CSRS Special Retirement Provisions for Senior Officials FERS i 

Chapter 101
 

Table of Contents 

Subchapter 101A CSRS and FERS 

Part 101A1 General Information 

Section 101A1.1-1 Overview ........................................ 1
 

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

B. Using This Chapter ............................................ 2
 

C. Topics Covered .............................................. 2
 

D. Organization of Chapter ......................................... 2
 

E. Statement of Authority .......................................... 3
 

Section 101A1.1-2 Definitions ....................................... 4
 

A. Mandatory Social Security Coverage ................................. 4
 

B. Senior Official ............................................... 4
 

Part 101A2 Senior Officials Mandatorily Covered by Social Security 

Section 101A2.1-1 Senior Officials Covered by the Social
 

Security Amendments of 1983 .......................... 5
 

A. General ................................................... 5
 

B. Members of Congress .......................................... 5
 

C. Officials in Executive Schedule and SES Positions ........................ 5
 

D. Noncareer SES Appointees ....................................... 7
 

E. Personal Staff of the President and Vice President ........................ 8
 

F. Certain Federal Judges .......................................... 8
 

Part 101A3 Current Coverage Determinations 

Section 101A3.1-1 Coverage Determinations ............................. 9
 

A. General ................................................... 9
 

B. New Hires ................................................. 9
 

C. New Members of Congress ....................................... 9
 

D. Transfers from Positions With Mandatory Social Security Coverage ............ 9
 

E. Transfers or Conversions from Positions Without Mandatory Social Security
 

Coverage ............................................... 10
 

F. Individuals Who Become Senior Officials after December 31, 1986 ............. 11
 

G. Rehires .................................................... 11
 

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Chapter 101
 

Section 101A3.1-2 Annuitants Reemployed in Senior Official Positions ........... 12
 

A.	 CSRS Annuitants ............................................. 12
 

B.	 FERS Annuitants ............................................. 12
 

C.	 Reemploying a Retired Member of Congress ........................... 12
 

D.	 Reemployed Annuitants Receiving OWCP Benefits ....................... 13
 

E.	 Reemployment of Civilian and Military Retirees Under 5 CFR Part 553 to Meet 

Exceptional Employment Needs .................................... 13
 

Part 101A4 Service Credit and Return of Excess Deductions 

Section 101A4.1-1 Service Credit and Return of Excess Deductions ............. 14
 

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

B.	 Senior Officials With Special Elections ............................... 14
 

C.	 Return of Excess Deductions ...................................... 15
 

APPENDIX A -- Historical Information 

A.	 Retirement Coverage for Certain Senior Officials ......................... 17
 

B.	 The Social Security Amendments of 1983 ............................. 18
 

C.	 Interim Plan ................................................ 18
 

D.	 Federal Employees Retirement System (FERS) .......................... 20
 

E.	 Special FERS Open Season Election Opportunities for Senior Officials ........... 22
 

F.	 Individuals Who Became Senior Officials After December 31, 1983, or Had a Break in
 

Senior Official Service of More Than a Year ........................... 25
 

G.	 Senior Officials Who Served Continuously From December 31, 1983, Through 

December 31, 1986, But Were Not Senior Officials During the Open Season ...... 26
 

H.	 Career SES Members Appointed to Executive Schedule Positions Before 

November 10, 1988 ........................................... 26
 

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Chapter 101 

Subchapter 101A CSRS and FERS 

Part 101A1 General Information 

Section 101A1.1-1 Overview 

A.	 Introduction This Chapter explains the special retirement provisions that apply to a 

limited group of senior officials who hold certain senior positions, or who 

previously held such a position, that became subject to mandatory Social 

Security (OASDI) coverage on January 1, 1984, as required by the Social 

Security Amendments of 1983, Public Law 98-21. The special retirement 

rules covered in this Chapter are only those rules that apply to the following 

senior officials: 

•	 Those individuals in the Executive Schedule positions listed in 

5 U.S.C. 5312 through 5317 except the positions previously 

removed from those sections as a result of the Civil Service Reform 

Act (see section 101A2.1-1, paragraph C); 

•	 Noncareer appointees of the Senior Executive Service; 

•	 Personal staff of the President and Vice President; 

•	 Members of Congress; and 

•	 Certain Federal judges. 

NOTE 1:	 Retirement coverage for other high level officials whose 

positions were not affected by Public Law 98-21 is determined 

under the regular rules in Chapter 10, Coverage, or Chapter 

12, Special Coverage Rules. 

NOTE 2:	 The employing agency has the basic responsibility for 

determining whether an employee is covered by Social 

Security. OPM has no role concerning Social Security 

program administration (for example, coverage, tax rates, and 

wages subject to taxation). However, as the central personnel 

agency for the Federal government, OPM disseminates 

information affecting employment and benefits supplied by the 

Social Security Administration or the Internal Revenue Service. 

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Chapter 101 

Section 101A1.1-1 Overview (Cont.) 

B.	 Using This Refer to part 101A2 for a discussion of the positions covered by the special 

Chapter rules that apply to senior officials. 

