Information & Instructions


for Completing an


Application for


Phased Retirement under 


the Civil Service Retirement


System (CSRS)


SF 2825 

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

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

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

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

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

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

Non-Deduction Service Performed Before October 1, 1982 ....

Non-Deduction Service On or After October 1, 1982 .......

Refunded Service Which Ended Before March 1, 1991 ......

Refunded Service Which Ended On or After March 1, 1991 ....

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

If You Were First Employed in a Position Subject to Civil Service R

before October 1, 1982 ....................

If You Were First Employed in a Position Subject to Civil Service R

on or after October 1, 1982 ..................

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

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

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

(FEDVIP) and Flexible Spending Account (FSA) ...........

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

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

Death While in Phased Retirement ...................

Withdrawing an Application for Phased Employment/Phased Retiremen

Instructions for Completing the Application for Phased Retirement ..

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Section D - Insurance Information .................

Section E - Marital Information ..................

Section F - Annuity Election ....................

Section G - Information about Your Unmarried Dependent Childre

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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Employees Retirement System, you must use SF 3117 in conjunctio

apply for a phased retirement. 

In addition to completing the application for phased retirement, you 

SF 3116, the Phased Employment/Phased Retirement Election form 

consent of the appropriate official in your agency. 

Phased Retirement Annuity 

The computation of a phased retirement benefit is based on the appl

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

explanation.) 

The percentage used to calculate the phased retirement annuity (the 

percentage) is determined by subtracting the working percentage fro

working percentage is the result after dividing the number of hours 

are scheduled to work during phased employment by the number of 

you would have been scheduled to work under a full time work sche

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

Unused sick leave will continue to accrue during phased employme

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

of unused sick leave to your credit at the time you fully retire will b

computation 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 

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

retirement status, survivor benefits will be based on death-in-service 

at the time of death. 

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offset is based on the amount of the Social Security benefit you are 

(or would be entitled to receive upon making application for the ben

of that Social Security benefit attributable to your CSRS Offset serv

the offset applied to your phased annuity will be adjusted by multip

of the offset by the retirement percentage. 

For the purposes of Voluntary Contributions (VC), you are consider

therefore can open a VC account if you do not owe a deposit or rede

civilian service. If you already have a VC account, you can continu

contributions into that account. 

Phased Retirement Formula 

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

adjusted for deposit and/or redeposit, if applicable. 

Basic Annuity Computation – The amount of your phased retireme

primarily on your “high-3” average pay, length of service and phase

percentage. 

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

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

each rate weighted by the time it was in effect. 

General formula -The general formula for a CSRS benefit is 

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 

Note: certain types of employees who perform service at a different 

rate will be credited with 2.5% of average salary multiplied by the y

the enhanced service. 

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The resulting annual benefit will be multiplied by the Retirement Pe

Reductions for Deposits and Redeposits 

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

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

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

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

upon a separation from federal service). Under CSRS, the type of s

when it was performed determines how that service is credited. The 

deposit and redeposit periods are as follows: 

Non-Deduction Service Performed Before October 1, 1982 - If a 

fully paid for a period of non-deduction service performed before O

service period will be included in your annuity computation but the 

reduce by 10% of the deposit amount due. 

� The reduction applied to the phased retirement annuity will be b

balance at the time you enter phased employment/phased retire

reduction will be applied to the full annual annuity before it is m

retirement percentage. 

� Upon computing your composite annuity at your final full statu

deposit will be updated with additional interest accrued throug

separation date from Federal service. The reduction will be app

appropriate portion of the composite annuity before that portio

working percentage. 

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

paid for a period of non-deduction service performed on or after Oc

service period will be credited towards title to your retirement but w

your annuity computation. 

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total amount of redeposit due divided by a factor representing your 

Note: If you do not make a full redeposit of this amount, the actuari

(increased by any intervening Cost-of-Living Adjustment) will appl

retirements, regardless of the type. This is because the actuarial red

a repayment for the period and therefore, it is no longer considered 

service. 

