CSRS FERS

Refunds

Chapter 32

Important Notice 

On June 26, 2013, the Supreme Court ruled that Section 3 of the Defense of Marriage 

Act (DOMA) is unconstitutional. As a result of the Supreme Court’s decision, the 

United States Office of Personnel Management (OPM) will now be able to extend 

certain benefits to Federal employees and annuitants who have legally married a 

spouse of the same sex, regardless of the employee’s or annuitant’s state of 

residency. OPM is currently in the process of updating and revising the website to 

reflect this change, and will be updating this information as soon as possible. Please 

check back in the coming weeks for updates.
 CSRS Refunds FERS i 

Chapter 32
 

Table of Contents 

Subchapter 32A CSRS 

Section 32A1.1-1 Overview ...................................... 1
 

A. Introduction .............................................. 1
 

B. Coverage ................................................ 1
 

C. Topics Covered ............................................ 1
 

D. Organization of Subchapter .................................... 2
 

E. Statement of Authority ....................................... 2
 

Section 32A1.1-2 Lump-Sum Credit ................................ 3
 

A. Definition ................................................ 3
 

B. Payment of Lump-Sum Credit .................................. 3
 

Section 32A1.1-3 Payment of Refund ................................ 4
 

A. Definition ................................................ 4
 

B. Amount of Refund .......................................... 4
 

C. Partial Refund ............................................. 4
 

D. Interest Payable ............................................ 5
 

E. Interest Payable on Voluntary Contributions ......................... 5
 

F. Effect of Obtaining Refund .................................... 6
 

G. Future Credit for Refunded Service ............................... 6
 

H. Effect of Government Claims ................................... 7
 

I. Federal Income Tax ......................................... 7
 

Section 32A1.1-4 Employee Eligibility Requirements ..................... 8
 

A. Primary Requirements ....................................... 8
 

B. Additional Requirements ...................................... 9
 

Section 32A1.1-5 Spouse/Former Spouse Notification ..................... 10
 

A. Requirement .............................................. 10
 

B. Procedure ................................................ 10
 

C. Purpose of Notification ....................................... 10
 

D. Failure to Submit SF 2802B .................................... 10
 

E. Inability to Secure Signature .................................... 10
 

F. Waiver of Notification Requirement ............................... 11
 

G. Falsification of Information or Signatures on SF 2802B .................. 12
 

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Chapter 32
 

Section 32A1.1-6 Effect of Court Orders ............................. 13
 

A. Requirement .............................................. 13
 

B. Qualifying Court Order ....................................... 13
 

C. To Deny Payment of Refund ................................... 13
 

D. Multiple Court Orders ....................................... 13
 

E. Reference ................................................ 13
 

Section 32A1.1-7 Application Procedures ............................. 14
 

A. Employee Responsibility ...................................... 14
 

B. Agency Responsibility ....................................... 14
 

C. OPM Responsibility ......................................... 15
 

Section 32A1.1-8 Employees and Annuitants Who Are Receiving Workers'
 

Compensation (OWCP) ...................................... 17
 

A. Eligibility for a Refund ....................................... 17
 

B. Effect of Refund ........................................... 17
 

C. Procedure ................................................ 17
 

Section 32A1.1-9 Voluntary Contributions ............................ 18
 

A. General Rule .............................................. 18
 

B. Procedure ................................................ 18
 

Section 32A1.1-10 Partial Refunds ................................. 19
 

A. "One-Out-of-Two" Requirement ................................. 19
 

B. Special Group Employees ..................................... 19
 

C. Deposits for Military Service ................................... 19
 

D. Excess Contributions When Annuity at 80 Percent Maximum .............. 20
 

Section 32A1.1-11 Leaving the Lump-Sum Credit in the Fund ............... 21
 

A. General Rules ............................................. 21
 

B. Advantages of Not Taking Refund ................................ 21
 

C. Advantages of Taking Refund ................................... 21
 

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Chapter 32
 

Subchapter 32B FERS 

Section 32B1.1-1 Overview ...................................... 23
 

A. Overview ................................................ 23
 

B. Organization of Subchapter .................................... 23
 

C. Statement of Authority ....................................... 23
 

Section 32B1.1-2 Lump-Sum Credit ................................ 24
 

A. Definition ................................................ 24
 

B. Interest Accrual ............................................ 24
 

C. Payment of Lump-Sum Credit .................................. 24
 

Section 32B1.1-3 Payment of Refund ................................ 25
 

A. Amount of Refund .......................................... 25
 

B. Effect of Refund of FERS Deductions ............................. 25
 

C. Effect of Refund of Prior Deposit/Redeposit ......................... 25
 

D. Refund of Prior CSRS Deductions ................................ 26
 

E. Effect of FERS Refund Upon Reemployment/ Retirement ................. 27
 

F. Option for Transferees to FERS ................................. 27
 

G. Application ............................................... 27
 

H. Interest Payable ............................................ 28
 

I. Effect of Government Claims ................................... 29
 

Section 32B1.1-4 Employee Eligibility Requirements ..................... 30
 

A. Primary Requirements ....................................... 30
 

Section 32B1.1-5 Spouse/Former Spouse Notification ..................... 31
 

A. Spousal Notification Requirements ................................ 31
 

B. Date of Divorce Immaterial .................................... 31
 

C. Creditable Civilian Service ..................................... 31
 

Section 32B1.1-6 Effect of Court Orders ............................. 32
 

A. Applicable CSRS Provision .................................... 32
 

B. Exception ................................................ 32
 

C. Transferees: Qualifying Court Order .............................. 32
 

Section 32B1.1-7 Application Procedures ............................. 33
 

A. Employee Responsibility ...................................... 33
 

B. Agency Responsibility ....................................... 33
 

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Chapter 32
 

Section 32B1.1-8 Miscellaneous Provisions ............................ 35
 

A. Applicable CSRS Provision .................................... 35
 

B. Exception: Cases Involving OWCP ............................... 35
 

C. Exception: "One-Out-Of-Two" Requirement ......................... 35
 

Section 32B1.1-9 Leaving the Lump-Sum Credit in the Fund ................ 36
 

A. General Rules ............................................. 36
 

B. Advantages of Not Taking Refund ................................ 36
 

C. Advantages of Taking the Refund ................................ 36
 

Subchapter 32C Job Aids 

Section 32C1.1-1 Copies of Job Aids ................................. 37
 

Information for Employees: Required Notifications to Current Spouses and Former 

Spouses When You Apply for a Refund of Retirement Deductions ........... 38
 

AGENCY CHECKLIST FOR A CSRS REFUND APPLICATION .............. 40
 

AGENCY CHECKLIST FOR A FERS REFUND APPLICATION .............. 42
 

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Chapter 32 

Subchapter 32A CSRS 

Section 32A1.1-1 Overview 

A. Introduction This Chapter covers the payment of refunds to former employees who meet 

certain eligibility requirements. 

B.	 Coverage This Chapter applies only to applications for refunds made after May 6, 

1985. The date of an employee's separation from service does not matter. 

C. Topics Covered	 This Chapter explains: 

•	 The concept of the lump-sum credit; 

•	 The content of a refund; 

•	 The requirements an employee must meet to be eligible for a refund; 

•	 The effect of spouse/former spouse notification requirements on the 

payment of a refund; 

•	 The effect of court orders on the payment of a refund; 

•	 The effect of debts due the United States on the payment of a refund; 

•	 The procedure for obtaining a refund; and 

•	 The options available to an employee with respect to a refund upon 

separation from Federal service. 

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2 CSRS	 Refunds 

Chapter 32 

Section 32A1.1-1 Overview (Cont.) 

D.	 Organization of The CSRS subchapter has eleven sections: 

Subchapter 

Section Name of Section Page 

32A1.1-1 Overview 1 

32A1.1-2 Lump-Sum Credit 3 

32A1.1-3 Payment of Refund 4 

32A1.1-4 Employee Eligibility Requirements 8 

32A1.1-5 Spouse/Former Spouse Notification 10 

32A1.1-6 Effect of Court Orders 13 

32A1.1-7 Application Procedures 14 

32A1.1-8 Employees and Annuitants Who Are Receiving

 Workers' Compensation (OWCP) 17 

32A1.1-9 Voluntary Contributions 18 

32A1.1-10 Partial Refunds 19 

32A1.1-11 Leaving the Lump-Sum Credit in the Fund 21 

NOTE: Subchapter 32B about the payment of refunds under FERS begins 

on page 22. 