Refer to part 101A3 for the rules to be followed in making current coverage 

determinations for senior officials. See Appendix A for historical 

information about the special opportunities afforded to individuals who held 

senior official positions from December 31, 1983, through the FERS open 

season in 1987, as well as 1988 legislation affecting certain Presidential 

appointees. 

C.	 Topics Covered This Chapter covers: 

•	 Identification of positions covered by the provisions of this Chapter; 

•	 Current coverage determinations for senior officials; 

•	 Coverage of reemployed annuitants who are appointed or elected to 

senior official positions; 

•	 Service credit rules and circumstances when excess deductions exist; 

and 

•	 Background information. 

D. Organization of This Chapter has four parts. 

Chapter 

Part Name of Part Page 

101A1 General Information 1 

101A2 Senior Officials Mandatorily Covered by Social 

Security 5 

101A3 Current Coverage Determinations 9 

101A4 Service Credit and Return of Excess Deductions 14 

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Section 101A1.1-1 Overview (Cont.)
 

E.	 Statement of This Chapter and its contents are based on the laws and regulations cited 

Authority below. 

•	 United States Code: 5 U.S.C. chapter 84; Sections 301, 302, and 303
 

of Public Law 99-335 (as amended); Section 101 of
 

Public Law 98-21; and Public Law 100-647
 

•	 Code of Federal Regulations: 5 CFR 842 and 846
 

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Chapter 101 

Section 101A1.1-2 Definitions 

A. Mandatory Social	 For the purpose of this Chapter, the phrases "mandatory Social Security 

Security Coverage	 coverage" and "mandatory Social Security provisions" mean the 

requirement in the Social Security Amendments of 1983 (Public Law 98-21) 

that certain senior officials be subject to Social Security coverage as of 

January 1, 1984. 

B.	 Senior Official For purposes of this Handbook, the term "senior official" means an 

individual who is required to have Social Security coverage because he or 

she holds (or held) a position covered by the Social Security Amendments 

of 1983. These positions are listed and discussed in section 101A2.1-1 of 

this Chapter. 

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Chapter 101 

Part 101A2 Senior Officials Mandatorily Covered by Social Security 

Section 101A2.1-1 Senior Officials Covered by the Social Security Amendments of 1983 

A.	 General Before 1984, most Federal employees who were senior officials were 

covered by CSRS and were excluded from Social Security (OASDI) 

coverage. Before 1984, Members of Congress could elect CSRS coverage, 

but were not required to participate in any retirement system. Members of 

Congress were excluded from Social Security coverage. 

The Social Security Amendments of 1983 (Public Law 98-21, enacted April 

20, 1983) extended mandatory OASDI coverage to certain senior officials, 

including Members of Congress, effective January 1, 1984, even though 

most of these senior officials also had other retirement coverage as Federal 

employees. The senior officials affected by the 1983 amendments are as 

follows. 

B.	 Members of The term "Members of Congress" as used in this Chapter includes: 

Congress 

•	 a Member of the Senate (including the Vice President) or the House of 

Representatives; 

•	 a Delegate to the House of Representatives; and 

•	 the Resident Commissioner of Puerto Rico. 

C. Officials in 1. Certain individuals who were in executive schedule positions, levels I 

Executive through V, listed in 5 U.S.C. 5312 through 5317, became subject to 

Schedule and SES mandatory Social Security coverage on January 1, 1984, (for example, 

Positions most cabinet secretaries, deputy and assistant secretaries, and heads 

and top officials of agencies, boards and commissions). 

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Chapter 101 

Section 101A2.1-1 Senior Officials Covered by the Social Security Amendments of 1983 (Cont.) 

C. Officials in	 NOTE: Some individuals in level IV and V positions listed in 

Executive 5 U.S.C. 5315-5317 did not become subject to Social 

Schedule and SES Security Coverage in 1984. These individuals were in 

Positions (Cont.) positions not requiring Senate confirmation that were 

placed in the Senior Executive Service (SES) under 

5 U.S.C. 3132 when the SES was established in 1979. 

Even though the creation of the SES effectively removed 

such positions from the Executive Schedule, a revision to 

delete these positions from the listing in 5 U.S.C. 5315­

5317 has not been made. Individuals in these positions 

were mandatorily covered by Social Security on 

January 1, 1984, only if they held a noncareer SES 

appointment (see paragraph D below). 

2.	 Persons serving in positions that were not specifically listed in 

sections 5312 through 5317, but which were designated to be treated 

for pay purposes as if they were so listed when they were 

established, did not mandatorily come under Social Security 

coverage on January 1, 1984. A note following 5 U.S.C. 5317 lists 

many of these positions. 

3.	 Career SES appointees normally are covered by the regular rules 

described in Chapters 10 and 12 of this Handbook. 

NOTE:	 "Career" applies to a person's appointment, not position. 

There is no such thing as "Career Senior Executive 

Service," only career (or other) appointments in SES. 

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Section 101A2.1-1 Senior Officials Covered by the Social Security Amendments of 1983 (Cont.)
 

D. Noncareer SES
 

Appointees
 

Noncareer appointees in the Senior Executive Service (SES) are subject to 

mandatory Social Security coverage. 