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

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

receive no credit for this service in your annuity computation. How

be creditable for title and average salary purposes whether or not th

Deposits and redeposits for civilian service must be satisfied (either 

annuity reduction as applicable) prior to finalizing the Phased Retire

Any reduction in annuity or loss of service credit at the time the am

phased retirement annuity is determined will be permanent. You ca

deposits or redeposits at a later time, including at the time of full ret

Note: You may make deposits for pre and post October 1, 1982 non

and you may make a redeposit for service ending on or after March 

your phased employment/phased retirement in order for you to resu

employment status. 

Post-1956 Military Deposits 

If you performed military service on or after January 1, 1957, you m

cover the service. Military deposits for military service performed b

phased retirement must be paid in full prior to entry into phased reti

If you wish to make a military service deposit for military service p

effective date of phased employment and the annuity commencing d

retirement and before the effective date of the final composite retire

call up for active military service) you must complete the deposit no 

before the effective date of the composite retirement annuity. If the 

described in this paragraph, your post 1956 military service will be 

below. 

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credit for the post-1956 military service. If you are age 62 or o

into phased retirement and are eligible for Social Security bene

post-1956 military service will be allowed in the computation o

you pay the deposit as described in the paragraph above. 

� If you were first employed in a position subject to civil serv

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

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

If you have questions concerning the payment of a military deposit, 

employing agency. Failure to pay the deposit to your agency as des

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

Note: You may make a post-1956 military deposit if you end your p

employment/phased retirement in order for you to resume regular em

Cost-of-Living Adjustment (COLA) 

Cost of living increases are effective on December 1 and are payabl

annuity payment. They are determined by the percentage increase in 

Consumer Price Index for the “base quarter” of the year in which th

over the “base quarter” of the preceding year in which an increase o

quarter” is July, August, and September. The first cost of living inc

will be prorated to reflect the number of months you are on the retir

the increase is effective. 

Insurance: FEHB and FEGLI 

Federal Employees Health Benefit (FEHB) enrollment and Federal 

Life Insurance (FEGLI) enrollment will stay with the employing ag

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

coverage amounts will be based upon the full time salary for the pos

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an employee and can continue these programs with the employing a

Commencing Date of Phased Retirement Annuity 

The commencing date of a Phased Retirement Annuity is the first d

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. 

Court Orders 

Phased retirement annuities will be subject to court orders providing 

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

process on the same basis as other annuities. 

Death while in Phased Retirement 

If you should die while in phased employment, your survivor benefi

as a death in service. As such, your survivors can make any deposit

that may be outstanding. 

Withdrawing an Application for Phased Employment/Pha

You may cancel your approved election to enter phased employmen

status and withdraw the application for retirement by submitting a s

to the agency and obtaining the approval of an authorized agency of

effective date of the phased employment/phased retirement. 

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

(SF) 2801 for detailed information pertaining to completing this Sec

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

on SF 2801 for detailed information pertaining to completing this S

Section C – Other Claim Information 

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

for detailed information pertaining to completing this Section. 

Section D – Insurance Information 

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

both FEHB and FEGLI as an employee, if applicable. 

Section E – Marital Information 

You must complete #2 to indicate whether you have a court order fo

spouse for whom you were divorced on or after May 7, 1985, and t

gives a portion of your retirement benefits based on your Federal em

Court Order Section above for discussion of Court Orders and phas

benefits.) 

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

phased retirement and will be collected as of your full retirement sta

Section F – Annuity Election 

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

will be a mandatory element of your full retirement status and will b

time. 

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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 Inst

for detailed information pertaining to completing this Section. 

Section I – Applicant’s Certification 

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

Schedule A – Military Service Information 

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

Instructions on SF 2801 for detailed information pertaining to comp

Please note that you must pay your military deposit in full to your a

the day before the effective date of your phased retirement. You wi

opportunity to pay a deposit for previous military service during you

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 on SF 2801 for detailed information pertaining to comp

Schedule C – Federal Employees’ Compensation Information 

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

Instructions on SF 2801 for detailed information pertaining to comp

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 MANAGE

1900 E STREET, NW

WASHINGTON, D.C. 20415

www.opm.gov/retirement-services