CSRS FERS

Planning and Applying for Retirement

Chapter 40

Important Notice 

On June 26, 2013, the Supreme Court ruled that Section 3 of the Defense of Marriage 

Act (DOMA) is unconstitutional. As a result of the Supreme Court’s decision, the

United States Office of Personnel Management (OPM) will now be able to extend 

certain benefits to Federal employees and annuitants who have legally married a 

spouse of the same sex, regardless of the employee’s or annuitant’s state of 

residency. OPM is currently in the process of updating and revising the website to 

reflect this change, and will be updating this information as soon as possible. Please 

check back in the coming weeks for updates.
 CSRS Planning and Applying for Retirement FERS i 

Chapter 40

Table of Contents 

Subchapter 40A CSRS and FERS

Part 40A1 General Information

Section 40A1.1-1 Overview ......................................... 1

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

B. Topics Covered ............................................... 2

C. Organization of Subchapter ........................................ 2

D. Statement of Authority ........................................... 2

Part 40A2 Advance Retirement Planning 

Section 40A2.1-1 General .......................................... 3

A. Employee Responsibility ......................................... 3

B. Agency Responsibility ........................................... 3

Section 40A2.1-2 Five-Year Period Before Retirement ....................... 6

A. General .................................................... 6

B. Continuing Health Benefits Enrollment Into Retirement ..................... 6

C. Continuing Life Insurance Coverage Into Retirement ....................... 7

D. Verifying Civilian and Military Service ................................ 8

E. Deposits for Civilian and/or Military Service ............................ 8

F. Documentation of Social Security Coverage ............................. 8

G. Effect of Government Pension Offset and/or the Windfall Elimination Penalty ....... 8

Section 40A2.1-3 One-Year Period Before Retirement ....................... 11

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

B. Initial Actions ................................................ 11

C. Review OPF to Ensure Completeness/Accuracy of Records ................... 12

D. Completeness/ Accuracy of Health and Life Insurance Records ................. 13

E. Status of Health Benefits During Adjudication ........................... 13

F. Eligibility to Elect Temporary Continuation of Health Benefits Coverage .......... 13

G. Direct Payment of FEHB Premiums to OPM ............................ 14

H. Post-1956 Military Deposit ........................................ 14

I. Questions on Effect of Deposits and Redeposits on Service Credit ............... 14

J. Meeting Age and Service Requirements ................................ 16

K. Review Survivor Benefit Considerations ............................... 16

L. MRA + 10 Retirees Who Elect Immediate Annuity ........................ 18

M. Voluntary Contributions .......................................... 19

N. Annuity Estimates ............................................. 20

O. Cost-of-Living Adjustments (COLA's) ................................ 22

P. Consider TSP Withdrawal Options ................................... 23

Q. Effect of Social Security Benefits on CSRS Offset Employees ................. 24

R. Lump-Sum Payment of Annual Leave ................................. 24

CSRS and FERS Handbook April, 1998
ii CSRS Planning and Applying for Retirement FERS 

Chapter 40

S. Federal Tax Information ......................................... 24

T. State Income Tax Withholdings From Annuity Checks ...................... 25

U. OWCP Benefits ............................................... 25

U. OWCP Benefits (Cont.) .......................................... 26

Section 40A2.1-4 Six-Month Period Before Retirement ...................... 27

A. Clear up Indebtedness to Agency .................................... 27

B. File Waiver of Military Retired Pay .................................. 27

C. Maximum Annuity: 80 Percent Limitation ............................. 27

D. Document Medicare Eligibility and Filing for Medicare ..................... 28

Section 40A2.1-5 Two-Month Period Before Retirement ..................... 29

A. General .................................................... 29

B. Choose Exact Date of Retirement .................................... 29

C. Give Retirement Package to Employee ................................ 29

D. Prepare the SF 52 .............................................. 30

E. Verify Completion of Post-1956 Military Deposit With Payroll Office ............ 30

F. Direct Deposit of Annuity Check .................................... 30

G. Contacts After Retirement ........................................ 31

H. TSP Withdrawal Package ......................................... 31

Part 40A3 Retirement Application Process 

Section 40A3.1-1 Procedures ........................................ 33

A. CSRS Forms and Documents To Be Submitted by Employee .................. 33

B. CSRS Forms To Be Completed by Agency .............................. 34

C. FERS Forms and Documents To Be Submitted by Employee .................. 35

D. FERS Forms To Be Completed by Agency .............................. 36

E. Filing Instructions ............................................. 36

F. Reference ................................................... 37

Section 40A3.1-2 Personnel Office Responsibilities ......................... 38

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

B. Explain Processing Procedures to Employee ............................. 38

C. Retirement Coverage Letter for Employee .............................. 39

D. Magnetic Tape Data Transfer Program ................................ 39

Section 40A3.1-3 Payroll Office Responsibilities ........................... 40

A. General .................................................... 40

B. Issue Last Paycheck and Lump-Sum Annual Leave Payment .................. 40

C. Close Out Individual Retirement Record (SF 2806 or SF 3100) ................ 40

D. Close Out SF 2806/SF 3100 for Post-1956 Military Deposit .................. 40

E. Other Responsibilities ........................................... 40

F. Forward Retirement Package to OPM ................................. 41

Part 40A4 OPM Processing of Applications 

Section 40A4.1-1 Issue Individual Retirement Claim Number .................. 42

April, 1998 CSRS and FERS Handbook 
CSRS FERS

Planning and Applying for Retirement 

Chapter 40 

Important Notice 

On June 26, 2013, the Supreme Court ruled that Section 3 of the Defense of Marriage 

Act (DOMA) is unconstitutional. As a result of the Supreme Court’s decision, the 

United States Office of Personnel Management (OPM) will now be able to extend 

certain benefits to Federal employees and annuitants who have legally married a 

spouse of the same sex, regardless of the employee’s or annuitant’s state of 

residency. OPM is currently in the process of updating and revising the website to 

reflect this change, and will be updating this information as soon as possible. Please 

check back in the coming weeks for updates.
 CSRS Planning and Applying for Retirement FERS iii

Chapter 40

A. Acknowledge Application and Provide Civil Service Annuity (CSA) Number ....... 42

B. If CSA Number Not Yet Issued ..................................... 42

Section 40A4.1-2 Place Individual in Interim Payment Status .................. 43

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

B. Interim Pay via Magnetic Tape Data Transfer ............................ 43

C. Amount of Interim Annuity Benefits .................................. 43

D. Payment of Interim Annuity Benefits ................................. 44

Section 40A4.1-3 Adjudicate Retirement Claim ........................... 45

A. General .................................................... 45

B. Benefit Specialist Assigned ........................................ 45

C. Eligibility to Elect the Alternative Annuity (AFA) ......................... 45

D. Payments Eligible for Rollover to Another Eligible Retirement Plan or Into an IRA ... 46

E. Processing Time ............................................... 47

F. Annuity Statement ............................................. 47

G. If Retiree Has Questions About Status of Application ....................... 47

I. Other Business By Telephone With OPM ............................... 48

Part 40A5 Other Considerations 

Section 40A5.1-1 Withdrawal of Retirement Application ..................... 49

A. General Rules ................................................ 49

Section 40A5.1-2 Erroneous Separations ................................ 50

A. General .................................................... 50

B. Sample Statement .............................................. 50

C. Effect of Erroneous Separation ..................................... 50

Subchapter 40B Job Aids and Employee Information Sheets 

Section 40B1.1-1 Copies of Job Aids ................................... 52

Job Aid #3 Guidance for Agency in preparing: AGENCY NOTIFICATION LETTER

TO SEPARATING EMPLOYEES REGARDING SUBMISSION OF

Job Aid #1 Agency Checklist -- Forms for a CSRS Retirement Case ............. 52

Job Aid #2 Agency Checklist -- Forms for a FERS Retirement Case ............. 59

INDIVIDUAL RETIREMENT RECORDS TO OPM ............... 67

Job Aid #4 Request for Deposit and/or Redeposit Information ................. 68

CSRS and FERS Handbook April, 1998 
iv CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Section 40B1.1-2 Copies of Employee Information Sheets ..................... 69

Employee Information Sheet #1 Checklist for Employees Preparing to Retire ..... 69

Employee Information Sheet #2 Checklist for Health and Life Insurance Coverage . . 74

Employee Information Sheet #3 CSRS and FERS Annuity Estimates You May Need 76

Employee Information Sheet #4 EFT Information/Certification Letter - Federal 

Payment Applicants ..................... 78

Employee Information Sheet #5 Notice to Financial Institution Regarding Filing of

SF 1199A ........................... 85

Employee Information Sheet #6 Where and How to Direct Questions to OPM During

Retirement Process and After Retirement (Including 

Types of Requests OPM Can Handle Over the

Telephone). .......................... 86

Employee Information Sheet #7 Information About Federal and State Income Tax 

Withholdings, Savings Bond Purchases and 

Deductions ........................... 91

Employee Information Sheet #8 Sample Notification Letter ................. 93

Employee Information Sheet #9 Agency Retirement Coverage Letter to Employee . . 94

Employee Information Sheet #10 Rollover of Payments Under CSRS and FERS as an

Alternative To 20 Percent Tax Withholding ...... 97

Employee Information Sheet #11 Voluntary Contributions Notice, RI 38-125 ..... 104

Voluntary Contributions Election, RI 38-124 .... 106

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 1 

Chapter 40

Subchapter 40A CSRS and FERS

Part 40A1 General Information

Section 40A1.1-1 Overview

A. Introduction This Chapter discusses retirement planning for people who are approaching 

eligibility for regular voluntary retirement. The Chapter delineates the 

roles of the employee, the agency, and the Office of Personnel Management 

(OPM) in the retirement process and their shared responsibility to ensure 

the timely processing of the retirement application. The procedures to be 

followed to complete, file, and process an application for immediate 

retirement under CSRS and FERS are detailed in the following pages. For 

most people, the retirement process is quite simple and straightforward. 

However, it does deserve some time and attention. 

While the process described in this Chapter reflects the optimum situation 

of employees who are able to begin planning for retirement well in advance, 

the most important point is that employees are informed and know what to 

do and do whatever advance planning they can -- whether it is 5 years or 5 

weeks before retirement. The more comprehensive the advance planning, 

and the more the employee knows about entitlement at retirement and what 

to expect from the agency and OPM, the greater the likelihood that the 

employee's retirement can go smoothly. 

It should also be noted that as part of their ongoing responsibility to provide 

employees with information about their benefits, agencies should make 

employees aware early in their careers about such things as deposits for 

civilian and military service so that those individuals who wish to make 

payments and avoid interest charges can do so. The extent to which 

agencies do a good job of publicizing benefits information to employees 

throughout their careers will also have a direct impact on smoothing the 

retirement process and avoiding surprises. 

In addition, agencies that expect to be downsizing may wish to encourage 

employees who may become eligible to retire early to do advance planning 

so that, if they do retire early, retirements can be processed without 

problems. For example, deposits for post-1956 military service must be 

paid to the agency before employees separate. Employees normally need to 

go to their former branch of service to find out how much basic pay they 

received. If an employee finds out what this amount is in advance, then he 

or she can make the payment quickly if need be. 

CSRS and FERS Handbook April, 1998 
2 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Section 40A1.1-1 Overview (Cont.) 

B. Topics Covered This Chapter covers:

• How the agency and employee begin to plan for an employee's 

retirement, preferably at least 5 years before the anticipated retirement 

date; 

• The responsibilities of the agency -- both the personnel and payroll 

offices -- in the retirement process; 

• The procedures an employee must follow to file an application for 

retirement; and 

• The role of the Office of Personnel Management in processing an 

application for retirement. 

C. Organization of This subchapter has five parts.

Subchapter

Part Name of Part Page 

40A1 General Information 1 

40A2 Advance Retirement Planning 3 

40A3 Retirement Application Process 32 

40A4 OPM Processing of Application 41 

40A5 Other Considerations 48 

Subchapter 40B, Job Aids, begins on page 51.

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

Authority below.

• United States Code: 5 U.S.C. Chapters 83 and 84 

• Code of Federal Regulations: 5 CFR Part 831 and Parts 841-846 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 3 

Chapter 40 

Part 40A2 Advance Retirement Planning

Section 40A2.1-1 General

A. Employee 

Responsibility

Employees should begin planning for retirement several years before the 

date they set for retirement so that they will be aware of what is required to 

continue certain benefits as an annuitant. In preparing for retirement, 

employees need to know that health and life insurance coverage normally 

must be in effect continuously for at least 5 years before the retirement date 

or they will be ineligible to carry these important benefits into retirement. 

Employees also need to know how other programs, such as Social Security, 

will affect their retirement. Knowing about the choices that are available 

and how those choices will affect their retirement benefits will help them 

make informed decisions. 

When retirement planning is part of career planning, employees will know 

how to build a solid retirement base to which they can contribute 

throughout their years in government service. The Thrift Savings Plan will 

be a major part of most retirement plans for future retirees and careful 

planning throughout their careers will assure them of a sound retirement 

base. Participating in the retirement seminars given by the agency will help 

the employee understand his or her role in the retirement process and the 

retirement application process, which is the culmination of all the plans 

made for retirement throughout their careers. When employees plan and 

begin the application process early, problems are less likely to occur. The 

employees will understand what their benefits are and what documentation 

is required for the retirement package. 

B. Agency 

Responsibility

It is the agency's responsibility to guide the employee through the 

retirement process, supplying all of the information the employee may need 

about retirement and continuing insurance coverage into retirement. The 

agency is responsible for giving the employee an all-inclusive presentation 

of the retirement process that the employee needs for successful retirement 

planning. The agency provides the information an employee needs in 

planning for retirement, but the agency should not advise or counsel the 

employee what to do. The purpose of this Chapter is to help agencies assist 

retiring employees so that they have an uncomplicated transition from their 

Federal careers to retirement. This Chapter contains a large number of job 

aids and employee information materials. The job aids are designed to give 

the agency support and guidance. For example, the Agency Checklists give 

the agency listings of all the forms and documents that apply or could apply 

to nondisability retirement cases. 

CSRS and FERS Handbook April, 1998 
____________________________________ 

___________________________________ 

4 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Section 40A2.1-1 General (Cont.) 

B. Agency 

Responsibility 

(Cont.) 

The employee information sheets are helpful handouts for employees 

approaching retirement. While OPM urges agencies to use these materials, 

agencies may have their own tailored material they prefer to use. 

Each agency headquarters is required by law to have a Retirement 

Counselor whose job it is to coordinate the agency's retirement counseling 

program and to help retirement counselors at field installations with the 

questions presented by their retiring employees. 

The Retirement Counselor should provide guidance to those responsible for 

counseling the agency's retiring employees. They should provide complete 

information as to the retirement procedures established by that agency and 

utilization of the aids in this Chapter versus tailored agency materials. It is 

important to see that each agency representative who does retirement 

counseling knows specifically who in the agency is responsible for seeing 

that the Notification Letter to separating employees regarding submission of 

individual retirement records to OPM is sent to the employee (usually this 

is the responsibility of the payroll office), who is responsible for sending 

the agency retirement coverage letter to the employee, and how other 

information needed by the retiring employee is provided. (See Chapter 1, 

Administration and General Provisions, section 1C3.1-1, for detailed 

information about the agency's responsibilities relating to retirement 

matters.) 

Those responsible for retirement counseling should enter the name and 

telephone number of their agency Retirement Counselor here (in pencil 

since there are periodic changes in these positions): 

(Name)

(Telephone Number)

April, 1998 CSRS and FERS Handbook 
______________________________________________________________ 

______________________________________________________________ 

______________________________________________________________ 

______________________________________________________________ 

______________________________________________________________ 

________________________________ 

 CSRS Planning and Applying for Retirement FERS 5 

Chapter 40 

Section 40A2.1-1 General (Cont.) 

B. Agency 

Responsibility 

(Cont.) 

Names and telephone numbers of others the individual who is counseling 

employees may need for quick reference can be noted here. 

________________________________________________________. 

There are large areas of white space in this Chapter so that those things that 

are of particular importance to the one providing information to those 

retiring may write in references, etc., to facilitate the counseling process. 

Make this your personal guide for counseling. You have a special trust in 

that the information you provide affects the future of the individuals whom 

you counsel. 

CSRS and FERS Handbook April, 1998 
6 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Section 40A2.1-2 Five-Year Period Before Retirement 

A. General The 5-year period prior to retirement is important because there are certain 

benefits that require at least 5 years of participation before they can be 

continued into retirement. In addition, many people need preliminary 

information so that they can make decisions as to when they can afford to 

retire, whether to make service credit payments, and when to make such 

payments, etc. The agency should identify employees who are within 

5 years of retirement and encourage them to attend a preretirement seminar 

and to contact their agency's personnel office to initiate procedures to 

determine the creditability of periods of civilian and/or military service, and 

determine if any deposits are owed for civilian and/or military service. 

Agencies should also encourage employees to request preliminary annuity 

estimates so that they can do financial planning for retirement, including 

those estimates needed to make decisions about paying deposits and 

redeposits and waiving military retired pay. 