NOTE:	 "Limited term" and "limited appointee emergency" appointees 

in the SES are specifically excluded from the definition of a 

"noncareer" appointee as given in title 5 of the United States 

Code. (See 5 U.S.C. 3132 for definitions of these types of 

appointments.) Limited term appointee means an individual 

appointed under a nonrenewable appointment for a term of 3 

years or less to an SES position the duties of which will expire 

at the end of such term. Limited emergency appointee means 

an individual appointed under a nonrenewable appointment, not 

to exceed 18 months, to an SES position established to meet a 

bona fide, unanticipated, urgent need. 

Limited term and limited emergency appointees are covered by 

Social Security, but not under mandatory coverage provisions 

of Public Law 98-21. Limited term and limited emergency 

appointees are eligible for FERS coverage. However, they are 

excluded from CSRS coverage by regulation unless the CSRS 

coverage the employee had in a prior position continued under 

the continuity of service rule because there has not been a 

break in service of at least 4 days. Therefore, if a career 

employee under CSRS moves to a limited term or limited 

emergency appointment in the SES without a break in service 

of 4 or more days, CSRS coverage continues and the employee 

continues to be excluded from Social Security. The official is 

not eligible to elect FERS based on the change in position. 

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Chapter 101
 

Section 101A2.1-1 Senior Officials Covered by the Social Security Amendments of 1983 (Cont.)
 

E.	 Personal Staff of 

the President and 

Vice President 

F. Certain Federal 

Judges 

Individuals on the personal staff of the President and Vice President 

appointed under section 105(a)(1), 106(a)(1), or 107(a)(1) or (b)(1) of title 3 

of the United States Code, including the Domestic Policy Staff and the 

Office of Administration, if the maximum rate of pay payable for their 

positions is at or above the rate for level V of the Executive Schedule, are 

subject to mandatory Social Security coverage. What governs is whether 

the maximum rate payable for the position is at or above the rate for level 

V of the Executive Schedule -- not the rate actually paid to an individual. 

(For example, if a statute states that the rate of pay for a position is not to 

exceed level V of the Executive Schedule, but the actual rate paid to the 

individual is less than level V, the individual is subject to mandatory Social 

Security Coverage.) 

Certain Federal judges became subject to mandatory Social Security 

coverage. These judges include: 

•	 Judges of the U.S. Claims Court; 

•	 Judges of the U.S. Tax Court who do not participate in the special 

retirement plan for Tax Court judges; 

•	 U.S. magistrates and bankruptcy judges; and 

•	 Judges of the U.S. Court of Military Appeals. 

NOTE:	 The Department of Defense determined that Public Law 98-21 

applied to these judges even though they were not specifically 

listed in that law. These judges are appointed by the President 

and confirmed by the Senate. 

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Part 101A3 Current Coverage Determinations 

Section 101A3.1-1 Coverage Determinations 

A. General	 The following paragraphs describe the rules that apply to current coverage 

determinations for individuals who are appointed to a senior official 

position or are newly elected Members of Congress. For historical 

information, see Appendix A, which covers the special election 

opportunities available to officials who served continuously during the 

1984-1988 period, as well as options available to career SES members who, 

upon appointment to Executive Schedule positions before November 10, 

1988, were entitled under 5 U.S.C. 3392(c) to retain their CSRS coverage. 

B.	 New Hires An individual without previous Federal service who is newly appointed as a 

senior official is automatically covered by FERS unless the appointment is 

excluded by law or regulation. Like any other new hire, such an employee 

has Social Security as part of his or her FERS package. 

C. New Members of 

Congress New Members of Congress are covered by FERS unless they irrevocably 

elect not to participate in FERS. This irrevocable election remains in effect 

until the individual has a break in service as a Member. 

D. Transfers from Individuals who transfer, without a break in service exceeding 3 days, from 

Positions With a senior official position with mandatory Social Security coverage to 

Mandatory Social another such position, continue to have the same retirement coverage and 

Security Coverage Social Security coverage in the new position. An individual who was a 

senior official with special election opportunities in 1983, 1984, and 1987 

that are described in Appendix A who has CSRS Offset coverage, only 

Social Security coverage, or both full Social Security and CSRS coverage, 

continues to have the same coverage in the new position and does not have 

an opportunity to elect FERS. 

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Chapter 101 

Section 101A3.1-1 Coverage Determinations (Cont.) 

E.	 Transfers or 1. Employees with FERS coverage who transfer to a senior official 

Conversions from position continue their FERS coverage. 

Positions Without 

Mandatory Social 2. An individual who was covered by CSRS Offset during his or her 

Security Coverage previous appointment will remain in CSRS Offset as a senior 

official. 

3.	 An individual who was a senior official with special election 

opportunities in 1983, 1984, and 1987 that are described in 

Appendix A continues to have the coverage elected at that time and 

does not have an opportunity to elect FERS unless he or she 

subsequently elected FERS coverage. 