E.	 Statement of This subchapter is based on the laws and regulations cited below. 

Authority 

• United States Code: 5 U.S.C. 8331(8) and 8342 

• Code of Federal Regulations: 5 CFR Part 831, Subparts Q and T 

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Chapter 32 

Section 32A1.1-2 Lump-Sum Credit 

A.	 Definition A lump-sum credit is defined in 5 U.S.C. 8331(8) as the "unrefunded 

amount" of an employee's contributions to the Civil Service Retirement and 

Disability Fund (hereafter the "Fund"). The lump-sum credit consists of: 

•	 Retirement contributions deducted from basic pay; 

•	 Deposits and/or redeposits, including deposits for post-1956 military 

service; and 

•	 Interest payable under law. (See section 32A1.1-3D.) 

B.	 Payment of The lump-sum credit may be paid to: 

Lump-Sum 

Credit 1. A separated employee or an employee who is no longer covered by 

CSRS or FERS who meets the requirements in section 32A1.1-4. 

2.	 The beneficiaries of a deceased employee as a lump-sum death benefit. 

3.	 The beneficiaries of a deceased annuitant (or survivor annuitant) if the 

full amount of retirement contributions had not been paid out in the 

form of an annuity (or survivor annuity) at the time of death. 

4.	 The beneficiaries of a deceased former employee. 

NOTE:	 In the case of 2 and 3 above, payment of the lump-sum credit is 

made to the beneficiaries of a deceased employee or annuitant 

only if there is no eligible survivor annuitant. 

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Chapter 32 

Section 32A1.1-3 Payment of Refund 

A.	 Definition A refund is the lump-sum payment to a former employee, or an employee 

who is no longer covered by CSRS or FERS, of the amount to his or her 

credit in the Fund. (Payment of the lump-sum credit to survivors of a 

deceased person is a lump-sum death benefit covered in Chapter 75, Lump 

Sum Benefits.) 

B.	 Amount of A refund payment includes payment of any and all: 

Refund 

•	 Retirement contributions deducted from basic pay, including CSRS 

Offset contributions for individuals covered under CSRS Offset; 

•	 Deposits and/or redeposits; 

•	 Military service credit deposits; 

•	 Voluntary contributions (see section 32A1.1-9); and 

•	 Interest payable under law. (See section 32A1.1-3D.) 

NOTE:	 An employee who has a voluntary contributions account can get a 

refund of the voluntary contributions before separation. 

C.	 Partial Refund A partial refund may be paid to a former employee only under very limited 

circumstances, which are described in section 32A1.1-10. For detailed 

information about the return of excess contributions, see Chapter 33, Return 

of Excess Contributions. 

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Chapter 32 

Section 32A1.1-3 Payment of Refund (Cont.) 

D.	 Interest Payable Interest on all contributions, except voluntary contributions, is paid as 

follows: 

Years of Service Interest Due 

1. One year of service (in the aggregate) 

in the periods covered by unrefunded 

retirement deductions and deposits. 

None 

2. More than 1 year of service (in the 

aggregate) in the periods covered by 

unrefunded deductions and deposits, 

but less than 5 years of creditable 

civilian service. 

Four percent interest through 

12/31/47 and 3 percent 

thereafter compounded 

annually to date of 

separation. 

3. More than 1 year of service (in the 

aggregate) in the periods covered by 

unrefunded deductions and deposits, 

and 5 or more years of creditable 

civilian service. 

Interest as stated in 2 

(above) through December 

31, 1956, and no interest 

thereafter. 

E.	 Interest Payable 

on Voluntary 

Contributions 

Prior to 1985, voluntary contributions earned interest at the rate of 

3 percent compounded annually. Starting January 1, 1985, the interest rate 

on voluntary contributions is a variable rate determined each year by the 

U.S. Department of the Treasury. 

The rate is based on the average yield of new investments purchased by the 

Fund during the previous fiscal year. The interest rates are: 

Variable Interest Rates 

Year 

1985 

1986 

1987 

1988 

1989 

1990 

Interest 

Rate 

13.0% 

11.125% 

9.0% 

8.375% 

9.125% 

8.75% 

Year 

1991 

1992 

1993 

1994 

1995 

1996 

> 1997 

All future 

periods 

Interest 

Rate 

8.625% 

8.125% 

7.125% 

6.25% 

7.0% 

6.875% 

6.875% < 

To be determined 

by the Department 

of the Treasury 

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Chapter 32 

Section 32A1.1-3 Payment of Refund (Cont.) 

F. Effect of 

Obtaining Refund 

When a CSRS refund has been properly paid, all annuity rights based on 

service covered by the refund are void unless the former employee is later 

reemployed in a position subject to CSRS or FERS deductions. (If the 

reemployment is under FERS, it may be necessary to make a deposit to 

cover the service before any credit for the service is restored. See 

Chapter 21, Service Credit Payments for Civilian Service.) 

EXCEPTION 1: If an individual who has received a refund applies for 

disability retirement within 1 year of separation and 

OPM approves the disability retirement, the refund is 

treated as an erroneous payment and becomes a debt to 

the Fund. 

OPM will withhold the debt from future annuity 

payments. (See Chapter 4, Debt Collection, for 

information about debt collection.) 

EXCEPTION 2: When a third party, such as the Merit Systems 

Protection Board or an arbitrator, cancels a separation 

because it found that the action was an unjustified or 

unwarranted personnel action, a refund becomes an 

erroneous payment and a debt due the Fund. The 

agency must withhold the refund from any back pay. 

(See 5 CFR 550.805(e)(2).) 

G. Future Credit for 

Refunded Service 

Service for which the employee received a refund is creditable in 

determining whether a current employee has served the required number of 

years to be eligible for a CSRS annuity. 

However, such service may be used for annuity computation purposes only 

in the following circumstances. 

1.	 If the individual applies for a nondisability annuity commencing after 

December 1, 1990, and the refunded service ended before October 1, 

1990, with certain exceptions (see section 21A3.1-3 of Chapter 21, 

Service Credit Payments for Civilian Service), the refund does not have 

to be repaid for the individual to receive credit for the service. Full 

credit will be allowed for the length of the refunded service, but the 

annuity will be actuarially reduced by an amount equal to the reduction 

for an alternative form of annuity lump sum in the amount of the 

redeposit. 

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 CSRS	 Refunds 7 

Chapter 32 

Section 32A1.1-3 Payment of Refund (Cont.) 

G. Future Credit for	 2. If the individual applies for a disability annuity or the refunded service 

Refunded Service ended after October 1, 1990, the individual must redeposit the refund 

(Cont.) plus interest (see Chapter 21). 

3.	 If the individual is eligible to make an alternative annuity election (see 

Chapter 53, Alternative Annuity Elections), the redeposit will be 

deemed paid at the time of retirement (but see Chapter 21, section 

21A3.1-3 for exceptions). 

EXCEPTION: Service for which an employee received a refund can be 

included in the high-3 average salary computation even if 

a redeposit is not paid. 

H. Effect of A refund is subject to any properly certified, timely request for recovery of 

Government a valid debt due the United States. Detailed information on debts due the 

Claims United States is located in Chapter 4. 

I. Federal Income The amount of a refund representing an employee's actual contributions is 

Tax not subject to federal income tax. However, any interest paid on those 

contributions is taxable in the year in which the refund is paid. 

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8 CSRS Refunds 

Chapter 32 

Section 32A1.1-4 Employee Eligibility Requirements 

A. Primary A former employee must meet all of the following requirements to be 

Requirements eligible for a refund: 

No. Requirements

 1 Separate from the service for at least 31 consecutive 

days or transfer to a position in which he or she is not 

subject to CSRS, CSRS Offset, or FERS deductions and 

remain such position for at least 31 consecutive days.

 2 File an application with OPM for a refund.

 3 Not to be reemployed in a position subject to CSRS or 

FERS deductions at the time the application is filed.

 4 Not to be eligible to receive an annuity within 31 days 

after filing the application. 

Note 1: Retiring employees generally have the option 

to elect an alternative annuity that provides for 

payment of the lump-sum amount unless the 

employee is retiring on disability or has a 

former spouse entitled to benefits under a 

court order. (See Chapter 53.) 