B. Continuing Employees may continue their health benefits enrollment into retirement 

Health Benefits only if they meet all of the following conditions.

Enrollment Into 

Retirement 1. The employee must retire on an immediate annuity.

NOTE: An immediate annuity under FERS includes retirement 

under the MRA + 10 provision, even if receipt of the 

annuity is postponed to a later date to eliminate or lessen 

the age reduction. Health benefits and life insurance 

coverage in such cases are suspended until the annuity 

commences.

2. The employee must be enrolled in an FEHB plan at the time he or she 

retires.

3. The employee must have been continuously enrolled (or covered as a 

family member) in a plan under FEHB, or covered by CHAMPUS (see 

the operating manual called The Federal Employees Health Benefits 

Handbook for Personnel and Payroll Offices):

• For the 5 years of service immediately preceding retirement; or 

• For all service since his or her first opportunity to enroll; or 

• Continuously for the full period(s) of service beginning with the 

enrollment that became effective December 31, 1964. 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 7 

Chapter 40 

Section 40A2.1-2 Five-Year Period Before Retirement (Cont.) 

B. Continuing 

Health Benefits 

Enrollment Into 

Retirement 

(Cont.) 

OPM has the authority to waive this 5-year participation requirement 

when it determines that it would be against equity and good conscience 

not to allow a person to be enrolled in the FEHB Program as an 

annuitant. The law specifies that a person's failure to satisfy the 5­

year requirement must be "due to exceptional circumstances." OPM 

almost never grants waivers in cases of voluntary retirement because 

the employee could continue working until he or she has satisfied the 

5-year requirement. When circumstances occur that warrant temporary 

modification to this policy, OPM notifies agencies of the temporary 

modifications. 

NOTE: See the operating manual The Federal Employees Health Benefits 

Handbook for Personnel and Payroll Offices for additional 

information.

C. Continuing Life 1. An employee may retain basic life insurance as a retiree if all of the 

Insurance following conditions are met:

Coverage Into 

Retirement • The employee retires from a position in which insured;

• The employee does not convert to an individual policy when the 

basic insurance as an employee would otherwise cease; 

• The employee retires on an immediate annuity; and 

• The employee has been insured under the FEGLI program for the 

5 years of service immediately preceding retirement or the full 

period(s) of service during which basic life insurance was 

available, if less than 5 years. 

2. An employee may retain optional life insurance as a retiree if:

• The employee is eligible to continue basic insurance coverage; 

and 

• The optional insurance was in force for at least 5 years 

immediately preceding retirement or for the full period(s) of 

service during which optional life insurance was available, if less 

than 5 years. 

NOTE: See the operating manual called The Federal Employees 

Group Life Insurance Handbook for Personnel and 

Payroll Offices for additional information.

CSRS and FERS Handbook April, 1998 
8 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Section 40A2.1-2 Five-Year Period Before Retirement (Cont.) 

D. Verifying Civilian

and Military

Service

E. Deposits for

Civilian and/or

Military Service

F. Documentation of

Social Security

Coverage

G. Effect of 

Government 

Pension Offset 

and/or the 

Windfall 

Elimination 

Provision

If a review of the OPF reveals that periods of civilian and/or military 

service are unverified, or any required documentation is missing, the 

agency should assist the employee in documenting the unverified service 

and/or obtaining the missing documentation as early as possible. 

1. If the employee has civilian service for which a deposit or redeposit is 

owed, he or she should be advised about the effect of payment or 

nonpayment of the deposit/redeposit on his or her annuity. See 

Chapter 21, Service Credit Payments for Civilian Service, for a 

thorough discussion of deposit and redeposit service. 

2. If the employee is eligible to make a deposit for post-1956 military 

service, he or she should be advised that the deposit must be made to 

the agency prior to separation for retirement. See Chapter 23, Service 

Credit Payments for Post-1956 Military Service, for instructions on 

how to make military deposits. 

NOTE: If the employee is a military retiree who must waive military 

retired pay to credit the service in a civilian annuity, he or she 

should be informed about the rules governing credit for military 

service. (See Section 40A2.1-4B and Chapter 22, Creditable 

Military Service, section 22A4.1-2, for further instructions on 

how to waive military retired pay.)

Employees should ask for Form SSA-7004-PC, Request for Earnings and 

Benefit Estimate Statement, from their local Social Security office. 

Employees who submit this form will receive a free statement that provides 

information on future eligibility for Social Security benefits and estimates of 

these benefits as of specified dates. These estimates do not reflect any 

reduction for the Government Pension Offset (PPO) or the Windfall 

Elimination Provision (WEP). (See paragraph G below.) 

Employees also may obtain forms or other information about their Social 

Security benefits by calling 1-800-772-1213. 

1. Government Pension Offset (GPO)

Some or all of an employee's spousal Social Security benefit may be offset 

if the employee has a government pension from work not covered by Social 

Security. The GPO does not apply to the employee's own Social Security 

benefit, only the benefit derived from a spouse's employment. If the GPO 

applies, the spousal Social Security benefit will be reduced by two-thirds of 

any Federal pension derived from employment not covered by Social 

Security. 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 9 

Chapter 40 

Section 40A2.1-2 Five-Year Period Before Retirement (Cont.) 

G. Effect of Employees automatically covered by FERS, CSRS Offset employees, and 

Government employees who elected to transfer to FERS on or before December 31, 

Pension Offset 1987, or during the belated transfer period ending June 30, 1988, are 

and/or the exempt from the GPO. CSRS employees who elect FERS coverage after 

Windfall June 30, 1988, will need 5 years of Federal employment covered by Social

Elimination Security to be exempt from the GPO.

Provision (Cont.) 

2. Windfall Elimination Provision (WEP) 

For employees who receive a Federal pension and also are eligible for 

Social Security benefits based on their own employment record, a different 

formula may be used to compute their Social Security benefit. This 

formula will result in a lower benefit. The WEP affects workers who reach 

age 62 or become disabled after 1985 and are first eligible after 1985 for a 

Federal pension. 

The WEP formula does not apply if: 

• The employee was eligible to retire from Federal service before 

January 1, 1986; or 

• The employee was first employed by the Government after 

December 31, 1983; or 

• The employee has 30 or more years of substantial earnings under 

Social Security. 

NOTE: Employees must contact their local Social Security office to 

determine the effect of the Government Pension Offset and/or the 

Windfall Elimination Provision on their Social Security benefits.

How to Estimate the Reduction in Social Security Benefits Resulting 

from the WEP 

Upon request by an employee (using form SSA-7004), the Social 

Security Administration will send a Personal Earnings and Benefits 

Estimate Statement (PEBES) that will list the employee's earnings in 

employment covered by Social Security and provide a Social Security 

retirement benefit estimate assuming retirement at alternative ages -­

62, 65 and 70. The benefit estimate is based on the person's own 

estimate of his or her future annual earnings in employment covered by 

Social Security. 

The following table shows how the PEBES benefit estimate for a 

person reaching age 62 in 1996 or later can be adjusted to reflect the 

WEP in most cases by subtracting a specified amount from the age-62 

or age-65 benefit estimate. The amount to be subtracted 

CSRS and FERS Handbook April, 1998 
10 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Section 40A2.1-2 Five-Year Period Before Retirement (Cont.) 

G. Effect of depends on the number of years of "substantial" Social Security 

Government earnings the employee will have acquired by the time he or she begins

Pension Offset to receive Social Security benefits.

and/or the 

Windfall 

Elimination 

Provision (Cont.) 

Years of Retirement Retirement 

at at 

Substantia Age 62 Age 65 

l 

Earnings 

30 or more $ 0 $ 0 

29 18 22 

28 36 45 

27 54 67 

26 71 89 

25 89 112 

24 107 134 

23 125 156 

These amounts apply only to PEBES generated in 1996. To use PEBES 

generated in subsequent years, these amounts need to be adjusted by the 

increase in average wages in the economy - currently estimated to be about 

5 percent per year. Thus, to use with PEBES generated in 1997 and later, 

increase the amounts shown by about 5 percent and for each subsequent 

year after. 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 11 

Chapter 40 

Section 40A2.1-3 One-Year Period Before Retirement 

A. General Agencies should contact employees within 1 year of retirement eligibility 

and offer counseling.

The paragraphs that follow outline the steps the employee and agency 

should take at least 1 year before the employee applies for retirement. 

NOTE: Provide employees with copies of "Checklist for Employees 

Preparing to Retire" (Employee Information Sheet #1) and 

"Checklist for Health and Life Insurance Coverage" (Employee 

Information Sheet #2), that are included in subchapter 40B.

B. Initial Actions Important employee actions are:

1. Confirm when he or she will be eligible to retire; 

2. Decide when he or she wishes to retire; 

3. Obtain information about other benefits to which the employee may be 

entitled, such as Thrift Savings Plan payout options, any other 

entitlements based on other employment (for example, Foreign 

Service, Social Security, pensions from private industry, IRA's, etc.); 

in other words, the employee should have a fairly comprehensive 

picture of all sources of retirement income and when each becomes 

payable; 

4. Inform the supervisor of his or her anticipated retirement date. It may 

be impractical for the employee to tell his or her supervisor the 

anticipated retirement date this early, however, the employee should be 

encouraged to give notice as early as feasible to give time for 

succession planning by the supervisor; 

5. Attend a preretirement counseling seminar if he or she has not already 

done so; and 

6. Make an advance appointment with the personnel office to review his 

or her Official Personnel Folder (OPF) or its equivalent to ensure that 

records are complete and accurate, that all service has been verified, 

and that insurance coverage has been documented. 

CSRS and FERS Handbook April, 1998 
12 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Section 40A2.1-3 One-Year Period Before Retirement (Cont.) 

C. Review OPF to The employee, together with the agency's retirement counselor, should:

Ensure

Completeness/ 1. Set up a folder for the employee, beginning with the SF 2801. Take 

Accuracy of the SF 2801-1, Certified Summary of Federal Service, review the 

Records Standard Form 144, Statement of Prior Federal Service (if previously 

completed), and complete the SF 2801-1. This will confirm that the 

employee's work history is correct and that all service has been 

properly documented;

Make sure that the OPF includes official documentation of the 

following: 

• The beginning and ending dates of each period of creditable 

civilian service; 

• The effective dates for each promotion or within-grade increase 

during service that might fall into the high-3 average salary; 

• Dates of pay changes or earnings, and the pay rate, during 

nondeduction service for correct computation of the deposit due; 

• The tour of duty during any part-time appointment (for example, 

tour of duty -- 60 hours per pay period); 

NOTE: If the employee worked more hours than the official 

tour of duty, document the hours actually worked.

• A record of the time actually worked during any intermittent or 

WAE ("when actually employed") service; and 

• Documentation of the dates of any creditable military service. 

NOTE: If any civilian or military service is unverified, or any 

required documentation is missing, the employee should 

request the agency's assistance in documenting 

unverified service and/or obtaining the missing 

documentation.

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 13 

Chapter 40 

Section 40A2.1-3 One-Year Period Before Retirement (Cont.) 

C. Review OPF to 

Ensure 

Completeness/ 

Accuracy of 

Records (Cont.) 

D. Completeness/ 

Accuracy of 

Health and Life 

Insurance 

Records

E. Status of Health 

Benefits During 

Adjudication

F. Eligibility to 

Elect Temporary 

Continuation of 

Health Benefits 

Coverage

2. Review the Designation of Beneficiary (SF 2808 for CSRS and 

SF 3102 for FERS) for the lump-sum distribution of retirement 

contributions when there is no one eligible for a survivor benefit to 

make sure the form shows the person(s) the employee currently wants 

designated. If the individual does not have a copy available for 

review, he or she may want to file a new designation.

NOTE 1: When an employee transfers to FERS, any prior CSRS 

Designation of Beneficiary (SF 2808) is canceled. The 

employee may submit a new designation on SF 3102 if he 

or she wishes payment to be made to a person who would 

not otherwise be entitled under the order of precedence. 

The Designation of Beneficiary, SF 2808, on file for 

employees who were automatically covered by FERS is not 

canceled and remains in effect.

NOTE 2: SF 2808's are filed at OPM; SF 3102's are filed with the 

agency.

The employee and agency retirement counselor should make sure the OPF 

includes official documentation of the following:

1. A record of all Federal health benefits enrollments on SF 2809, Health 

Benefits Registration Form, and, if appropriate, SF 2810, Notice of 

Change in Health Benefits. Be meticulous in making certain that OPM 

is given a complete history of health benefits enrollment for the 5 years 

preceding retirement. 

2. A record of the current Federal life insurance coverage on SF 2817, 

Life Insurance Election, and if appropriate, the current Life Insurance 

Designation of Beneficiary, SF 2823. 

Advise employees whose health benefits will continue into retirement that 

coverage does not stop, even though premiums are not collected until the 

case has been adjudicated. Premiums for the period from retirement to case 

completion will be deducted from the first payment after adjudication has 

been completed. 

The agency must advise individuals who are not eligible to continue health 

benefits coverage into retirement of their right to temporarily continue 

coverage (Temporary Continuation of FEHB Coverage, TCC) that would 

otherwise terminate. This election must be made within 60 days of 

separation. (See 5 CFR Part 890, Subpart K.) 

CSRS and FERS Handbook April, 1998 
14 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Section 40A2.1-3 One-Year Period Before Retirement (Cont.) 

G. Direct Payment The agency must advise employees that they may make direct payment of 

of FEHB their health benefit premiums to OPM if their annuity is not sufficient to 

Premiums to cover the cost of the premium. OPM will bill them for their premium 

OPM payments if this is the case. Employees should not send payments before

receiving instructions.

H. Post-1956 

Military Deposit

I. Questions on 

Effect of Deposits 

and Redeposits 

on Service Credit 

If the employee has not paid a deposit for post-1956 military service, he or 

she should be advised that if the deposit is going to be paid, it must be 

made to the agency prior to separation for retirement. (See Chapter 23.) 

If the employee has civilian service for which a deposit or redeposit is 

owed, he or she should be advised of the effect of payment or nonpayment 

of the deposit/redeposit on his or her annuity. (See Chapter 21.) 

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 under CSRS (see Chapter 21 for a full 

explanation). Nondeduction service credited under FERS 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, 

Alternative Annuity Elections.) With certain minor exceptions, a FERS 

employee cannot make a deposit for nondeduction service performed on 

or after January 1, 1989. The deductions must be made on a current basis 

during the time that the service is being performed. 

The effect of making a redeposit for refunded retirement contributions on 

the CSRS annuity depends on whether the refunded service ended before 

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

commences after December 1, 1990. With certain exceptions, the employee 

does not have to make a redeposit to receive credit for the refunded service 

that ended before October 1, 1990, but the annuity will be actuarially 

reduced. (See Chapter 21, section 21A3 for technicalities.) A refund of 

FERS retirement contributions terminates all credit for service for both 

eligibility and computation purposes. A FERS employee may make a 

redeposit for refunded CSRS service that becomes FERS service if the 

refund was received based on an application filed before FERS coverage 

began. 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 15 

Chapter 40 

Section 40A2.1-3 One-Year Period Before Retirement (Cont.) 

I. Questions on 

Effect of Deposits 

and Redeposits 

on Service Credit 

(Cont.) 

If an employee who wishes to make a deposit or redeposit is within 

6 months of retiring, he or she should not submit an SF 2803 or SF 3108 

prior to the retirement process. Submission of an application for 

deposit/redeposit followed by submission later of an application for 

retirement benefits within the 6-month period often delays the process. The 

employing agency should forward the employee's request to make a deposit 

or redeposit with the retirement application. The request can be in the form 

of an SF 2803/SF 3108 or a letter stating intent to make a deposit or 

redeposit. The employee will be notified of any amounts due during the 

adjudication of the retirement claim so that he/she can decide whether to 

make the payment. 

Should an employing agency require deposit/redeposit information for 

annuity estimates, they should submit the form as shown in Job Aid #4 or 

download the form from OPM ONLINE at (202) 606-4800. The 

Retirement Operations Center staff at Boyers will provide the information 

so that the retiring employee can make an informed decision whether or not 

to pay deposits and/or redeposits. 

Mail the form to: U.S. Office of Personnel Management 

Retirement Operations Center 

Post Office Box 45 

Boyers, PA 16017 

fax # 724-794-4668. 

NOTE: See Chapter 21 for complete information on when to file 

applications to pay deposits and redeposits and the correct forms 

to use.

CSRS and FERS Handbook April, 1998 
16 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Section 40A2.1-3 One-Year Period Before Retirement (Cont.) 

J. Meeting Age and 

Service 

Requirements

Verify that the employee meets the age and service requirements for 

retirement on the proposed retirement date. Demonstrate to the employee 

how the voluntary retirement date affects the beginning date of the annuity. 

For example, under CSRS, a 9/3 retirement date will ensure a beginning 

annuity date of 9/4; a 9/4 retirement date means the annuity will not begin 

until 10/1. 

Under FERS, since there is no 3-day opportunity, any date during the 

month means the annuity beginning date will be the first of the next month. 

Agencies should emphasize the actual commencing annuity date, especially 

to FERS employees. 