4.	 When employees with full CSRS coverage accept appointments to 

senior official positions with mandatory Social Security coverage, 

these senior officials become covered by CSRS Offset. Since they 

were not covered by Social Security as a Federal employee 

immediately before the appointment (that is, they were covered 

under full CSRS rather than CSRS Offset) they have a 6-month 

opportunity to elect FERS. (Because of the acquisition of Social 

Security and the change it makes in a person's benefit package, they 

are considered to have a break in service for retirement coverage 

purposes even though there is no actual break or the break is less 

than 4 days.) 

EXAMPLE: SUSAN 

Career appointment (CSRS): 1-1-77 

Career SES (CSRS): 4-25-86 

Appointment to Executive Level IV (CSRS Offset): 10-7-94 

Upon her appointment to the Executive Level IV position, Susan was 

subject to mandatory Social Security coverage. However, because she had 

at least 5 years of civilian service prior to this appointment, she was 

covered under CSRS Offset. In addition, because Susan was covered by 

full CSRS prior to mandatory Social Security coverage, she has a 6-month 

window to elect FERS. 

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Chapter 101 

Section 101A3.1-1 Coverage Determinations (Cont.) 

E.	 Transfers or 

Conversions from 

Positions Without 

Mandatory Social 

Security Coverage 

(Cont.) 

F.	 Individuals Who 

Become Senior 

Officials after 

December 31, 

1986 

NOTE:	 An individual covered by CSRS Offset who moves to a senior 

official position does not have an opportunity to elect FERS 

unless there is a break in service exceeding 3 days. 

EXAMPLE: MARTIN 

Career appointment (CSRS): 3-21-70 

Separated: 12-30-82 

Rehire Career SES (CSRS Offset): 7-14-88 

Appointment to Executive Level V (CSRS Offset): 5-3-94 

Martin had an opportunity to elect FERS upon returning to Federal service 

in 1988, but chose to stay under CSRS Offset coverage. Upon appointment 

to the Executive Level V senior official position in 1994, he did not have a 

new 6-month opportunity to elect FERS because he was already covered by 

Social Security at the time he accepted the appointment. 

The general rule described in Chapter 10 that a 4-day break in service 

triggers a FERS election opportunity also applies to senior officials. If a 

senior official not previously covered by FERS has a break in service that 

exceeds 3 days, he or she has a 6-month opportunity to elect FERS (unless 

covered automatically or under an appointment that precludes FERS 

coverage). 

G. Rehires 1. A person with prior Federal service who is appointed or elected as a 

senior official after December 31, 1986 (including a Member of 

Congress who does not irrevocably elect out of FERS), following a 

break in service exceeding 3 days, is automatically covered under 

Social Security. The person has FERS unless he or she meets the 5­

year test (see Chapter 10). 

If the person is not automatically covered by FERS, he or she is 

covered under the CSRS Offset provision and has a 6-month 

opportunity to elect FERS coverage. 

2. Appendix A contains the rules for an individual who was a senior 

official with any of the special election opportunities in 1983, 1984, 

and 1987. 

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Chapter 101 

Section 101A3.1-2 Annuitants Reemployed in Senior Official Positions 

A. CSRS Annuitants	 Reemployed CSRS annuitants, while generally exempt from Social Security 

coverage, are subject to Social Security coverage when reemployed as 

senior officials. Consequently, CSRS and CSRS Offset annuitants 

reemployed as senior officials under circumstances in which the annuity 

continues, have CSRS Offset coverage, and any new benefits are computed 

under CSRS Offset rules. (See Chapter 100, Reemployed Annuitants.) The 

reemployed annuitant who is reemployed after a 3-day break in service also 

has a 6-month window to elect FERS unless the appointment is excluded 

from FERS coverage. 

If a CSRS annuitant who was not previously subject to the CSRS Offset 

provisions is reemployed in a position in which he or she is subject to 

CSRS Offset (that is, reemployed in a senior official position mandatorily 

covered by Social Security) and the reemployed annuitant earns a 

supplemental or redetermined annuity, the offset for Social Security will be 

based on the period of CSRS Offset service only. 

B. FERS Annuitants A FERS annuitant who is appointed or elected to a senior official position 

remains subject to FERS coverage upon reemployment. In general, the 

rules governing reemployed FERS annuitants who are senior officials are 

the same as for other reemployed FERS annuitants. For further 

information, see subchapter B in Chapter 100. 

NOTE: Special rules apply to a FERS annuitant who is appointed as a 

judge as defined by section 451 of title 28, or elected 

President. 

C. Reemploying a 

Retired Member 

of Congress 

Special rules apply to the reemployment of Members of Congress. Agency 

headquarters level retirement counselors should consult their liaison in the 

Agency Services Division at OPM. 

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Chapter 101 

Section 101A3.1-2 Annuitants Reemployed in Senior Official Positions (Cont.) 

D. Reemployed	 See Chapter 102, section 102A3.1-2, Relationship Between Retirement 

Annuitants Annuity and Compensation for Work-Related Injuries and Diseases, for 

Receiving OWCP guidance. 

