirement Per

Phased Retirement Formula for a FERS employee with a CSRS c

FERS component is computed as described above and is combined 

the CSRS component, which is subject CSRS rules: 

1.5 percent x “high-3” average pay x 5 years of service; p

1.75 percent x “high-3” average pay x years of service betw

2 percent x “high-3” average pay x years and months of 

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The resulting annual benefit will be multiplied by the Retirement Per

Reductions for Deposits and Redep

A “deposit” is a payment to the retirement fund to cover a period of 

service (that is, service for which no retirement deductions were with

A “redeposit” is a payment to the retirement fund to cover a period o

(that is, service for which deductions were withheld from salary but 

upon a separation from federal service). 

Deposits and redeposits for civilian service must be satisfied (either 

annuity reduction as applicable) prior to finalizing the phased retirem

in annuity or loss of service credit at the time the amount of your ph

annuity is determined will be permanent. You cannot make civilian 

redeposits at a later time, including at the time of full retirement 

may make deposits for pre and post October 1, 1982 CSRS non-ded

for FERS deposit service until December 31, 1988 and/or you may m

service ending on or after March 1, 1991 if you end your phased emp

retirement in order for you to resume regular employment status. 

Straight FERS case: If you do not make a deposit for non-deductio

not receive credit for that service both to determine eligibility for reti

computation of your annuity benefit. Generally, you may not make 

non-deduction service performed after December 31, 1988. If you d

redeposit on service for which you took a refund of your contribution

refunded service will be credited for retirement eligibility but will not 

computation of your annuity benefit. 

FERS Cases with a CSRS Component: The effect of unpaid depo

based on service attributed to FERS is described in the paragraph a

redeposits based on service attributed to a CSRS component are cr

CSRS rules as follows: 

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composite annuity at your final full status retirement, this amoun

additional interest through your final separation date. 

•	 Non-Deduction Service On or After October 1, 1982 - If a dep

fully paid for a period of non-deduction service performed on o

1982, the service period will be credited for title towards retirem

included in your annuity computation. 

•	 Refunded Service Which Ended Before March 1, 1991 - If a r

or fully paid for a period of refunded service that ended before 

service period will be included in your annuity computation but 

permanently, actuarially reduced. The amount of the reduction 

total amount of redeposit due divided by a factor representing y

Note: if you do not make a full redeposit of this amount, the actu

apply to ALL subsequent retirements, regardless of the type. Th

actuarial reduction is considered a repayment for the period and 

longer considered a period of redeposit service. 

•	 Refunded Service Which Ended On or After March 1, 1991 - 

a redeposit based on a refund for service performed on or after 

will receive no credit for this service in your annuity computatio

period will be credited for title towards retirement. 

Deposits and redeposits for civilian service must be fully paid either 

phased retirement status or no later than 30 days after you receive a 

election letter upon adjudication of your phased retirement. If you c

fully pay a deposit and/or redeposit at the time of your phased retire

service credit for those service periods will be permanent. You can

deposits or redeposits at a later time, including at the time of ful

Note: You may make further payments on deposits and redeposits if 

retirement ends in order for you to resume regular employment statu

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after January 1, 1957, you may pay a deposit to cover the service. M

military service performed before entry into phased retirement must 

to entry into phased retirement status. If you wish to make a military 

military service performed during phased employment/phased retire

call up for active military service during phased employment) you m

deposit before separation from phased employment (i.e., the day be

date of your composite annuity retirement). You will not receive any 

your post-1956 military service if you do not make the deposit as de

section. 

Military Service Credited under CSRS Rules (in a Component C

•	 If you were first employed in a position subject to civil servic

October 1, 1982: We will credit your military service until age 6

the deposit. If you do not make the deposit and you are eligible 

benefits at age 62, your annuity will be recomputed at age 62 to 

the post-1956 military service. If you are age 62 or older when 

retirement and are eligible for Social Security benefits, no credi

service will be allowed in the computation of your annuity unles

deposit. 

•	 If you were first employed in a position subject to civil servic

after October 1, 1982: You will not receive any retirement cred

military service if you do not make the deposit as described in t

•	 If you have questions concerning the payment of a military dep

employing agency. Failure to pay the deposit to your agency 

section voids any further right to pay it at a later date. 