Note 2: For applications filed through agencies, the 

agency is OPM's agent for the purpose of the 

31-day filing requirement. OPM uses the date 

received by the agency to determine whether 

the application meets the test.

 5 Not be prohibited from receiving a refund because of a 

court order. (See section 32A1.1-6.)

 6 Comply with requirements for notification of current 

and former spouse(s) as outlined in paragraph B below. 

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 CSRS	 Refunds 9 

Chapter 32 

Section 32A1.1-4 Employee Eligibility Requirements (Cont.) 

B. Additional The following decision table applies to all employees with civilian service 

Requirements	 subject to CSRS deductions who are applying for a refund after May 6, 

1985: 

No. Marital Status Creditable Service Additional 

Requirements 

1 Never married Any amount None 

2 Currently unmarried 

with living former 

spouse: 

A. Divorced prior 

to 5/7/85 

None 

B. Divorced after None 

5/6/85 but 

married less than 

9 months 

C. Divorced after 

5/6/85 and 

married 9 

months or more 

At least 18 months 

(includes 

previously 

refunded service, 

Spousal notification 

required (See section 

32A1.1-5) 

but not 

nondeduction 

service) 

3 Currently married Any amount Spousal notification 

with or without living required (See section 

former spouse(s) 32A1.1-5) 

A current spouse must always be notified, regardless of the length of the 

marriage or the amount of civilian service the employee has. 

Section 32A1.1-5 discusses the spouse/former spouse notification 

requirements in detail. 

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Chapter 32 

Section 32A1.1-5 Spouse/Former Spouse Notification 

A. Requirement The former employee must follow the procedures below to notify a current 

or qualifying former spouse(s) that he or she is applying for a refund. 

B. Procedure The former employee's application must be accompanied by an SF 2802B 

(Current/Former Spouse Notification of Application for Refund of 

Retirement Deductions under the Civil Service Retirement System) for a 

current spouse and each qualifying former spouse. An SF 2802B must be 

signed by the individual's current spouse or any former spouse. 

C.	 Purpose of The purpose of notification is: 

Notification 

1.	 To inform the current or former spouse(s) of the refund application and 

its effect on any future annuity entitlement; and 

2.	 To document the fact that the current or former spouse(s) received the 

information. 

NOTE:	 The notification requirement is different from the "consent" 

requirement in retirement cases. (See Chapter 52, Survivor 

Benefit Elections.) 

In the absence of a qualifying court order (see section 

32A1.1-6B), the spouse and/or former spouse cannot stop 

payment of the refund. However, upon notification, a spouse or 

former spouse can seek a qualifying court order to stop payment 

of the refund or send an existing qualifying court order to OPM if 

he or she has not done so already. 

D.	 Failure to Submit OPM cannot pay the refund unless the applicant submits an SF 2802B, 

SF 2802B	 supplies the documentation required under paragraph E below, or is 

authorized a waiver of the notification requirement. (See paragraph F.) 

E. Inability to 

Secure Signature 

If the employee is unable to secure a current or former spouse's signature 

on the application, the employee must submit with the refund application 

one of the following: 

•	 Notarized statements by two individuals who witnessed the employee 

notifying or attempting to notify a current or former spouse of the 

refund application. The notarized statements must attest that the 

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 CSRS	 Refunds 11 

Chapter 32 

Section 32A1.1-5 Spouse/Former Spouse Notification (Cont.) 

E. Inability to 

Secure Signature 

(Cont.) 

witness saw the employee personally give (or try to give) the 

notification to the spouse or former spouse, to whom the employee's 

purpose should have been clear. 

• A current or former spouse's mailing address so OPM may attempt to 

notify him or her. If OPM is requested to make the notification, it will 

cause a 6 to 8 week delay in payment of the refund. The refund cannot 

be paid unless OPM receives a return receipt indicating that the notice 

was delivered. 

F.	 Waiver of OPM may waive the spousal notification requirement if the employee 

Notification submits evidence to OPM that his or her current or former spouse's 

Requirement whereabouts are unknown. Evidence may consist of: 

•	 A determination by a court or administrative agency empowered to 

make a decision that the spouse is missing; or 

•	 A notarized statement from the former employee and two other 

competent adults (one of whom is not related to the former employee), 

attesting to the fact that a current or former spouse's whereabouts are 

unknown. The statement must detail the steps taken to locate him or 

her.

NOTE:	 In the absence of sworn affidavits in E or F above, unsworn 

statements (declaration) in the following form are equivalent to an 

affidavit: 

(1)	 If executed outside of the United States, its territories, 

possessions, or commonwealths: "I declare (or certify, 

verify, or state) under penalty of perjury under the laws of 

the United States of America that the foregoing is true and 

correct. 

Executed on (date). 

(Signature)". 

(2)	 If executed within the United States, its territories, 

possessions, or commonwealths: "I declare (or certify, 

verify, or state) under penalty of perjury that the foregoing is 

true and correct. 

Executed on (date). 

(Signature)". 

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Chapter 32 

Section 32A1.1-5 Spouse/Former Spouse Notification (Cont.) 

G. Falsification of If a former employee falsifies information or signatures required on 

Information or SF 2802B, he or she may be investigated and prosecuted under 18 U.S.C. 

Signatures on 495, 18 U.S.C. 1001, or any other applicable statute. 

SF 2802B 

If the falsification results in a payment to the former employee that should 

properly have been made to a current or former spouse based on a 

qualifying court order, the former employee will be subject to civil 

litigation or administrative action to recover the erroneously paid funds. 

CSRS and FERS Handbook April, 1998 
 CSRS Refunds 13 

Chapter 32 

Section 32A1.1-6 Effect of Court Orders 

A.	 Requirement A refund to an employee with a total of more than 5 years of creditable 

civilian service is subject to any qualifying court order issued after May 6, 

1985, involving the former employee and his or her current or former 

spouse(s). The 5 years of creditable service includes temporary or other 

service during which the retirement deductions were not withheld. 

B.	 Qualifying Court To be a qualifying court order, the court order must: 

Order 

•	 Be on file with OPM before the refund is paid; 

•	 Expressly relate to the lump-sum credit (for example, "deductions," 

"contributions," "retirement fund," or "retirement account"); and 

•	 Entitle the spouse or former spouse(s) to a survivor annuity or an 

apportioned share of the employee's annuity. 

C.	 To Deny Payment To deny payment of the refund, OPM must receive evidence of the 

of Refund following: 

•	 The marriage to the former spouse(s) lasted at least 9 months (there is 

no minimum time requirement for a marriage to a current spouse); and 

•	 The employee's current or former spouse(s) has been granted a survivor 

annuity by court-ordered separation agreement effective after May 6, 

1985; or 

•	 The employee's current or former spouse(s) has been awarded a portion 

of an annuity payable during the employee's lifetime by a court order or 

decree effective after May 6, 1985. 

D.	 Multiple Court 

Orders 

In the absence of other controlling factors, OPM honors court orders 

according to date of issuance. 

•	 Different Spouse (for example, a former spouse and a current spouse, 

or multiple former spouses): the order that was issued first is honored 

first. 

•	 Same Spouse: The order that was issued last is honored first. 

E. Reference Detailed information on qualifying court orders is located in 5 CFR, Part 

838. 

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Chapter 32 

Section 32A1.1-7 Application Procedures 

A.	 Employee 1. The employee must file an SF 2802, Application for Refund of 

Responsibility Retirement Deductions (and an SF 2802B, if required). 

a.	 The SF 2802 must be signed, in ink, to be accepted by OPM. 

OPM must verify that the "original" signature appears on the 

application. OPM cannot accept a photocopy. 

b.	 The payment address information shown on the SF 2802 must be 

the correct mailing address for the refund payment. OPM cannot 

accept an address that has been altered. 

c.	 An SF 2802B must be given to the current spouse and all qualifying 

former spouses. A copy of the SF 2802B is attached to the 

SF 2802. Single copies are also available if needed. 

2.	 Filing the application: 

a.	 If the employee has been separated 30 days or less, the application 

must be filed with the agency. 

b.	 If the employee has been separated more than 30 days, he or she 

sends the application directly to OPM at the following address: 

Office of Personnel Management 

Civil Service Retirement System 

Retirement Operations Center 

ATTN: REFUNDS 

Boyers, PA 16020 

B.	 Agency 1. The agency must: 

Responsibility 

•	 Provide the employee with an SF 2802, Application for Refund of 

Retirement Deductions. 