Benefits 

E.	 Reemployment of 

Civilian and 

Military Retirees 

Under 5 CFR Part 

553 to Meet 

Exceptional 

Employment 

Needs 

For guidance concerning the reemployment requirements for any CSRS or 

FERS annuitant rehired under 5 CFR Part 553, which allows reemployment 

without offset of pay by annuity when there are exceptional employment 

needs, see Handbook Chapter 100, Reemployed Annuitants. 

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Chapter 101 

Part 101A4 Service Credit and Return of Excess Deductions 

Section 101A4.1-1 Service Credit and Return of Excess Deductions 

A. General	 The same service credit rules apply to senior officials as apply to the 

general employee population. The following paragraph addresses the 

special situations of senior officials who had special elections. 

B.	 Senior Officials 

With Special 

Elections 

•	 For senior officials who have FERS coverage service after 1983 that 

was subject to the special rules for certain senior officials, the 

service is credited under FERS rules. 

•	 For senior officials who changed from no retirement coverage, other 

than Social Security, to FERS, the service after 1983 for which only 

Social Security deductions were made becomes FERS service and 

the deposit is made under FERS deposit rules. As with the general 

employee population, a deposit may not be made for post-1988 

nondeduction service. 

•	 For senior officials who have CSRS Offset coverage, service as a 

senior official after 1983 is subject to CSRS Offset rules. Previous 

creditable service (all service not subject to the special rules for 

senior officials) remains subject to the regular CSRS rules, 

regardless of when it occurred. 

•	 Senior officials who initially chose full CSRS coverage and elected 

CSRS Offset coverage during the 1987 open season have the service 

treated under CSRS Offset rules. Officials who elected FERS in 

1987 or a later opportunity have the service treated as FERS service. 

Officials who made such elections were entitled to a return of what 

became excess deductions as described in the following paragraphs. 

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Chapter 101 

Section 101A4.1-1 Service Credit and Return of Excess Deductions (Cont.) 

C. Return of Excess Chapter 33, Return of Excess Contributions, explains in detail the 

Deductions	 procedures governing the return of excess CSRS retirement deductions to 

certain eligible FERS transferees and employees automatically covered by 

FERS. 

The following paragraphs illustrate situations when excess deductions may 

exist. 

1.	 A senior official who elected full CSRS coverage in December 

1983 or September 1984 and then transferred either to FERS or 

CSRS Offset during the 1987 open season or to FERS during 

another transfer opportunity has excess deductions. Service for 

which withholdings were made at the full CSRS rate becomes either 

FERS or CSRS Offset service and the amount withheld for that 

period (if not previously refunded) that exceeds the amount due as 

deposit is the excess deductions amount. 

2.	 A senior official who elected full CSRS coverage in December 

1983 and changed to Interim CSRS coverage in September 1984 

has excess deductions for the period that was subject to the full 

CSRS withholding rate. 

3.	 A senior official who changes from CSRS Offset to FERS is due a 

return of excess deductions each year of the offset service that his 

or her pay exceeded the Social Security maximum taxable amount 

before the transfer to FERS was effective. 

4.	 If a senior official who transferred to FERS has less than 5 years of 

non-offset/non-interim system civilian service, then all the service 

becomes FERS service. If CSRS withholdings were made (and not 

refunded) for the service or if the senior official had made a CSRS 

deposit (for civilian or military service) that exceeds the amount 

now due, there are excess deductions. 

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Chapter 101 

Section 101A4.1-1 Service Credit and Return of Excess Deductions (Cont.) 

C. Return of Excess 5. If a senior official elected CSRS Offset coverage, there can be no 

Deductions (Cont.)	 excess deductions for service performed before January 1, 1984, 

because such service is subject to full CSRS rules. However, if an 

official with CSRS Offset coverage has a break of 4 or more days 

and elects FERS, the rules stated in 3. and 4. above apply and there 

may be excess deductions. 

Interest is paid on returns of excess deductions. The computation of the 

excess deductions and interest depends on whether the senior official elected 

the retirement coverage or was automatically covered by FERS and when 

OPM received the senior official's application for the return of excess 

deductions. If the senior official has not applied for the return of the excess 

deductions before retirement, OPM automatically pays the excess 

deductions when it processes the retirement application. Interest on excess 

retirement deductions is eligible under "rollover" provisions of Public Law 

102-318. See Chapter 30, Employee Deductions and Agency 

Contributions, for the employee deduction rates and the Social Security 

maximum taxable amounts for each year. 

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Chapter 101 

APPENDIX A -- Historical Information 

A. Retirement 

Coverage for 

Certain Senior 

Officials 

Before 1984, most Federal employees who were senior officials were 

covered by the Civil Service Retirement System (CSRS). Some were 

excluded by law; for example, justices and judges who were appointed for 

life and senior officials who were subject to another retirement system, such 

as the Foreign Service Retirement System. Others were excluded by 

regulations because of time-limited appointment; for example, temporary 

and term appointments. 

Federal employees, including senior officials, who were covered by CSRS 

were excluded from Social Security (Old Age, Survivors, and Disability 

Insurance) coverage. 

