CSRS Service Credit Payments for Civilian Service FERS i 

Chapter 21
 

Table of Contents 

Subchapter 21A CSRS 

Part 21A1 General Information 

Section 21A1.1-1 Overview ....................................... 1
 

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

B. Topics Covered ............................................. 1
 

C. Cross References ............................................ 1
 

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

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

Section 21A1.1-2 Definitions ....................................... 3
 

A. Deposit or Nondeduction Service .................................. 3
 

B. Deposit .................................................. 3
 

C. Refund .................................................. 3
 

D. Redeposit ................................................. 3
 

E. Redeposit Service ........................................... 3
 

Part 21A2 Deposit Service 

Section 21A2.1-1 Introduction ...................................... 4
 

A. General Principles ........................................... 4
 

B. Who May Make a Deposit ...................................... 4
 

C. When Deposit May Be Made .................................... 4
 

D. Cross References ............................................ 5
 

Section 21A2.1-2 Amount of Deposit ................................. 6
 

A. Amount of Deposit ........................................... 6
 

B. Interest .................................................. 7
 

C. Special Rules: Peace Corps/VISTA Service .......................... 9
 

D. Interest on Peace Corps/VISTA Service Deposits ....................... 9
 

E. Where Deposit for Volunteer Service is Made ......................... 10
 

F. When Deposit Was Already Made ................................. 10
 

Section 21A2.1-3 Effect of Paying a Deposit ............................ 11
 

A. General .................................................. 11
 

B. Service Before October 1, 1982 .................................. 11
 

C. Example: Service Before October 1, 1982 ........................... 12
 

D. Service Performed After September 30, 1982 .......................... 12
 

E. Example: Service Performed After September 30, 1982 ................... 13
 

CSRS and FERS Handbook April 1998 
ii CSRS Service Credit Payments for Civilian Service FERS 

Chapter 21
 

Part 21A3 Redeposit Service 

Section 21A3.1-1 Introduction ...................................... 14
 

A. General Principles ........................................... 14
 

B. Who May Make a Redeposit .................................... 14
 

C. When Redeposit May Be Made ................................... 14
 

D. Cross References ............................................ 14
 

Section 21A3.1-2 Amount of Redeposit ................................ 15
 

A. Amount of Redeposit ......................................... 15
 

B. Interest .................................................. 15
 

Section 21A3.1-3 Effect of Making a Redeposit ......................... 17
 

A. General .................................................. 17
 

B. Refunded Service Ending Before October 1, 1990 ....................... 17
 

C. The 80-Percent Maximum Annuity ................................ 18
 

D. Refunded Service Ending After September 30, 1990 ..................... 18
 

E. Example: Paying and Not Paying the Redeposit ........................ 19
 

F. Partial Redeposits ........................................... 20
 

Part 21A4 Procedures for Making Service Credit Payments 

Section 21A4.1-1 Procedures for Making Service Credit Payments Before
 

Retirement ................................................ 22
 

A. General Procedures .......................................... 22
 

B. Completing the SF 2803: Agency Action ............................. 23
 

C. Advantages ................................................ 23
 

Section 21A4.1-2 Procedures for Making Service Credit Payments at Retirement ... 24
 

A. Eligible for Alternative Annuity Election ............................ 24
 

B. Not Eligible for Alternative Annuity Election .......................... 24
 

C. Advantages ................................................ 24
 

D. Disadvantages .............................................. 25
 

Section 21A4.1-3 Advice to Employee ................................ 26
 

A. Deposits/ Redeposits Are Generally Optional ......................... 26
 

B. Estimating the Amount of the Deposit/ Redeposit ....................... 26
 

C. Effect of Not Making the Deposit/ Redeposit .......................... 26
 

D. When Deposits/ Redeposits May Not Increase the Annuity ................. 26
 

E. Alternative Annuity .......................................... 27
 

F. Actuarial Reduction .......................................... 27
 

G. Payment After Death of Employee ................................. 27
 

H. Application of Installment Payments to Multiple Deposit/ Redeposit Periods ..... 28
 

April 1998 CSRS and FERS Handbook 
 CSRS Service Credit Payments for Civilian Service FERS iii
 

Chapter 21
 

Subchapter 21B FERS 

Part 21B1 General Information 

Section 21B1.1-1 Overview ........................................ 29
 

A. Introduction ............................................... 29
 

B. Organization of Subchapter ..................................... 29
 

C. Statement of Authority ........................................ 29
 

Section 21B1.1-2 Definitions ....................................... 30
 

A. Deposit or Nondeduction Service .................................. 30
 

B. Deposit or Service Credit Payment ................................ 30
 

C. Refund .................................................. 30
 

Part 21B2 Deposit Service 

Section 21B2.1-1 Introduction ...................................... 31
 

A. General Rules .............................................. 31
 

B. General Rule: Transferees ...................................... 31
 

C. Special Rule: Peace Corps/VISTA Service ........................... 32
 

D. Who May Make a Service Credit Payment ............................ 32
 

E. When a Payment May Be Made .................................. 33
 

Section 21B2.1-2 Amount of Service Credit Payment ...................... 34
 

A. Amount of Deposit ........................................... 34
 

B. Interest .................................................. 34
 

C. Special Rule: Peace Corps/VISTA Service ........................... 35
 

D. Interest on Peace Corps/VISTA Service Deposits ....................... 36
 

E. Where Deposit for Volunteer Service is Made ......................... 36
 

F. When Deposit Was Already Made ................................. 36
 

Section 21B2.1-3 Effect of Making a Service Credit Payment ................. 37
 

A. General Rule ............................................... 37
 

B. Example ................................................. 37
 

Part 21B3 Refunded Service 

Section 21B3.1-1 Introduction ...................................... 38
 

A. General Rule ............................................... 38
 

B. General Rule: Transferees ...................................... 38
 

C. General Rule: Non-Transferees With Prior CSRS Service ................. 38
 

Section 21B3.1-2 Effect of Making a Deposit for CSRS Refunds ............... 39
 

A. Paying the Deposit ........................................... 39
 

B. Not Paying the Deposit: Service Treated Under FERS Rules ............... 39
 

C. Example ................................................. 39
 

CSRS and FERS Handbook April 1998 
iv CSRS Service Credit Payments for Civilian Service FERS 

Chapter 21
 

April 1998 CSRS and FERS Handbook 
 CSRS Service Credit Payments for Civilian Service FERS v 

Chapter 21
 

Part 21B4 Procedures for Making Service Credit Payments 

Section 21B4.1-1 Procedures for Making FERS Service Credit Payments Before
 

Retirement ................................................ 41
 

A. General Procedures .......................................... 41
 

B. Completing the SF 3108: Agency Action ............................ 42
 

C. Advantages ................................................ 42
 

Section 21B4.1-2 Procedures for Making FERS Service Credit Payments at
 

Retirement ................................................ 43
 

A. General Procedures .......................................... 43
 

B. Advantages and Disadvantages ................................... 43
 

Section 21B4.1-3 Advice to Employee ................................. 44
 

A. Payments Are Optional ........................................ 44
 

B. Estimating the Amount of the Payment .............................. 44
 

C. Effect of Not Making the Payment ................................. 44
 

D. When Payment May Not Increase the Annuity ......................... 44
 

E. Alternative Annuity .......................................... 44
 

F. Payment of Deposit After Death of Employee ......................... 45
 

G. Payment of Multiple Deposits .................................... 45
 

Subchapter 21C Job Aids and Forms 

Section 21C1.1-1 Job Aids ........................................ 46
 

AGENCY CHECKLIST FOR A CSRS SERVICE CREDIT APPLICATION ........ 47
 

AGENCY CHECKLIST FOR A FERS SERVICE CREDIT APPLICATION ........ 49
 

CSRS and FERS Handbook April 1998 
 CSRS Service Credit Payments for Civilian Service
 1 

Chapter 21
 

Subchapter 21A CSRS 

Part 21A1 General Information 

Section 21A1.1-1 Overview 

A.	 Introduction Employees can make deposits for creditable service during which no 

retirement deductions were made. Chapter 20, Creditable Service, 

discusses the types of nondeduction employment for which a deposit can be 

made. 

Employees may also redeposit any CSRS deductions that were refunded to 

them during a qualifying break in service. Refunds are discussed in 

Chapter 32, Refunds. 

Depositing or redepositing deductions is a voluntary action on the part of 

the employee. Payment generally affects the amount of the retirement 

annuity. 

B. Topics Covered	 This subchapter covers -­

•	 The rules that govern deposits for nondeduction service; 

•	 The actuarial reduction in annuity in lieu of making a redeposit for 

service ending before October 1, 1990; 

•	 The rules that govern redeposits for refunded service ending after 

September 30, 1990; 

•	 The alternative form of annuity in lieu of making service credit 

deposits; and 

•	 The procedures for making service credit payments for civilian service. 

C.	 Cross References For information about service credit for leave, reduction-in-force, and other 

purposes, see The Guide to Processing Personnel Actions (formerly FPM 

Supplement 296-33). 

For information about deposits for post-1956 military service, see 

Chapter 23, Service Credit Payments for Post-1956 Military Service. 

CSRS and FERS Handbook	 April 1998 
2 CSRS Service Credit Payments for Civilian Service 

Chapter 21 

Section 21A1.1-1 Overview (Cont.) 

D.	 Organization of The CSRS subchapter has four parts. 

Subchapter 

Part Name of Part Page 

21A1 General Information 1 

21A2 Deposit Service 4 

21A3 Redeposit Service 14 

21A4 Procedures for Making Service 

Credit Payments 22 

NOTE: Subchapter 21B about service credit payments under FERS begins 

on page 27. 

E.	 Statement of 

Authority 

This subchapter and its contents are based on the law and regulations cited 

below. 

•	 United States Code: 5 U.S.C. 8334 

•	 Code of Federal Regulations: 5 CFR Part 831, section 105 and 

Subpart C 

April 1998	 CSRS and FERS Handbook 
 CSRS Service Credit Payments for Civilian Service
 3 

Chapter 21
 

Section 21A1.1-2 Definitions 

A.	 Deposit or 

Nondeduction 

Service 

Any period of creditable civilian service during which retirement deductions 

are not taken is called deposit or nondeduction service. Generally, this is 

noncareer time such as temporary or indefinite service. 

However, it also can be service that was not considered Federal 

employment at the time it was performed, but for which a subsequent 

change in the law now allows credit for retirement annuity computation 

purposes. 

B. Deposit 

C. Refund 

D. Redeposit 

A sum of money paid into the Civil Service Retirement and Disability Fund 

(hereafter "the Fund") by an employee or survivor to cover a period of 

service during which deductions were not withheld from pay. 

The withdrawal from the Fund by an individual of his or her lump-sum 

credit under conditions that entitle him or her to receive a refund. 