See Chapter 50, Computation of Annuity Under the General Formula, for 

examples. 

NOTE: It also is necessary to verify that CSRS employees meet the 

"1-out-of-2" requirement. (See Chapter 41, Voluntary 

Retirement Based on Age and Service, section 41A1.1-2, 

paragraph E.) FERS has no "1-out-of-2" requirement.

K. Review Survivor 

Benefit 

Considerations

The agency must review the applicable survivor benefit considerations noted 

below. 

• The types of survivor elections that may be made, such as for a current 

spouse, for a former spouse, or for an individual with an insurable 

interest in the retiree (the retiree needs to know that an insurable 

interest election requires that the retiree have a physical examination at 

his or her own expense); see Chapter 52, Survivor Benefit Elections, 

sections 52A2.1-1 and 52B2.1-1; 

• The requirements the current and/or the former spouse must meet to be 

eligible for survivor benefits (see Chapter 52); 

• The necessity of spousal consent if the employee wants to provide less 

than full survivor benefits (see Chapter 52, sections 52A2.1-2 and 

52B2.1-2); 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 17 

Chapter 40 

Section 40A2.1-3 One-Year Period Before Retirement (Cont.) 

K. Review Survivor 

Benefit 

Considerations 

(Cont.) 

• The cost of survivor benefits and the amount of survivor benefits 

payable (see Chapter 50, sections 50A3.1-3 and 50B3.1-3); 

• The effect of the termination of survivor benefits (see Chapter 50, 

section 50A3.1-3 paragraph H and section 50B3.1-3 paragraph E); 

• The effect of court awarded benefits to former spouses (see 

Chapter 74, Former Spouse Survivor Benefits); 

• The ability to increase or decrease the amount of the survivor annuity 

without penalty for up to 30 days after the first regular monthly 

annuity payment (see Chapter 52, section 52A4.1-1); 

• The ability to increase the amount of survivor benefits within the 

18-month period following retirement and the effect of such an 

increase (see Chapter 52, section 52A4.1-2); 

• The requirements that a retiree must elect some survivor annuity or 

else the surviving spouse cannot continue FEHB coverage. (See 

Chapter 71, Spouse Benefits - Death of an Annuitant, section 

71A3.1-2, for information); 

• Provision for survivor benefits to a former spouse may be voluntary or 

pursuant to a court order (see Chapter 74 for conditions); 

• Survivor elections available if the individual marries (or remarries) 

after retirement (see Chapter 52, section 52A4.1-3); and 

• When payment of the lump-sum retirement contributions will be made 

(see Chapter 75, Lump Sum Benefits). 

CSRS and FERS Handbook April, 1998 
18 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Section 40A2.1-3 One-Year Period Before Retirement (Cont.) 

L. MRA + 10 

Retirees Who 

Elect Immediate 

Annuity

When the employee retires under the FERS provision that allows an 

employee who has at least 10 years of service and who is at the minimum 

retirement age (at least 55) to retire on an immediate annuity, the annuity 

must be reduced for each month that the retiree is under age 62. The 

reduction is five-twelfths of 1 percent per month (5 percent per year). 

Tell the employee that application to receive an MRA + 10 annuity can be 

postponed. They can apply for this benefit later by writing to OPM or 

filing an "Application for Deferred or Postponed Retirement" (RI 92-19) 

within 60 days before they want this benefit to begin. 

Agencies should make certain that employees are aware of the following 

important considerations about delaying the annuity commencing date: 

• This benefit is reduced if it begins before age 62. The reduction is 

five-twelfths of 1 percent for each month (5 percent per year) by which 

the benefit commencing date precedes the 62nd birthday. However, 

the reduction for age is not made if the benefit commences the month 

after reaching age 60 and the retiree has 20 years of service or has 

reached the MRA and has 30 years of service.

• Delay of the benefit avoids the reduction for being under age 62 that 

would have been applied at the date of separation had the retiree filed 

at that time. The benefit can be initiated at any time, avoiding all or 

any part of the reduction.

• Life insurance enrollment will terminate until the annuity begins, then 

the life insurance coverage the employee had when he/she separated 

from employment will resume if otherwise eligible to retain coverage 

as a retiree.

• Health insurance can be temporarily continued under the Temporary 

Continuation of Coverage (TCC option) for 18 months from the date of 

separation from the employing agency; however, the retiree must pay 

both the employee and the government shares of the monthly premium, 

plus a 2 percent administrative charge. The former employing agency 

is responsible for collecting premiums and maintaining the enrollment 

during the temporary continuation of coverage. 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 19 

Chapter 40 

Section 40A2.1-3 One-Year Period Before Retirement (Cont.) 

L. MRA + 10 • When the annuity payments begin, if otherwise eligible to continue 

Retirees Who coverage, the retiree will have the opportunity to enroll in a health 

Elect Immediate benefits plan under the regular Federal Employees Health Benefits 

Annuity (Cont.) Program and OPM will pay the government share of the premium. If

the retiree dies before filing an application for retirement, he or she is 

deemed to have filed that application and, therefore, is considered to 

have died as an annuitant, thereby ensuring the rights of survivors. 

See Chapter 42, MRA + 10 Retirement.

M. Voluntary 

Contributions

Employees who have made voluntary contributions while under CSRS may, 

at time of retirement, use those contributions to purchase additional annuity 

or withdraw the contributions in a lump sum. 

The employee is entitled to an additional annuity of $7 a year for each $100 

in his or her voluntary contribution account, plus 20 cents for each full year 

he or she is over age 55 at time of retirement. The employee may also elect 

a reduction in his or her additional annuity to purchase a survivor annuity. 

The voluntary contributions account is converted to an additional annuity at 

retirement unless the retiree requests a refund of the voluntary contributions 

by filing SF 2802, Application for Refund of Retirement Deductions, or 

RI 38-124, Voluntary Contributions Election, before final adjudication of 

the basic annuity. 

Most employees will elect to receive a refund of the voluntary contributions 

rather than use the contributions to purchase additional annuity. If the 

interest on the account is at least $200, the employee can elect to have OPM 

roll over all or part of the interest to an Individual Retirement Account 

(IRA) or other qualified retirement plan to defer income tax. An employee 

who wants to withdraw all of his or her voluntary contributions with or 

without a rollover of interest should obtain RI 38-124 from the employing 

agency or obtain SF 2802 and state in item 7: "I want only my voluntary 

contributions to be refunded to me." Employees, including employees who 

are retiring, should submit their refund/rollover elections directly to OPM. 

Since interest stops at separation, retiring employees should submit their 

refund requests to OPM at least 60 days before retirement. If the 

refund/rollover election is received with the employee's retirement package, 

the refund will be processed separately from the retirement application. 

(Spousal notification is not required for a voluntary contributions refund.) 

CSRS and FERS Handbook April, 1998 
20 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Section 40A2.1-3 One-Year Period Before Retirement (Cont.) 

M. Voluntary NOTE 1: Chapter 31, Voluntary Contributions, contains detailed

Contributions guidance regarding voluntary contributions. See Chapter 50,

(Cont.) section 50C1.1-2, for an example of an employee who retires

and elects additional annuity provided by voluntary 

contributions. 

NOTE 2: Employees should read both the Voluntary Contributions 

Notice (Form RI 38-125) and the Special Tax Notice Regarding 

Rollovers (Form RI 37-22) for information on refunds, 

rollovers, taxes and voluntary contributions annuities. Interest 

on voluntary contributions that are refunded is eligible under 

"rollover" provisions of Public Law 102-318. (See section 

40A4.1-3 paragraph C for a full explanation of the law.) 

N. Annuity 

Estimates

When applicable, the agency is responsible for providing any of the 

following annuity estimates upon request. (See Employee Information 

Sheet #3, CSRS and FERS Annuity Estimates You May Need.) 

1. For employees receiving military retired pay, annuity estimates with

and without credit for the military service.

2. For employees considering a deposit for post-1956 military service,

annuity estimates with and without the military service on or after

January 1, 1957.

3. For employees considering making a CSRS deposit for civilian service 

performed before October 1, 1982, estimates of the amount of the 

deposit and the amount of the annuity with and without the reduction 

for unpaid deposit. 

4. For employees considering making a CSRS deposit for civilian service 

performed on or after October 1, 1982, estimates of the amount of the 

deposit and the amount of annuity with and without the deposit service. 

5. For employees considering making a CSRS redeposit for service 

ending before October 1, 1990, estimates of the amount of the 

redeposit and the amount of the annuity with and without the actuarial 

reduction for the unpaid redeposit. 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 21 

Chapter 40 

Section 40A2.1-3 One-Year Period Before Retirement (Cont.) 

N. Annuity 

Estimates (Cont.) 

6. For employees considering making a CSRS redeposit for service

ending on or after October 1, 1990, estimates of the amount of the

redeposit and the amount of annuity with and without credit for the

refunded service.

7. For employees considering making a FERS deposit for civilian service 

performed before 1989, estimates are needed of the amount of deposit 

and the amount of the annuity with and without credit for the pre-1989 

service. 

8. For employees considering electing no survivor benefits for his or her 

spouse (or electing less than full survivor benefits or benefits for a 

former spouse), estimates of the amount of the survivor annuity and 

the amount of the retiree's annuity with and without the full survivor 

benefit. 

9. For employees who are electing an insurable interest annuity, estimates 

of the annuity with and without the insurable interest election. 

10. For employees who have made voluntary contributions and are eligible 

to elect additional annuity provided for by voluntary contributions, 

estimates with and without credit for the voluntary contributions. 

11. For employees who are eligible to elect the alternative annuity (AFA) 

at retirement, estimates of the annuity with and without the lump-sum 

payment of retirement contributions. (See section 40A4.1-3 

paragraph C.) 

12. For FERS employees eligible to receive an annuity supplement, 

estimate the monthly amount payable to age 62. 

IMPORTANT: While the agency is expected to provide a reasonable 

estimate of an individual's retirement benefits, it is 

OPM's responsibility to determine the actual amount of 

the annuity based on the laws and regulations in effect 

at time of retirement and on certified service history 

data.

CSRS and FERS Handbook April, 1998 
22 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Section 40A2.1-3 One-Year Period Before Retirement (Cont.) 

O. Cost-of-Living 1. Explain how COLA adjustments apply to retiring CSRS, or FERS

Adjustments employees with a CSRS component:

(COLA's)

• COLA's for CSRS service take effect December 1 of each year 

and are reflected in the annuity check dated the first day of 

January; and 

• The initial CSRS-service COLA is effective on the December 1 

after the annuity begins, and will be prorated based on the 

number of months the individual was on the annuity rolls prior to 

the effective date of the increase. 

2. Explain to retiring FERS employees:

• COLA's take effect December 1 of each year and are reflected in 

the annuity check dated the first business day of January; and 

• The initial COLA generally is effective on the December 1 after 

attaining age 62 or after the annuity begins, whichever is later. 

In addition, the initial COLA is prorated based on the number of 

months the individual was on the annuity rolls prior to the 

effective date of the increase. 

EXCEPTION 1: For FERS annuitants who are not eligible to receive a 

COLA during their first year (or more) on the annuity 

roll, the initial COLA they receive (after becoming 

eligible) is the full COLA without proration.

EXCEPTION 2: Special Entitlement: The initial COLA for FERS 

employees retiring under the special group provisions 

(special provisions for air traffic controllers, law 

enforcement personnel, or firefighters) is effective on 

the December 1 after the annuity begins.

EXCEPTION 3: The FERS retiree annuity supplement is not subject to 

cost-of-living increases. (See Chapter 51, Retiree 

Annuity Supplement.)

EXCEPTION 4: FERS retirees with a CSRS component in their annuities 

receive COLA's on the CSRS component according to 

the CSRS rules described in paragraph 1 above. The 

FERS portion of the benefit is governed by the FERS 

rules.

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 23 

Chapter 40 

Section 40A2.1-3 One-Year Period Before Retirement (Cont.) 

O. Cost-of-Living EXCEPTION 5: Public Law 103-66 will delay cost-of-living increases for

Adjustments FY's 1994, 1995, and 1996, as follows:

(COLA's) (Cont.) 

• Anyone who would have been eligible for a 

January 1, 1994, 1995, or 1996, COLA will have 

their annuity increased instead on April 1, 1994, 

1995, or 1996, by exactly the same amount that 

would have been added in January. If someone 

would not have been eligible for a COLA on 

January 1, they will not get one on April 1. 

• The COLA delays are not cumulative, that is, each 

COLA that would have been effective on January 1 

will instead take effect on April 1. 

• The COLA delays apply to all annuitants under the 

Federal Employees Retirement System, the Civil 

Service Retirement System, and the Foreign Service 

and Central Intelligence Agency retirement systems. 

NOTE: For additional information on COLA's, see Chapter 2, Cost-ofLiving Adjustments.

P. Consider TSP 

Withdrawal 

Options

At least 6 months prior to retirement, an employee with a vested TSP 

account balance should consider the various TSP withdrawal options, 

estimate the relative monetary advantages of different ways of withdrawing 

TSP funds, and consider the tax effects of each option. The employee will 

also need to decide when to receive the TSP benefits. See Employee 

Information Sheet #1, paragraph 13, for the Thrift Investment Board's 

address. 

NOTE: Give the employee copies of the Thrift Investment Board's 

informational booklets (namely, "Withdrawing Your TSP Account 

Balance" and "Thrift Savings Plan Annuities") that contain 

information employees need in determining what to do with their 

TSP accounts.

CSRS and FERS Handbook April, 1998 
24 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Section 40A2.1-3 One-Year Period Before Retirement (Cont.) 

Q. Effect of Social 

Security Benefits 

on CSRS Offset 

Employees

The annuities for CSRS Offset employees are computed in the same manner 

as if they were covered under CSRS only. However, the annuity is reduced 

(offset) when the employee becomes eligible for Social Security retirement 

benefits. The offset is applied when the basic requirements for Social 

Security are met (usually at age 62) even if the employee does not apply 

for Social Security benefits. If the employee is not entitled to Social 

Security at age 62, there is no offset until or unless he or she later becomes 

entitled to Social Security.

NOTE: See Chapter 50, section 50A3.1-4, for additional information.

R. Lump-Sum 

Payment of 

Annual Leave

The employee may be paid for any annual leave balance (not limited to 240 

hours carried over past the end of the leave year) held to credit at 

retirement. However, if employee retires after the end of the leave year, 

the annual leave balance will be reduced to 240 hours at the end of the leave 

year (except for SES and other excluded groups). At the beginning of the 

next leave year, the employee will again begin to accrue annual leave that 

will be added, as accrued, to the leave year balance and can be included in 

the lump sum payment for annual leave at retirement. 

S. Federal Tax 

Information

Agencies should refer employees to their local Internal Revenue Service 

(IRS) office for information about the taxation of annuity and other 

retirement benefits. Agencies should not and are not expected to contact the 

IRS on behalf of the employee. 

Employees may obtain IRS Publication 721, "Tax Guide to U.S. Civil 

Service Retirement Benefits," or other tax information by calling 

1-800-829-1040. In addition, IRS has issued a new Publication 1798, 

Retiring Q's and A's. This publication has been developed to help inform, 

educate and assist Federal retirees with their tax obligations. It addresses 

10 tax questions most commonly asked by Federal retirees and provides 

telephone numbers and addresses for additional information. 

The retiree will receive a letter explaining how to make tax withholding 

elections using the >Annuitant Express toll-free number, 1-800-409­

6528<. If the retiree wants to use a W-4P-A (Federal Tax Election Form), 

it can be requested by calling >toll-free on 1-88 US OPM RET 

(1-888-767-6738)<. 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 25 

Chapter 40 

Section 40A2.1-3 One-Year Period Before Retirement (Cont.) 

S. Federal Tax 

Information 

(Cont.) 

NOTE: The taxes are withheld from annuity checks at the "married + 3" 

withholding rate unless the employee instructs OPM to do 

something different.

After the retirement package has been received by OPM and the retiree has 

received his or her CSA number, OPM is able to accept tax withholding 

changes by W-4P-A, by letter from the retiree, or by calling OPM. The 

retiree's signature is required on any written request (see Employee 

Information Sheet #6 for address and telephone numbers). Specific taxable 

lump sum payments are eligible to be rolled over into an IRA under 

provisions of Public Law 102-318. These benefits are:

Taxable portion of AFA lump sum; and

Interest on excess contributions and voluntary contributions.

If the benefits are not rolled over by OPM into an IRA, 20 percent is 

withheld for Federal income tax. The withholding rate for these benefits 

cannot be changed. (See Employee Information Sheet #10 for information 

about rollovers.) General tax information is provided in this Handbook in 

Chapter 31, and Chapter 53. (Also, see Employee Information Sheet #7 on 

taxes.)

T. State Income Tax 

Withholdings 

From Annuity 

Checks

If the employee wants OPM to withhold State income taxes from the 

annuity as well, he or she must contact OPM directly. OPM can now 

process requests to initiate tax withholdings, or cancel withholdings. 

(See Employee Information Sheet #7, Information About State Income Tax 

Withholding, in subchapter 40B for more information.) 

