United States 

Office of 

Personnel Management 

The Federal Government’s Human Resources Agency

Benefits Administration Letter 

Number: 09-304 Date: August, 2009 

Subject: Fiscal Year 2009 Factors for Calculating Imputed Costs

This Letter provides the fiscal year (FY) 2009 cost factors for the Federal civilian benefit 

programs. Agencies will use these factors to calculate their imputed costs relating to the Civil 

Service Retirement and Federal Employees’ Retirement Systems, the Federal Employees Health 

Benefits Program and the Federal Employees Group Life Insurance Program. 

Benefits Administration Letter 03-309, dated September 15, 2003, provides detailed 

instructions for the computation and accounting for these imputed costs; see 

http://www.opm.gov/retire/pubs/bals/bal03.asp. 

COST FACTORS 

Pensions. OPM’s pension actuary has applied the set of economic assumptions adopted by the 

Board of Actuaries of the Civil Service Retirement and Disability Fund to derive the FY 2009 cost 

factors for the CSRS and the FERS. These resulting increases in the retirement cost factors should 

be applied beginning with the FY 2009 year end financial reporting. Please note -- agencies will not 

be required to pay these new normal costs until FY 2011 because of budgeting considerations. 

For most Civil Service Retirement System (CSRS) covered employees, the FY 2009 cost factor 

will be 25.8 percent of basic pay, an increase of 0.6 percent from FY 2008. The FY 2009 cost 

factors for all categories of CSRS coverage are attached. 

For most Federal Employees Retirement System (FERS) covered employees, the FY 2009 cost 

factor will be 12.3 percent, an increase of 0.3 percent from FY 2008. The cost factors for all 

categories of FERS coverage are attached. 

Federal Employees Health Benefits Program. For FY 2009, the cost factor is $5,756 per 

enrolled employee: 

Quarter Factor 

1st

 $1,403

2nd 1,426

3rd 1,451

4th 1,476

FY 2009 $5,756
Federal Employees Group Life Insurance Program. The FY 2009 cost factor for the Federal 

Employees Group Life Insurance Program (FEGLI) is 0.02 percent of basic pay, the same as in 

previous years. 

ASSURANCE FOR AUDITORS 

The cost factors provided in this letter are being issued before an opinion by OPM’s independent 

public accounting firm can be received. Nonetheless, the FY 2008 cost factors for “regular” 

CSRS and FERS coverage, as well as those for the FEHB and FEGLI Programs were disclosed 

in the footnotes accompanying OPM’s consolidated FY 2008 financial statements; these 

statements received an unqualified opinion. The policies, procedures and controls pertaining to 

the calculations of the cost factors did not change from FY 2008. In addition, the Life Insurance 

Program cost factor was unchanged from FY 2008. Consequently, auditors of FY 2009 financial 

statements can rely upon the disclosures in OPM’s FY 2008 financial statements and the related 

audit opinion. 

INQUIRIES 

If you have any questions regarding this information, we would prefer you email us at 

finance@opm.gov , so we have a record of our communication. You may also phone us on 

(202) 606-0606. 

 

 

 Keith Willingham 

 Associate Chief Financial Officer 

 Center for Financial Services 

 

Attachment
Attachment 

2009 COST FACTORS FOR THE CSRS AND FERS 

CSRS 

CATEGORY COST FACTOR (%) 

Regular 25.8 

Regular Offset 20.0 

Law Enforcement Officers 43.5 

Law Enforcement Officers - Offset 38.7 

Air Traffic Controllers 39.9 

Air Traffic Controllers – Offset 35.3 

Members of Congress 29.5 

Members of Congress – Offset 27.5 

Congressional Employees 35.7 

Congressional Employees – Offset 30.7

FERS 

CATEGORY COST FACTOR (%) 

Regular 12.3 

Law Enforcement Officers 26.7 

Air Traffic Controllers 26.4 

Members of Congress 19.1 

Congressional Employees 17.5 

Military Reserve Technicians 15.1