Payments made when the individual is not entitled (or loses entitlement) to 

receive the refund are erroneous payments that are collected as discussed in 

Chapter 4, Debt Collection. 

A sum of money paid into the Fund by an employee or survivor to cover a 

period of service during which deductions were withheld but later refunded 

under CSRS provisions. 

E. Redeposit Service Any period of civilian service for which an employee received a refund and 

owes a CSRS redeposit. 

CSRS and FERS Handbook	 April 1998 
4 CSRS Service Credit Payments for Civilian Service 

Chapter 21 

Part 21A2 Deposit Service 

Section 21A2.1-1 Introduction 

A.	 General Principles Nondeduction service is creditable toward eligibility for a CSRS annuity. 

Generally, nondeduction service performed before October 1, 1982, is 

creditable in the annuity computation; however, if the employee does not 

make a deposit to cover the service, the annual annuity is permanently 

reduced by 10 percent of the deposit due. (See Chapter 20 for information 

about service for which a deposit must be paid before an employee receives 

any credit for it.) 

Nondeduction service performed after September 30, 1982, is not creditable 

for computation purposes (other than average salary) unless the employee 

pays the deposit. 

If a retiring employee is eligible and chooses an alternative form of annuity, 

any redeposits are deemed to have been paid. (See Chapter 53, Alternative 

Annuity Elections, for a detailed discussion of alternative annuities.) 

B.	 Who May Make a Deposits for nondeduction service may be made only by: 

Deposit 

•	 An employee who currently is covered by CSRS and CSRS Offset; 

•	 A separated employee who is entitled to an immediate annuity; 

•	 A former employee whose annuity has not been finally adjudicated, 

who retains retirement rights based on a separation from a position in 

which retirement deductions were properly withheld and remain (or 

have been fully or partially redeposited) in the Fund; 

•	 The spouse of a deceased employee who is entitled to a survivor 

annuity (see Chapter 70, Spouse Benefits - Death of an Employee); or 

•	 The former spouse of a deceased employee who is entitled to a survivor 

annuity (see Chapter 74, Former Spouse Survivor Benefits). 

C.	 When Deposit 

May Be Made	 

With the exception of service described in Chapter 20 to which special rules 

apply, a deposit may be made at any time prior to the final adjudication of 

the individual's application for retirement or survivor benefits. 

April 1998	 CSRS and FERS Handbook 
 CSRS Service Credit Payments for Civilian Service
 5 

Chapter 21
 

Section 21A2.1-1 Introduction (Cont.) 

D.	 Cross References See Chapter 20 for civilian service that is creditable for retirement 

eligibility. 

See Chapters 70 and 74 regarding the entitlement of surviving spouses or 

former spouses to annuity benefits. 

CSRS and FERS Handbook	 April 1998 
6 CSRS Service Credit Payments for Civilian Service 

Chapter 21 

Section 21A2.1-2 Amount of Deposit 

A. Amount of
 

Deposit
 

The amount of a deposit is the sum of the deductions that would have been 

withheld from an employee's basic pay during the period of nondeduction 

service had the employee been covered by the retirement system, plus 

interest. 

The deductions are based on a percentage of basic pay. The percentages 

that apply for different periods of service are shown in the table below. 

If the Service Was 

Performed... 

Then the Percentage 

Deductions from Basic 

Pay Are... 

Before August 1920 none 

From August 1, 1920, to 

June 30, 1926 

2.5% 

From July 1, 1926, to 

June 30, 1942 

3.5% 

From July 1, 1942, to 

June 30, 1948 

5.0% 

From July 1, 1948, to 

October 31, 1956 

6.0% 

From November 1, 1956, 

to December 31, 1969 

6.5% 

From January 1970 7.0% 

NOTE 1:	 For nondeduction law enforcement or firefighter service after 

December 31, 1974, the applicable deduction from basic pay is 

7.5 percent. When entering the employee's service history on 

the SF 2803, the agency should show the effective date and 

percentage changes in retirement deduction rates for 

nondeduction service. Different deduction percentages also 

may apply to nondeduction service performed by 

Congressional employees, Members of Congress, bankruptcy 

judges, U.S. Magistrates, and judges of the Court of Military 

Appeals. See 5 U.S.C. 8334. 

April 1998	 CSRS and FERS Handbook 
 CSRS Service Credit Payments for Civilian Service
 7 

Chapter 21
 

Section 21A2.1-2 Amount of Deposit (Cont.) 

A. Amount of	 

Deposit (Cont.)

NOTE 2: For CSRS Offset employees, the amount of the deposit is 

	 calculated using the appropriate rate listed in the preceding 

table. 

B.	 Interest Unless there is a specific statutory provision to the contrary, interest is 

computed on the deposit, as explained below, from the midpoint of each 

period of nondeduction service. 

1.	 Interest for nondeduction service performed before October 1, 1982, 

accrues daily and is charged at the following rates, compounded 

annually; 

• 4 percent through December 31, 1947; and 

• 3 percent from 1948 through the date the deposit is made or to the 

commencing date of annuity, whichever is earlier. 

NOTE 1:	 No interest is charged for periods of separation that began 

before October 1, 1956. 

NOTE 2:	 Additional interest does not accrue if payment is made in full 

within 30 days after OPM issues the billing statement. 

2.	 Interest for nondeduction service performed on or after October 1, 

1982, accrues annually and is charged at the following rates, 

compounded annually on December 31 of each year: 

• 3 percent through December 31, 1984; and 

• A variable rate determined annually by the Department of the 

Treasury beginning January 1, 1985. The variable interest rate for 

any year equals the overall average yield to the Fund from retirement 

securities during the preceding fiscal year. 

CSRS and FERS Handbook	 April 1998 
8 CSRS Service Credit Payments for Civilian Service 

Chapter 21 

Section 21A2.1-2 Amount of Deposit (Cont.) 

B.	 Interest (Cont.) The variable rates charged through 1998 are as follows: 

Variable Interest Rates 

Year 

1985 

1986 

1987 

1988 

1989 

1990 

1991 

1992 

Interest 

Rate 

13.0% 

11.125% 

9.0% 

8.375% 

9.125% 

8.75% 

8.625% 

8.125% 

Year 

1993 

1994 

1995 

1996 

1997 

1998 

All future 

periods 

Interest 

Rate 

7.125% 

6.25% 

7.0% 

6.875% 

6.875% 

6.75% 

To be determined 

by the Department 

of the Treasury 

3.	 To avoid additional interest charges on all or part of a civilian service 

credit account balance, payments must be physically in the possession 

of the OPM official or agent authorized to receive service credit 

payments by the close of business on the last regular business day of the 

calendar year. The postmarked date for deposits sent by mail does not 

constitute the date of payment. Payments are posted to the individual's 

account as of the day they are received by OPM. 

NOTE 1:	 No interest is charged for a year when payment in full is 

received by close of business on the last regular business day of 

the year. 

NOTE 2:	 When interest begins during a year, it accrues for the remainder 

of that year. 

NOTE 3:	 If nondeduction service spans the October 1, 1982 date, OPM 

does two interest computations. The first goes from the 

beginning of the period through September 30, 1982, using the 

rules in effect through September 30, 1982. 

The second is from October 1, 1982, to the ending date, using 

the rules that apply to service performed on or after 

October 1, 1982. The sum of the two amounts is the interest 

owed for the period. 

April 1998	 CSRS and FERS Handbook 
 CSRS Service Credit Payments for Civilian Service 9 

Chapter 21 

Section 21A2.1-2 Amount of Deposit (Cont.) 

C. Special Rules: 

Peace 

Corps/VISTA 

Service 

D. Interest on Peace 

Corps/VISTA 

Service Deposits 

Public Law 103-82, the National and Community Service Trust Act of 1993 

and Domestic Volunteer Service Act Amendments of 1993, modified the 

treatment of Peace Corps and VISTA volunteer service so that it is similar 

to that of military service. In the past, if an employee or his or her 

survivors were entitled to old-age or survivor benefits from Social Security, 

credit for Peace Corps/VISTA volunteer service was eliminated from the 

annuity computation, even if a deposit was made for the service. Now, 

payment of the deposit guarantees that the employee and his or her 

survivors will continue to receive credit for the volunteer service, 

regardless of their Social Security entitlement. 

The deposit is equal to 7 percent of the readjustment allowance paid to the 

employee or Member under title VIII of the Economic Opportunity Act of 

1964 or section 5(c) or 6(l) of the Peace Corps Act or the stipend paid to 

the employee or Member under part A, B, or C of title I of the Domestic 

Volunteer Service Act of 1973, for each period of service as a volunteer or 

volunteer leader. That has not changed, but the interest rules are different. 

For current employees, and former employees who separated after 

September 30, 1993, interest begins to accrue on deposits for volunteer 

service on October 1, 1995, or 2 years after the date on which the 

individual first becomes an employee or Member, whichever is later. 

Public Law 103-82 provides a 2-year interest-free grace period on Peace 

Corps/VISTA volunteer service deposits. After the 2-year period, interest 

is accrued and compounded annually at the variable rate beginning on the 

date of the expiration of the 2-year period. 

Example: For employees first employed before October 1, 1993, interest 

started accruing October 1, 1995. The earliest possible interest posting for 

an unpaid deposit is October 1, 1996. 

NOTE: Because interest accrues annually, there is, in effect, a 3-year 

interest-free period if the deposit is paid in full before the first 

interest accrual date. However, interest will accrue during the 

year following the 2-year grace period on any amount not 

deposited before the first interest accrual date. 

Like the deposit for post-1956 military service, interest on these deposits 

accrues and compounds annually on the employee's personal interest accrual 

date. Because the interest accrual period will not generally coincide with 

the calendar year, two interest rates may apply. (See Section 23A3.1-5 in 

Chapter 23 for more details on computing interest.) 

CSRS and FERS Handbook April 1998 
10 CSRS Service Credit Payments for Civilian Service 

Chapter 21 

Section 21A2.1-2 Amount of Deposit (Cont.) 

E. Where Deposit for 

Volunteer Service 

is Made 

Like other deposits for nondeduction service, deposits for Peace 

Corps/VISTA service must be paid to OPM following the procedures 

outlined in Part 21A4. 

F. When Deposit 

Was Already 

Made 

Individuals who have not separated, but who have previously made a 

service credit deposit for their volunteer service under the old rule, will be 

deemed to have made a deposit under the new rule. 

April 1998 CSRS and FERS Handbook 
 CSRS Service Credit Payments for Civilian Service
 11 

Chapter 21
 

Section 21A2.1-3 Effect of Paying a Deposit 

A. General	 The effect on retirement benefits of a deposit for nondeduction service 

depends on whether the nondeduction service was performed before October 

1, 1982, or after September 30, 1982. It does not matter whether an 

employee has only CSRS coverage, or CSRS Offset coverage. 