U. OWCP Benefits An individual who is eligible for an annuity under CSRS or FERS and 

compensation benefits (OWCP, Department of Labor) under FECA may not 

receive both benefits concurrently. The bar includes nonscheduled 

compensation that has been commuted to a lump-sum payment under 

5 U.S.C. 8135 as well. Documentation requirements are found in Schedule 

C of the CSRS and FERS retirement application forms. Read Chapter 102, 

Relationship Between Retirement Annuity and Compensation for WorkRelated Injuries and Diseases, to determine how workers' compensation 

affects the elections a retiree would make and how these elections would 

affect a survivor's benefit. Chapter 102 covers time spent in receipt of 

workers' compensation benefits and when it is creditable for retirement 

purposes. 

CSRS and FERS Handbook April, 1998 
26 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Section 40A2.1-3 One-Year Period Before Retirement (Cont.) 

U. OWCP Benefits If there is a current involvement with workers' compensation, the retiree 

(Cont.) should be given the information contained in Chapter 102 regarding 

retirement and workers' compensation. Schedule C of both the CSRS and 

FERS retirement application forms requires documentation of compensation 

and/or awards received or being received by the employee. Disability 

retirement is covered in Chapter 60, Disability Retirement. 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 27 

Chapter 40 

Section 40A2.1-4 Six-Month Period Before Retirement

A. Clear up 

Indebtedness to 

Agency

The employee should resolve any financial indebtedness to his or her 

agency. Examples of indebtedness include: 

• Outstanding travel advances; 

• Overpayments of salary; 

• Indebtedness for failure to return government property or damage to 

government property; or 

• Advanced leave.

B. File Waiver of 

Military Retired 

Pay

If the employee wants to waive his or her military retired pay in order to 

receive credit for the military service, the employee should notify the 

Retired Pay Operations Center in writing at least 90 days but no later than 

60 days before the planned retirement date. Waivers for military retired 

pay should be sent to DFAS, Cleveland Center, Retired Pay Operations, 

P.O. Box 99191, Cleveland, Ohio 44199-1126. Fax requests for waivers to 

FAX number (216) 522-5237. Wording of request for waiver: "I (full 

name and military serial number) hereby waive my military retired pay for 

Civil Service Retirement purposes effective (the day before annuity 

commences). I hereby authorize the Office of Personnel Management to 

withhold from my Civil Service Retirement annuity any amount of military 

retired pay granted beyond the effective date of this waiver due to any delay 

in receiving or processing this election." (See Chapter 22, section 

22A4.1-2 for further instructions on how to waive military retired pay.) 

Attach to the employee's retirement application a copy of the waiver request 

and any response from the Retired Pay Operations Center. The employee 

should retain copies of these documents for his or her personal records. 

C. Maximum 

Annuity: 

80 Percent 

Limitation

When applicable, explain that the basic CSRS annuity cannot exceed 80 

percent of the high-3 average salary, except for unused sick leave credit. 

The 80 percent limitation is reached under the general formula by 

performing 41 years and 11 months of CSRS service. Credit for sick leave 

is not included in the 80 percent limitation. 

OPM automatically applies excess retirement deductions that result from 

exceeding the 80 percent limitation to any deposits the employee may owe. 

If the employee does not owe a deposit, the excess contributions are 

CSRS and FERS Handbook April, 1998 
28 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Section 40A2.1-4 Six-Month Period Before Retirement (Cont.) 

C. Maximum 

Annuity: 

80 Percent 

Limitation (Cont.) 

D. Document 

Medicare 

Eligibility and 

Filing for 

Medicare

refunded to the retiree with his or her initial annuity payment along with a 

letter advising the retiree of the amount of additional annuity the excess 

deductions and interest would purchase. If the retiree returns the excess 

deductions and interest to OPM, this amount is treated as voluntary 

contributions and the annuity is recomputed accordingly. Excess deductions 

are treated the same as voluntary contributions. (See Chapter 50, sections 

50A3.1-2 and 50A3.1-5B.) 

NOTE: Interest on excess retirement deductions and voluntary 

contributions refunded are eligible under "rollover" provisions of 

Public Law 102-318. (See section 40A4.1-3 paragraph D for a full 

explanation of the law.)

The Social Security Administration (SSA) will have records of most retiring 

employees' eligibility for Medicare. However, if SSA does not and neither 

the employing agency nor the former employee has the material required by 

SSA to determine Medicare eligibility, agencies or former employees may 

obtain documentation of earnings by writing to: 

National Personnel Records Center 

(Civilian Personnel Records) 

111 Winnebago Street 

St. Louis, MO 63118 

When requesting documentation of earnings from the National Personnel 

Records Center, provide the following information: 

• Name of employee (as carried on payroll records); 

• Date of birth; 

• Social Security number; 

• Mailing address; 

• Year(s) for which you need documentation of earnings; 

• Name and location of employing agency for each year; 

• Reason for request: Certification of Earnings for Medicare Eligibility; 

• Written signature (printed or typed names will not be accepted); and 

• Statement that all other sources of this information have been 

exhausted. 

Contact SSA 3 months before your 65th birthday to apply. 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 29 

Chapter 40 

Section 40A2.1-5 Two-Month Period Before Retirement 

A. General The paragraphs that follow outline the steps that should be taken by the 

agency and the employee at least 2 months before the employee applies for 

retirement and information to facilitate those steps in the retirement 

planning process. 

B. Choose Exact Date 

of Retirement

The employee should choose his or her exact retirement date, if this 

decision has not already been made. The agency should advise the 

employee when his or her annuity will commence and how the date chosen 

affects credit for length of service, sick leave, the high-3 average salary, 

and the beginning date of his or her annuity. Once the exact date of 

retirement is determined, a final agency computation can be made. 

NOTE 1: A copy of the computation should be submitted to OPM with 

the retirement application.

NOTE 2: Remind the employee of the commencing date and COLA 

proration rules and delay rules.

NOTE 3: COLA proration rules (and delay rules) are covered in section 

40A2.1-3 O.

C. Give Retirement Once the agency personnel office gives the employee all of the necessary 

Package to retirement and insurance forms, it should advise the employee to take the 

Employee following steps.

1. Complete the retirement application and related forms. (See part 

40A3 for the retirement application process.)

The agency must advise the employee that the retirement application has 

important information with it and that this information should be read 

carefully before filling out the forms.

2. Submit the forms.

The agency must tell the employee where, when, and to whom the 

forms should be submitted, and remind the employee to keep a copy of 

all submissions for his or her personal records. A retiring employee 

does not need to submit a separate resignation. Submission of the 

completed and signed retirement application is the same as a letter of 

resignation. An employee who is eligible for a retirement benefit 

should be counseled against simply resigning and submitting a 

retirement application later, because, if the employee

CSRS and FERS Handbook April, 1998 
30 CSRS Planning and Applying for Retirement FERS 

Chapter 40

Section 40A2.1-5 Two-Month Period Before Retirement (Cont.)

C. Give Retirement dies in the interim, no FEGLI or survivor annuity would be payable and 

Package to the survivor would not be eligible to continue FEHB coverage.

Employee (Cont.) 

3. Review and sign SF 2801-1 (CSRS) or SF 3107-1 (FERS), Certified 

Summary of Federal Service, if this was not done during the time 

period presented in section 40A2.1-3C.

The agency should see that this form is completed as described in 

section 40A2.1-3C without delay.

4. Complete all other customary agency exit procedures.

The agency must explain exit procedures to the employee.

D. Prepare the SF 52 When the exact retirement date has been decided, the responsible office 

should prepare an SF 52, Request for Personnel Action, have it signed by 

the appropriate authority, and send it to the agency personnel office. 

E. Verify Completion Ask the payroll office to verify that the deposit for post-1956 military 

of Post-1956 service has been completed or that an arrangement has been made with the 

Military Deposit employee for the deposit to be completed before the employee leaves the 

With Payroll agency's rolls. 

Office

F. Direct Deposit of 

Annuity Check

Public Law 104-134 strengthened the requirements that Federal payment 

recipients receive their payments by direct deposit through Electronic Funds 

Transfer (EFT) into a checking or savings account. The prior law, Public 

Law 103-356, required all Federal retirees with annuity commencing dates 

on or after January 1, 1995, to be paid by direct deposit through Electronic 

Funds Transfer (EFT), unless they requested a waiver. Under P. L. 104­

134, beginning with individuals who become eligible for payment on or 

after July 26, 1996, all new Federal payment recipients are to receive their 

payments by EFT if possible. The only exception is for those individuals 

who certify in writing that they have no checking or savings account into 

which their payments could be directly deposited, and that no accounts have 

been established on their behalf by authorized payment agents. They may 

elect direct deposit either by obtaining a Standard Form 1199A, Direct 

Deposit Sign-Up Form, from their financial institution, and submitting it 

with the retirement application, or by completing the appropriate election 

letter. 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 31 

Chapter 40

Section 40A2.1-5 Two-Month Period Before Retirement (Cont.)

F. Direct Deposit of 

Annuity Check 

(Cont.) 

NOTE 1: Generally, retirees whose permanent address for receiving 

annuity payments is outside the United States cannot be paid by 

EFT. >However, EFT is now available to retirees residing in 

Canada. In addition, retirees residing outside the United States 

and Canada can arrange to have their annuity payments 

electronically deposited in a U.S. bank if they wish<. 

G. Contacts After 

Retirement

NOTE 2: Retirees whose agency is participating in the Automated Interim 

Pay Project will need no further election because their current 

EFT account data will be transmitted via magnetic tape from 

payroll records.

Provide retiring employees with a copy of "Where and How to Direct 

Questions to OPM During Retirement Process and After Retirement 

(including types of requests OPM can handle over the telephone)" 

(Employee Information Sheet #6) from subchapter 40B.

H. TSP Withdrawal 

Package

The agency must provide a TSP Withdrawal Package to each retiring 

employee who has a vested TSP account balance. This package contains the 

booklet "Withdrawing Your TSP Account." The agency TSP representative 

should be familiar with the information contained in this booklet in order to 

explain to the employee his or her TSP withdrawal options, including the 

option to keep his or her money in the TSP. 

Employees should be aware that processing a withdrawal may take up to 

8 weeks after all properly completed withdrawal forms and separation data 

have been received by the TSP Service Office from the employee and from 

the agency. The TSP Service Office cannot process a withdrawal election 

until the Service Office receives an Employee Data Record from the agency 

payroll office indicating that the employee has separated. 

NOTE 1: An unpaid TSP loan may delay disbursement of the TSP account 

balance. If possible, employees should pay off any TSP loans 

before retirement to avoid delaying receipt of TSP distributions. 

NOTE 2: It is necessary to designate a beneficiary only if the employee 

wants payment to be made in a way other than the order of 

precedence shown below. A designation should be kept current. 

If an employee's family status changes (for example, marriage, 

divorce, death), the employee may want to change his or her 

designation. 

CSRS and FERS Handbook April, 1998 
32 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Section 40A2.1-5 Two-Month Period Before Retirement (Cont.) 

H. TSP Withdrawal Order of Precedence:

Package (Cont.) 

1. To widow or widower. 

2. If none of the above, to child or children and descendants 

of deceased children, by representation. 

3. If none of the above, to retiree's parents or the surviving 

parent. 

4. If none of the above, to the duly appointed executor or 

administrator of retiree's estate. 

5. If none of the above, to any other of retiree's next of kin 

who is entitled under the laws of retiree's domicile on the 

date of his or her death. 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 33 

Chapter 40 

Part 40A3 Retirement Application Process

Section 40A3.1-1 Procedures

A. CSRS Forms and 

Documents To Be 

Submitted by 

Employee

An employee retiring under CSRS is required to complete and submit the 

following forms and documents (except for those documents that are 

identified as when applicable or if available):

• SF 2801, Application for Immediate Retirement (and Schedules A, B, 

and C when necessary).

• SF 2801-2, Spouse's Consent to Survivor Election, if applicable.

• SF 2801-3, Election of Former Spouse Survivor Annuity or 

Combination Current/Former Spouse Annuity, if applicable.

• If excess deductions have been made or the employee wants a refund of 

voluntary contributions, the employee should complete an SF 2802 

noting that it is for a refund of "excess deductions only" or for "a 

refund of "voluntary contributions only." RI 38-124, Voluntary 

Contributions Election, may be substituted for the SF 2802. (See 

Chapter 50, section 50A3.1-2, for additional information.)

• If employee is eligible to elect the alternative annuity, give the 

employee information on making a pre-retirement election through RI 

38-123, Alternative Annuity Election Information For Employees, and 

the Special Tax Notice Regarding Rollovers (RI 37-22). To make the 

election, give the employee RI 38-122, Alternative Annuity and 

Rollover Election. Instruct the employee to attach a doctor's 

certification of life threatening affliction or other critical medical 

condition to the back of the election.

• SF 2818, Continuation of Life Insurance Coverage (for basic life 

insurance; includes election regarding amount of post-retirement Basic 

life insurance).

• SF 1199A, Direct Deposit Sign-Up Form or appropriate election letter 

(see section 40A2.1-5 paragraph F for guidance).

• Copy of military discharge certificate or equivalent documentation, if 

available.

CSRS and FERS Handbook April, 1998 
34 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Section 40A3.1-1 Procedures (Cont.) 

A. CSRS Forms and 

Documents To Be 

Submitted by 

Employee (Cont.) 

B. CSRS Forms To 

Be Completed by 

Agency

• Copy of request for military retired pay waiver and Retired Pay 

Operations Center's acknowledgement or approval, if available and 

applicable.

• Letter requesting deposit for nondeduction service when applicable.

• Retiring employees may submit a W-4 Federal Tax Withholding form 

to OPM with their retirement application.

The personnel office must:

• Prepare a Certified Summary of Federal Service (SF 2801-1) that lists 

the employee's verified Federal civilian and military service. 

NOTE: The employee should review and sign the Certified Summary 

of Federal Service. However, if the employee is unable to 

sign the Certified Summary, the agency may submit the form 

to OPM without the employee's signature.

• Complete Agency Checklist of Immediate Retirement Procedures and 

submit to OPM with the retirement package (SF 2801-Schedule D). 

• It is important that in completing forms agencies include not only a 

telephone number but also a fax number to facilitate any development 

that might be needed. 

• Complete Agency Certification of Insurance Status (SF 2821) to certify 

FEGLI coverage to OPM if the employee appears eligible to continue 

this coverage into retirement. 

• Give all retiring employees an SF 2819, Notice of Conversion 

Privilege. The notice advises the employee that he/she is eligible to 

convert to a private policy, although most employees who are eligible 

to continue FEGLI into retirement do so. However, if the employee 

has assigned his/her insurance, give all assignees a copy of the SF 2819 

together with a copy of the assignment form showing each assignee's 

share of the life insurance coverage. Do not give the employee a copy 

of the SF 2819 unless he/she has family optional insurance. (See The 

Federal Employees Group Life Insurance Handbook for Personnel and 

Payroll Offices for complete information.) 

• When needed, prepare a memorandum, to include with the FEHB 

documentation, giving information that would have been in the 

"Remarks" section of the SF 2810, such as, eligibility to continue 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 35 

Chapter 40 

Section 40A3.1-1 Procedures (Cont.) 

B. CSRS Forms To 

Be Completed by 

Agency (Cont.) 

C. FERS Forms and 

Documents To Be 

Submitted by 

Employee

coverage into retirement based on prior coverage under the spouse's 

enrollment, providing information about an open season change when 

retirement occurs before the effective date, etc. Also read the year-end 

(open season) health benefit form instructions in Job Aids #1 and #2. 

• Provide information on the health benefits Temporary Continuation of 

Coverage (TCC) if the employee is not eligible to continue FEHB under 

retirement provisions, but is eligible for TCC. (See The Federal 

Employees Health Benefits Handbook for Personnel and Payroll 

Offices.) 

• Process the personnel action necessary to separate the employee from 

the Federal service for retirement. 

NOTE: To identify the forms used in CSRS retirement cases, see the 

Agency Checklist -- Forms for a CSRS Retirement Case (Job 

Aid #1) provided in subchapter 40B. 

An employee retiring under FERS is required to complete and submit the 

following forms and documents except for those documents that are 

identified as when applicable or if available: 

• Standard Form 3107, Application for Retirement (and Schedules A, B, 

and C when necessary). 

• Standard Form 3107-2, Spouse's Consent to Survivor Election, if 

applicable. 

• If employee is eligible to elect the alternative annuity, give the 

employee information on making a pre-retirement election through 

RI 38-123, Alternative Annuity Election Information For Employees, 

and the Special Tax Notice Regarding Rollovers (RI 37-22). To make 

the election, give the employee RI 38-122, Alternative Annuity and 

Rollover Election. Instruct the employee to attach a doctor's 

certification of life threatening affliction or other critical medical 

condition to the back of the election. 

• SF 2818, Continuation of Life Insurance Coverage (for basic life 

insurance; includes election regarding amount of post-retirement Basic 

life insurance). 

CSRS and FERS Handbook April, 1998 
36 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Section 40A3.1-1 Procedures (Cont.) 

C. FERS Forms and • Copy of military discharge certificate or equivalent documentation, if 

Documents To Be available.