NOTE: In the past, some appointees in the SES were never covered 

under CSRS and instead had Social Security coverage because 

the positions to which they were appointed were excluded from 

CSRS retirement coverage. For example, employees who were 

serving under noncareer (designated as "indefinite") SES 

appointments were (and still are) excluded from CSRS 

coverage by OPM regulations. Public Law 98-21, therefore, 

had no real effect on their status. 

Members of Congress were excluded from Social Security coverage 

whether or not they had CSRS coverage. Members of Congress had CSRS 

coverage only if they chose to have it. 

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Chapter 101 

B.	 The Social 

Security 

Amendments of 

1983 

The Social Security Amendments of 1983 (Public Law 98-21, enacted April 

20, 1983) extended mandatory Social Security coverage (Old Age, 

Survivors, and Disability Insurance) to certain senior officials, effective 

January 1, 1984, even though these senior officials also had other 

retirement coverage as Federal employees. These senior officials are 

identified in section 101A2.1-1. 

At the time the Social Security Amendments of 1983 passed, no change was 

made in the CSRS coverage of the officials who held these positions. If 

Congress had taken no further action, effective January 1, 1984, these 

individuals would have been faced with CSRS withholdings at 7, 7.5, or 8 

percent of pay, medicare withholdings at 1.3 percent of pay up to the Social 

Security maximum ($37,000 in 1984), plus Social Security Old Age, 

Survivors, and Disability Insurance withholdings at 5.4 percent of pay up to 

the Social Security maximum. (Federal employees had been paying 

medicare since January 1983.) 

C. Interim Plan	 Title II of Public Law 98-168, the Federal Employees' Retirement 

Contribution Temporary Adjustment Act of 1983, enacted November 29, 

1983, provided an interim plan for employees and officials who would have 

been fully covered under both CSRS and Social Security as a result of the 

Social Security Amendments of 1983. In addition, affected senior officials 

were given the opportunity to make elections concerning their retirement 

coverage. 

Under the interim plan, which was meant to bridge the gap until a new 

retirement system could be enacted and implemented, the CSRS 

withholding rate for individuals covered by both CSRS and Social Security 

was reduced to 1.3 percent of pay for all employees--even those in special 

groups who normally paid more. 

In addition, some adjustments were made for retirement, disability, and 

survivor annuities that began during the interim period. To get credit for 

service performed during the interim period, senior officials who retired 

under the interim plan had to pay a deposit of the difference between the 

amount that was withheld from pay during the interim period and the 

amount that would have been withheld for full CSRS coverage. Senior 

officials who became disabled during the interim period did not 

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Chapter 101 

C. Interim Plan 

(Cont.) 

have to make a deposit to get credit for service performed during the 

interim period, but their disability annuity was offset by the amount of any 

Social Security benefit attributable to the Federal service performed during 

the interim period. The survivor annuities based on the service of senior 

officials who died during the interim period were similarly offset. 

Senior officials were also given an opportunity to elect, instead of the 

interim plan, either full CSRS coverage with 7, 7.5, or 8 percent 

withholdings or no CSRS coverage with no CSRS withholdings. Senior 

officials (other than members of Congress) who made no election were 

automatically covered under the interim plan on January 1, 1984. 

(Regardless of their elections regarding their CSRS coverage, they remained 

mandatorily covered by Social Security.) Senior officials who elected no 

CSRS coverage could receive a refund of their CSRS contributions if they 

were not eligible for an immediate annuity. 

Under CSRS, Members of Congress were covered by CSRS only if they 

elected to be covered. Under the interim plan, Members of Congress who 

were not participating in CSRS before December 31, 1983, could elect, by 

December 31, 1983, either interim or full CSRS coverage. If they made no 

election, they continued to have no CSRS coverage. Members of Congress 

who were participating in the CSRS on December 31, 1983, could elect, by 

December 31, 1983, either no CSRS coverage or full CSRS coverage. If 

they made no election, they would be covered under the interim plan on 

January 1, 1984. Members of Congress who were not participating in 

CSRS on December 31, 1983, (including new Members) could later elect 

interim CSRS, but not full CSRS (Section 208 of Public Law 98-168). 

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20 CSRS Special Retirement Provisions for Senior Officials FERS 

Chapter 101 

C. Interim Plan 

(Cont.) 

When it was discovered that senior officials who elected no CSRS coverage 

could not get a refund of their retirement deductions if they were eligible 

for an immediate annuity, there was additional legislation. Public Law 98­

369, enacted July 18, 1984, amended the law to allow senior officials who 

found themselves in this circumstance to withdraw their retirement 

contributions. It also allowed senior officials a second opportunity to make 

elections regarding their CSRS coverage if they did so before September 

16, 1984. If they made no election, they continued to have the retirement 

status in effect on January 1, 1984. (Only those senior officials who had 

been eligible to make elections in December 1983 were eligible to make 

new elections in 1984.) 

Persons who were not in one of the affected categories on December 31, 

1983, and who later became one of these senior officials, were mandatorily 

covered by Social Security and, unless excluded from CSRS, they were 

covered under the CSRS interim plan with no opportunity to make elections 

regarding their retirement coverage. During the interim period, new 

Members of Congress (who had CSRS coverage only if they chose it) could 

elect coverage under the interim plan, but not full CSRS coverage. 