However, in some death and disability cases, paying a deposit does not 

increase the annuity because it is computed under the minimum basic 

annuity formula with or without payment of the deposit. See Chapters 60 

and 70 for additional information. 

B. Service Before	 

October 1, 1982

1. Except as provided in 2 below, if the employee does not pay the deposit 

	 prior to the final adjudication of his or her retirement claim or if the 

employee is eligible to do so, but does not choose to have it deemed 

paid by electing the alternative form of annuity: 

•	 The nondeduction service counts toward eligibility for retirement; 

and 

•	 The nondeduction service is used to compute the annual annuity; 

but 

•	 The annual annuity is reduced by 10 percent of the total deposit 

owed (including interest). 

2.	 If the employee has performed service with the Cadet Nurse Corps, has 

certain pre-January 1, 1969, service as a National Guard technician, or 

performed service under a personal services contract prior to November 

5, 1985, that is creditable under section 110 of Public Law 100-238, the 

employee must make a deposit according to the requirements stated in 

Chapter 20 before credit will be allowed for such service in the annuity 

computation. 

CSRS and FERS Handbook	 April 1998 
12 CSRS Service Credit Payments for Civilian Service 

Chapter 21 

Section 21A2.1-3 Effect of Paying a Deposit (Cont.) 

C. Example: Service 

Before October 1, 

1982 

D. Service Performed 

After 

September 30, 

1982 

SUMMARY: 

A 55-year-old employee has 30 years of creditable civilian service. The 

high-3 average salary is $30,000. 

WORK HISTORY: 

•	 Hired May 10, 1959, on an indefinite appointment with no retirement 

coverage. 

•	 Converted to a career appointment May 10, 1964, and served 

continuously in a covered position for the next 25 years. 

•	 The total deposit owed for the 5 years of indefinite service is $10,000. 

RESULT: 

1.	 The employee is eligible for optional retirement whether or not the 

deposit is made. The 5 years of indefinite service are creditable for 

determining retirement eligibility. 

2.	 If the employee makes a deposit for the indefinite service, the annuity 

will equal 56.25 percent of the high-3 average salary or $16,875 

annually. 

3.	 If the employee does not make the deposit, his or her annuity will equal 

$16,875 minus 10 percent of the deposit owed (10 percent of $10,000 is 

$1000) or $15,875 annually. However, if the alternative form of 

annuity is available, the employee may elect an alternative annuity at 

retirement and have the deposit deemed paid. (See Chapter 53.) 

If the employee does not pay the deposit prior to the final adjudication of 

his or her retirement claim: 

•	 The nondeduction service counts toward eligibility for retirement; and 

•	 The nondeduction service may be used for high-3 average salary 

purposes; but 

•	 The nondeduction service is not used in determining total creditable 

service for computation purposes. 

•	 If the employee is eligible to do so and does elect an alternative annuity 

at retirement, the deposit may be deemed paid. (See Chapter 53.) 

April 1998	 CSRS and FERS Handbook 
 CSRS Service Credit Payments for Civilian Service 13 

Chapter 21 

Section 21A2.1-3 Effect of Paying a Deposit (Cont.) 

E.	 Example: Service 

Performed After 

September 30, 

1982 

SUMMARY: 

A 55-year-old employee has 30 years of creditable civilian service. The 

high-3 average salary is $30,000. 

WORK HISTORY: 

•	 Hired May 10, 1959, under a career appointment. 

•	 Separated May 9, 1979. 

•	 Rehired November 5, 1982, with an indefinite appointment. 

•	 Converted to a career appointment with CSRS Offset coverage 

November 5, 1987. 

•	 Worked next 5 years in a covered position. 

•	 The total deposit owed for the 5 years of indefinite service is $10,000. 

RESULT: 

1.	 This employee is eligible to retire whether or not the deposit is made. 

The 5 years of indefinite service count in determining retirement 

eligibility. 

2.	 If the employee makes the deposit for the 5 years of nondeduction 

service, the annuity equals 56.25 percent of the high-3 average salary or 

$16,875 annually. 

3.	 If the employee does not make the deposit, the 5 years of nondeduction 

service is not used in computing the annual annuity. As a result, the 

employee's annuity is based on 25 years of service and equals 46.25 

percent of the high-3 average salary or $13,875 annually. However, if 

the employee is eligible to elect an alternative annuity at retirement, and 

does so, the deposit will be deemed paid. (See Chapter 53.) 

CSRS and FERS Handbook	 April 1998 
14 CSRS Service Credit Payments for Civilian Service 

Chapter 21 

Part 21A3 Redeposit Service 

Section 21A3.1-1 Introduction 

A. General Principles	 Redeposit service is any period of creditable civilian service, including 

creditable service performed under another eligible retirement system for 

Federal employees, for which retirement deductions were taken and later 

refunded in accordance with law and regulation upon an employee's 

separation from service. 

Payment of a redeposit is not required for the service to be used in 

determining eligibility to retire. However, payment of a redeposit may be 

required for the service to be used for annuity computation purposes. 

B.	 Who May Make a 

Redeposit 

Payments for CSRS redeposit service may be made only by: 

•	 An employee who currently is covered by CSRS or FERS; 

•	 A separated employee with title to an immediate annuity; 

•	 A former employee with title to a deferred annuity; 

•	 A spouse of a deceased employee who is entitled to annuity benefits 

(see Chapter 70) or 

•	 A former spouse of a deceased employee who is entitled to annuity 

benefits (see Chapter 74). 

C. When Redeposit A redeposit may be made at any time prior to the final adjudication of an 

May Be Made individual's claim for retirement or survivor benefits. 

D. Cross References	 • See Chapter 20 for civilian service that is creditable for retirement 

eligibility. 

•	 See Chapters 70 and 74 for provisions regarding annuity benefits for 

surviving spouses and former spouses. 

April 1998	 CSRS and FERS Handbook 
 CSRS Service Credit Payments for Civilian Service
 15 

Chapter 21
 

Section 21A3.1-2 Amount of Redeposit 

A. Amount of 

Redeposit 

The amount of a redeposit equals the amount of the refund received plus 

accrued interest. 

CSRS Offset employees who are making redeposits for CSRS Offset service 

also pay the amount of the refund (generally based on deduction of 1.3 

percent of pay in 1984, 1985, 1986 and 1987; .94 percent of pay in 1988 

and 1989, and .80 percent beginning in 1990) plus interest. 

B.	 Interest 1. If the refund was based on an application received by the employing 

agency or OPM before October 1, 1982, interest on the redeposit 

accrues daily beginning on the date the refund was paid and is charged 

at the following rates, compounded annually: 

•	 4 percent through December 31, 1947; and 

•	 3 percent from 1948 through the date the redeposit is made, or to 

the commencing date of annuity, whichever is earlier. 

NOTE 1: No interest is charged for periods of separation that began 

before October 1, 1956. 

NOTE 2: Under the pre-October 1, 1982 rules, additional interest does 

not accrue if full payment is made within 30 days after the 

billing statement is issued. (See discussion in section 

21A2.1-2.B.3.) 

2.	 If the refund was based on an application received by the employing 

agency or OPM after September 30, 1982, interest is charged on the 

redeposit, beginning on the date the refund was paid, at the following 

rates, compounded annually: 

•	 3 percent through December 31, 1984; and 

•	 A variable rate determined by the Department of the Treasury 

beginning January 1, 1985. The variable rates are as follows: 

CSRS and FERS Handbook	 April 1998 
16 CSRS Service Credit Payments for Civilian Service 

Chapter 21 

Section 21A3.1-2 Amount of Redeposit (Cont.) 

B. Interest (Cont.) 

Variable Interest Rates 

Year 

1985 

1986 

1987 

1988 

1989 

1990 

1991 

Interest 

Rate 

13.0% 

11.125% 

9.0% 

8.375% 

9.125% 

8.75% 

8.625% 

Year 

1992 

1993 

1994 

1995 

1996 

1997 

1998 

All future 

periods 

Interest 

Rate 

8.125% 

7.125% 

6.25% 

7.0% 

6.875% 

6.875% 

6.75% 

To be determined 

by Department of 

the Treasury 

NOTE 1: For refunds after September 30, 1982, interest is not charged 

for a year when payment in full is received by close of business 

on the last regular business day of that year. 

NOTE 2: When interest begins during a year, it accrues for the remainder 

of that year. 

April 1998 CSRS and FERS Handbook 
 CSRS Service Credit Payments for Civilian Service
 17 

Chapter 21
 

Section 21A3.1-3 Effect of Making a Redeposit 

A. General The effect of making a redeposit for refunded retirement contributions, 

including those from another eligible retirement system for Federal 

employees, depends on whether the refunded service ended before 

October 1, 1990; and whether the employee's nondisability annuity 

commences after December 1, 1990. The effect of the redeposit for 

nondisability annuities commencing after December 1, 1990, is explained in 

the sections below. All disability annuitants and all annuitants ineligible for 

the election of an alternative annuity whose annuity commences before 

December 2, 1990, must pay the redeposit to receive credit for the service 

in the annuity computation. 

B. Refunded Service 

Ending Before 

October 1, 1990 

If the refunded service ended before October 1, 1990, and the employee's 

nondisability annuity commences after December 1, 1990, the employee ­

including an air traffic controller - does not have to make a redeposit to 

receive credit for the refunded 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. The reduction will be computed using 

the same actuarial factors used to determine the alternative annuity 

reductions. 

CSRS and FERS Handbook April 1998 
18 CSRS Service Credit Payments for Civilian Service 

Chapter 21 

Section 21A3.1-3 Effect of Making a Redeposit (Cont.) 

C. The 80-Percent 

Maximum 

Annuity 

D. Refunded Service 

Ending After 

September 30, 

1990 

In cases involving the 80-percent maximum annuity benefit, if any unpaid 

deposit or redeposit is owed, the excess retirement deductions must first be 

applied to pay those amounts before the annuitant is paid (see Handbook 

Chapter 50, Computation of Annuity Under the General Formula, section 

50A3.1-2C). 

EXCEPTION: If the redeposit is owed for refunded service that ended 

before October 1, 1990, excess deductions are not 

applied to that redeposit. The refunded service is 

credited as explained in paragraph B. 

If the refunded service ended after September 30, 1990, the employee must 

still pay the redeposit in order to receive credit for the service in the 

annuity computation. However, those who still qualify for, and elect, the 

alternative form of annuity will continue to be eligible to have all civilian 

service credit deposits and redeposits other than "mandatory" deposits such 

as the deposit for Cadet Nurse Corps under Public Law 99-638, deemed 

paid. 