Submitted by 

Employee (Cont.) • Copy of request for military retired pay waiver and retired pay 

operations office's acknowledgement or approval, if available and 

applicable.

• SF 1199A, Direct Deposit Sign-Up Form or appropriate election letter 

(see section 40A2.1-5 paragraph F for guidance). 

• Letter requesting deposit for nondeduction service when applicable. 

• Retiring employees may submit a W-4 Federal Tax Withholding form 

to OPM with their retirement application. 

D. FERS Forms To The forms to be completed by the personnel office in the case of a FERS 

Be Completed by employee are the same as those used for a CSRS employee (see 

Agency paragraph B), with the following exceptions:

• The Certified Summary of Federal Service is SF 3107-1; and 

• Complete Agency Checklist of Immediate Retirement Procedures and 

submit to OPM with the retirement package (SF 3107-Schedule D). 

• It is important that in completing forms agencies include not only a 

telephone number but also a fax number to facilitate any development 

that might be needed. 

NOTE: To identify the required forms in FERS retirement cases, use the 

Agency Checklist -- Forms for a FERS Retirement Case (Job 

Aid #2) provided in subchapter 40B.

E. Filing Instructions The instructions for filing an application for immediate retirement for CSRS 

and FERS employees are as follows:

1. If the employee is not yet separated or has been separated 30 days or 

less before the application is filed, the application and other forms must 

be filed with the agency. 

2. If the employee has been separated more than 30 days, the application 

must be filed directly with OPM at Boyers, PA.

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 37 

Chapter 40 

Section 40A3.1-1 Procedures (Cont.) 

F. Reference The retirement forms and instructions vary depending on the type of 

retirement benefits to which the employee may be entitled.

The following Chapters discuss in detail the procedures to be followed in 

filing for various benefits: 

• Chapter 41, Voluntary Retirement Based on Age and Service 

• Chapter 42, MRA + 10 Retirement 

• Chapter 43, Early Voluntary Retirement 

• Chapter 44, Discontinued Service Retirement 

• Chapter 45, Deferred Retirement 

• Chapter 60, Disability Retirement 

CSRS and FERS Handbook April, 1998 
38 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Section 40A3.1-2 Personnel Office Responsibilities

A. General Processing retirement applications begins in an agency's personnel office. 

The personnel assistant or other appropriate person must check the retiring 

employee's OPF, or its equivalent, to ensure that the employee meets the 

age and service requirements for retirement. In addition, the personnelist 

receives and reviews all forms to ensure the retirement forms are properly 

completed and that the elections reflect the employee's choices. See 

Chapter 1 for agency responsibilities.

B. Explain The local retirement counselor or other appropriate personnel assistant 

Processing should:

Procedures to 

Employee • Caution the employee to carefully read the instructions attached to the 

retirement application.

• Review the completed retirement application with the employee to 

ensure that all blocks are properly marked and that it has been signed. 

• Explain to the employee how the retirement application will be 

processed by your agency and OPM. If your agency follows the 

recommended procedures of notifying employees when their retirement 

packages are transmitted to OPM, explain the process. Make sure the 

employee understands that OPM cannot begin to process a retirement 

annuity until after receiving the application and supporting 

documentation from the last employing agency. Until OPM receives 

the application and supporting documents, OPM does not know the 

employee has retired. 

Agencies should audit and organize the retirement package, then send 

the package to OPM after payroll certification of deductions. The 

agency is responsible for making payment of any lump sum annual 

leave due to the employee. 

• Explain interim payments. Interim payments are adjusted to reflect the 

cost of health benefits, life insurance and survivor elections. 

• Explain to the employee the deductions that can be withheld from the 

annuity checks. OPM currently provides deductions for Federal income 

tax, State income tax (where applicable), health benefits and life 

insurance premiums, medicare, union dues and savings bond 

allotments. Other withholdings may be permitted in the future. 

• Provide the employee with addresses and/or phone numbers he or she 

may need to check the status of his or her retirement package. OPM 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 39 

Chapter 40 

Section 40A3.1-2 Personnel Office Responsibilities (Cont.) 

B. Explain 

Processing 

Procedures to 

Employee (Cont.) 

will now accept and change information over the telephone from 

retirees who have their CSA number. OPM's general phone number 

for retirement inquiries is 202-606-0500 (if local) or toll-free, 1-888­

767-6738. (See Employee Information Sheet #6 in subchapter 40B for 

specific addresses and telephone numbers for use after retirement and 

for the type of information that is available.)

C. Retirement 

Coverage Letter 

for Employee

The agency personnel office should provide a retirement coverage letter to 

each employee covering all benefits, OPM processing, and how OPM will 

deduct taxes and health and life insurance premiums. (See the example of 

an agency retirement coverage letter to the employee in subchapter 40B, 

Employee Instruction Sheet #9.) 

D. Magnetic Tape 

Data Transfer 

Program

OPM accepts retirement application data from a number of agencies via 

computer magnetic tape, in addition to the hard copy retirement application. 

The Retirement Operations Center in Boyers, PA, receives all hard copy 

applications along with a magnetic tape that contains similar information. 

The magnetic tape data will be loaded into OPM's computer electronically 

rather than by the time-consuming manual data entry process. For those 

applications that are loaded electronically and meet initial retirement 

criteria, the annuity will be computed and an interim payment will be 

authorized the same day OPM reads the magnetic tape. Final adjudication 

processing will continue on from this point. 

Overall, the magnetic tape data transfer program will reduce the time 

needed by OPM to process interim payments, thus providing retirees with 

annuity payments as close as possible to their first day of eligibility. In 

addition, Federal income tax withholding elections and EFT information 

can be included on the tape to allow for that processing as well. The 

headquarters level Retirement Counselor of any agency that wants further 

information about transferring retirement data via magnetic tape should 

contact the Office of Retirement Programs, Operations Support Division, 

Office of Personnel Management, 1900 E Street NW., Washington, DC 

20415. 

Agencies that participate in the magnetic tape data transfer program will 

need to change the language in some of the employee information sheets 

that are found in Subchapter 40B, Job Aids and Employee Information 

Sheets, to reflect the electronic governing of procedures and timeframes of 

retirement applications. 

CSRS and FERS Handbook April, 1998 
40 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Section 40A3.1-3 Payroll Office Responsibilities

A. General After the personnel office completes all of its actions, the retirement 

application and related records are sent to the agency's payroll office.

B. Issue Last After the employee separates for retirement, the payroll office authorizes 

Paycheck and the employee's final salary payment and a lump-sum payment for any 

Lump-Sum unused annual leave. The prompt issuance of the final salary check is 

Annual Leave essential so that the retirement package can be sent to OPM thus facilitating 

Payment the timely processing of the retirement package by OPM. 

C. Close Out The payroll office certifies and closes out the employee's Individual 

Individual Retirement Record (SF 2806 or SF 3100). 

Retirement Record

(SF 2806 or The Individual Retirement Record reflects the employee's retirement 

SF 3100) contributions for his or her current service, pay rates, unused sick leave 

credit for civil service retirement purposes (both CSRS and FERS), last day 

of pay, and date and type of separation, and other data that is necessary for 

OPM to determine retirement benefits.

Because this record reflects the employee's total retirement contributions 

(made to the last agency of employment), it cannot be closed out until the 

employee's final salary check has been issued. 

NOTE: See Chapter 81, Individual Retirement Records and Registers of 

Separations and Transfers, for guidance in preparing the 

SF 2806 and the SF 3100, Individual Retirement Record cards.

D. Close Out The payroll office provides documentation of the military deposit and closes 

SF 2806/SF 3100 out the special military deposit record on the SF 2806 or the SF 3100 that 

for Post-1956 documents the payments made by the employee to the agency. In general, 

Military Deposit follow the procedures in Chapter 81 for closing out the SF 2806 or the 

SF 3100; however, see Chapter 23, section 23A3.1-9, for additional 

procedures in closing out an SF 2806 or an SF 3100 for a military service 

credit deposit. 

E. Other The payroll office also will: 

Responsibilities

1. Complete the payroll office portion of SF 2801-Schedule D or 

SF 3107-Schedule D; and

2. Certify the employee's annual basic pay for life insurance purposes, if 

applicable.

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 41 

Chapter 40 

Section 40A3.1-3 Payroll Office Responsibilities (Cont.) 

F. Forward 

Retirement 

Package to OPM

1. Once the actions described above are completed, the payroll office will 

forward the hard copy retirement package on a Register of Separations 

and Transfers (SF 2807 and/or SF 3103) to OPM at the following 

address:

Office of Personnel Management 

Retirement Operations Center 

Boyers, PA 16017

For those agencies that participate in the magnetic tape data transfer 

program, the tapes must be sent with the hard copy paper retirement 

applications to the Retirement Operations Center at Boyers.

2. The payroll office should send a notification letter to the retiree giving 

the exact date the retirement package went to OPM. The letter should 

provide information about the Register on which the retirement package 

was sent to OPM. This information includes the Register number, the 

transmittal and mailing dates, and the payroll office number. The 

retiree will then be able to track the progress of his or her claim. (See 

sample notification letter in subchapter 40B, Employee Information 

Sheet #8.)

3. Under OPM's current standards, the agency is expected to complete its 

personnel office and payroll office processing actions and forward the 

retirement package to OPM so that it is received by OPM within 30 

days after separation.

CSRS and FERS Handbook April, 1998 
42 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Part 40A4 OPM Processing of Applications

Section 40A4.1-1 Issue Individual Retirement Claim Number

A. Acknowledge 

Application and 

Provide Civil 

Service Annuity 

(CSA) Number

Once OPM's Retirement Operations Center in Boyers, Pennsylvania, 

receives the retirement application from the agency, OPM will send an 

acknowledgement letter that provides the employee with a retirement claim 

number. The claim number will begin with the letters "CSA."

Retirees must refer to their CSA number when they call or write OPM 

about their claim.

NOTE: The individual should not contact OPM unless the retirement 

package has already been sent to OPM. OPM cannot provide 

assistance until it has received the retirement package.

B. If CSA Number If the retiree needs to contact OPM before he or she receives a CSA 

Not Yet Issued number, the retiree must provide OPM with the following information 

about the Register on which the retirement application was sent: 

• The Register number;

• The Register's transmittal and mailing dates; and

• The payroll office number.

If the retiree has not received a written notification that provides this 

information, he or she must obtain the information from the agency's 

payroll office. (See Employee Instruction Sheet #8 in subchapter 40B for 

example of notification letter to be provided by the payroll office.) 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 43 

Chapter 40 

Section 40A4.1-2 Place Individual in Interim Payment Status

A. General The Retirement Operations Center at Boyers, PA, reviews the application 

package, and any retirement records OPM has on file from service at a 

previous agency, as well as court orders and designation of beneficiary 

forms, and assembles the information into a retirement file. If the 

individual's entitlement to an annuity is clear, OPM will normally authorize 

recurring interim annuity payments ("special payments") to provide the 

retiree with income until his or her claim is completed. However, interim 

payments are authorized only in cases in which entitlement is clearly 

verified by the available records. Accordingly, it is incumbent upon the 

agency to see that the application package contains verification of all 

creditable service.

NOTE: If necessary, OPM will request additional information to 

develop any incomplete service history or to obtain insurance 

documentation not provided by the agency that may be needed 

to process the claim. In some cases that are complete and 

straightforward, OPM proceeds directly to adjudication of the 

case without placing the retiree in interim pay status.

B. Interim Pay via OPM is equipped to process interim pay via magnetic tape data transfer. 

Magnetic Tape By adhering to a specific format, agencies can send retirement application 

Data Transfer related information needed to authorize interim pay on tape with the 

retirement application. The magnetic tape data can then be read by OPM to 

place the employee directly into interim pay status.

C. Amount of Interim annuity payments are usually about 90 percent of the regular 

Interim Annuity monthly payment (or about 95 percent, if the retiree is eligible for and 

Benefits elects the alternative annuity option).

CSRS and FERS Handbook April, 1998 
44 CSRS Planning and Applying for Retirement FERS 

Chapter 40

Section 40A4.1-2 Place Individual in Interim Payment Status (Cont.)

D. Payment of 

Interim Annuity 

Benefits

Interim payments generally are authorized within 8 to 10 days after OPM 

receives the retirement package from the individual's payroll office. The 

Department of the Treasury check processing and U.S. Postal Service 

delivery require an additional 8 to 10 days. Therefore, the retiree should 

receive his or her first payment within 2 to 3 weeks after OPM has received 

the retirement package from the agency payroll office. 

The submission of an SF 1199A or appropriate election letter along with the 

retirement package will allow OPM to send the interim checks by 

Electronic Funds Transfer (EFT) to the retiree's bank or financial 

institution. 

OPM will send a notice informing the retiree of the amount of interim 

payments. The processing steps and timeframes discussed in this part 

reflect normal OPM procedures and processing times. While innovations in 

processing and fluctuations in workload may cause workflows to vary, it is 

OPM's objective to get retirees in pay status as soon as possible. 

In the case of magnetic tape data transfer, if OPM receives complete and 

accurate information, they will be able to authorize interim payments within 

one day of OPM's receipt of the data. 

Interim payments will continue until OPM completes adjudication of the 

claim. 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 45 

Chapter 40 

Section 40A4.1-3 Adjudicate Retirement Claim

A. General

B. Benefit Specialist 

Assigned

After the Retirement Operations Center, Boyers Adjudication Unit, issues a 

CSA number and places the retiree in interim payment status, it then 

continues with the adjudication process. The Boyers unit adjudicates those 

CSRS cases that are considered straightforward and without special annuity 

computation requirements. At this time about 20 to 25 percent of the 

nondisability annuity claims are adjudicated in the Boyers Adjudication 

Unit, otherwise the retirement file is forwarded to the appropriate 

adjudication division in Washington, DC.

The case is assigned to a benefits specialist for final adjudication of the 

application for retirement. The benefits specialist reviews the individual's 

entitlement to benefits and obtains any elections or outstanding 

documentation needed to process the application.

When the file is determined to be complete and accurate, the benefits 

specialist determines the amount of the retiree's monthly annuity benefit and 

authorizes payment of the regular annuity check. 

C. Eligibility to Elect 

the Alternative 

Annuity (AFA)

In the rare instances when a retiree is eligible to elect the AFA (see 

Chapter 53 for eligibility requirements and exclusions), but does not 

choose to make a pre-retirement election, the benefits specialist 

determines the amount of the monthly benefit under both the regular and the 

AFA provisions of the retirement law. 

The benefits specialist sends a notice to the retiree that provides specific 

information about the AFA election (including general tax information 

about this benefit in addition to specific tax information relating to his or 

her annuity). The notice also includes information about rollovers. (See 

paragraph D below for information about rollovers.) 

The retiree will have 30 days in which to make the election. After 

receiving the decision, the benefits specialist will process the case and 

authorize payment of the annuity. 

For retirees who make a pre-retirement election to receive an alternative 

annuity, the benefits specialist sends the tax and rollover information with 

the retiree's Annuity Statement. 

CSRS and FERS Handbook April, 1998 
46 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Section 40A4.1-3 Adjudicate Retirement Claim (Cont.) 

C. Eligibility to Elect 

the Alternative 

Annuity (AFA) 

(Cont.) 

NOTE: Public Law 103-66 permanently eliminates the AFA for most 

annuitants effective October 1, 1994. The law eliminates the 

exception in Public Law 101-508 that allowed employees who 

were involuntarily separated to continue to elect the AFA. 

However, nondisability retirees with a life-threatening medical 

condition may still elect the AFA. 

D. Payments Eligible 

for Rollover to 

Another Eligible 

Retirement Plan 

or Into an IRA

Public Law 102-318, enacted July 3, 1992, amended the Internal Revenue 

Code regarding the payment of funds from qualified retirement plans that 

affects payments received after December 31, 1992. Specifically, retirees 

can now roll certain taxable lump sum payments (including the AFA) over 

into an Individual Retirement Arrangement (IRA). The kinds of CSRS and 

FERS payments that would be made under this Chapter that can be rolled 

over include: 

• The taxable portion (85 to 90 percent, generally) of lump sums paid 

as a result of an election of an alternative form of annuity (whether 

paid in one installment or two); and

• Interest on -­

- Excess retirement deductions, or

- Voluntary contributions.

OPM will send an election letter to those who are eligible for the rollover. 

Additionally, the lump sum must be paid to a qualified payee, which 

includes the employee or former employee, his or her surviving spouse, or 

a former spouse under a court order that properly apportions benefits under 

CSRS or FERS law. 

NOTE: Employee Information Sheet #10, Rollover of Payments Under 

CSRS and FERS as an Alternative to 20 Percent Tax Withholding, 

is an information sheet that can be given to retiring employees who 

may be eligible for payments that can be rolled over. This 

information sheet includes RI 37-22, Special Tax Notice Regarding 

Rollovers, which was developed jointly with the Internal Revenue 

Service as a service to OPM's clients. 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 47 

Chapter 40 

Section 40A4.1-3 Adjudicate Retirement Claim (Cont.) 