D. Federal The Federal Employees Retirement System (FERS) was established by 

Employees Public Law 99-335, the Federal Employees' Retirement System Act of 

Retirement System 1986. 

(FERS) 

Public Law 99-335 also amended the CSRS law to provide for "CSRS 

Offset" coverage. CSRS Offset coverage replaced the CSRS interim plan. 

Rather than automatically placing all persons covered by the CSRS interim 

plan in the new retirement system (as contemplated under Public Law 98­

168), the FERS Act grandfathered most employees who had 5 years of 

civilian service and were under the interim plan on December 31, 1986. 

Certain senior officials were also excluded regardless of the length of their 

service. Therefore, many employees who had been covered under the 

interim plan became covered under the CSRS Offset provisions on 

January 1, 1987. However, these employees could elect FERS during the 

open season from July 1, 1987, through December 31, 1987. 

April, 1998 CSRS and FERS Handbook 
 CSRS Special Retirement Provisions for Senior Officials FERS 21 

Chapter 101 

D. Federal 

Employees 

Retirement System 

(FERS) (Cont.) 

FERS excluded senior officials with mandatory Social Security coverage 

who had been senior officials continuously from December 31, 1983, 

without a break in senior official service exceeding 365 days. The elections 

these senior officials made in December 1983 and September 1984 

remained in force after FERS began (regardless of the amount of civilian 

service they had), subject to retirement coverage elections these individuals 

could make during the July 1, 1987, through December 31, 1987, open 

season. 

Generally, senior officials whose mandatory Social Security coverage began 

after January 1, 1984, were subject to the same FERS coverage rules as 

regular Federal employees; that is, if they were under the interim plan on 

December 31, 1986, and had at least 5 years of creditable civilian service, 

they continued under CSRS Offset provisions, with an opportunity to elect 

FERS coverage during the open season. If they had less than 5 years of 

creditable civilian service, they were automatically covered under FERS on 

January 1, 1987. However, Members of Congress who entered Congress 

during the interim period and who had prior Federal service giving them 5 

years or more of service as of December 31, 1986, were automatically 

covered by FERS on January 1, 1987, unless they elected not to participate 

in FERS. (Members of Congress have the right to irrevocably elect not to 

participate in FERS. If they do so, their irrevocable election remains in 

effect until the individual has a break in service as a Member.) 

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22 CSRS Special Retirement Provisions for Senior Officials FERS 

Chapter 101 

E.	 Special FERS 

Open Season 

Election 

Opportunities for 

Senior Officials 

The senior officials who were given special election opportunities under the 

Federal Employees' Retirement Contribution Temporary Adjustment Act of 

1983 were also given special election opportunities during the FERS open 

season under the Federal Employees' Retirement System Act of 1986. 

Those eligible for the special election opportunities were senior officials 

who: 

•	 Were senior officials covered under CSRS (unless a Member of
 

Congress) on December 31, 1983, and
 

•	 Were mandatorily covered by Social Security beginning January 1, 

1984; and 

•	 Had an opportunity to make retirement elections in December 1983 

and September 1984 (the September 1984 election opportunity is 

not required if the senior official missed it because of a break in 

service of 1 year or less as a senior official); and 

•	 Remained in service as senior officials (including service as a 

Member of Congress) since December 31, 1983, without a break of 

more than 1 year; and 

•	 Continued to be senior officials on the effective date of their
 

election regarding retirement coverage.
 

Special election forms (OPM Form 1561 and OPM Form 1563) document 

that they were given their special election opportunities. 

The retirement coverage that senior officials elected in December 1983 or 

September 1984 continued unless the senior official elected to transfer to 

the: 

•	 Federal Employees Retirement System (FERS); or 

•	 CSRS Offset retirement provisions (if not already under CSRS
 

Offset).
 

Only those senior officials who were already covered under the full civil 

service retirement provisions could elect to retain full civil service 

coverage. In the same way, only those officials who had no civil service 

retirement coverage could elect no civil service coverage. 

April, 1998	 CSRS and FERS Handbook 
 CSRS Special Retirement Provisions for Senior Officials FERS 23 

Chapter 101 

E.	 Special Election 

Opportunities for 

Senior Officials 

(Cont.) 

Eligible senior officials could exercise their election opportunities only 

during the open season from July 1, 1987, through December 31, 1987. If 

they made no election, the prior election remained in effect and their 

retirement status would continue unchanged. 

Senior officials who were not in this special group (a senior official on 

December 31, 1983, mandatorily covered by Social Security on January 1, 

1984, and continuously in the special group without a break in senior 

official service exceeding 1 year) did not have special election 

opportunities. Generally, their retirement coverage on January 1, 1987, 

and their election opportunities during the 1987 open season were the same 

as for Federal employees who were not senior officials. However, as 

indicated in paragraph D, individuals who became Members of Congress 

during the interim period were not exempt from automatic coverage under 

FERS on January 1, 1987, even though prior service gave them 5 or more 

years of creditable service as of December 31, 1986. However, these 

Members could irrevocably elect not to be covered by FERS. 