NOTE:	 In the case of a single refund covering multiple periods of service, 

any discrete service period ending before October 1990, and 

followed by a break in service of more than 3 days, is still subject 

to the actuarial reduction. Any period that overlaps October 1, 

1990, or that is entirely after that date is not subject to the 

actuarial reduction and a redeposit must be paid to use the service 

in the annuity computation, unless a redeposit may be deemed paid 

under an allowable alternative form of annuity election. In this 

instance, the two types of service may be divided for redeposit 

purposes. 

April 1998	 CSRS and FERS Handbook 
 CSRS Service Credit Payments for Civilian Service 19 

Chapter 21 

Section 21A3.1-3 Effect of Making a Redeposit (Cont.) 

E.	 Example: Paying 

and Not Paying 

the Redeposit 

SUMMARY: 

A 55-year-old employee has 30 years of creditable civilian service. The 

high-3 average salary is $30,000. 

WORK HISTORY 1: 

•	 Hired August 17, 1962, with CSRS coverage. 

•	 Separated August 16, 1969, and received a refund of all retirement 

deductions totaling $7,000. 

•	 Rehired March 25, 1972, with CSRS coverage; worked another 23 

years, retiring at age 55. The redeposit due at the time of his or her 

retirement is $12,000. 

RESULT: 

1.	 The employee is eligible for optional retirement and the 7 years of 

refunded service count for determining retirement eligibility without 

making the redeposit. 

2.	 If the employee makes the redeposit, his or her annuity is 56.25 percent 

of the high-3 average salary, which is $16,875 annually or $1,406 

monthly. 

3.	 If the employee does not make the redeposit, his or her annuity is still 

based on all service performed including the refunded period. 

However, his or her monthly annuity is actuarially reduced as follows: 

$12,000, divided by 

212.6, present value factor for age 55 

yields $56.44 rounded up to $57.00 

$57.00 subtracted from $1,406 yields 

$1,349 monthly 

CSRS and FERS Handbook	 April 1998 
20 CSRS Service Credit Payments for Civilian Service 

Chapter 21 

Section 21A3.1-3 Effect of Making a Redeposit (Cont.) 

E.	 Example: Paying 

and Not Paying 

the Redeposit 

(Cont.) 

WORK HISTORY 2: 

• Hired August 17, 1975, with CSRS coverage. 

•	 Separated August 16, 1995, and received a refund of all retirement 

contributions. 

•	 Rehired December 25, 1995, with CSRS coverage; worked another 

10 years. 

RESULT: 

1.	 The employee is eligible for optional retirement whether or not he or 

she makes the redeposit. The 20 years of refunded service count for 

determining retirement eligibility. 

2.	 If the employee makes the redeposit to recredit the refunded service, the 

annuity is 56.25 percent of the high-3 average salary or $16,875 

annually. 

3.	 If the employee does not make the redeposit, the 20 years of refunded 

service are not used in computing the annual annuity. As a result, the 

employee's annuity will be based on 10 years of service and provide 

16.25 percent of the high-3 average salary or $4,875 annually. 

(However, if the alternative annuity option is available, he or she may 

elect an alternative annuity and have the redeposit deemed paid. See 

Chapter 53.) 

F.	 Partial 

Redeposits	 

An employee who wants or needs to complete payment of the redeposit(s) 

to get full annuity benefits for the refunded service, must do so before final 

adjudication of his or her retirement claim. Before retirement, an employee 

may pay the redeposit in installments. However, if the employee does not 

redeposit all refunds before final adjudication of his or her retirement claim, 

OPM applies the payments as outlined below. 

Two or more refunds: 

•	 The refund or refunds that the employee specified when the payments 

were made. 

•	 If the employee did not specify how to apply the money and there were 

two or more refunds, OPM will apply the money toward payment of 

the refund plus the applicable interest for a full period of service. 

Generally, OPM will try to obtain the highest annuity rate possible 

under the circumstances. 

April 1998	 CSRS and FERS Handbook 
 CSRS Service Credit Payments for Civilian Service 21 

Chapter 21 

Section 21A3.1-3 Effect of Making a Redeposit (Cont.) 

F.	 Partial Redeposits 

(Cont.) 

One period of service: 

1.	 If the employee has refunded service ending after October 1, 1990, and 

the amount paid does not complete repayment of any one refund, OPM 

refunds the partial payment to the employee. 

2.	 If the employee made a partial redeposit for refunded service ending 

before October 1, 1990, OPM will not pay a refund of such redeposit 

payments made before November 5, 1990. The individual may only 

get a refund if he or she is eligible for a refund of his or her total lump 

sum credit or is eligible for and elects to receive the alternative form of 

annuity. 

3.	 Normally, when a redeposit is needed, the total amount of each refund, 

plus interest, must be redeposited to include the service in an annuity 

computation, even though the refund may cover more than one period 

of service. The employee may elect to redeposit one or more of the 

refunds, but he or she cannot elect to repay only a portion of a specific 

refund to cover a period of service in that refund. However, when an 

employee has a single refund covering two discrete periods of service, 

one of which ended before October 1, 1990, the two periods of service 

may be divided for redeposit purposes. (See section 21A3.1-3C). 

EXAMPLE 1: Mr. Smith received a refund of $10,000 in 1991 covering 

three periods of service: 1958-1963, 1966-1979, and 1989-1991. Since 

Mr. Smith's refund covered two periods of service ending before 

October 1, 1990, he does not have to make a redeposit to have the service 

included in the annuity computation. The portion of the refund covering 

the service from 1989-1991 would have to be redeposited, however, to be 

used in the annuity computation. 

EXAMPLE 2: Mr. Jones receives a refund of $5,000 in 1998 covering 

three periods of service: 1982-1991, 1992-1994, and 1995-1998. Since 

Mr. Jones' refund covers three periods of service, he must repay the $5,000 

plus interest to receive any credit in his annuity for any of the three periods 

of service. He cannot pay part of the money and receive credit for one or 

two of the periods of service. On the other hand, however, if 

Mr. Jones had received a separate refund each time he left Federal service, 

he could repurchase credit for one, two, or three periods of service. 

CSRS and FERS Handbook	 April 1998 
22 CSRS Service Credit Payments for Civilian Service 

Chapter 21 

Part 21A4 Procedures for Making Service Credit Payments 

Section 21A4.1-1 Procedures for Making Service Credit Payments Before Retirement 

A. General The following table shows the general procedures to be followed by the 

Procedures agency and the employee to make deposits or redeposits to OPM before 

retirement. 

Step Action 

1 Employee obtains an SF 2803, Application to Make Deposit or 

Redeposit, from his or her personnel office. 

NOTE: The agency must advise the employee that an SF 2803 

should be filed only when the employee intends to make 

payment. An employee should not file an SF 2803 if he or 

she is within 6 months of retiring. OPM will give the 

opportunity to make payment at retirement. 

2 Employee completes the front of the SF 2803 and returns the 

application to the personnel office. 

3 Agency completes the back of the SF 2803. (See paragraph B of this 

section for further details.) 

4 Designated certifying officer certifies the application to make 

deposit or redeposit. The certifying officer notes and initials any 

change or erasure on the back of the SF 2803. 

5 Agency consults "Agency Checklist for a CSRS Service Credit 

Application" (RI 36-56) to ensure that all procedures for filing a 

service credit application have been followed properly. A copy of 

the checklist is included in subchapter 21C, Job Aids and Forms. 

NOTE: Send the checklist to OPM along with the employee's 

application. 

6 Agency forwards the application to the Office of Personnel 

Management, Retirement and Insurance Service, Retirement 

Operations Center, P.O. Box 45, Boyers, PA 16020. 

7 Employee pays OPM in full or in installments of at least $50.00 

after receiving the official bill. 

8 When employee makes a full or partial payment, OPM sends the 

employee a receipt showing the new balance due (including updated 

interest or payment in full, as appropriate). 

April 1998 CSRS and FERS Handbook 
 CSRS Service Credit Payments for Civilian Service 23 

Chapter 21 

Section 21A4.1-1 Procedures for Making Service Credit Payments Before Retirement (Cont.) 

A.	 General 

Procedures 

(Cont.) 

NOTE: Employees may not make payments to OPM by payroll deduction. 

Except as provided in the circumstances specified in Chapter 20, 

agencies may not accept payments for civilian service. 

B.	 Completing the 

SF 2803: Agency

Action 

In completing the SF 2803, the agency furnishes the data available through 

official agency records. If the Individual Retirement Record (SF 2806) or 

some other official record is available that includes verified service from 

other agencies, the agency records the data in section B3 of the SF 2803. 

NOTE: When it is more convenient for the agency, a photocopy of the 

official Individual Retirement Record (SF 2806) may be submitted 

instead of completing item 3 on the back of the SF 2803. 

If the employee claims service in Part A of the SF 2803 that is not 

documented in the employee's OPF or MRPF, the agency must attempt to 

verify the service prior to sending the SF 2803 to OPM. Do not use the 

service credit process to document unverified service. (See The Guide to 

Processing Personnel Actions (formerly FPM Supplement 296-33) for 

instructions about verifying service.) 

C.	 Advantages The advantage of making deposits or redeposits before retirement include: 

• The employee has less total interest to pay on the deposit/redeposit; 

• The retirement application may be processed faster if the 

deposit/redeposit is already paid; and 

• The employee can make installment payments (of $50.00 or more) to 

lessen the financial strain of paying large deposits or redeposits. 

CSRS and FERS Handbook	 April 1998 
24 CSRS Service Credit Payments for Civilian Service 

Chapter 21 

Section 21A4.1-2 Procedures for Making Service Credit Payments at Retirement 

A.	 Eligible for 

Alternative 

Annuity Election 

During the requirement adjudication process, a separated employee eligible 

for the alternative annuity election (see Chapter 53) receives a letter from 

OPM showing the amount of any redeposit due and the amount of any 

deposit due for nondeduction service. 

If applicable, the election letter explains: 

• The effect paying the deposit or redeposit has on benefits, and offers the 

employee the opportunity to pay the redeposit and/or deposit in full; and 

• The effect of the actuarial reduction, if he or she does not elect the 

alternative annuity or make the redeposit for service ending before 

October 1, 1990. 

If the employee elects the alternative annuity, the redeposit and/or deposit 

(for both pre-October 1, 1982, and post-September 30, 1982, nondeduction 

service) is deemed paid. 

B.	 Not Eligible for 

Alternative 

Annuity Election 

If the employee is not eligible to elect an alternative annuity, OPM 

automatically sends him or her an election letter showing -­

1.	 The amount of the annuity -­

• if any redeposit is paid; and 

• with the actuarial reduction for any pre-October 1, 1990, refunded 

service; 

• if any deposit for nondeduction service after September 30, 1982 is 

paid; 

2.	 The amount of the redeposit and/or the deposit for post-September 30, 

1982, nondeduction service; and 

3.	 The instructions for making payment. 

C. Advantages If making a deposit or redeposit is desirable, the advantages of waiting until 

retirement are: 

April 1998	 CSRS and FERS Handbook 
 CSRS Service Credit Payments for Civilian Service 25 

Chapter 21 

Section 21A4.1-2 Procedures for Making Service Credit Payments at Retirement (Cont.) 