E. Processing Time OPM's processing goal is to complete the final adjudication of fully 

documented nondisability claims within 35 days of receipt of the retirement 

package. The processing time for each case will vary according to whether 

the retirement package submitted by the agency is fully developed and 

accurate when it is submitted to OPM. (If the retiree is eligible for the 

alternative annuity election, processing time will vary according to how 

long it takes a retiree to make the election and submit the applicable forms.)

F. Annuity Statement OPM provides retirees an Annuity Statement and other informational 

material concerning the individual's retirement benefits after the claim is 

processed.

G. If Retiree Has If the retiree has questions concerning the status of his or her application for 

Questions About retirement, he or she may call OPM's Retirement Information Office at 

Status of (202) 606-0500 >(if local) or toll-free 1-888-767-6738< during the hours 

Application of operation, 7:30 a.m. to 5:30 p.m. (Eastern Time). For inquiries from 

the hearing impaired, OPM's TDD telephone is (202) 606-0551 >(if local) 

or toll-free 1-800-878-5707<. However, the retiree should not call OPM 

unless the agency has sent the retirement package to OPM. The 

"Notification Letter" sent by the agency to the employee gives the 

information the employee needs when contacting OPM.

If an application for retirement has been submitted to OPM, allow 5 to 6 

weeks for the processing and mailing of an initial interim payment. After 6 

weeks, if there are any questions concerning the retirement application, 

contact OPM. (See Employee Instruction Sheet #8 in subchapter 40B for 

the sample notification letter.)

OPM has specific addresses for specific written inquiries. All written 

inquiries should include the CSA claim number and must be signed by the 

writer. (See Employee Information Sheet #6 for appropriate addresses and 

telephone numbers at OPM.)

CSRS and FERS Handbook April, 1998 
48 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Section 40A4.1-3 Adjudicate Retirement Claim (Cont.) 

H. Annuitant Express Annuitant Express is a computer-based phone system, available 24 hours a 

day, 7 days a week, that gives retirees the ability to make changes to their 

Federal income tax withholdings and request Statements of Annuity Paid 

(1099R's). By using a touch-tone phone, the retiree can call OPM's TollFree Number, 1-800-409-6528. For all Annuitant Express transactions, 

retirees will need their CSA or CSF claim number and a Personal 

Identification Number (PIN). The PIN is the last four numbers of the 

retiree's Social Security number of record. In the future, Annuitant 

Express will be expanded to allow other transactions.

I. Other Business By OPM processes the transactions listed below based on either a telephone 

Telephone With request or a written request, if OPM has already received an application 

OPM from the retiree. OPM must have the retirement application with complete 

retirement information to process requests from retirees. (See Employee 

Information Sheet #6, Where and How to Direct Questions to OPM During 

Retirement Process and After Retirement, for detailed instructions.) OPM 

reserves the right to require a written request if the telephone request seems 

questionable.

Types of Requests That OPM Can Handle Over the Telephone:

• Report of Death 

• Change of Address 

• Change in Electronic Funds Transfer (EFT) Account 

• Non-Receipt of Payment 

• Some Health Benefits Changes 

• Direct Payment Program for Health and Life Insurance Benefits 

• Verification of Income 

• Election of Regular Form of Annuity in Lieu of AFA 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 49 

Chapter 40 

Part 40A5 Other Considerations

Section 40A5.1-1 Withdrawal of Retirement Application

A. General Rules 1. An agency must permit an employee to withdraw an application before 

the effective date of separation, except as provided in 2. below.

2. An agency may decline a request to withdraw an application before the 

effective date of separation only when it has a valid reason and explains 

that reason in writing to the employee. (See Chapter 41.) 

3. For additional rules that apply under FERS, see subchapter B in 

Chapter 41. 

4. For special considerations under the disability provisions, see 

Chapter 60. 

CSRS and FERS Handbook April, 1998 
50 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Section 40A5.1-2 Erroneous Separations 

A. General OPM fully supports agencies in their efforts to provide retirement estimates 

to employees contemplating retirement. However, OPM strongly urges that 

all retirement estimates (and benefits statements) the agency provides 

employees contain a cautionary statement that the estimate may contain 

errors and warn against detrimental reliance on the information provided.

B. Sample Statement The agency should include the following statement on annuity estimates 

provided to employees:

"The calculations provided you are only Estimated amounts and are not 

intended to represent Actual amounts. The Office of Personnel 

Management has sole authority and responsibility for adjudicating 

retirement claims." 

C. Effect of 

Erroneous 

Inaccurate information may be costly to an agency, as well as creating a 

traumatic situation for the individual. Under decisions of the Merit 

Separation Systems Protection Board, the Comptroller General and the Courts, 

misinformation given to an employee may later result in a finding that the 

employee's separation was erroneous and that the agency is responsible for 

reinstating the employee and paying back pay. (See Comp. Gen. B-223118, 

January 2, 1987, and Scharf v. Department of the Air Force, 710 F.2d 

1572.)

Information (provide information, not advice) that can possibly create 

claims for reinstatement and back pay include misinformation about 

eligibility to retire, eligibility for special formula benefits (for example, law 

enforcement formula), and eligibility to continue health or life insurance 

into retirement. 

See Chapter 84, Correction of Retirement Records, for additional guidance 

about error correction. 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 51 

Chapter 40 

Subchapter 40B Job Aids and Employee Information Sheets

Section 40B1.1-1 Copies of Job Aids

A. Job Aids for Agencies. This subchapter contains copies of the following job aids for use 

by agencies. 

Job Aid #1 Agency Checklist -- Forms for a CSRS Retirement Case

Job Aid #2 Agency Checklist -- Forms for a FERS Retirement Case

Job Aid #3 Guidance in Preparing the Agency Notification Letter to Separating 

Employees Regarding Submission of Individual Retirement Records to OPM

Job Aid #4 Request for Deposit and/or Redeposit Information 

Section 40B1.1-2 Copies of Employee Information Sheets

A. Handouts for Employees. This subchapter contains copies of the following employee 

information sheets that agencies may reproduce locally. 

Employee Information Sheet #1 Checklist for Employees Preparing to Retire

Employee Information Sheet #2 Checklist for Health and Life Insurance Coverage

Employee Information Sheet #3 CSRS and FERS Annuity Estimates You May Need

Employee Information Sheet #4 Information About Direct Deposit of Annuity Checks 

Employee Information Sheet #5 Notice to Financial Institution Regarding Filing of

SF 1199A

Employee Information Sheet #6 Where and How to Direct Questions to OPM During 

Retirement Process and After Retirement, (Including 

Types of Requests OPM Can Handle Over the Telephone) 

Employee Information Sheet #7 Information About Federal and State Income Tax 

Withholdings

Employee Information Sheet #8 Sample Agency Notification Letter to Separating 

Employees Regarding Submission of Individual Retirement 

Records to OPM

Employee Information Sheet #9 Agency Retirement Coverage Letter to Employee

Employee Information Sheet #10 Rollover of Payments Under CSRS and FERS as an 

Alternative to 20 Percent Tax Withholding 

Employee Information Sheet #11 Voluntary Contributions Notice, RI 38-125, and Voluntary 

Contributions Election, RI 38-124 

CSRS and FERS Handbook April, 1998 
52 CSRS Planning and Applying for Retirement 

Chapter 40 

Section 40B1.1-1 Copies of Job Aids

Job Aid #1

Agency Checklist -- Forms for a CSRS Retirement Case

This list identifies the forms and documents that must be submitted to the Office of Personnel 

Management (OPM) with a CSRS retirement application package. The list is intended to help personnel 

office staffs determine the applicability of and account for the required retirement and insurance forms 

and documents. 

Basic Retirement Forms Package

FORM NUMBER and TITLE REQUIREMENT

SF 2801, Application for Immediate Retirement REQUIRED in all cases.

SF 2801-1, Certified Summary of Federal Service REQUIRED in all cases.

SF 2801-2, Spouse's Consent to Survivor Election REQUIRED if applicant is married at retirement 

and does not elect a full survivor annuity for the 

current spouse.

SF 2801-3, Election of Former Spouse Survivor REQUIRED when retiring employee wishes to

Annuity or Combination Current/Former Spouse elect survivor benefits for a former spouse(s).

Annuity

SF 2801 Schedules A (Military Service Applicant served in the military; applicant

Information), B (Military Retired Pay), and C received OWCP benefits.

(Federal Employees Compensation Information),

Addendum 

SF 2801 Schedule D, Agency Checklist of REQUIRED in all cases.

Immediate Retirement Procedures NOTE: Personnel office completes 

Section A; Payroll office completes Section B. 

SF 2802, Application for Refund of Retirement REQUIRED if retiree applies for a refund of 

Deductions or RI 38-124, Voluntary Contributions voluntary contributions or excess deductions. 

Election

SF 2806, Individual Retirement Record(s) REQUIRED.

SF 2807, Register of Separations REQUIRED.

and Transfers 

REQUIRED if filed (erroneously) in OPF. Used 

SF 2808, Designation of Beneficiary when employee has designated a beneficiary to 

receive a lump-sum benefit. Submit all 

SF 2808's completed by employee.

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement 53 

Chapter 40 

Job Aid #1 (Cont.) 

Health Benefits Forms

FORM NUMBER and TITLE REQUIREMENT

SF 2809, Health Benefits Registration Form REQUIRED whether or not employee appears 

eligible to continue enrollment after retirement, 

even if enrollment has been terminated. (All 

SF 2809's are required.)

SF 2810, Notice of Change in Health Benefits A transfer-out SF 2810 is NO LONGER

Enrollment REQUIRED- When needed, prepare a 

memorandum to include with the FEHB 

documentation giving information formerly 

contained in the "Remarks" section of the 

SF 2810; such as eligibility to continue 

enrollment into retirement based on prior 

coverage under the spouse's enrollment, 

providing information about an open season 

change when retirement occurs before effective 

date, etc. (All previous SF 2810's are required.)

How to Process Open Season FEHB Changes When Employees Retire at the End of the Year with 

January 1st Commencing Dates.

If the losing office knows that the employee will retire before the effective date of the open season 

change, it should not process the open season SF 2809. Instead: 

(a) If the employee is retiring, the losing office should have the employee complete the open season 

SF 2809, and have the authorized agency official initial and date Part G to show that the open season 

registration was timely submitted. The name of the losing installation and the signature of its 

certifying officer should not appear on the SF 2809. Attach the SF 2809 to other health benefits 

documents and the SF 2806 when they are submitted to OPM. 

NOTE: The Retirement System will prepare a transfer-in SF 2810, transferring the old enrollment 

in effect at the time of the employee's separation. 

(b) If an open season change has already been processed, but the employee unexpectedly retires before 

the effective date of the change, the losing office should void all open season forms and transmit the 

existing enrollment (if any) to the gaining office (OPM). Tell the employee that the open season 

change has been voided and, if possible, have the employee complete a new SF 2809 and handle it 

as stated in (a) above. If it is impossible to take this action quickly, notify OPM that the employee's 

open season change, which was timely filed, has been voided, and that a new open season SF 2809 

must be accepted by OPM. For further information, see The Federal Employees Health Benefits 

Handbook for Personnel and Payroll Offices. 

CSRS and FERS Handbook April, 1998 
54 CSRS Planning and Applying for Retirement 

Chapter 40 

Job Aid #1 (Cont.) 

Life Insurance Forms

FORM NUMBER and DOCUMENT TITLE REQUIREMENT

SF 2817, Life Insurance Election REQUIRED when employee wants to continue 

FEGLI coverage after retirement. Submit all 

OPF copies (original, signed versions) of 

SF 2817, SF 176, and SF 176T. (See The 

Federal Employees Group Life Insurance 

Handbook.) If the SF 2817 is missing, state 

whether employee had coverage from first 

opportunity, and provide other evidence, such as 

SF 50 documenting coverage.

SF 176T, Old Life Insurance Election Form (Not Include if available.

used after April 14, 1968)

SF 176, Old Life Insurance Election Form (Used Include if available.

after April 14, 1968, until 1981 when SF 2817

came into use)

SF 2818, Continuation of Life Insurance Coverage REQUIRED when employee is eligible to

(for Basic life insurance; includes election regarding continue FEGLI enrollment after retirement.

amount of post-retirement Basic life insurance)

SF 2819, Notice of Conversion Privilege REQUIRED. Give to all retiring employees 

since an employee may elect to convert his/her 

optional coverage to avoid the reduction after 

age 65 (no medical examination is required). 

The employee is eligible to convert all insurance 

coverage or only optional coverage. If the 

retiring employee elects to convert one or more 

of the optional coverages, the agency must attach 

the SF 2819 to the retirement application. If the 

employee has assigned his/her insurance, give all 

assignees a copy of the SF 2819, together with a 

copy of the assignment form showing each 

assignee's share of the life insurance coverage. 

Do not give the employee a copy of the SF 2819 

unless he/she has family optional insurance.

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement 55 

Chapter 40 

Job Aid #1 (Cont.) 

SF 2821, Life Insurance Certification with REQUIRED when a retiring employee is eligible 

Personnel certifying signature to continue FEGLI coverage after retirement and 

wishes to continue coverage after retirement.

RI 76-10, Assignment of Federal Employees' Group REQUIRED if retiring employee elected to 

Life Insurance assign insurance.

FE-8C, Explanation of Benefits REQUIRED if retiring employee elected living 

benefits.

SF 2823 or SF 54, Life Insurance Designation of REQUIRED if in file and when a retiring 

Beneficiary employee is eligible and wishes to continue 

FEGLI coverage after retirement. Submit all 

SF 54's and SF 2823's in employee's OPF.

CSRS and FERS Handbook April, 1998 
56 CSRS Planning and Applying for Retirement 

Chapter 40 

Job Aid #1 (Cont.) 

Discontinued Service Retirement Only

FORM NUMBER and TITLE REQUIREMENT

OPM Form 1510, Certification of Agency Offer of REQUIRED when eligible employee is entitled 

Position and Required Documentation for a to discontinued service retirement because of 

Discontinued Service Retirement involuntary separation.

Attachment 1 to OPM Form 1510, Copies of (a) REQUIRED when eligible employee is entitled 

written notice to the employee that he/she faces to discontinued service retirement because of 

involuntary separation from his/her position as of involuntary separation.

some specific date and, (b) any correspondence 

from OPM concerning separation

Attachment 2 to OPM Form 1510, Copy of OPM REQUIRED when OPM has approved 

approval exemption of employee from mandatory (age) 

separation under 

5 CFR 831.503.

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement 57 

Chapter 40 

Job Aid #1 (Cont.) 

Military Forms and Documents

FORM NUMBER and TITLE REQUIREMENT

DD 214 (or equivalent), Military Discharge Attach if applicant served in the military and if 

available.

Waiver of Military Retired Pay (Copy) REQUIRED if applicant wants to waive military 

retired pay to use military service in CSRS 

annuity.

OPM 1514, Military Deposit Worksheet REQUIRED if retiree applied to pay for military 

service after 1/1/57.

If post-1956 military service is involved, is SF 2806 REQUIRED if retiree applied to pay for military 

showing payment of deposit included? service after 1/1/57 with employing agency.

OPM Form 1515, Military Service Deposit Election REQUIRED when retiring employee had 

military service after 1956, and has not paid a 

military service deposit.

SF 2802, Application for Refund of Retirement REQUIRED when retiring employee wants a 

Deductions refund of post-1956 military service deposit 

because he/she does not want to waive military 

retired pay.

SF 2802-B, Current/Former Spouse's Notification REQUIRED if retiree applies for a refund of 

of Application for Refund of Retirement Deductions retirement deductions after May 6, 1985.

Under CSRS

CSRS and FERS Handbook April, 1998 
58 CSRS Planning and Applying for Retirement 

Chapter 40 

Job Aid #1 (Cont.) 

Other Forms and Documents

FORM NUMBER and TITLE REQUIREMENT

If part-time employee, list hours worked from REQUIRED if employee does not have a normal 

4/7/86 to retirement on SF 2806 work schedule.

SF 1199A, Direct Deposit Sign-up Form REQUIRED unless your agency participates in 

the Automated Interim Pay Project or your 

permanent address is outside the United States. 

(Note: SF 1199A is available only from your 

bank.)

RI 16-26, Direct Deposit Sign-up Form (Canada) REQUIRED if your permanent address is in 

Canada.

EFT Information/Certification Letter REQUIRED unless applicant uses SF 1199A or 

certifies in writing he/she has no checking or 

savings account. Note: If your agency 

participates in the Automated Interim Pay 

Project or your permanent address is outside the 

United States, neither form is required.

EFT Information/Certification Letter (Canada) REQUIRED if your permanent address is in 

Canada.

Agency Estimate of Annuity Attached if prepared.

OWCP Award Letter, OWCP Verification Attach if available and if employee is in receipt 

workers' compensation. (See section 

40A2.1-3U.)

April, 1998 CSRS and FERS Handbook 
Planning and Applying for Retirement FERS 59 

Chapter 40 

Job Aid #2

Agency Checklist -- Forms for a FERS Retirement Case

This list identifies the forms and documents that must be submitted to the Office of Personnel 

Management (OPM) with a FERS retirement application package. The list is intended to help personnel 

office staffs determine the applicability of and account for the required retirement and insurance forms 

and documents. 