•	 Review the employee's application for completeness, including 

compliance with spousal notification requirements, and enter the 

receipt date on the form. 

•	 Send the employee's Individual Retirement Record (SF 2806) to 

OPM with the refund application attached to the address given in 

paragraph A2b. 

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 CSRS	 Refunds 15 

Chapter 32 

Section 32A1.1-7 Application Procedures (Cont.) 

B.	 Agency NOTE: The agency must make sure that CSRS 7 percent 

Responsibility deductions were not withheld for an employee who should 

(Cont.) have been covered under FERS or CSRS Offset. 

•	 Notify OPM if the employee owes a debt to the United States or 

attach a Request for Recovery of a Debt Due the United States 

(SF 2805) for debts to be recovered from the employee's lump-sum 

credit. (See Chapter 4, Debt Collection.) 

•	 If the SF 2806 has already been sent to OPM, send the refund 

application promptly to OPM with a notation stating the date and 

number of the Register of Separations and Transfers (SF 2807) with 

which the record was transmitted. 

2.	 A copy of an Agency Checklist for a CSRS Refund Application 

(RI 36-56) is contained in Subchapter 32C, Job Aids and Forms. The 

checklist is an aid to help ensure that refund applications are completed 

correctly so that OPM can make refunds promptly when it receives an 

application. Forward the completed checklist to OPM with the 

employee's records. 

C.	 OPM 1. When it receives a refund application, OPM: 

Responsibility 

•	 Searches its files to identify all records that pertain to the applicant; 

•	 Reviews the application for completeness and the former 

employee's eligibility for payment; 

•	 Computes the refund, including any interest payable; 

•	 Withholds funds for any properly submitted government claim; 

•	 Honors a qualifying court order; and 

•	 Authorizes the refund payment. 

2.	 If OPM determines that the employee appears to have been incorrectly 

placed under CSRS when he or she should have been under CSRS Offset or FERS, OPM does not pay any refund until it receives additional 

information showing that CSRS coverage was correct, or the agency 

submits corrected records. Correction of record involves not only the 

April, 1998	 CSRS and FERS Handbook 
16 CSRS Refunds 

Chapter 32 

Section 32A1.1-7 Application Procedures (Cont.) 

C.	 OPM individual's record, but also correction of the agency contribution 

Responsibility record, as well as Thrift Board and Social Security records. (See 

(Cont.) Chapter 84, Correction of Retirement Records.) 

3.	 Assuming an applicant's records are complete and correct, OPM 

normally authorizes payment of a refund within 12 to 14 days of 

receiving the records. After OPM authorizes payment, it takes about 10 

days for the Department of the Treasury to create the check and for the 

U.S. Postal Service to deliver it. 

4.	 To check on the status of a refund application, call OPM's Retirement 

Information Office (202) 606-0500. Those inquiring must provide: 

•	 The employee's name, date of birth, and social security number; 

and 

•	 The Register of Separations number and the date the SF 2806 was 

sent to OPM. (The agency payroll office assigns the register 

number and date when it sends records to OPM.) 

CSRS and FERS Handbook	 April, 1998 
 CSRS	 Refunds 17 

Chapter 32 

Section 32A1.1-8 Employees and Annuitants Who Are Receiving Workers' Compensation 

(OWCP) 

A. Eligibility for a	 Employees who are separated from employment and receiving benefits from 

Refund	 OWCP due to a job-related injury or disease may receive a refund of their 

CSRS retirement contributions. 

NOTE:	 This includes retirees whose annuity is suspended because of 

receipt of OWCP benefits. 

B.	 Effect of Refund As in a normal refund situation, the person forfeits all annuity rights based 

on the service covered by the refund including survivor benefits unless he 

or she is later reemployed in a position subject to CSRS or FERS. 

CAUTION:	 Under OWCP, survivor benefits are payable only if the death 

is caused by a job-related injury or disease. Therefore, if the 

former employee received a refund and his or her death is not 

caused by a job-related injury, no survivor benefits will be 

payable under either CSRS or OWCP. 

C. Procedure To apply for a refund, follow the instructions in section 32A1.1-7. 

April, 1998	 CSRS and FERS Handbook 
18 CSRS	 Refunds 

Chapter 32 

Section 32A1.1-9 Voluntary Contributions 

A.	 General Rule A current or separated employee may withdraw his or her voluntary 

contributions at any time prior to retirement (or at the time of retirement) 

instead of using the voluntary contributions to purchase additional annuity 

benefits. 

B.	 Procedure 1. The applicant must complete and file a Standard Form 2802. The 

employee must state in item 7 "I want only my voluntary contributions 

to be refunded to me" or similar words expressing this intent. 

2.	 Spousal notification is not required for a voluntary contributions refund. 

3.	 If the applicant is currently employed, the SF 2802 is filed with the 

employing agency. The employing agency must certify the employee's 

cumulative basic pay earned at that agency to OPM when it forwards 

the SF 2802 to OPM. OPM will not pay the refund without this 

information so that it can determine whether the employee's 

contributions exceed the 10-percent maximum limit. (See Chapter 31, 

Voluntary Contributions.) 

4.	 A separated employee files his or her SF 2802 directly with OPM. 

CSRS and FERS Handbook	 April, 1998 
 CSRS Refunds 19 

Chapter 32 

Section 32A1.1-10 Partial Refunds 

A.	 "One-Out-of- An employee who: 

Two" 

Requirement • Was not employed under CSRS for at least 1 year within the 2-year 

period immediately preceding his or her last separation; and 

•	 Has an annuity right based on a prior separation (that is, had 5 or more 

years of civilian service and met the 1-out-of-2 requirement upon the 

prior separation), 

may receive a refund covering only the service that does not meet the 

"1-out-of-2" requirement without losing any annuity right based on a prior 

separation. 

NOTE:	 The former employee must specifically request a partial refund on 

the SF 2802, Application for Refund of Retirement Deductions. 

If the individual fails to make such a statement, OPM pays the 

former employee the entire lump-sum credit. This results in the 

forfeiture of all annuity rights. 

B. Special Group
 

Employees
 

Special group employees (for example, law enforcement officers, 

firefighters) who qualify for an annuity but cannot receive the special 

annuity computation, are not eligible to receive a refund of the additional 

retirement deductions that are withheld from the pay of those groups. (See 

Chapter 46 for additional information on the retirement provisions that 

apply to special group employees.) 

C.	 Deposits for Employees who make a complete or partial deposit for military service are 

Military Service	 not eligible for a refund of the payment(s) properly accepted by the 

employing agency unless: 

•	 They separate and meet the requirements for a refund of all 

contributions; 

•	 They retire after making only a partial deposit; 

•	 They are receiving military retired service pay and decide against 

waiving it to combine military and civilian service at the time of 

retirement; or 

April, 1998	 CSRS and FERS Handbook 
20 CSRS	 Refunds 

Chapter 32 

Section 32A1.1-10 Partial Refunds (Cont.) 

C. Deposits for • They receive a refund of the deposit as a part of an alternative annuity 

Military Service lump-sum payment at the time of retirement. 

(Cont.) 

NOTE: If payments are incorrectly accepted by an employing agency 

(such as payments for more than is correctly due), see 

Chapter 23, Service Credit Payments for Post-1956 Military 

Service, for instructions on how to adjust the account. 

D.	 Excess 

Contributions 

When Annuity at 

80 Percent 

Maximum 

Employees who have more service than required to earn the maximum 

benefit of 80 percent (which is usually reached after 41 years and 11 months 

of service) may receive a refund when their retirements are processed by 

OPM of any excess retirement contributions. Excess deductions are applied 

to any unpaid deposits and redeposits. When a retirement claim is 

adjudicated by OPM, the retiree will be given the choice of having any 

remaining amount refunded or using it to purchase additional annuity. (See 

Chapter 31.) 

CSRS and FERS Handbook	 April, 1998 
 CSRS	 Refunds 21 

Chapter 32 

Section 32A1.1-11 Leaving the Lump-Sum Credit in the Fund 

A.	 General Rules 1. Any employee who is separated from service may leave his or her 

lump-sum credit in the Fund. 

2.	 Leaving the lump-sum credit in the Fund does not preclude a refund at 

a later date, provided application is filed with OPM at least 31 days 

before the employee becomes eligible for an annuity. 