C.	 Advantages 

(Cont.) 

• The employee may gain financially by investing his or her money in 

other ways until retirement; 

• There is less overall administrative workload on the Government and the 

employee if payments are made at retirement; 

• If eligible, the employee may elect an alternative annuity at retirement 

and have the deposit or redeposit deemed paid (see Chapter 53); and 

• The employee knows the exact effect on annuity before paying. 

D.	 Disadvantages The disadvantages of making deposits and redeposits at retirement are: 

• Claims processing may take a little longer; 

• There is no guarantee that the alternative annuity election option will be 

available; 

• Interest on deposits and redeposits is charged until the deposit or 

redeposit is paid (see section 21A2.1-2) or the date of retirement, 

whichever comes later. Delaying payment of the deposit and/or 

redeposit increases the amount of interest payable; and 

• The employee may not want to have the payment deemed paid as part of 

an alternative annuity computation because of the Federal tax 

implications. (See the current edition of IRS Publication 721, 

Comprehensive Tax Guide to U.S. Civil Service Retirement Benefits, 

for information on taxes.) 

CSRS and FERS Handbook	 April 1998 
26 CSRS Service Credit Payments for Civilian Service 

Chapter 21 

Section 21A4.1-3 Advice to Employee 

A.	 Deposits/ 

Redeposits 

Are Generally 

Optional 

B.	 Estimating the 

Amount of the 

Deposit/ 

Redeposit 

C.	 Effect of Not 

Making the 

Deposit/ 

Redeposit 

The decision to make a service credit payment rests solely with the 

employee. The agency does not advise the employee on whether or not to 

make a deposit or redeposit. However, the agency must provide the 

employee with the information necessary to make an informed decision. 

This information is discussed in the following paragraphs. 

NOTE: If the employee has performed service with the Cadet Nurse Corps, 

has certain pre-January 1, 1969 service as a National Guard 

Technician under Public Law 99-661, or performed service under a 

personal services contract prior to November 5, 1985, that is 

creditable under section 110 of Public Law 100-238, the employee 

must make a deposit according to the requirements stated in 

Chapter 20 before credit can be allowed for such service in the 

annuity computation. 

It is an agency responsibility to estimate the amount of a deposit or 

redeposit an employee owes. 

However, retirement counselors must stress to employees that the agency 

calculations are only estimates. OPM determines whether the service 

claimed is creditable, computes the amount due, and tells the employee the 

amount due and the manner and method of making payment. 

The agency must explain to employees how their retirement rights are 

affected by not making service credit payments. 

When an employee is preparing to retire, the agency should provide annuity 

estimates that assume payment for the deposit or redeposit service and 

estimates that do not. 

D.	 When Deposits/ 

Redeposits May 

Not Increase the 

Annuity 

In certain situations, making a deposit or redeposit does not increase the 

amount of the annuity. Agencies should inform employees that service 

credit payments do not increase benefits payable when: 

• Employees have performed service in excess of the years and months 

required to provide the 80-percent maximum annuity. OPM withholds 

any deposits and redeposits due from any excess contributions. 

• Employees retire on disability or die in service and the minimum basic 

annuity is payable whether or not the service credit payment is made. It 

is necessary to calculate the benefit with and without the payment to 

determine if this applies. 

April 1998	 CSRS and FERS Handbook 
 CSRS Service Credit Payments for Civilian Service 27 

Chapter 21 

Section 21A4.1-3 Advice to Employee (Cont.) 

D.	 When Deposits/ 

Redeposits May 

Not Increase the 

Annuity (Cont.) 

EXAMPLE: Jane is retiring on disability. She has 12 years of creditable 

service for which deductions remain in the Fund, and 6 years of service for 

which she received a refund of retirement deductions. She will be 60 years 

old in 7 years. 

If Jane pays a redeposit, her annuity will be based on 18 years of service. 

Since 40 percent of average salary is less than an annuity based on her 

service projected to age 60 (25 years), she will receive the 40-percent 

minimum basic annuity if she pays the redeposit. 

However, if Jane does not pay the redeposit, her annuity will be based on 

12 years of service. The annuity based on service projected to age 60 (a 

total of 19 years) is less than 40 percent of her average salary. Therefore, 

her annuity will be the minimum basic annuity based on service projected to 

age 60 if she does not pay the redeposit. 

In this case, it is to Jane's advantage to pay the redeposit. However, it was 

necessary to do two computations to determine this. 

• The only annuity payable is to children, whose rates are not affected by 

deposits and redeposits. 

E.	 Alternative 

Annuity	 

The agency must explain to eligible nondisability retiring employees that 

the alternative annuity election is a means of receiving full retirement credit 

for their unpaid deposit or redeposit service. For additional information 

about the alternative annuity election, see Chapter 53. 

F. Actuarial 

Reduction 

Agencies must explain to employees whose nondisability annuities begin on 

or after December 2, 1990, and who retire owing a redeposit of a refund for 

service that ended before October 1, 1990, that they will no longer be 

required to pay the redeposit in order to receive credit for the refunded 

service. Full credit will be allowed for the service in computing the 

annuity, but the monthly rate will be actuarially reduced based on the 

amount of redeposit owed. 

G. Payment After 

Death of 

Employee 

A deposit or redeposit may be completed after the death of an employee by 

a surviving spouse or former spouse who is qualified to receive annuity 

benefits. 

CSRS and FERS Handbook	 April 1998 
28 CSRS Service Credit Payments for Civilian Service 

Chapter 21 

Section 21A4.1-3 Advice to Employee (Cont.) 

G.	 Payment After 

Death of 

Employee (Cont.) 

H.	 Application of 

Installment 

Payments to 

Multiple Deposit/ 

Redeposit 

Periods 

NOTE: Just as employees retiring on a disability annuity, survivors of 

deceased employees are not eligible for the actuarial reduction. 

When an employee dies in service, the survivor only has the 

opportunity to elect to pay the redeposit or not. Any partial 

redeposit paid before the death of an employee is refundable under 

the normal order of precedence for lump sum payments, should the 

survivor elect not to complete the redeposit. 

If an employee has more than one period of deposit and/or redeposit 

service, OPM applies payments in the following order of precedence. 

1.	 Redeposits of refunds paid on applications received on or after October 

1, 1982. 

2.	 Redeposits of refunds paid on applications received before October 1, 

1982. 

3.	 Deposits for noncontributory civilian service performed on or after 

October 1, 1982. 

4.	 Deposits for noncontributory civilian service performed before 

October 1, 1982. 

This payment scheme usually provides the most beneficial result for the 

employee. 

The employee, at time of payment or retirement, may specify a different 

order in which to apply the service credit payments. 

April 1998	 CSRS and FERS Handbook 
Service Credit Payments for Civilian Service FERS 29 

Chapter 21 

Subchapter 21B FERS 

Part 21B1 General Information 

Section 21B1.1-1 Overview 

A.	 Introduction Subchapter 21B contains the rules and procedures that apply to service 

credit payments for civilian service under the Federal Employees 

Retirement System (FERS). 

B. Organization 

of Subchapter 

The FERS subchapter has four parts. 

Part Name of Part Page 

21B1 General Information 29 

21B2 Deposit Service 31 

21B3 Refunded Service 38 

21B4 Procedures for Making 

Service Credit Payments 41 

C. Statement 

of Authority 

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

• United States Code: 5 U.S.C. 8411(f) 

• Code of Federal Regulations: 5 CFR Parts 841, 842, and 846 

CSRS and FERS Handbook	 April 1998 
30 Service Credit Payments for Civilian Service FERS 

Chapter 21 

Section 21B1.1-2 Definitions 

A.	 Deposit or 

Nondeduction 

Service 

Any period of civilian service performed before 1989 during which FERS 

deductions are not taken but which will be credited under FERS rules is 

called deposit or nondeduction service. 

Under FERS, nondeduction service includes service now credited under 

FERS rules for which deductions were made under another retirement 

system for Federal employees, such as CSRS, and were refunded before the 

employee first acquired FERS coverage. (See Chapter 20 for a discussion 

of credit for service under another retirement system.) 

NOTE: See Chapter 10, Coverage, for an explanation of the 5-year rule for 

determining whether or not an employee has automatic FERS 

coverage. See Chapter 33 for the 5-year rule for determining if a 

transferee has a CSRS component in a future annuity. 

B. Deposit or 

Service Credit 

Payment 

A sum of money paid into the Fund by a FERS employee or survivor to 

cover a period of service during which deductions were not withheld from 

pay or for which a refund was paid before the employee became covered by 

FERS. 

C. Refund The withdrawal from the Fund by an individual of his or her lump-sum 

credit under conditions that entitle him or her to receive a refund. 

Payments made when the employee is not entitled (or loses entitlement) to 

receive the refund are erroneous payments and are collected as discussed in 

Chapter 4. 

April 1998	 CSRS and FERS Handbook 
Service Credit Payments for Civilian Service FERS 31 

Chapter 21 

Part 21B2 Deposit Service 

Section 21B2.1-1 Introduction 

A.	 General Rules 1. A FERS employee may make a deposit to credit nondeduction service 

performed before January 1, 1989. Nondeduction or deposit service 

performed before January 1, 1989, does not count for eligibility or 

computation purposes unless the employee pays the deposit prior to the 

final adjudication of his or her retirement claim or, when eligible, 

elects an alternative annuity and has the deposit deemed paid. (See 

Chapter 53.) 

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

generally is not creditable under FERS for any purpose. 

3.	 A FERS employee may not redeposit a refund for FERS service that 

he or she received after becoming covered by FERS. All service of an 

employee who was automatically covered by FERS is treated under 

FERS rules even though it may have been under a different system 

(for example, CSRS) when performed. 

4.	 Service performed on or after January 1, 1989, under another 

retirement system for Federal employees is not creditable under FERS 

for any purpose. The exception is service that is creditable under the 

Foreign Service Pension System (FSPS), provided that the employee: 

• Waives credit for the service under the FSPS; and 

• Makes a deposit for the service. 

B.	 General Rule: 

Transferees 

For an employee who transfers from CSRS Offset to FERS: 

1.	 The CSRS Offset service becomes subject to the FERS service credit 

rules in this subchapter, and 

2.	 If, as of the date of the transfer to FERS, the employee has 

performed -­

•	 less than 5 years of civilian service creditable under CSRS rules (not 

counting the Offset service), the non-Offset service also becomes 

subject to FERS service credit rules in this subchapter. Employees 

who were subject to full CSRS deductions are entitled to a return of 

any deductions that exceed the appropriate FERS deduction. See 

Chapter 33, Return of Excess Contributions, for more information. 