Basic Retirement Forms Package

FORM NUMBER and DOCUMENT TITLE REQUIREMENT

SF 3107, Application for Immediate Retirement REQUIRED in all cases.

SF 3107-1, Certified Summary of Federal Service REQUIRED in all cases.

SF 3107-2, Spouse's Consent to Survivor Election REQUIRED if applicant is married at 

retirement and does not elect a full 

survivor annuity for the current spouse.

SF 3107 Schedules A (Military Service Information), B REQUIRED if applicant served in the 

(Military Retired Pay), and C (Federal Employees military; applicant received OWCP 

Compensation Information), Addendum benefits.

SF 3107, Schedule D, Agency Checklist of Immediate REQUIRED in all cases.

Retirement Procedures

SF 3109, Election of Coverage REQUIRED as applicable (for 

example, the former employee was not 

automatically covered by FERS)--if 

election/coverage is questionable.

SF 3103, Register of Separations and Transfers REQUIRED in all cases.

SF 3102, Designation of Beneficiary REQUIRED if in OPF. Used when 

employee has designated a beneficiary 

to receive a lump-sum benefit that may 

become payable under FERS. Submit 

all SF 3102's in employee's OPF.

CSRS and FERS Handbook April, 1998 
60 Planning and Applying for Retirement FERS 

Chapter 40 

Job Aid #2 (Cont.) 

Health Insurance Forms

FORM NUMBER and DOCUMENT TITLE REQUIREMENT 

SF 2809, Health Benefits Registration Form REQUIRED whether or not employee 

appears eligible to continue enrollment 

after retirement, even if enrollment has 

been terminated. (All SF 2809's are 

required.)

SF 2810, Notice of Change in Health Benefits A transfer-out SF 2810 is NO 

Enrollment LONGER REQUIRED- When needed, 

prepare a memorandum to include with 

the FEHB documentation giving 

information formerly contained in the 

"Remarks" section of the SF 2810; 

such as eligibility to continue 

enrollment into retirement based on 

prior coverage under the spouse's 

enrollment, providing information 

about an open season change when 

retirement occurs before effective date, 

etc. (All previous SF 2810's are 

required.)

How to Process Open Season FEHB Changes When Employees Retire at the End of the Year with 

January 1st Commencing Dates: 

If the losing office knows that the employee will retire before the effective date of the open season 

change, it should not process the open season SF 2809. Instead: 

(a) If the employee is retiring, the losing office should have the employee complete the open season 

SF 2809; have the authorized agency official initial and date Part G to show that the open season 

registration was timely submitted. The name of the losing installation and the signature of its 

certifying officer should not appear on the SF 2809. Attach the SF 2809 to other health benefits 

documents and the SF 2806 when they are submitted to OPM. 

NOTE: The Retirement System will prepare a transfer-in SF 2810, transferring the old enrollment 

in effect at the time of the employee's separation.

(b) If an open season change has already been processed, but the employee unexpectedly retires before 

the effective date of the change, the losing office should void all open season forms and transmit the 

existing enrollment (if any) to the gaining office (OPM). Tell the employee that the open season 

change has been voided and, if possible, have the employee complete a new SF 2809 and handle it 

as stated in (a) above. If it is impossible to take this action quickly, notify OPM that the employee's 

open season change, which was timely filed, has been voided, and that a new open season SF 2809 

must be accepted by OPM. For further information, see The Federal Employees Health Benefits 

Handbook for Personnel and Payroll Offices. 

April, 1998 CSRS and FERS Handbook 
Planning and Applying for Retirement FERS 61 

Chapter 40 

Job Aid #2 (Cont.) 

Life Insurance Forms

FORM NUMBER and DOCUMENT TITLE REQUIREMENT 

SF 2817 Life Insurance Election REQUIRED always. Submit all OPF 

copies (original, signed versions) of 

SF 2817, SF 176, and SF 176T. (See 

The Federal Employees Group Life 

Insurance Handbook for Personnel and 

Payroll Offices.) If basic life insurance 

will continue, and elections are 

missing, submit SF 50's showing 

election and separation as evidence of 

coverage.

SF 176T, Old Life Insurance Election Form (Not used Include if available.

after April 14, 1968)

SF 176, Old Life Insurance Election Form (Used after Include if available. 

April 14, 1968, until 1981 when SF 2817 came into 

use)

SF 2818, Continuation of Life Insurance Coverage (for REQUIRED when employee is eligible 

Basic life insurance; includes election regarding to continue FEGLI enrollment after 

amount of post-retirement Basic life insurance) retirement. If employee is not eligible, 

give employee SF 2819, Notice of 

Conversion Privilege.

SF 2819, Notice of Conversion Privilege REQUIRED. Give to all retiring 

employees since an employee may elect 

to convert his or her optional coverage 

to avoid the reduction after age 65 (no 

medical examination is required). The 

employee is eligible to convert all 

insurance coverage or only optional 

coverage to a private policy. If the 

retiring employee elects to convert one 

or more of the optional coverages, the 

agency must attach the SF 2819 to the 

retirement application.

CSRS and FERS Handbook April, 1998 
62 Planning and Applying for Retirement FERS 

Chapter 40 

Job Aid #2 (Cont.) 

SF 2821, Life Insurance Certification with Personnel 

certifying signature 

REQUIRED when a retiring employee 

is eligible to continue FEGLI coverage 

after retirement and wishes to continue 

coverage after retirement. 

RI 76-10, Assignment of Federal Employees' Group 

Life Insurance 

REQUIRED if retiring employee 

elected to assign insurance. 

FE-8C, Explanation of Benefits REQUIRED if retiring employee 

elected living benefits. 

SF 2823, Life Insurance Designation of Beneficiary REQUIRED if in file and when a 

retiring employee is eligible and wishes 

to continue FEGLI coverage after 

retirement. Submit all SF 54's and 

SF 2823's in employee's OPF. 

April, 1998 CSRS and FERS Handbook 
Planning and Applying for Retirement FERS 63 

Chapter 40 

Job Aid #2 (Cont.) 

Discontinued Service Retirement Only 

FORM NUMBER and DOCUMENT TITLE REQUIREMENT 

OPM Form 1510, Certification of Agency Offer of REQUIRED when eligible employee is 

Position and required Documentation for a entitled to discontinued service 

Discontinued Service Retirement retirement because of involuntary 

separation.

Attachment to OPM Form 1510, copies of (a) the REQUIRED when eligible employee is 

written notice to the employee that he/she faces entitled to discontinued service 

involuntary separation from his/her position as of some retirement because of involuntary 

specific date and (b) any correspondence from OPM separation.

about the employee's separation.

CSRS and FERS Handbook April, 1998 
64 Planning and Applying for Retirement FERS 

Chapter 40 

Job Aid #2 (Cont.) 

Military Forms and Documents 

FORM NUMBER and DOCUMENT TITLE REQUIREMENT 

DD 214 (or equivalent), Military Discharge Attach if available and if applicant 

served in the military. 

Waiver of Military Retired Pay (Copy) REQUIRED if applicant wants to 

waive military retired pay in order to 

use military service in computing 

FERS annuity or CSRS component. 

If post-1956 military service is involved, is SF 3100 REQUIRED if retiree applied to pay (or SF 2806) showing payment of deposit included? for military service after 1/1/57 with 

employing agency.

OPM 1514, Military Deposit Worksheet REQUIRED if retiree applied to pay 

for military service after 1/1/57.

OPM Form 1515, Military Service Deposit Election REQUIRED when retiring employee 

had military service after 1956, and has 

not paid a military service deposit.

SF 3106A, Current/Former Spouse's Notification of REQUIRED if retiree applies for a 

Application for a Refund of Retirement Deductions refund (refund of post-1956 military

under FERS service deposit because he/she does not 

want to waive military retired pay) of 

retirement deductions after May 6, 

1985.

April, 1998 CSRS and FERS Handbook 
Planning and Applying for Retirement FERS 65 

Chapter 40 

Job Aid #2 (Cont.) 

Other Forms and Documents 

FORM NUMBER and DOCUMENT TITLE REQUIREMENT 

SF 3100's and SF 2806's, Individual Retirement REQUIRED. SF 2806 required if 

Record(s) person is transferee with frozen CSRS 

service.

If part-time employee, list hours worked on SF 3100 REQUIRED if employee does not have 

a normal work schedule.

SF 1199A, Direct Deposit REQUIRED unless your agency 

participates in the Automated Interim 

Pay Project or your permanent address 

is outside the United States. (Note: 

SF 1199A is available only from your 

bank.)

RI 16-26, Direct Deposit Sign-up Form (Canada) REQUIRED if your permanent address 

is in Canada.

EFT Information/Certification Letter REQUIRED unless applicant uses 

SF 1199A or certifies in writing he/she 

has no checking or savings account. 

Note: If your agency participates in the 

Automated Interim Pay Project or your 

permanent address is outside the United 

States, neither form is required.

EFT Information/Certification Letter (Canada) REQUIRED if your permanent address 

is in Canada.

Agency Estimate of annuity Attach if prepared.

OWCP Award Letter, OWCP Verification Attach if available and if employee is 

in receipt worker's compensation. (See 

section 40A2.1-3U.)

CSRS and FERS Handbook April, 1998 
66 Planning and Applying for Retirement FERS 

Chapter 40

Blank 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 67 

Chapter 40 

Job Aid #3

Guidance for Agency in preparing:

AGENCY NOTIFICATION LETTER TO SEPARATING EMPLOYEES REGARDING

SUBMISSION OF INDIVIDUAL RETIREMENT RECORDS TO OPM

Each agency is strongly encouraged to provide a formal notification to advise every former employee of 

the date his or her application for retirement, or application for refund of retirement deductions, and 

their records of individual retirement deductions were submitted to OPM by the servicing payroll office. 

The notification will keep former employees informed of the current status of their benefit applications. 

It also informs them when the point of contact for questions regarding their applications changes from 

the employing agency to OPM. 

Implementation of this notification procedure will improve the level of service provided to employees, 

and also should result in a significant reduction in the number of inquiries and complaints both agencies 

and OPM receive on the processing of benefit applications. 

OPM recommends using the specific message and data elements shown in the sample letter (letter is 

based on notices used by several agencies) in Employee Information Sheet #8 and adopting the following 

procedural guidelines to ensure the effectiveness of the notification letter. 

1. The notification letter should be provided to employees only after their applications and 

individual retirement records have been submitted to OPM. 

2. The notification letter should include the exact date the benefit application was sent to OPM 

(which may or may not correspond with the date the Register of Separations was prepared). 

3. The notification letter should indicate the appropriate OPM points of contact on benefit 

applications, that is, the phone number of the OPM Retirement Information Office for 

telephone contacts at (202) 606-0500 >(if local) or toll-free 1-888-767-6738<, TDD telephone 

number is (202) 606-0551 >(if local) or toll-free 1-800-878-5707<, (business hours are from 

7:30 a.m. to 5:30 p.m., Eastern Time) and the mailing address of the OPM Retirement 

Operations Center at Boyers, PA, for written inquiries.

4. A copy of the notification letter should be sent to the former employee's servicing personnel 

office so that personnel office staff will be advised of the date the point of contact changes from 

the agency payroll office to OPM. 

It is very important that the procedures for and the purpose of the notification letter are publicized 

adequately throughout the agency. Employees must be advised of the existence and purpose of the 

notification letter before they retire or separate. The benefit of the notification process will be lost 

unless the employees, as well as the staff of the servicing personnel offices and payroll offices, 

understand that it is not appropriate to direct inquiries concerning the status of a benefit claim to OPM 

until after they receive notification that the application and retirement records have been sent to OPM by 

the agency payroll office. 

Guidance for the employee is contained in the notification letter, Employee Information Sheet #8. 

CSRS and FERS Handbook April, 1998 
____________________ ______________________ 

____________________ ______________________ 

____________________ ______________________ 

68 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Job Aid #4

Request for Deposit and/or Redeposit Information

A. Employee Information -­

Name: _____________________________________________________________ 

Other names used: ___________________________________________________ 

Social Security Number: ______________________________________________ 

Date of Birth: ______________________________________________________ 

Prior Civilian Service Record:

Retirement Coverage: From: To: (CSRS, FERS, FICA,

CSRS Offset, Interim)

__________________ _________________ ____________________ 

__________________ _________________ ____________________ 

__________________ _________________ ____________________ 

__________________ _________________ ____________________ 

__________________ _________________ ____________________ 

__________________ _________________ ____________________ 

B. For OPM Use Only -­

_____ Individual has Not applied for a refund.

_____ Individual was authorized a full refund in the amount of $ __________ on

___________ for all service claimed.

_____ Individual was authorized a partial refund in the amount of $ ___________ on

___________ for the following periods of service:

_____ Individual ( ) has ( ) has not made a deposit/redeposit for the period(s) 

of service claimed. (Indicated in Section A, as appropriate.)

_____ Individual has contributions of $ _______________ in the Retirement Fund.

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 69 

Chapter 40 

Section 40B1.1-2 Copies of Employee Information Sheets

Employee Information Sheet #1 

Checklist for Employees Preparing to Retire

One Year or More Before Retirement

This checklist identifies important information you need in planning for retirement. Following through 

with the information gathering process and getting the answers to the questions stated will help lead to a 

successful retirement process. 

Put an X by the statements that apply to you, write in the answers to relevant questions, and check off 

pertinent items when completed. This is your personal retirement planning worksheet. 

Check (X) 

When 

Completed 

1. Determine when you will meet the age and service requirements for 

retirement. 

2. Choose a retirement date. If separating under FERS "MRA + 10" 

provisions (with age reduction), decide whether you wish to apply for 

annuity at separation or later to minimize or avoid reduction for age. 

3. Make an appointment with a retirement counselor in your personnel office 

to review your OPF. 

4. Together with your counselor, review your OPF and work with your 

counselor to complete the SF 2801-1 to assure official documentation of 

the following and to determine that the records in the OPF are sufficient 

verification of service for retirement purposes: 

a. A record of each of the periods of service you believe you had. 

b. The beginning and ending dates for each period of service. 

c. Effective dates for each promotion, for within-grade increases, or for

other pay changes during any Federal service for which retirement

deductions were not withheld from your salary or service that might

fall into your high-3 average salary period. (If all pay changes during

deposit service are not available, total earnings can be used.)

CSRS and FERS Handbook April, 1998 
70 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Employee Information Sheet #1 (Cont.) 

d. Documentation of your tour of duty (60 hours/pay period, for example

during any regular part-time appointment during (l) deposit service,

(2) service taking place on or after April 7, 1986, or (3) any other

service that might fall into your high-3 average salary period). For

cases that receive credit as FERS service only, documentation of all

tours of duty during any regular part-time appointments.

e. Record of the time you actually worked during intermittent or WAE

("when actually employed") service.

f. Copy of both sides of your military discharge paper and/or your

DD 214, Military Discharge, record of military service.

g. Record of your current Federal health benefits enrollment on SF 2809,

Health Benefits Registration Form, and SF 2810, Notice of Change in

Health Benefits Enrollment. Do records show you have been covered

long enough to allow you to continue health benefits as a retiree? If

you were covered under your spouse's enrollment, or were covered

under CHAMPUS, do the records show this?

h. Record of your current Federal life insurance coverage on SF 2817,

Life Insurance Election. Do records show you have been covered

long enough to allow you to continue basic and optional coverages as

a retiree?

i. Your Designation of Beneficiary for life insurance (SF 2823), and

Designation of Beneficiary for retirement contributions (SF 3102), if

you filed either form, showing the person(s) you currently want

designated.

NOTE 1: If you are in CSRS, your SF 2808, Designation for CSRS Retirement 

Contributions, is at OPM.

NOTE 2: If you transferred to FERS, any SF 2808 is no longer valid. You should 

complete a new SF 3102 if you have not already done so.

5. If you have a question concerning the creditability of a period of your 

service, ask for verification from the person assisting you. 

6. If any necessary documentation is missing from the OPF, bring it to the 

attention of the person assisting you and request that the personnel office 

obtain the documentation. 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 71 

Chapter 40 

Employee Information Sheet #1 (Cont.) 

7. Ask for information from Social Security Administration (SSA) about 

your future eligibility for Social Security benefits, and an estimate of the 

amount. Call 1-800-772-1213 at Social Security for form SSA-7004-PC.

• As soon as you are within 2 to 3 months of age 62 (before or after 

retiring), contact SSA right away to decide when to apply for benefits.

8. Determine if the Social Security Windfall Elimination Provision or the 

Government Pension Offset affects any Social Security benefits expected. 

9. Request estimated annuity computations at this time if decisions need to 

be made on paying deposit or waiving military retired pay. 

10. Decide whether to waive military retired pay, if applicable. 

11. Deposits/Redeposits. Apply to make deposits for:

• Post-1956 military service (to agency) 

• Redeposit (refunded) service (to OPM); find out how certain refunded 

service will be credited if you do not pay the redeposit. This may 

affect your decision whether or not to pay the redeposit. 