3.	 If the former employee dies before becoming eligible for and filing for 

an annuity, the lump-sum credit is payable as a death benefit. 

B.	 Advantages of 1. If the employee has completed at least 5 years of civilian service before 

Not Taking a separation from covered service that meets the "1-out-of-2" 

Refund requirement, he or she has entitlement to a deferred annuity at age 62 

that may exceed the value of the lump-sum credit. 

2.	 Leaving the lump-sum credit in the Fund avoids the necessity of making 

a redeposit (with market interest) to receive credit for the service if the 

employee is reemployed by the government. 

3.	 Upon attaining age 62 and applying for a deferred annuity, the former 

employee may provide a survivor annuity for his or her spouse or 

former spouse(s). If there is no qualifying court order providing a 

benefit to a former spouse(s), the former employee may receive the 

lump-sum credit under the alternative annuity election. (For eligibility 

rules for the alternative annuity, see Chapter 53.) 

C.	 Advantages of 1. If the employee has less than 5 years of civilian service and does not 

Taking Refund contemplate returning to Federal service, there are no future benefits. 

2.	 Employees may be able to invest the money in ways that will exceed the 

value of any deferred annuity at age 62. 

April, 1998	 CSRS and FERS Handbook 
22 CSRS Refunds 

Chapter 32
 

BLANK PAGE 

CSRS and FERS Handbook April, 1998 
Refunds	 FERS 23 

Chapter 32 

Subchapter 32B FERS 

Section 32B1.1-1 Overview 

A.	 Overview Subchapter 32B outlines the rules and policies affecting refunds to former 

employees who separate under FERS. 

In many respects, the rules and policies are the same as under CSRS. This 

subchapter explains how FERS differs from CSRS. It refers readers to the 

CSRS rules that apply, or gives the FERS rule if it is different. 

B. Organization of The FERS subchapter has nine sections. 

Subchapter 

Section Name of Section Page 

32B1.1-1 Overview 22 

32B1.1-2 Lump-Sum Credit 23 

32B1.1-3 Payment of Refund 24 

32B1.1-4 Employee Eligibility 

Requirements 

28 

32B1.1-5 Spouse/Former Spouse 

Notification 29 

32B1.1-6 Effect of Court Orders 30 

32B1.1-7 Application Procedures 31 

32B1.1-8 Miscellaneous Provisions 33 

32B1.1-9 Leaving the Lump-Sum Credit in 

the Fund 34 

C.	 Statement of This subchapter is based on the laws and regulations cited below. 

Authority 

• United States Code: 5 U.S.C. 8424 

• Code of Federal Regulations: 5 CFR Part 843, Subpart B 

April, 1998	 CSRS and FERS Handbook 
24 Refunds FERS 

Chapter 32 

Section 32B1.1-2 Lump-Sum Credit 

A.	 Definition A lump-sum credit under FERS is defined in 5 U.S.C. 8401(19) as the 

"unrefunded amount" of an employee's contributions to the Fund. The 

lump-sum credit consists of: 

•	 FERS basic annuity deductions from pay; 

•	 CSRS Interim plan deductions; 

•	 CSRS Offset deductions; 

•	 Any civilian deposit or deposit for post-1956 military service; 

•	 The balance after the return of excess deductions (civilian and military); 

•	 Interest (See section 32B1.1-3H.) 

B.	 Interest Accrual In general, a FERS lump-sum credit earns interest at the market rate. (See 

section 32B1.1-3H.) For a transferee with a CSRS annuity component, 

under CSRS rules, no interest is payable on the CSRS portion of the lumpsum (section 32A1.1-3D). Interest does accrue on the FERS portion under 

FERS rules. 

C.	 Payment of The lump-sum credit is paid to: 

Lump-Sum 

Credit 1. A separated employee or an employee who is no longer covered by 

FERS who meets the requirements in section 32A1.1-4. 

2.	 The beneficiaries of a deceased employee, former employee, annuitant, 

or survivor annuitant, if the full amount of retirement contributions had 

not been paid out in the form of annuity (or survivor annuity) at the 

time of death. 

3.	 Payment of the lump-sum credit is made to the beneficiaries of a 

deceased employee, former employee, or annuitant only if there is no 

survivor annuitant. 

CSRS and FERS Handbook	 April, 1998 
Refunds	 FERS 25 

Chapter 32 

Section 32B1.1-3 Payment of Refund 

A.	 Amount of 1. A FERS refund includes payment of all: 

Refund 

•	 FERS basic annuity deductions from pay; 

•	 CSRS Interim plan deductions; 

•	 CSRS Offset deductions; 

•	 Civilian deposit if any; 

•	 Military service credit deposit if any; and 

•	 Interest. (See section 32B1.1-3H.) 

2.	 When an employee who has transferred to FERS has future entitlement 

to an annuity with a CSRS component and requests a refund, OPM also 

pays all CSRS money to the person's credit, including voluntary 

contributions made before the employee transferred to FERS. A CSRS 

component is that portion of FERS annuity computed under CSRS 

rules. A benefit will have a CSRS component if the employee: (1) 

elected to transfer to FERS; and (2) had 5 or more years of creditable 

civilian service, not counting CSRS Offset or Interim service, 

performed as of the date of the employee's transfer to FERS. 

B.	 Effect of Refund Payment of a refund of FERS deductions permanently voids any retirement 

of FERS rights based on the period of FERS service that the refund covers. This 

Deductions means that an employee cannot repay the money in the future to reestablish 

credit for the refunded FERS service. 

C.	 Effect of Refund 

of Prior 

Deposit/Redeposit

1. Payment of a refund of a prior FERS deposit (for nondeduction service 

performed prior to January 1, 1989) is treated as a refund of FERS 

deductions and permanently voids any retirement rights that are based 

on the period(s) of service covered by the payment. 

Example: Susie held temporary appointments from February 1, 1967 

through November 30, 1967 and May 1, 1969 through January 31, 

1970. As a temporary employee, she was not covered by retirement. 

On April 1, 1990, she received a career-conditional appointment and 

was automatically covered by FERS. She paid a deposit for the two 

periods of temporary service. This service was credited under FERS 

rules. 

April, 1998	 CSRS and FERS Handbook 
26 Refunds FERS 

Chapter 32 

Section 32B1.1-3 Payment of Refund (Cont.) 

C. Effect of Refund On February 28, 1995, Susie resigned. She applied for and received a 

of Prior refund of the money to her credit in the retirement fund. Since all of 

Deposit/Redeposit Susie's service is treated under FERS rules, the refund permanently 

(Cont.) voids the retirement rights she otherwise would have had covering all 

three periods of service. 

2. The refund of a redeposit covering service performed under CSRS 

rules, but now treated under FERS rules, is treated as a refund of FERS 

deductions and permanently voids any retirement rights that are based 

on the period(s) of service covered by the payment. 

Example: Joe had CSRS-covered service from November 1, 1972 until 

September 30, 1977. He received a refund of his CSRS deductions. 

On June 1, 1992, Joe returned to Federal Service. Since he did not 

have 5 years of creditable civilian service, he was automatically covered 

by FERS. He made payment under FERS rules to receive credit for his 

period of refunded service. On April 30, 1995, Joe resigned. He 

applied for a refund of the money to his credit in the retirement fund. 

Since all of his service is being treated under FERS rules, payment of 

the refund voids his retirement rights based on both periods of his 

service. 

D. Refund of Prior Payment of a refund of CSRS deductions covering service included in a 

CSRS Deductions CSRS annuity component is made under CSRS rules. (See section 

32A1.1-3F.) 

CSRS and FERS Handbook April, 1998 
Refunds	 FERS 27 

Chapter 32 

Section 32B1.1-3 Payment of Refund (Cont.) 

E.	 Effect of FERS 1. FERS service covered by a refund: 

Refund Upon 

Reemployment/ • Cannot be paid back; 

Retirement •	 Is not creditable for eligibility for an annuity (that is, the length of 

service requirement); and 

•	 Cannot be used for annuity computation purposes (that is, high-3 

average salary and length of service computations). 

2.	 Refunded FERS service is creditable for leave, RIF, and Thrift Savings 

Plan vesting. This means that an employee may have one SCD (Service 

Computation Date) for retirement and a different SCD for leave, etc. 