CSRS and FERS Handbook	 April 1998 
32 Service Credit Payments for Civilian Service FERS 

Chapter 21 

Section 21B2.1-1 Introduction (Cont.) 

B.	 General Rule: 

Transferees 

(Cont.) 

If, as of the date of the transfer to FERS, the employee has 

performed -­

•	 5 or more years of civilian service creditable under CSRS rules 

(not counting the Offset service), the non-Offset service remains 

subject to the CSRS service credit rules in subchapter A. 

For an employee who transfers from full CSRS coverage to FERS: 

1.	 If, as of the date of the transfer, the employee has performed -­

•	 less than 5 years of civilian service creditable under CSRS rules, 

all of the service becomes subject to the FERS service credit rules 

in this subchapter. Employees are entitled to a return of any CSRS 

deductions that exceed the appropriate FERS deductions required 

for the period. See Chapter 33, Return of Excess Contributions, 

for more information. 

If, as of the date of the transfer to FERS, the employee has 

performed -­

•	 5 or more years of civilian service creditable under CSRS rules, 

all of the service performed before the effective date of the transfer 

remains subject to the CSRS service credit rules in subchapter A. 

C.	 Special Rule: 

Peace 

Corps/VISTA 

Service 

Public Law 103-82, the National and Community Service Trust Act of 1993 

and Domestic Volunteer Service Act Amendments of 1993, modified the 

treatment of Peace Corps and VISTA volunteer service so that it is similar 

to that of military service. 

Under the new provisions, current FERS employees, separated employees, 

and FERS retirees may make a deposit to credit their volunteer service 

regardless of when the service was performed (whether before or after 

January 1, 1989). However, for those already retired, any annuity increase 

is effective on November 1, 1993. 

D. Who May Make 

a Service Credit 

Payment 

Service credit payments may be made only by: 

• An employee who is subject to FERS; 

April 1998	 CSRS and FERS Handbook 
Service Credit Payments for Civilian Service FERS 33 

Chapter 21 

Section 21B2.1-1 Introduction (Cont.) 

D.	 Who May Make 

a Service Credit 

Payment (Cont.) 

• A retiree who is entitled to an immediate annuity whose annuity has not 

been finally adjudicated; 

• A former employee whose annuity has not been fully adjudicated, who is 

eligible for a deferred annuity because he or she had at least 5 years of 

paid civilian service (or a CSRS component) upon leaving the Federal 

government;< 

• The spouse of a deceased employee who is entitled to a survivor annuity 

(see Chapter 70); 

• The former spouse of a deceased employee who is entitled to a survivor 

annuity (see Chapter 74); 

• The surviving spouse of a deceased former employee who is eligible for 

a survivor annuity (see Chapter 72, Spouse Benefits -- Death of a Former 

Employee); or 

• The surviving former spouse of a deceased former employee who is 

eligible for a survivor annuity (see Chapter 74). 

E. When a Payment 

May Be Made 

Payment may be made at any time prior to the final adjudication of the 

individual's retirement claim. 

CSRS and FERS Handbook	 April 1998 
34 Service Credit Payments for Civilian Service FERS 

Chapter 21 

Section 21B2.1-2 Amount of Service Credit Payment 

A. Amount of
 

Deposit
 

The deposit is 1.3 percent of basic pay earned during the nondeduction 

service, plus interest. The 1.3 percent applies regardless of when the 

service was performed or whether deductions would have been taken at 1.3 

percent if they had been taken at the time the service was performed. 

EXAMPLE 1: Tina was employed under CSRS from 1961 to 1963. 

She resigned, applied for, and received a refund of her 7 percent CSRS 

deductions. She returned to Federal service in 1988 and was automatically 

covered by FERS. Since her service from 1961 to 1963 is now credited 

under FERS rules, her service credit payment is 1.3 percent of her basic 

pay, plus interest. 

EXAMPLE 2: The FERS employee contribution rate for 1988 is .94 

percent of basic pay. However, the service credit payment rate is 1.3 

percent. Therefore, a temporary employee whose basic pay in 1988 is 

$30,000 would pay 1.3 percent of $30,000, plus interest, if he or she 

subsequently becomes covered by FERS and makes the service credit 

payment. On the other hand, if this same employee had been covered by 

FERS in 1988, he or she would have paid employee contributions of .94 

percent of $30,000 because of the lower employee contribution rate. 

B.	 Interest Unless there is a specific statutory provision to the contrary, interest 

charges are computed as stated below. Interest is charged from the 

midpoint of each period of nondeduction or refunded service. Interest 

accrues annually on the outstanding balance on December 31 of each year 

and is compounded annually until the outstanding balance is deposited. 

Interest is charged to the date of deposit or the commencing date of annuity, 

whichever is earlier. The rates are assessed as follows: 

• 4 percent through December 31, 1947; 

• 3 percent from January 1, 1948, through December 31, 1984; and 

• A variable rate determined by the Department of the Treasury beginning 

January 1, 1985. The variable rates charged through 1998 are listed in 

the table on the following page. 

April 1998	 CSRS and FERS Handbook 
Service Credit Payments for Civilian Service FERS 35 

Chapter 21 

Section 21B2.1-2 Amount of Service Credit Payment (Cont.) 

B. Interest (Cont.) 

Variable Interest Rates 

Year 

1985 

1986 

1987 

1988 

1989 

1990 

1991 

1992 

Interest 

Rate 

13.0% 

11.125% 

9.0% 

8.375% 

9.125% 

8.75% 

8.625% 

8.125% 

Year 

1993 

1994 

1995 

1996 

1997 

> 1998 

All future 

periods 

Interest 

Rate 

7.125% 

6.25% 

7.0% 

6.875% 

6.875% 

6.75% < 

To be determined 

by the Department 

of the Treasury 

C. Special Rule: 

Peace 

Corps/VISTA 

Service 

NOTE 1: No interest is charged for periods of separation that began 

before October 1, 1956. 

NOTE 2: No interest is charged for a year when payment in full is 

received by close of business on the last regular business day of 

the year. (See section 21A2.1-2B3 for a discussion of when 

payment is received.) 

NOTE 3: When interest begins during a year, it accrues for the remainder 

of that year. 

Public Law 103-82 changes the way deposits for Peace Corps/VISTA 

volunteer service are computed and guarantees that the individual and his or 

her survivors will continue to receive credit for the service even after they 

become eligible for old age or survivor benefits from Social Security. The 

deposit rules are similar to those for post-1956 military service. 

The deposit is equal to 3 percent of the readjustment allowance paid to the 

employee or Member under title VIII of the Economic Opportunity Act of 

1964 or section 5(c) or 6(l) of the Peace Corps Act or the stipend paid to 

the employee or Member under part A, B, or C of title I of the Domestic 

Volunteer Service Act of 1973, for each period of service as a volunteer or 

volunteer leader. 

CSRS and FERS Handbook April 1998 
36 Service Credit Payments for Civilian Service FERS 

Chapter 21 

Section 21B2.1-2 Amount of Service Credit Payment (Cont.) 

D. Interest on Peace 

Corps/VISTA 

Service Deposits 

For both current and former employees, interest begins to accrue on 

deposits for volunteer service on October 1, 1995, or 2 years after the date 

on which the individual first becomes an employee or Member, whichever 

is later. 

Public Law 103-82 provides a 2-year interest-free grace period on Peace 

Corps/VISTA volunteer service deposits. After the 2-year period, interest 

is accrued and compounded annually at the variable rate beginning on the 

date of the expiration of the 2-year period. 

For employees first employed before October 1, 1993, interest started 

accruing October 1, 1995. The earliest possible interest posting for an 

unpaid deposit is October 1, 1996. 

Example: Jane was a Peace Corps volunteer from 1990 to 1994. She 

accepted a career conditional appointment with the Department of the Army 

on April 1, 1996. Interest will not start accruing on her deposit until April 

1, 1998. If the deposit is not paid in full by April 1, 1999, one year's 

interest will be added to the unpaid deposit. 

NOTE: Because interest accrues annually, there is, in effect, a 3-year 

interest-free period if the deposit is paid in full before the first interest 

accrual date. However, interest will accrue during the year following the 2­

year grace period on any amount not deposited before the first interest 

accrual date. 

Like deposits for post-1956 military service, interest on these deposits 

accrues and compounds annually on the employee's personal interest accrual 

date. Because the interest accrual period will not generally coincide with 

the calendar year, two interest rates may apply. (See Section 23A3.1-5 in 

Chapter 23 for more details on computing interest and interest accrual 

dates.) 

E.	 Where Deposit for

Volunteer Service 

is Made 

Like other deposits for nondeduction service, deposits for Peace 

Corps/VISTA service must be paid to OPM following the procedures 

outlined in Part 21B4. 

F.	 When Deposit 

Was Already 

Made 

Any individual who has previously made a service credit deposit for Peace 

Corps/VISTA volunteer service under prior law does not need to take any 

further action to ensure that he or she will have the service credited upon 

attainment of Social Security eligibility. As long as a service credit deposit 

was completed, the service will be deemed paid. 

April 1998	 CSRS and FERS Handbook 
Service Credit Payments for Civilian Service FERS 37 

Chapter 21 

Section 21B2.1-3 Effect of Making a Service Credit Payment 

A. General Rule	 Nondeduction service credited under FERS rules and performed before 

January 1, 1989, does not count for eligibility or computation purposes 

unless the employee makes the service credit payment prior to the final 

adjudication of his or her retirement claim or, when eligible, elects an 

alternative annuity and has the deposit deemed paid. (See Chapter 53.) 

B. Example	 SUMMARY: 

A 59-year-old employee has 30 years of civilian service. 

WORK HISTORY: 

•	 Hired October 23, 1987, under a temporary appointment. 

•	 Converted to a career appointment October 23, 1988, and served 

continuously in a covered position for the next 29 years. 

RESULT: 

The 1 year of temporary service is creditable for eligibility and computation 

purposes only if a deposit is made. Thus, if the employee does not make 

the deposit he/she will not receive credit for the service in the annuity 

computation and will receive an MRA + 10 annuity reduced for age (see 

Chapter 42, MRA + 10 Retirement) instead of an unreduced annuity. 

CSRS and FERS Handbook	 April 1998 
38 Service Credit Payments for Civilian Service FERS 

Chapter 21 

Part 21B3 Refunded Service 

Section 21B3.1-1 Introduction 

A. General Rule An employee who receives a refund of FERS retirement contributions may 

not make a redeposit. All credit for FERS refunded service is lost for both 

eligibility and computation purposes. 

