Civil Service Federal Employees Federal Employees Federal Employees

Retirement Group Life Health Benefits Retirement

System Insurance Program System

United States

Office of

Personnel Management

The Federal Government’s Human Resources Agency

Retirement and Insurance Service

Payroll Office Letter 

Number: P-00-26 Date: October 31, 2000

SUBJECT: CALENDAR YEAR 2001 INTEREST RATE

Pursuant to 5 U.S.C. 8334 (e) (3) the Department of the Treasury has informed the

Office of Personnel Management (OPM) of the interest rate to be charged for

calendar year 2001 on civilian service military deposit accounts. The calendar year

2001 rate is 6.375%.

Interest is charged at a fixed rate of 3% through December 31, 1984, and 13%

through December 31, 1985. Thereafter, interest is charged at the rate shown

below:

CALENDA

R YEAR

INTEREST

RATE

 (%)

CALENDA

R

YEAR

INTEREST

RATE

(%)

1986 11.125 1994 6.250

1987 9.000 1995 7.000

1988 8.375 1996 6.875

1989 9.125 1997 6.875

1990 8.750 1998 6.750

1991 8.625 1999 5.750

1992 8.125 2000 5.875

1993 7.125 2001 6.375

The variable interest rate applies in the following cases:

- redeposits, if the agency or OPM received the refund application after

 September 30, 1982;
 

Civil Service Federal Employees Federal Employees Federal Employees

Retirement Group Life Health Benefits Retirement

System Insurance Program System

- deposits for noncontributory service after September 30, 1982;

- deposits for post-1956 military service; and

- interest paid for voluntary contributions.

The fixed interest rate of 3% applies after 1984 in the following cases:

- redeposits, if the agency or OPM received the refund application 

 before October 1, 1982; and

- deposits for noncontributory service performed before October 1, 1982.

Interest MUST be assessed if a remittance is not timely. To be considered timely, a

remittance must be in the possession of the agency official authorized to collect it by

the close of business on the last business day prior to the employee’s Interest

Accrual Date. For a remittance sent by mail, the date on the postmark does NOT

constitute receipt.

Comprehensive information about the establishment and maintenance of military

service credit accounts, including the calculation of interest, is provided in the Civil

Service Retirement System/Federal Employees Retirement System (CSRS/FERS)

Handbook Chapters 21 and 23. The Handbook is available on our website at

http://www.opm.gov/asd/htm/HOD.htm.

A number of agencies have developed programs for use on various platforms

(mainframes, personal computers, etc.) enabling agency staff to effectively establish

and maintain individual military service credit accounts. We have historically

supported these efforts, providing individual agencies the discretion to determine the

tools best suited to their needs. In that vein, we want to advise you of the availability

of a program entitled MILDEP01.exe that was developed by Robert Benson. Mr.

Benson’s program can be downloaded from our website at

http://www.opm.gov/asd/htm/mildep.htm. If you have any questions regarding this

program, you may email Mr. Benson at Benson@DSCC.DLA.MIL.

If you would like to discuss this letter or have any other matter related to the financial

administration of the Federal Employee Benefit Programs that you would like to
 

Civil Service Federal Employees Federal Employees Federal Employees

Retirement Group Life Health Benefits Retirement

System Insurance Program System

discuss with us, please contact us on (202) 606-0606 or via email,

finance@opm.gov.

Robert A. Yuran, Chief

Financial Policy Staff

Retirement and Insurance Service 

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