Note: You may make further payments on a military deposit if your p

ends in order for you to resume regular employment status. 

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pye CSS pee ge 6e ye

cost of living increase you receive will be prorated to reflect the num

are on the retirement roll before the increase is effective. 

Insurance: FEHB and FEGLI 

Federal Employees Health Benefit (FEHB) enrollment and Federal E

Insurance (FEGLI) enrollment will stay with the employing agency. T

contribution will be the same as for full-time employees. FEGLI ben

amounts will be based upon the full time salary for the position. 

Federal Long Term Care Insurance Progra

Federal Dental and Vision Program (FED

Federal Flexible Spending Account (F

For purposes of the Federal Long Term Care Insurance Program, Fe

Vision Program and the Flexible Spending Account Feds program, y

employee and can continue these programs with the employing age

Court Orders 

Phased retirement annuities will be subject to court orders providing 

allotment, assignment, execution, levy, attachment, garnishment, or 

on the same basis as other annuities. 

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after phased retirement is approved by the authorized agency officia

the first day of a later pay period specified by you with the concurre

agency official. 

Death While in Phased Employment/Phase

If you should die while in phased employment/phased retirement, y

will be processed as a death in service. As such, your survivor can 

redeposit that are outstanding. 

The Basic Employee Death Benefit will be based on your deemed fu

Withdrawing an Application fo

Phased Employment/Phased Retire

You may cancel your approved election to enter phased employme

and withdraw the application for retirement by submitting a signed w

agency and obtaining the approval of the authorized agency official 

date of the phased employment/phased retirement. 

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Section A – Identifying Information 

You must complete all items in this section except for item # 8, rega

application, which is not applicable. Please refer to the Instructions 

Application on Standard Form (SF) 3107 for detailed information pe

this Section. 

Section B – Federal Service 

You must complete all items in this section except for item #2, whic

since you will not be finally separating from your agency. Please re

for Completing Application on SF 3107 for detailed information perta

this Section. 

Section C – Marital Information 

You must complete #2 to indicate whether you have a living former 

whom a court order gives a portion of your retirement benefits base

employment. Please refer to the Instructions for Completing Applica

pamphlet SF 3113 for more information on Court Orders. 

Completing item 1 through 1f is optional. Your marital information is 

phased retirement and will be collected at your final full status retire

Section D – Annuity Election 

Skip this section. Your annuity election is not a component of your 

will be a mandatory element of your final full status retirement and w

time. 

Section E – Insurance Information 

Skip this section. This section does not apply to phased retirement 

both FEHB and FEGLI as an employee, if applicable. 

Section F – Other Claim Information 

You must complete all items in this section. Please refer to the Instr

Completing Application on SF 3107 for detailed information pertainin

Section. 

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3113 for detailed information pertaining to completing this Section. 

Section H – Direct Deposit and Tax Withholding Information 

You must complete all items in this section. Please refer to the Instr

Completing Application on SF 3107 and pamphlet SF 3113 for deta

pertaining to completing this Section. 

Section I – Applicant’s Certification 

Be sure to sign (do not print) and date your application after reviewi

Schedule A – Military Service Information 

If applicable, you must complete all items in this Schedule. Please 

Instructions for Completing Application on SF 3107 for detailed infor

completing this Schedule. Please note that you must pay your milita

your agency no later than the day before the effective date of your p

You will not have an opportunity to pay a deposit for previous milita

phased employment or as of your full retirement status. 

Schedule B – Military Retired Pay 

If applicable, you must complete all items in this Schedule. Please 

Instructions for Completing Application on SF 3107 for detailed infor

completing this Schedule. 

Schedule C – Federal Employees’ Compensation Information 

If applicable, you must complete all items in this Schedule. Please 

Instructions for Completing Application on SF 3107 for detailed infor

completing this Schedule. 

Applicant’s Certification 

Be sure to sign (do not print) and date this portion if you have comp

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U.S. OFFICE OF PERSONNEL MANAGEMENT
 


1900 E STREET, NW
 


WASHINGTON, D.C. 20415
 


www.opm.gov/retirement-services