B. General Rule: 

Transferees 

An employee who transfers to FERS with eligibility for a CSRS annuity 

component (at least 5 years of creditable civilian CSRS service, not 

counting any service with CSRS Offset coverage) may make a deposit for 

refunded CSRS service that is included in the CSRS annuity component. 

(See applicable CSRS rules in part 21A3.) Refunded CSRS Offset service 

becomes FERS service regardless of when performed. An employee must 

use the FERS service credit application (SF 3108) to apply to pay for 

service that will be in a CSRS component. 

C. General Rule: 

Non-Transferees 

With Prior CSRS 

Service 

An employee: 

• Who received a refund of contributions for prior CSRS service; 

• Who fell under the FERS automatic coverage rules outlined in section 

10A1.3-4, paragraph B (Chapter 10, Coverage); and 

• Who received the refund based on an application filed before FERS 

coverage began, must make a deposit to receive credit under FERS for 

the prior CSRS service. The deposit must be made under FERS rules. 

Employees must use the FERS service credit application (SF 3108) and 

follow FERS service credit application procedures. (See part 21B4.) 

NOTE 1: The provisions in section 21B2.1-1 that specify who can make a 

FERS deposit and when the deposit must be made apply to 

deposits made in this situation. 

NOTE 2: Since the prior CSRS service is treated as FERS service, a 

refund based on an application filed after a transfer to FERS 

would be a refund of FERS contributions and therefore the 

service would not be creditable. 

April 1998 CSRS and FERS Handbook 
Service Credit Payments for Civilian Service FERS 39 

Chapter 21 

Section 21B3.1-2 Effect of Making a Deposit for CSRS Refunds 

A. Paying the Deposit	 If the employee makes the deposit prior to final adjudication of his or her 

retirement claim, the service for which the employee received the refund 

counts for eligibility and computation purposes. 

B.	 Not Paying the 

Deposit: Service 

Treated Under 

FERS Rules 

If the employee does not make the deposit prior to the final adjudication of 

his or her retirement claim, the service for which the employee received the 

refund will not be creditable for eligibility or computation purposes under 

FERS. 

C. Example	 1. SUMMARY: 

A 60-year-old employee has 21 years of civilian service. 

WORK HISTORY: 

•	 Hired August 22, 1973, under a career appointment and 

covered by CSRS. 

•	 Separated August 21, 1977, and withdrew retirement 

contributions. 

•	 Rehired under a career appointment April 1, 1988, and 

automatically covered by FERS retirement deductions. 

Remained in a Covered position for the next 17 years. 

RESULT: 

The 4 years of prior CSRS service are now credited as FERS 

service. They are creditable for eligibility and computation 

purposes only if a deposit is made or the payment may be deemed 

made when alternative annuity rules apply. (See Chapter 53.) If 

the deposit is not made or deemed made, the employee will 

receive credit for 17 years of service and will receive an 

MRA + 10 annuity reduced for age (see Chapter 42) instead of an 

unreduced annuity. 

CSRS and FERS Handbook	 April 1998 
40 Service Credit Payments for Civilian Service FERS 

Chapter 21 

Section 21B3.1-2 Effect of Making a Deposit for CSRS Refunds (Cont.) 

C. Example (Cont.)	 2. An employee has the following service. 

WORK HISTORY: 

•	 Hired June 1, 1970, under a career appointment and covered by 

CSRS. 

•	 Separated May 15, 1975, and withdrew CSRS contributions. 

•	 Rehired January 15, 1984, under CSRS Interim/Offset 

provisions. 

•	 Resigned January 14, 1990, and received a refund of CSRS 

Interim/Offset contributions. 

•	 Rehired June 1, 1991, and transfers to FERS. 

RESULT: 

Upon transferring to FERS, the employee's Offset service 

becomes FERS service. The CSRS service from 1970 to 1975 

also becomes FERS service because the employee has less than 

5 years of non-Offset service. Consequently, the service credit 

payment due is 1.3 percent of basic pay, plus interest, for each 

period of service. The employee will receive no credit for the 

service unless payment is made or deemed made. 

April 1998	 CSRS and FERS Handbook 
Service Credit Payments for Civilian Service FERS 41 

Chapter 21 

Part 21B4 Procedures for Making Service Credit Payments 

Section 21B4.1-1 Procedures for Making FERS Service Credit Payments Before Retirement 

A. General 

Procedures 

The following table shows the general procedures to be followed by the 

agency and the employee to make deposits before retirement. 

Step Action

 1 Employee obtains an SF 3108, Application to Make Service Credit 

Payments for Civilian Service, from his or her personnel office. 

Note: The agency must tell the employee that an SF 3108 should 

be filed only when the employee intends to make payment. 

An employee who anticipates retiring within 6 months 

should not file a service credit application because OPM 

will give the employee an opportunity to pay when his or 

her annuity is computed. 

2 Employee completes the front of the SF 3108 and returns the 

application to the personnel office.

 3 Agency completes the back of the SF 3108. 

4 Designated agency certifying officer certifies the application to make 

service credit payment. 

5 Agency consults "Agency Checklist for a FERS Service Credit 

Application" (RI 95-1) to ensure that all procedures for making a 

service credit payment have been properly followed. A copy of the 

checklist is included in subchapter 21C, Job Aids and Forms. 

Note: Send the checklist to OPM along with the employee's 

application.

 6 After certification, the agency forwards the application to the Office 

of Personnel Management, Retirement Operations Center, Boyers, 

PA 16017. 

7 Employee submits payment(s) to OPM after receiving the official 

bill. The deposit may be made in a single lump sum or in 

installments no smaller than $50.00. 

8 When employee makes a full or partial payment, OPM sends the 

employee a receipt showing the new balance due (including updated 

interest or payment in full, as appropriate). 

NOTE: Employees may not make payments to OPM by payroll deduction. 

Employees may not make payments to the employing agency. 

CSRS and FERS Handbook April 1998 
42 Service Credit Payments for Civilian Service FERS 

Chapter 21 

Section 21B4.1-1 Procedures for Making FERS Service Credit Payments Before 

Retirement (Cont.) 

B. Completing the 

SF 3108: Agency 

Action 

In completing the SF 3108, the agency furnishes only the data available 

through official agency records. If the Individual Retirement Record 

(SF 3100), or some other official record, is available that includes verified 

service from other agencies, the agency records the data in the schedules. 

NOTE: When it is more convenient for the agency, a photocopy of the 

official Individual Retirement Record (SF 3100--and the SF 2806 

for transferees) may be submitted instead of completing the 

schedules on the back of the SF 3108, provided all of the 

information requested on the SF 3108 is shown. 

If the employee claims service in Part A of the SF 3108 that is not 

documented in the employee's Official Personnel Folder, the 

agency must attempt to verify the service prior to sending the 

SF 3108 to OPM. The SF 3108 is not used to document 

unverified service. (See The Guide to Processing Personnel 

Actions (formerly FPM Supplement 296-33) for instructions about 

verifying service.) 

C. Advantages The advantages of making a service credit payment before retirement noted 

in section 21A4.1-1, paragraph C, apply under FERS. 

April 1998 CSRS and FERS Handbook 
Service Credit Payments for Civilian Service FERS 43 

Chapter 21 

Section 21B4.1-2 Procedures for Making FERS Service Credit Payments at Retirement 

A. General 

Procedures 

Generally, if it is to an employee's advantage to pay for service, he or she 

is automatically given an opportunity to make payment before final 

adjudication of a retirement claim. 

Service is deemed paid automatically when an eligible employee elects to 

receive the alternative annuity. 

For employees who are not eligible for the alternative annuity and who have 

CSRS service performed before October 1, 1982, during which no 

retirement deductions were made (excluding service that is creditable as 

FERS service for annuity computation purposes), the procedures in the 

table below must be followed to make a deposit at time of retirement. 

Step Action 

1 Employee attaches a note to the retirement 

application stating his or her desire to 

make a deposit. 

2 OPM sends the employee an election letter 

showing the amount of annuity with and 

without the payment. 

3 Employee completes the election letter and 

follows the instructions in the letter to pay 

the amount due before final adjudication of 

his or her retirement claim. 

B. Advantages and 

Disadvantages 

The advantages and disadvantages of making a service credit payment at 

retirement noted in section 21A4.1-2, paragraphs C and D, apply under 

FERS. 

CSRS and FERS Handbook April 1998 
44 Service Credit Payments for Civilian Service FERS 

Chapter 21 

Section 21B4.1-3 Advice to Employee 

A. Payments Are 

Optional	 

The decision to make a service credit payment rests solely with the 

employee. The agency does not advise the employee whether to make a 

deposit. However, the agency must provide the employee with the 

information necessary to make an informed decision. 

B. Estimating the 

Amount of the 

Payment 

Retirement counselors must stress to employees that the agency calculations 

are only estimates. OPM determines whether the service claimed is 

creditable, computes the amount due, and tells the employee of the amount 

due and the manner and method of making payment. 

C. Effect of Not 

Making the 

Payment 

The agency must explain to employees about how their retirement rights are 

affected by not making service credit payments, emphasizing that payment 

must be made for both eligibility and computation purposes. If payment is 

not made, it is as if the service never existed. 

When an employee is preparing to retire, the agency should provide annuity

estimates that assume payment for the service and estimates that do not. 

D. When Payment 

May Not Increase 

the Annuity 

In some situations, making a deposit does not increase the monetary amount 

of the annuity. Agencies should inform employees that service credit 

payments may not increase an annuity when: 

• An employee retires on disability. However, the service credit payment 

will make a difference when the employee's annuity is redetermined at 

age 62 or in the survivor benefit; 

• An employee dies in service with between 18 months and 10 years of 

service, and there are less than 10 years of creditable service with or 

without paying the deposit; or 

• The only survivor annuity payable is to a child. 

E. Alternative 

Annuity 

The agency must explain to eligible nondisability retiring employees that 

the alternative annuity election is a means of receiving full retirement credit 

for their unpaid deposit service. For additional information about the 

alternative annuity election, see Chapter 53. 

April 1998	 CSRS and FERS Handbook 
Service Credit Payments for Civilian Service FERS 45 

Chapter 21 

Section 21B4.1-3 Advice to Employee (Cont.) 

F.	 Payment of 

Deposit After 

Death of 

Employee 

If a deceased employee owed a deposit and payment of the deposit would 

increase survivor benefits payable to a spouse or former spouse, OPM 

withholds the deposit from the lump-sum death benefit. (See Chapter 70.) 

G. Payment of 

Multiple Deposits 

An employee who has several distinct periods of deposit service can specify 

the order in which his or her service credit payments are to be applied. A 

distinct period of nondeduction service is civilian service that is not 

interrupted by a break in service of more than 3 days. However a deposit is 

not considered to have been made for any distinct period of service unless 

the total amount due for the period has been paid in full. 