Effect of post-election events on retirement coverage. The retirement 

coverage chosen by the special group of senior officials during the FERS 

open season continues throughout their Federal careers unless some very 

specific events occur. 

• If the senior official elected FERS, full CSRS, or CSRS-Offset 

coverage, that coverage continues during all future Federal service 

or service as a Member of Congress unless the service is excluded 

from FERS or CSRS coverage (such as, for CSRS, an indefinite 

appointment, or for both CSRS and FERS, a temporary 

appointment of less than a year, following a break in service of 

more than 3 days). 

• A senior official who did not elect FERS coverage during the open 

season may do so in the future if he or she has a break in service of 

more than 3 days. 

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24 CSRS Special Retirement Provisions for Senior Officials FERS 

Chapter 101 

E.	 Special Election 

Opportunities for 

Senior Officials 

(Cont.) 

•	 A senior official, other than a Member, who elected no retirement 

coverage (other than Social Security) in 1983 and 1984, and who 

didn't change during the 1987 open season may not obtain CSRS or 

CSRS Offset coverage in the future. 

•	 Members of Congress who chose no retirement coverage during the 

open season may elect CSRS Offset later under 5 U.S.C. 8331(2), 

so long as they have not previously become covered under FERS. 

•	 Members of Congress who made an affirmative election of no 

retirement coverage during the open season may not obtain FERS 

coverage so long as the irrevocable election not to participate in 

FERS remains in effect until the individual has a break in service as 

a Member. 

April, 1998	 CSRS and FERS Handbook 
 CSRS Special Retirement Provisions for Senior Officials FERS 25 

Chapter 101 

F.	 Individuals Who 

Became Senior 

Officials After 

December 31, 

1983, or Had a 

Break in Senior 

Official Service of 

More Than a Year 

Individuals who became senior officials with mandatory Social Security 

coverage after December 31, 1983, were not eligible to make any special 

elections concerning their retirement coverage. If they became one of these 

senior officials during 1984, 1985, or 1986, they were covered under the 

CSRS interim provisions, regardless of their previous coverage under 

CSRS, unless, as explained in paragraph H below, the individual was a 

career SES appointee who received a Presidential appointment and, before 

November 10, 1988, elected to retain CSRS coverage under 5 U.S.C. 

3392(c). 

NOTE: Members of Congress are not covered under CSRS unless they 

elect to be covered. 

In other ways, the rules regarding their retirement coverage are the same as 

for other Federal employees. The retirement coverage of these senior 

officials (other than Members of Congress) who were in the interim plan on 

December 31, 1986, depended on how much civilian service they had on 

December 31, 1986. If they had at least 5 years of civilian service 

creditable under CSRS rules on that date, they were covered by CSRS 

Offset provisions. If they did not have the 5 years of civilian service, they 

were automatically covered by FERS on January 1, 1987. 

NOTE: Individuals who became Members of Congress during the interim 

period were covered by FERS regardless of the length of their 

service, unless they irrevocably elected not to be covered by FERS. 

Senior officials who were mandatorily covered by Social Security at the 

time of the 1987 open season, but had a break in senior official service of 

more than a year between December 31, 1983, and January 1, 1987, could 

elect FERS coverage during the open season if they had not automatically 

become covered by FERS earlier. 

CSRS and FERS Handbook	 April, 1998 
26 CSRS Special Retirement Provisions for Senior Officials FERS 

Chapter 101 

G. Senior Officials For persons who served continuously as senior officials from 

Who Served December 31, 1983, through December 31, 1986, without a break in 

Continuously service as a senior official of more than 1 year, the law provided special 

From election opportunities only during the open season from July 1, 1987, 

December 31, through December 31, 1987. However, senior officials who served 

1983, Through throughout 1984, 1985, and 1986, but were not senior officials during the 

December 31, FERS open season, had no special election opportunities. The elections 

1986, But Were they made in December 1983 and September 1984 have no bearing on their 

Not Senior coverage upon their return to service as a senior official. That is, the 

Officials During normal 5-year rule applies and they are covered by either CSRS Offset or 

the Open Season FERS. If they are covered by CSRS Offset, they have a 6-month 

opportunity to elect FERS. 

H. Career SES Before November 10, 1988, career SES members who were appointed to an 

Members Executive Schedule position listed in 5 U.S.C. 5312 through 5317 with 

Appointed to Senate confirmation were entitled under 5 U.S.C. 3392(c) to elect to retain 

Executive their full CSRS coverage and not be subject to Social Security. They could 

Schedule Positions also choose to have Social Security coverage while in the Executive 

Before Schedule position and drop it upon returning to the career SES. Public Law 

November 10, 100-647 terminated these options for officials appointed to one of these 

1988 positions on or after November 10, 1988, and requires that they must now 

have Social Security coverage. Public Law 100-647 did not, however, 

affect elections of no Social Security coverage made by officials appointed 

before November 10, 1988, who continued to serve in the same position. 

April, 1998 CSRS and FERS Handbook