3.	 When an employee is otherwise eligible for an annuity, refunded CSRS 

component service is creditable for eligibility for an annuity. However, 

it cannot be used for annuity computation purposes, other than the high3 average salary computation, unless the individual redeposits the 

refund covering CSRS component service plus interest. A refund of 

CSRS component service that is paid after an employee transfers to 

FERS cannot be deemed redeposited in an alternative annuity election if 

the employee is entitled only to a deferred annuity. (See Chapter 21 

and Chapter 53.) 

F.	 Option for If the former employee transferred to FERS with a CSRS annuity 

Transferees to component, the former employee may request a refund of CSRS 

FERS contributions only. The former employee must attach a statement to the 

FERS refund application specifying this request. 

G.	 Application An applicant for a refund must complete and submit to OPM: 

•	 An SF 3106, Application for Refund of Retirement Deductions. 

NOTE:	 If the CSRS refund application (SF 8202) is used in error, it will 

delay payment of the refund. There are significant differences 

between FERS and CSRS refunds. An employee must use the 

correct application to insure that he or she is making an informed 

decision to apply for the refund. 

•	 An SF 3106A, Current/Former Spouse's Notification of Application for 

Refund of Retirement Deductions, when required. 

April, 1998	 CSRS and FERS Handbook 
28	 Refunds FERS 

Chapter 32 

Section 32B1.1-3 Payment of Refund (Cont.) 

G. Application 

(Cont.) 

NOTE: The SF 3106A is attached to the SF 3106 as a tear-off sheet. It 

also is available separately for employees who need more than one 

notification form. 

IMPORTANT: The SF 3106A must be given to the current spouse and all 

former spouses to whom an employee with at least 

18 months creditable civilian service was married for at 

least 9 months. 

H. Interest Payable 1. No interest is paid on a refund of FERS contributions: 

•	 If the service covered by the contributions totals 1 year or less in 

the aggregate; or 

•	 For a fractional part of a month. 

NOTE:	 No interest is payable on prior CSRS contributions if the covered 

service would be included in a CSRS annuity component. 

2.	 Interest on refunded FERS contributions is compounded annually 

through the last day of the month preceding the date OPM makes 

payment. 

3.	 The interest rate is determined annually by the U.S. Department of the 

Treasury based on the average yield of new investments purchased by 

the Fund during the previous fiscal year. 

4.	 The variable annual interest rates are as follows: 

Variable Interest Rates 

Year 

1984 

1985 

1986 

1987 

1988 

1989 

1990 

Interest 

Rate 

11.0% 

13.0% 

11.125% 

9.0% 

8.375% 

9.125% 

8.75% 

Year 

1991 

1992 

1993 

1994 

1995 

1996 

> 1997 

All future 

periods 

Interest 

Rate 

8.625% 

8.125% 

7.125% 

6.25%

7.0% 

6.875% 

6.875% < 

To be determined 

by the Department 

of the Treasury 

CSRS and FERS Handbook	 April, 1998 
Refunds FERS 29 

Chapter 32 

Section 32B1.1-3 Payment of Refund (Cont.) 

I.	 Effect of The CSRS provisions concerning the effect of debts due the United States 

Government also apply to FERS. (See Chapter 4.) 

Claims 

April, 1998	 CSRS and FERS Handbook 
30 Refunds FERS 

Chapter 32 

Section 32B1.1-4 Employee Eligibility Requirements 

A. Primary The primary eligibility requirements listed under CSRS Section 32A1.1-4A 

Requirements apply entirely under FERS. 

CSRS and FERS Handbook April, 1998 
Refunds FERS 31 

Chapter 32 

Section 32B1.1-5 Spouse/Former Spouse Notification 

A. Spousal The FERS spouse/former spouse notification requirements differ 

Notification significantly from the CSRS requirements. 

Requirements 

The following decision table applies to all employees with civilian service 

subject to FERS deductions who are applying for a refund. 

No. Marital Status Creditable

 Civilian

 Service

 Additional

 Requirements 

1 Never married Any amount None 

2 Currently unmarried 

with living former 

spouse: 

A. Divorced but 

married less 

than 9 months

 At least 18

 months

 None 

B. Divorced but 

married 9 

months or 

more

 Notification required 

3 Currently married 

with or without 

living former spouse

 Any amount Notification required 

B. Date of 

Divorce 

Immaterial 

Under FERS, the date of the divorce is immaterial. The notification 

requirement applies even though the marriage may have occurred before the 

employee's FERS coverage or Federal employment began. 

C. Creditable 

Civilian 

Service 

Agencies are responsible for advising employees how much creditable 

civilian service they have. When determining if the employee has 18 

months of creditable civilian service, do not include: 

1. Prior refunded FERS service, since refunded FERS service is not 

creditable under FERS; or 

2. Nondeduction service performed on or after January 1, 1989, since 

nondeduction service performed after January 1, 1989 is not creditable 

under FERS. 

April, 1998 CSRS and FERS Handbook 
32	 Refunds FERS 

Chapter 32 

Section 32B1.1-6 Effect of Court Orders 

A. Applicable CSRS With one exception, the effects of court orders under CSRS and FERS are 

Provision identical. The exception is noted below. 

B. Exception The CSRS requirement that the divorce or court-approved separation 

agreement occur on or after May 7, 1985, does not apply under FERS. 

C. Transferees:	 For an employee who transferred to FERS from a CSRS-covered position, a 

Qualifying Court court order that references CSRS benefits is honored. 

Order 

EXAMPLE: Jane is awarded one-half of John's CSRS annuity. 

The order is generally applied to the entire annuity. 

CSRS and FERS Handbook	 April, 1998 
Refunds	 FERS 33 

Chapter 32 

Section 32B1.1-7 Application Procedures 

A. Employee	 1. The employee must file an SF 3106, Application for a Refund of 

Responsibility Retirement Deductions (and an SF 3106A, when necessary). 

2.	 Filing the application: 

a.	 If the employee has been separated 30 days or less, the application 

must be filed with the agency. 

b.	 If the employee has been separated more than 30 days, he or she 

sends the application directly to OPM at the following address: 

Office of Personnel Management 

Federal Employees Retirement System 

Retirement Operations Center 

ATTN: REFUNDS 

Boyers, PA 16017 

IMPORTANT:	 If the employee wants a refund of CSRS contributions 

only, he or she must attach a signed statement to that 

effect to the SF 3106. 

B. Agency 

Responsibility 

1.	 The agency must: 

•	 Provide the employee with an SF 3106 and additional SF 3106A's if 

needed; 

•	 Note the date the SF 3106 was received and review the application for 

completeness, including compliance with spousal notification 

requirements; 

•	 Send the employee's Individual Retirement Record (SF 3100), with the 

refund application attached, and all SF 3102's (FERS Designation of 

Beneficiary) to OPM; 

•	 Notify OPM if the employee owes a debt to the United States or attach 

a Request for Recovery of Debt Due the United States (SF 2805) for 

debts to be recovered from the employee's lump-sum credit (see 

Chapter 4); and 

April, 1998	 CSRS and FERS Handbook 
34	 Refunds FERS 

Chapter 32 

Section 32B1.1-7 Application Procedures (Cont.) 

B.	 Agency • If the SF 3100 was already sent to OPM, send the refund application 

Responsibility promptly to OPM with a notation stating the date and number of the 

(Cont.) Register of Separations and Transfers (SF 3103) with which the record 

was transmitted. 

2.	 A copy of an Agency Checklist for a FERS Refund Application 

(RI 95-2) is contained in Subchapter 32C, Job Aids and Forms. The 

checklist is an aid to help ensure that refund applications are completed 

correctly so that OPM can make payments promptly when it receives an 

application package. Forward completed checklists to OPM with the 

employee's records. 

CSRS and FERS Handbook	 April, 1998 
Refunds	 FERS 35 

Chapter 32 

Section 32B1.1-8 Miscellaneous Provisions 

A. Applicable CSRS Section 32A1.1-9 on voluntary contributions applies entirely under FERS. 

Provision	 With two exceptions, the provisions of Sections 32A1.1-8 (Employees and 

Annuitants Who Are Receiving Workers' Compensation (OWCP)) and 

32A1.1-10 (Partial Refunds) also apply to FERS. 

B.	 Exception: Cases In the event of a FERS refund in a workers' compensation case, all annuity 

Involving OWCP	 rights based on service covered by the refund, including survivor benefits, 

are forfeited. The forfeiture stands even if the individual is later 

reemployed, since a FERS refund cannot be repaid. 

