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-99–25 Date: November 9, 1999

SUBJECT: CALENDAR YEAR 2000 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 2000 on civilian

service military deposit accounts. The calendar year 2000 rate is 5.875%.

Interest is charged at a fixed rate of 3% through December 31, 1984. Thereafter, interest is

charged at the rate shown below:

CALENDAR

YEAR

INTEREST

RATE

 (%)

CALENDAR

YEAR

INTEREST

RATE

(%)

1985 13.000 1993 7.125

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

The variable interest rate applies in the following cases:

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

 September 30, 1982;

- deposits for noncontributory service after September 30, 1982;

- deposits for post-1956 military service; and

- interest paid for voluntary contributions.
 

Civil Service Federal Employees Federal Employees Federal Employees

Retirement Group Life Health Benefits Retirement

System Insurance Program System

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

- redeposits, if the agency of 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 MILDEP99.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,

please call Mr. Benson directly on (614) 692-4183 or email at Robert 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 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