United States 

Office of 

Personnel Management 

The Federal Government’s Human Resources Agency

Benefits Administration Letter

 

Number: 12-312 Date: November 2012

Subject: Instructions Regarding Requirement for Agencies’ Payments to the Civil Service 

Retirement and Disability Fund (CSRDF) in FY 2013 for VSIPs and VERAs Processing 

Costs per P.L. 112-175, “Continuing Appropriations Resolution, 2013”

PURPOSE 

Earlier in 2012, the Office of Personnel Management issued BAL 12-302, New Requirement for 

Agencies’ Payments to the 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,” and BAL 12-304, Instructions Regarding New 

Requirement for Agencies’ Payments to the CSRDF in FY 2012 for VSIPs and VERAs Processing 

Costs.

The purpose of this letter is to advise you that payments to the CSRDF for VSIPs and VERAs 

processing costs are to continue per Public Law 112-175, “Continuing Appropriations Resolution, 

2013.” This BAL provides the FY 2013 remittance amount and instructions on the methods 

available for your agency to remit payment to the Office of Personnel Management (OPM) for 

deposit into the CSRDF for VSIPs and VERAs processing costs. For reconciliation purposes, 

the monies for FY 2012 and for FY 2013 must NOT be commingled. 

BACKGROUND 

For FY 2013 under the Continuing Resolution (CR), Public Law 112-175, the provisions of 

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

still apply. 

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 
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8348(a)(l)(B) of title 5, United States Code. 

P.L. 112-74 requires agencies to remit to the OPM for deposit into the CSRDF an amount equal to 

the average unit cost of processing annuity cases 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).

INSTRUCTIONS FOR AGENCY REMITTANCES IN FY 2013 UNDER THE 

CR P.L. 112-175 FOR VSIPs and VERAs PROCESSING COSTS 

Remittance Amount for FY 2013 Under the CR P.L. 112-175 

The statutory requirements under P.L. 112-74 provide that the payments will be in “an amount 

equal to the Office of Personnel Management's average unit cost of processing a retirement claim 

for the preceding fiscal year.” The provisions continue “under the authority and conditions” 

previously applicable because the CR, P.L.112-175, extends the authority for VSIP and VERA 

processing cost payments into the first six months of FY 2013. The amount for agencies to remit 

to the Office of Personnel Management (OPM) for deposit into the CSRDF for FY 2013 is an 

amount equal to the FY 2012 average unit cost of processing annuity cases ($101.89). 

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 of the agency(ies) for which they are 

submitting the remittance. Also, there are two new payment methods for non-IPAC users, 

FEDWIRE and ACH Credit. 

Remittances via IPAC 

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

Systems must remit $101.89 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 
3 

Report” section of this BAL.

Remittances via FEDWIRE 

Agencies that do not have access to IPAC should remit via FEDWIRE for the amount due. A 

scanned copy of the remittance, along with the appropriate Remittance Report, must be sent to the 

email addresses identified in the “Remittance Report” section of this BAL. FEDWIRE 

instructions are included as Attachment 2. 

Remittances via ACH Credit 

Agencies that do not have access to IPAC or FEDWIRE should remit via ACH Credit. 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. ACH Credit instructions are included as Attachment 3. 

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 2013 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 should be submitted monthly. For example, 

payments for retirements between November 1 and November 30, 2012, should be sent by 

January 14, 2013. 

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 2013 VERAs, 

FY 2013 VSIPs, and FY 2013 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 
4 

validation purposes to ensure payments have been remitted correctly. 

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 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 

Attachments: 1A,1B, 1C, 2 & 3