C. Exception: "One- There is no "1-out-of-2" requirement (defined in section 32A1.10A) under 

Out-Of-Two" FERS. Therefore, the ability to obtain a partial refund because of having 

Requirement less than "1-out-of-2" years of service does not apply under FERS. 

April, 1998	 CSRS and FERS Handbook 
36	 Refunds FERS 

Chapter 32 

Section 32B1.1-9 Leaving the Lump-Sum Credit in the Fund 

A. General Rules	 • Any employee who is separated from Federal service may leave his or 

her contributions in the Fund. 

•	 Leaving the lump-sum credit in the Fund does not preclude a refund at 

a later date, provided that an application is filed with OPM at least 31 

days before the employee becomes eligible for an annuity. 

•	 If the former employee dies before filing an application for a refund or 

receipt of a deferred annuity, and there is no survivor annuity payable, 

the lump-sum credit is payable as a death benefit. 

B.	 Advantages of Not • If a refund is not taken, the lump-sum credit continues to accrue interest 

Taking Refund at the market interest rate. 

•	 If the employee has at least 5 years of creditable civilian service, he or 

she has entitlement to a deferred annuity at age 62 that should generally 

exceed the value of the lump sum. 

•	 If the employee has at least 5 years of creditable civilian service and 10 

or more years of total service: 

1.	 He or she has entitlement to a deferred annuity at the Minimum 

Retirement Age. 

2.	 If the employee is married at the date of separation from service, 

survivor benefits would be payable to that spouse should the 

employee die before receipt of his or her deferred annuity. 

•	 Upon applying for the deferred annuity, the former employee may elect 

to provide a survivor annuity to his or her current spouse or any former 

spouse. 

•	 Since an employee cannot repay a refund FERS deductions to 

reestablish credit for FERS service covered by the refund, not taking 

the refund allows the service to be used towards any retirement or 

survivor benefits that may be payable in the future. 

C. Advantages of • If the employee has less than 5 years of civilian service and does not 

Taking the Refund contemplate returning to Federal service, then there are no future 

benefits. 

CSRS and FERS Handbook	 April, 1998 
 CSRS	 Refunds FERS 37 

Chapter 32 

Subchapter 32C Job Aids 

Section 32C1.1-1 Copies of Job Aids 

Job Aid 

•	 Information for Employees: Notifications 

to Current and Former Spouses When You 

Apply for a Refund of Retirement 

Deductions 

•	 Agency Checklist for a CSRS Refund 

Application (RI 36-48) 

•	 Agency Checklist for a FERS Refund 

Application (RI 95-2) 

Description 

This job aid summarizes the spousal 

notification requirements pertaining to 

individuals requesting CSRS or FERS refunds. 

This checklist should be used by personnel and 

payroll offices to ensure that an application for 

a CSRS refund is properly completed. 

This checklist should be used by personnel and 

payroll offices to ensure that an application for 

a FERS refund is properly completed. 

April, 1998	 CSRS and FERS Handbook 
38 CSRS Refunds FERS 

Chapter 32 

Section 32C1.1-1 Copies of Job Aids 

Information for Employees: Required Notifications to Current Spouses and Former 

Spouses When You Apply for a Refund of Retirement Deductions 

The spousal notification requirements described below apply to you if you are requesting a refund of 

your retirement deductions under the Civil Service Retirement System (CSRS) or the Federal Employees 

Retirement System (FERS). If you are currently married or have a living former spouse, you are 

required by law to comply with the spousal notification requirements before the Office of Personnel 

Management can pay your refund. The requirements apply regardless of the amount of money involved 

in the refund or, in the case of a former spouse, the fact that the spouse waived rights to retirement 

benefits under the terms of a divorce decree. 

CSRS Employees--Requirements 

You must always notify a current spouse that you are applying for a refund of CSRS retirement 

deductions. Also, you must notify a former spouse if (1) you were married to that person for at least 9 

months, (2) you performed at least 18 months of service that was subject to retirement deductions, and 

(3) you were divorced from that former spouse after May 1, 1985. 

FERS Employees--Requirements 

You must always notify a current spouse that you are applying for a refund of FERS retirement 

deductions. Also, you must notify a former spouse if (1) you performed at least 18 months of service 

that was creditable under FERS and (2) you were married to the spouse for a total of at least 9 months. 

In FERS, it does not matter when the divorce occurred--the notification requirement applies even though 

the divorce may have occurred before you became a Federal employee or became covered by FERS. 

When determining if you have 18 months of creditable civilian service do not include nondeduction 

service performed on or after January 1, 1989, or prior refunded FERS service, because service in those 

categories is not creditable under FERS. 

Notification Procedures--CSRS and FERS 

If you are covered by CSRS, your current spouse and any former spouse must each complete the 

SF 2802B, which is attached to the CSRS refund application. If you are covered by FERS, your current 

spouse and any former spouse must each complete SF 3106A, which is attached to the FERS refund 

application, to show that they have been notified that you have applied for a refund. 

CSRS and FERS Handbook April, 1998 
 CSRS	 Refunds FERS 39 

Chapter 32 

Section 32C1.1-1 Copies of Job Aids (Cont.) 

Information for Employees: Required Notifications to Current Spouses and Former 

Spouses When You Apply for a Refund of Retirement Deductions (Cont.) 

If your current or former spouse refuses to acknowledge the notification or you are otherwise unable to 

obtain the acknowledgement, you must submit one of the following to OPM: 

a.	 Affidavits signed by two individuals who witnessed your personal attempt to notify 

the current or former spouse. The witnesses must attest that they saw you give or try 

to give the notification to your current or former spouse to whom your intent should 

have been clear. 

b.	 The current mailing address of the current or former spouse. OPM will attempt to 

notify the person by certified mail, return receipt requested. OPM will not pay the 

refund until it receives the signed receipt form. If the notice is undeliverable at the 

address you gave, OPM will not pay the refund unless you show that the notification 

requirements should be waived. (See next paragraph.) 

If you do not know the current whereabouts of a current or former spouse, OPM may waive the 

notification requirements. OPM may grant you a waiver if you provide: 

a.	 A determination by a court or administrative agency empowered to make such 

determinations that the person is missing; or 

b.	 Notarized statements by yourself and two other persons (one of whom is unrelated to 

you) stating that the person's whereabouts are unknown and detailing efforts to locate 

the person. 

Falsely denying the existence of a current or former spouse on an application for a refund, or forging 

the current or former spouse's signature on the acknowledgement form, is a criminal offense punishable 

by a fine of not more than $10,000 or imprisonment of not more than 5 years, or both. 

April, 1998	 CSRS and FERS Handbook 
40 CSRS	 Refunds 

Chapter 32 

Section 32C1.1-1 Copies of Job Aids (Cont.) 

AGENCY CHECKLIST FOR A CSRS REFUND APPLICATION 

FOR USE ONLY WITH CIVIL SERVICE RETIREMENT SYSTEM (CSRS) APPLICATIONS 

A. Name of Applicant: _____________________________________________________________________________ 

Date of Birth: ___________________________________ SSN: __________________________________ 

B.	 PERSONNEL and PAYROLL OFFICES: This checklist identifies the forms that must be submitted 

to the Office of Personnel Management (OPM) with a CSRS Application for Refund of Retirement 

Deductions, SF 2802 (revised January 1991). The checklist also incorporates questions that will 

improve timeliness of processing applications for CSRS refunds. When using locally reproduced 

forms to document refund claims, it is imperative that forms that are printed front-to-back in OPM 

issuances also be printed front-to-back to avoid processing delays that occur when OPM receives 

only part of the form. This is particularly true of SF 2802B (see below), which helps document 

the rights of spouses and former spouses with respect to refund claims. (SF 2802B replaced 

OPM Form 1537, a local reproduction form dated January 1987. 

Send this checklist to OPM along with the individual's records. 

SF 2802, Application for Refund of Retirement Deductions (CSRS) 

BLOCK NUMBER REQUIREMENT YES NO 

Block 7: 

Has all civilian and military service for the United States 

Government and/or the Government of the District of 

Columbia been listed? 

Required in all cases. G G 

Block 8: 

Are questions concerning further employment answered? 

Required in all cases. G G 

Block 13: 

Is the tax election completed? 

Required in all cases. G G 

Blocks 14 & 15: 

Are the questions concerning marriage and/or divorce 

answered? 