CSRS and FERS Handbook	 April 1998 
46 CSRS Service Credit Payments for Civilian Service FERS 

Chapter 21 

Subchapter 21C Job Aids and Forms 

Section 21C1.1-1 Job Aids 

This section contains copies of the following OPM job aids for local 

reproduction. 

Number Name 

RI 36-56 Agency Checklist for a CSRS Service Credit 

Application 

RI 95-1 Agency Checklist for a FERS Service Credit Application 

April 1998 CSRS and FERS Handbook 
 CSRS Service Credit Payments for Civilian Service 47 

Chapter 21 

AGENCY CHECKLIST FOR A CSRS SERVICE CREDIT 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 addresses the proper completion of Standard 

Form 2803, "Application to Make Deposit or Redeposit," which must be submitted to the Office of 

Personnel Management (OPM) in order for the amount owed for civilian service to be calculated. The 

checklist also incorporates questions to aid in the proper completion of the submission, thereby 

reducing delays in processing. Although the questions in Section A of the application are to be 

answered by the applicant, you must check the information in this section. Of course, you must also 

ensure the accuracy of the information you provide in Section B of the application. Generally, service 

credit deposits and redeposits cannot be made through payroll deductions or reported on the SF 2812 

(Report of Withholdings and Contributions for Health Benefits, Life Insurance and Retirement). 

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

SF 2803, Application to Make Deposit or Redeposit (CSRS)

(Current version dated 3/87; previous versions are not usable.) 

THE FOLLOWING QUESTIONS PERTAIN TO SECTION A OF APPLICATION: 

SECTION A BLOCK NUMBER REQUIREMENT YES NO N/A 

Has the proper application been completed? Required in all cases. G G

NOTE: FERS applicants must use SF 3108. For civilian service covered by systems other than CSRS or 

FERS, be sure to verify eligibility to make service credit payment for the service. 

Block 2: 

If the applicant has used more than one name 

during Federal employment, or formally used a 

variation, such as initials, have those other names 

been listed? 

If applicable. G G G

Block 3: 

Is the applicant's correct birthdate provided? 

Required in all cases. G G

Blocks 4: 

Is the applicant's address current and complete? 

Required in all cases. G G

Blocks 5, 6, 7 and 8: 

Are the questions about current employment 

answered? 

Required in all cases. G G

NOTE: Applicant's Social Security Number must be provided. In addition, all periods of Federal civilian 

service must be listed, and all requested information provided for each period of service. 

Block 9: 

Is the question about current deductions 

answered? 

Required in all cases? G G G

If the answer in Block 9 is "Yes," supply correct withholding rate in the space next to the "NO" box. 

For most CSRS employees, the deductions are 7%. For qualified House, Senate, firefighter or law 

enforcement employees, the deduction is 7.5%. For regular employees covered by CSRS OFFSET, the 

deduction rate after 1989 is .8%. For House, Senate, firefighter or law enforcement employees covered 

by CSRS OFFSET, the deduction rate after 1989 is 1.3%. 

U.S. Office of Personnel Management (THIS FORM MAY BE LOCALLY REPRODUCED) RI 36-56 

March 1990 

CSRS and FERS Handbook April 1998 
 

 

48 CSRS Service Credit Payments for Civilian Service 

Chapter 21 

CSRS SERVICE CREDIT CHECKLIST PAGE 2 of 2 

Name of Applicant: _____________________________________ SSN: _____________________________ 

STANDARD FORM 2803, Application to Make Deposit or Redeposit (CSRS) 

QUESTIONS PERTAINING TO SECTION A OF APPLICATION (Continued) 

SECTION A BLOCK NUMBER REQUIREMENT YES NO N/A 

Block 10: 

If the answer to Block 9 is "No," is the date of 

separation from CSRS given? 

If applicable. G G G

Has the applicant signed the application in ink? Required in all cases. G G

Is the applicant's daytime telephone number 

provided? 

Required in all cases. G G

Is the application dated? Required in all cases. G G

THE FOLLOWING QUESTIONS PERTAIN TO SECTION B OF APPLICATION: 

SECTION (B) BLOCK NUMBER REQUIREMENT YES NO N/A 

Block 2: 

If the answer to block 1 is "Yes," is the 

beginning date of CSRS deductions given? 

If applicable. G G G

1. Is Block 3 completed? 

2. Are all pay rates/changes for temporary 

service shown? 

3. Is the tour of duty or actual days worked 

shown for all part-time or intermittent service? 

4. Are earnings for all part-time or intermittent 

service shown? 

If applicable. 

If applicable. 

If applicable. 

If applicable. 

G

G

G

G

G

G

G

G

G

G

G

G

Has the application been properly certified and a 

complete address and telephone number been 

provided by an agency official? 

Required in all cases. G G

PERSONNEL SPECIALIST: 

TELEPHONE NUMBER: ( ) 

***PERSONNEL OFFICE REVIEWER*** 

PAYROLL OFFICE CONTACT: 

TELEPHONE NUMBER: ( ) 

***PAYROLL OFFICE REVIEWER*** 

U.S. Office of Personnel Management (THIS FORM MAY BE LOCALLY REPRODUCED) RI 36-56 

March 1990 

April 1998 CSRS and FERS Handbook 
Service Credit Payments for Civilian Service FERS 49 

Chapter 21 

AGENCY CHECKLIST FOR A FERS SERVICE CREDIT 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 addresses the proper completion of Standard 

Form 3108, "Application to Make Service Credit Payment for Civilian Service," which must be 

submitted to the Office of Personnel Management (OPM) in order for the amount owed for civilian 

service to be calculated. The checklist also incorporates questions to aid in the proper completion of 

the submission, thereby reducing delays in processing. Although the questions in Section A of the 

application are to be answered by the applicant, you must check the information in this section. Of 

course, you must also ensure the accuracy of the information you provide in Section B of the 

application. Generally, service credit deposits and redeposits cannot be made through payroll 

deductions or reported on the SF 2812 (Report of Withholdings and Contributions for Health 

Benefits, Life Insurance and Retirement). 

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

STANDARD FORM 3108, Application to Make Service Credit Payment for Civilian Service (FERS) 

THE FOLLOWING QUESTIONS PERTAIN TO SECTION A OF APPLICATION: 

SECTION A BLOCK NUMBER REQUIREMENT YES NO N/A 

Has the proper application been completed? Required in all cases. G G

NOTE: FERS-covered employees must use SF 3108 even if they are applying to make a service 

credit payment for CSRS service. CSRS-covered employees must use SF 2803 instead. For civilian 

service covered by systems other than CSRS or FERS, be sure to verify eligibility to make service 

credit payment for the service. (See the CSRS and FERS Handbook for Personnel and Payroll Offices, 

Chapter 21.) 

Block 2: 

If the applicant has used more than one name 

during Federal employment, or formally used a 

variation, such as initials, have those other names 

been listed? 

If applicable. G G G

Block 3: 

Is the applicant's correct birthdate provided? 

Required in all cases. G G

Blocks 4: 

Is the applicant's address current and complete? 

Required in all cases. G G

Blocks 5, 6, 7 and 8: 

Is the applicant's address current and complete? 

Required in all cases. G G

NOTE: Applicant's Social Security Number must be provided. 

Block 9: 

Are the questions about previous address 

answered? 

Required in all cases? G G

U.S. Office of Personnel Management	 (THIS FORM MAY BE LOCALLY REPRODUCED) RI 95-1 

March 1990 

CSRS and FERS Handbook	 April 1998 
 

50 Service Credit Payments for Civilian Service FERS 

Chapter 21 

FERS SERVICE CREDIT CHECKLIST PAGE 2 of 3 

Name of Applicant: ___________________________________________ SSN: _____________________ 

STANDARD FORM 3108, Application to Make Service Credit Payment for Civilian Service (FERS) 

QUESTIONS PERTAINING TO SECTION A OF A APPLICATION (Continued) 

SECTION A BLOCK NUMBER REQUIREMENT YES NO N/A 

Block 10: 

Are all periods of Federal civilian service listed, and 

is all requested information provided for each period 

of service? 

Required in all cases, even 

though applicant may not 

intend to pay for all periods 

of creditable service. 

G G

Block 11: 

Is the question about FERS deductions answered? 

If applicable. G G G

Block 12: 

If the answer to Block 11 is "No," is date of 

separation given? 

If applicable. G G G

Block 13: 

Has the applicant signed the application in Ink? 

Required in all cases. G G

Block 14: 

Is the applicant's daytime telephone number 

provided? 

Required in all cases. G G

Block 15: 

Is the application dated? 

Required in all cases. G G

THE FOLLOWING QUESTIONS PERTAIN TO SECTION B OF APPLICATION 

SECTION B BLOCK NUMBER REQUIREMENT YES NO N/A 

Block 1: 

Is employee currently covered by FERS? 

Required in all cases. 

Answer must be "Yes," 

otherwise do NOT use 

SF 3108. 

G G

Block 2: 

Is the date FERS deductions commenced shown? 

Required in all cases. G G

Block 3a: 

Has the question about transferring to FERS been 

answered? 

Required in all cases. G G

Block 3b: 

If the answer to Block 3a is "Yes," then you must 

complete this block. 

If applicable G G G

U.S. Office of Personnel Management (THIS FORM MAY BE LOCALLY REPRODUCED) RI 95-1 

March 1990 

April 1998 CSRS and FERS Handbook 
 

Service Credit Payments for Civilian Service FERS 51 

Chapter 21 

FERS SERVICE CREDIT CHECKLIST PAGE 3 of 3 

Name of Applicant: ___________________________________________ SSN: ____________________________ 

STANDARD FORM 3108, Application to Make Service Credit Payment for Civilian Service (FERS) 

QUESTIONS PERTAINING TO SECTION B OF APPLICATION (Continued) 

SECTION B BLOCK NUMBER REQUIREMENT YES NO N/A 

Block 4: 

1. Has all civilian service not covered by FERS or 

CSRS deduction been shown? 

2. Are all pay rate/changes for temporary service 

shown? 

3. Is the tour of duty or actual days worked 

shown for all part-time or intermittent service? 

4. Are earnings for all part-time or intermittent 

service shown? 

If applicable. 

If applicable. 

If applicable. 

If applicable. 

G G G

G G G

G G G

G G G

Has the application been properly certified and a 

complete address and telephone number been 

provided by an agency official? 

Required in all cases. G G

PERSONNEL SPECIALIST: 

TELEPHONE NUMBER: ( ) 

***PERSONNEL OFFICE REVIEWER*** 

PAYROLL OFFICE CONTACT: 

TELEPHONE NUMBER: ( ) 

***PAYROLL OFFICE REVIEWER*** 

U.S. Office of Personnel Management (THIS FORM MAY BE LOCALLY REPRODUCED) RI 95-1 

March 1990 

CSRS and FERS Handbook April 1998