Required in all cases. G G 

Block 16: 

Has the applicant signed the application in ink? 

Required in all cases. G G 

Block 17: 

Is the address complete, clear, and without alteration? 

Required in all cases. G G 

Block titled "FOR AGENCY USE ONLY" 

Has the appropriate agency official signed and indicated 

the Agency Payroll Office Number in this block? 

Required in all cases. G G 

U.S. Office of Personnel Management (THIS FORM MAY BE LOCALLY REPRODUCED) RI 36-48 

February 1995 

CSRS and FERS Handbook	 April, 1998 
 

 

 CSRS Refunds 

Chapter 32 

41 

Section 32C1.1-1 Copies of Job Aids (Cont.) 

CSRS REFUND CHECKLIST 

Name of Applicant: _____________________________________ SSN: 

PAGE 2 of 2 

___________________ 

FORM NUMBER DOCUMENT TITLE REQUIREMENT YES NO N/A 

SF 2802B 

(Current version

11/87; previous

versions are not 

usable.) 

Current/Former Spouse's

Notification of Application

for a Refund of Retirement 

Deductions under CSRS 

Required only when applicant is married and/or has an eligible

former spouse. (See page 2 of

SF 2802 for explanation.) 

G G G 

SF 2802B, Reverse Side 

If applicant is divorced or legally separated, is the 

information concerning court orders on the

reverse side of the current/former spouse

notification completed? 

If applicable. 

(Note that OPM needs proof that

the spouse/former spouse has read

the reverse side of SF 2802B so it 

must be locally reproduced frontto-back.) 

G G G 

SF 2805 

(Current version 

10/88; prior version

usable with OPM 

Form 1552.) 

Request for Recovery of

Debt Due the United 

States 

If applicable. G G G 

SF 2806 Individual Retirement 

Record(s) Required in all cases. 

MUST be certified by the appropriate agency payroll official. 

G G 

SF 2807 

(Current version

7/80; prior versions 

are not usable.) 

Register of Separations

and Transfers 

Required in all cases. G G 

NOTE: The entries must agree with the calendar year and cumulative deductions on SF 2806. MAKE SURE THE CORRECT DEDUCTION PERCENTAGES ARE USED: For most CSRS employees, the 

deduction is 7%. For qualified House, Senate, firefighter or law enforcement employees, the deduction

7.5%. For regular employees covered by CSRS OFFSET, the deduction was 1.3% through 1986, 1.8% in

1987, 1.44% in 1988-89, and 1.3% thereafter. (Caution: If a CSRS Offset employee's accumulated

wages in a calendar year exceed the Social Security maximum taxable wage base, the CSRS deduction 

increases to the full rate applicable to CSRS-only employees for the remainder of the year.) 

***PERSONNEL OFFICE REVIEWER***
 

PERSONNEL SPECIALIST: ___________________________________________________________________________
 

TELEPHONE NUMBER: _( )_______________________________________________________________________
 

***PAYROLL OFFICE REVIEWER***
 

PAYROLL OFFICE CONTACT: _______________________________________________________________________
 

TELEPHONE NUMBER: _( )________________________________________________________________________
 

U.S. Office of Personnel Management (THIS FORM MAY BE LOCALLY REPRODUCED) RI 36-48 

February 1995 

April, 1998 CSRS and FERS Handbook 
 

42 Refunds FERS 

Chapter 32 

Section 32C1.1-1 Copies of Job Aids (Cont.) 

AGENCY CHECKLIST FOR A FERS REFUND APPLICATION 

FOR USE ONLY WITH FEDERAL EMPLOYEES RETIREMENT SYSTEM (FERS) APPLICATIONS 

A. Name of Applicant: _____________________________________________________________________________ 

Date of Birth: ___________________________________ SSN: ______________________________________ 

B. PERSONNEL and PAYROLL OFFICES: This checklist identifies the forms that must be submitted to the 

Office of Personnel Management (OPM) with a FERS Application for Refund of Retirement Deductions, 

Standard Form 3106. The current version of Standard Form 3106 is dated March 1996; previous 

versions are NOT usable. The checklist also incorporates questions that will improve timeliness of 

processing applications for FERS refunds. 

Send this checklist to OPM along with the individual's records. 

STANDARD FORM 3106, Application for Refund of Retirement Deductions (FERS) 

BLOCK NUMBER REQUIREMENT YES NO N/A 

Block 5: 

Is the address complete, clear, and without 

alteration? 

Required in all cases. G G 

Block 6: 

Has all civilian and military service for the United 

States Government been listed? 

Required in all cases. G G 

Block 7: 

Has the applicant signed the application in ink? 

Required in all cases. G G

Block 8: 

Are questions concerning further employment 

answered? 

Required in all cases. G G

Blocks 9, 10 & 11: 

If answer to block 7 is "Yes," then have blocks 13­

16 been completed? 

If applicable. G G G 

Block 12: 

Is the tax election completed? 

Required in all cases. G G 

Blocks 13 & 14: 

Are the questions concerning marriage and/or 

divorce answered? 

Required in all cases. G G 

NOTE: If the answer to either Block 9 or 10 is "Yes," then a signed SF 3106A Must be attached (see below). 

Block titled "FOR AGENCY USE ONLY" 

Has the appropriate agency official signed and 

indicated the Agency Payroll Office Number in 

this block? 

Required in all cases. G G 

Block titled "CERTIFICATION BY FINANCIAL 

INSTITUTION OR RETIREMENT PLAN" 

Has financial institution completed ALL blocks, 

including account number, address and phone 

number? Is it signed by a certifying 

representative 

If Applicable G G G 

CSRS and FERS Handbook April, 1998 
Refunds FERS 43
 

Chapter 32
 

U.S. Office of Personnel Management (THIS FORM MAY BE LOCALLY REPRODUCED) RI 95-2 March 1990 

April, 1998 CSRS and FERS Handbook 
 

 

 

 

44 Refunds 

Chapter 32 

FERS 

Section 32C1.1-1 Copies of Job Aids (Cont.) 

FERS REFUND CHECKLIST PAGE 2 of 2 

Name of Applicant: ___________________________________________ SSN: _____________________ 

FORM NUMBER DOCUMENT TITLE REQUIREMENT YES NO N/A 

SF 3106A 

If the answer to 

either Block 13 or 

14 of SF 3106 is 

"Yes," then a signed 

SF 3106A must be 

attached. 

Current/Former Spouse's 

Notification of Application 

for a Refund of Retirement 

Deductions under FERS 

Required when applicant is 

married. Also required when 

applicant has a total of at least 18 

months of creditable civilian 

service, and has a former spouse 

to whom he or she was married 

for a total of at least 9 months. 

G G G 

SF 3106A, Reverse Side 

If applicant is divorced or legally separated, is the 

information concerning court orders on the 

reverse side of the current/former spouse 

notification completed? 

If applicable. G G G 

SF 2805 

(Current version 

10/88; prior version 

usable with OPM 

Form 1552.) 

Request for Recovery of 

Debt Due the United 

States 

If applicable. G G G 

SF 3100 and/or 

Redesignated 

SF 2806 

Individual Retirement 

Record(s) 

Required in all cases. 

MUST be certified by the 

appropriate agency payroll official. 

G G 

SF 3103 Register of Separations 

and Transfers (FERS) 

Required in all cases. G G 

NOTE: The entries must agree with the calendar year and cumulative deductions on SF 3100 or 

redesignated SF 2806. 

MAKE SURE THE CORRECT DEDUCTION PERCENTAGES ARE USED: For regular employees covered by 

FERS the correct deduction was 1.3% in 1987, .94% in 1988-89, and .8% thereafter. For House and 

Senate employees, firefighters, law enforcement officers, and air traffic controllers covered by FERS, the 

correct deduction was 1.8% in 1987, 1.44% in 1989, and 1.3% thereafter. 

***PERSONNEL OFFICE REVIEWER*** 

PERSONNEL SPECIALIST: 

TELEPHONE NUMBER: ( ) 

***PAYROLL OFFICE REVIEWER***
 

PAYROLL OFFICE CONTACT: _______________________________________________________________________
 

TELEPHONE NUMBER: ( ) 

U.S. Office of Personnel Management (THIS FORM MAY BE LOCALLY REPRODUCED) RI 95-2 

March 1990 

CSRS and FERS Handbook April, 1998