• Deposit service (to OPM); find out how service will be credited if you 

do not pay the deposit. This may affect your decision whether or not 

to pay the deposit. 

12. Decide when and how to receive your Thrift Savings Plan funds. Arrange 

to pay off any TSP loans before retirement to avoid delay in receipt of 

TSP distributions. 

TSP is managed by the Thrift Savings Board, not OPM. Questions about 

TSP payments should be addressed to: 

Thrift Savings Plan Service Office 

National Finance Center 

P.O. Box 61500

New Orleans, LA 70161-1500

13. Request information about any pension from non-civil service 

employment (pension) that you might be eligible. (Will it affect your 

FERS or CSRS pension in any way?) 

14. Do you receive any OWCP benefits? If you receive OWCP benefits, 

request information about their impact on your annuity. 

CSRS and FERS Handbook April, 1998 
72 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Employee Information Sheet #1 (Cont.) 

Six Months Before Retirement

15. Decide when to send waiver of military retired pay.

• Send the military finance center your waiver of military retired pay 60

to 90 days before your retirement.

16. Clear up any financial indebtedness to your agency. If you don't, your 

agency can ask OPM to withhold the debt from your annuity. 

17. Inform your supervisor of your proposed retirement date. 

18. Ask your personnel office for forms that may require additional study and 

time to complete. 

Two Months Before Retirement 

FERS Forms -- basic package of retirement forms for the employee to 

complete:

SF 3107 Application for Immediate Retirement.

SF 3107-2 Spouse's Consent to Survivor Election. (Only required if you do not elect the full 

survivor benefit for your current spouse.)

SF 2818 Continuation of Life Insurance Coverage.

SF 2817 If you do not want to continue all your optional life insurance into retirement, you should 

complete this form. The SF 2818 cannot be used to cancel life insurance.

TSP Any forms necessary for your election of Thrift Savings Plan disbursements.

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 73 

Chapter 40 

Employee Information Sheet #1 (Cont.) 

CSRS Forms -- basic package of retirement forms for the employee to 

complete: 

SF 2801 Application for Immediate Retirement.

SF 2801-2 Spouse's Consent to Survivor Election. (Only required if you do not elect the full 

survivor benefit for your current spouse.)

SF 2801-3 Election of Former Spouse Survivor Annuity or Combination Current/Former Spouse 

Survivor Annuity. (Only required if you wish to make this type of election.)

SF 2818 Continuation of Life Insurance Coverage.

TSP Any forms necessary for your election of Thrift Savings Plan disbursements.

RI 38-124 Voluntary Contributions Election. (Only required if you want a refund of your 

voluntary contributions.)

19. Complete the EFT Information/Certification Letter for Direct Deposit 

Sign-up or request from your bank or financial institution a Direct 

Deposit Sign-up Form (SF 1199A). (Either of these forms should be 

submitted with your retirement application -- see Employee Information 

Sheets #4 and #5 for complete instructions.) Note: If your agency 

participates in the Automated Interim Pay Project or your permanent 

address is outside the United States, neither form is required. Canadian 

residents use RI 16-26, Direct Deposit Sign-up Form (Canada). 

20. Complete the retirement application and all related forms. Sign your 

application. 

21. Submit all forms and required documents to your supervisor/ 

administrative officer/personnel office. (Keep a copy for personal 

reference.) 

When Your Personnel Office Notifies You 

22. Review and sign SF 3107-1 or SF 2801-1, Certified Summary of Federal 

Service, that the personnel office has prepared. 

23. Complete all customary agency exit procedures. 

After You Retire

24. Send your initial Thrift Savings Plan forms directly to the TSP office.

CSRS and FERS Handbook April, 1998 
74 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Employee Information Sheet #2

Checklist for Health and Life Insurance Coverage

1. What Federal Employees Health Benefits (FEHB) coverage do I currently hold?

Plan Name

Enrollment (Self Only/Family)

Option (High/Low)

2. Am I eligible to continue my Federal Employee Health Benefits coverage as an annuitant? If not, 

am I eligible for Temporary Continuation of Coverage (TCC)? 

3. Am I presently covered as a family member on my spouse's FEHB plan? Should I retain that 

coverage? 

4. Am I presently covered by any other health benefits plan? Should I retain that coverage? 

5. Are family members covered by my FEHB plan? Will they be adequately protected by other plans 

if I change my enrollment to Self Only coverage? 

6. What is the monthly premium for my current coverage? $ 

7. Am I familiar with the features of my current plan? Should I switch to another plan during Open 

Season? 

8. Am I eligible for Medicare at this time? What effect will Medicare have on my current coverage? 

9. If I move out of the area covered by my HMO (or other limited service area plan), what do I need to 

do to change from one HMO to another plan servicing the new area? 

April, 1998 CSRS and FERS Handbook 
 

 CSRS Planning and Applying for Retirement FERS 75 

Chapter 40 

Employee Information Sheet #2 (Cont.) 

(Checklist for Health and Life Insurance Coverage (Cont.)) 

10. What Federal Employees' Group Life Insurance (FEGLI) coverage do I currently have?

[ ] Basic -- Amount of Coverage $ 

[ ] Option A -- Standard -- Amount of Coverage $ 

[ ] Option B -- Additional

How many multiples of pay? 1 2 3 4 5

Amount of Coverage $

[ ] Option C -- Family -- $5,000 for spouse and $2,500 for each child.

11. Am I eligible to continue my Basic life insurance coverage as an annuitant? Am I eligible to 

continue my optional insurance as an annuitant? 

12. Have I decided what level of post age 65 Basic coverage I want (see SF 2818, Continuation of Life 

Insurance Coverage, for Basic life insurance; includes election regarding amount of post-retirement 

Basic life insurance)? Do I want to convert optional coverage(s) to avoid the reduction after age 65? 

Use SF 2819, Notice of Conversion Privilege, to apply for conversion (no medical examination is 

required). 

13. Do I have enough monthly annuity to pay for all my health benefits and life insurance premiums? 

14. Do I want to cancel some of my coverage at retirement? (Use SF 2817, Life Insurance Election, to 

cancel some life insurance options.) Ask your retirement counselor or agency representative to 

explain what happens and what effect it has when you carry all of your optional insurance into 

retirement. 

CSRS and FERS Handbook April, 1998 
76 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Employee Information Sheet #3 

CSRS and FERS Annuity Estimates You May Need 

CSRS Annuity Estimates You May Need -­

If You Are Considering: You May Want Estimates of: 

Waiving military retired pay. Your annuity with and without credit for the military 

service. 

Combining the service credited to another 

Federal civilian retirement system and 

service credited to the CSRS. 

Your annuity with and without credit for the service 

under the other retirement system. 

Making a deposit for post-1956 military 

service. 

The amount of the post-1956 military service deposit. 

Your annuity with and without the military service 

falling on or after 1-1-57. 

Making a deposit for civilian service. Your annuity with and without the reduction for 

unpaid deposit for civilian service performed before 

October 1, 1982. 

Your annuity with and without the credit for civilian 

service performed after October 1, 1982. 

Making a redeposit for refunded service. Your annuity with and without actuarial reduction 

for the years of service covered by the refund for 

service ending before October 2, 1990. 

Your annuity with and without credit for years of 

service covered by the refund for service ending on or 

after October 1, 1990. 

Electing no survivor benefit for your 

spouse, or electing less than all of your 

annuity as the base. 

The annuity the survivor would receive. 

Your annuity with and without the full survivor 

benefit. 

Electing a survivor benefit for a person 

having an insurable interest. 

Electing additional annuity provided for by 

your voluntary contributions. 

The annuity with and without credit for the voluntary 

contributions. 

Choosing an "alternative annuity" at 

retirement. 

The annuity with and without the "alternative 

annuity" lump sum payments of retirement 

contributions. 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 77 

Chapter 40 

Employee Information Sheet #3 (Cont.) 

FERS Annuity Estimates You May Need -­

If You Are Considering: You May Want Estimates of: 

Waiving military retired pay. Your annuity with and without credit for the military 

service. 

Combining the service credited to 

another Federal civilian retirement 

system and service credited to your 

FERS retirement. 

Your annuity with and without credit for the service 

under the other retirement system. 

Making a deposit for post-1956 military 

service. 

The amount of the post-1956 military service deposit. 

Your annuity with and without military service falling 

on or after 1-1-57. 

Making a deposit for pre-1989 civilian 

service. 

The amount of the civilian service credit deposit. 

Your annuity with and without payment of the deposit. 

Making a redeposit of any refund 

received before you became covered by 

FERS. 

The amount of the civilian service credit redeposit. 

Your annuity with and without payment of the 

redeposit. 

Electing no survivor benefit for your 

spouse, or electing a partial survivor 

benefit. 

The annuity the survivor would receive. 

Your annuity with and without the full survivor benefit. 

Electing a survivor benefit for a person 

having an insurable interest. 

The annuity the survivor would receive. 

Your annuity with and without the insurable interest 

survivor benefit. 

Choosing an "alternative annuity' at 

retirement. 

Your annuity with and without the "alternative annuity" 

lump sum payments of retirement contributions. 

Eligible to receive an annuity 

supplement payable to FERS retirees 

who retire entitled to an immediate 

annuity prior to age 62. 

Estimate the monthly amount payable to age 62. 

Postponing an "MRA + 10" retirement. Your annuity at time of separation. 

Your annuity with a lesser (or no) age reduction at a 

specified later date. 

CSRS and FERS Handbook April, 1998 
78 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Employee Information Sheet #4

EFT INFORMATION/CERTIFICATION LETTER - FEDERAL PAYMENT APPLICANTS

Office of Personnel Management

Retirement and Insurance Service

Dear Applicant:

Public Law 104-134 requires all Federal payments, for which the first date of eligibility for payment is 

on or after July 26, 1996, to be paid by Direct Deposit through Electronic Funds Transfer (EFT) into a 

saving or checking account at a financial institution. The only legal exception is if you do not have a 

savings or checking account in any financial institution and do not establish one or have one established 

for you by an authorized payment agent. If you do not already have an account, and do not establish 

one or have one established for you, you must certify to that fact in writing. Part B on the reverse of 

this letter may be used for this purpose.

This same law will require all Federal payments after January 1, 1999, to be made by Direct Deposit. 

By signing up now, you avoid having to be contacted later to arrange for Direct Deposit. More than 

two-thirds of Federal retirees have Direct Deposit. They gave it a 97% approval rating in a recent 

survey. That's because Direct Deposit is a win-win situation all around. You avoid the bother of 

traveling to a bank or other financial institution to cash or deposit your check. You save travel costs 

and time. Both you and OPM are saved the worry that the check will be lost in the mail. Finally, you 

and all your fellow taxpayers save the difference in cost between Direct Deposit and payment by check 

($.33 per payment x 2.35 million Federal annuitants equals $775,500 in savings every month). 

Please complete the EFT information/certification on the reverse of this letter, and submit it with your 

retirement application package. You can also elect Direct Deposit via Standard Form 1199A, Direct 

Deposit Sign-Up Form, which you can obtain from your financial institution. If you are applying for a 

benefit under the Federal Employees Retirement System (FERS) using the November 1995 (or later) 

edition of SF 3107, FERS Application for Immediate Retirement, or the December 1995 (or later) 

edition of SF 3104, FERS Application for Death Benefits, you can sign up for Direct Deposit by 

completing the appropriate sections on the application form itself. Failure to provide this information 

with your application may result in a delay in payment. 

Thank you.

Office of Retirement Programs

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 79 

Chapter 40 

Employee Information Sheet #4 (Cont.) 

(EFT Information/Certification Letter (Cont.) 

Applicant's Name

Social Security #

Date of Birth

EFT INFORMATION

To have your Federal payment(s) made by Direct Deposit, please complete Section A. You may also 

receive Direct Deposit by completing a Standard Form 1199A (available at most financial institutions). 

If you do not have a checking or savings account into which your payment can be deposited, please 

complete the certification in Section B. 

Section A 

Please deposit my Federal payment(s) through Electronic Funds Transfer directly into the account 

indicated below. I have checked with my financial institution and confirmed that the following 

information is correct.

Checking or Savings Account Number Account Type

G Checking G Savings

Financial Institution Routing Number

Call your financial institution for this number. 

Name, Address and Telephone Number We cannot pay by Direct Deposit without it. If 

of your financial institution. your financial institution indicates the 

information on our personal check is correct 

for Direct Deposit, you may attach a voided 

check rather than entering the information 

here.

Signature Date

Section B

I hereby certify that I do not have a savings or checking account in any financial institution and that 

none has been established for me by an authorized payment agent. Please send me my payment(s) by 

check. 

Signature Date

CSRS and FERS Handbook April, 1998 
80 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Employee Information Sheet #4 (Cont.) 

(EFT Information/Certification Letter (Cont.) 

>EFT INFORMATION/CERTIFICATION LETTER - FEDERAL PAYMENT APPLICANTS 

(CANADA)

Office of Personnel Management

Retirement and Insurance Service

Dear Applicant:

As of January 2, 1997, annuity payments can be paid by Direct Deposit at financial institutions in Canada. With 

Direct Deposit, payments are sent electronically directly into Canadian dollar checking or savings accounts at 

banks, trust companies, credit unions, and caissis poplaires. More than two-thirds of retirees have Direct Deposit. 

They gave it a 97% approval rating in a recent survey. That's because Direct Deposit is a win-win situation all 

around. You avoid the bother of traveling to a bank or other financial institution to cash or deposit your check. 

You save travel costs and time. Both you and OPM are saved the worry that the check will be lost in the mail. 

Compared with Treasury checks mailed from the United States, Direct Deposit to Canada offers greater security, 

timeliness and convenience. Gone are check cashing fees and delays to clear checks. Payments will be made to 

your account in Canadian dollars on the first business day of the month at the most favorable commercial 

exchange rate available about two days prior to that date. 

U.S. Public Law 104-134 requires that, unless the payee does not have a savings or checking account, all Federal 

payments, eligibility for which began on or after July 26, 1996, are to be paid by Direct Deposit through 

Electronic Funds Transfer (EFT) into a savings or checking account at a financial institution. With the initiation 

of Direct Deposit to Canada, these requirements now apply to residents in Canada newly eligible for U.S. Federal 

payments on or after January 2, 1997. This same law will require all U.S. Federal payments after January 1, 

1999, to be made by Direct Deposit. By signing up now, you avoid having to be contacted later to arrange for 

Direct Deposit. 

Whether you sign up for Direct Deposit or not, please complete the attached EFT Information/Certification form 

and submit it with your application package. Failure to complete it may result in a delay in payment. To sign up 

for Direct Deposit, complete the EFT Information/Certification form and the RI 16-26, Direct Deposit Sign-Up 

Form (Canada). Information about Direct Deposit and instructions for completing RI 16-26 are on the reverse of 

the form. If you do not have an account into which your annuity payment may be directly deposited, and do not 

establish one or have one established for you, you must certify to that fact in writing. Part B of the EFT 

Information/Certification form may be used for this purpose. 

If you have questions about Direct Deposit in Canada you may call (202) 606-0540. Please direct other 

questions to (888) 767-6738. Only English is spoken at these telephone numbers. 

Thank you.

Office of Retirement Programs< 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 81 

Chapter 40

Employee Information Sheet #4 (Cont.)

>(EFT Information/Certification Letter (Canada) (Cont.)

Applicant's Name

Social Security #

Date of Birth

EFT INFORMATION

To have your annuity payment(s) made by Direct Deposit, complete the Direct Deposit Sign-Up Form 

(Canada) (RI 16-26) and Section A (Below). Indicate whether you are enclosing RI 16-26, or your 

financial institution will send it. If you do not have a checking or savings account into which your 

payment could be deposited (OPM can only make electronic deposits in Canadian banks into Canadian 

dollar accounts), please complete the certification in Section B. In either case, please complete this form 

and include it with your application. 

NOTE: None of the Direct Deposit sign-up forms used by U.S. residents; i.e., SF 1199A, Section I of 

SF3107 (November 1995), Section H of SF 3104 (December 1995), etc, can be used to establish Direct 

Deposit in Canadian banks. RI 16-26 is specifically designed for this function. 

Section A 

I hereby certify the information I entered on the RI 16-26, Direct Deposit Sign-Up Form is correct. 

G I am enclosing the completed RI 16-26.

G My financial institution will send the completed RI 16-26. (Enter identifying information.)

Name, Address and Telephone Number Account Type of your financial institution. G Checking G Savings

Checking or Savings Account Number 

Signature Date 

Section B 

I hereby certify that I do not have a savings or checking account in any financial institution into which 

my annuity payment could be directly deposited, and that none has been established for me by an 

authorized payment agent. Please send me my payment(s) by check. 

Signature Date

< 

CSRS and FERS Handbook April, 1998 
 

 

82 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Employee Information Sheet #4 (Cont.) 

>EFT Direct Deposit Sign-up Form RI16-26, (Canada)

Direct Deposit Sign-up Form (Canada)

Application For Payment of United States Civil Service Retirement Monthly Benefits

By Direct Deposit To A Financial Institution In Canada

Instructions: For Direct Deposit, please complete sections 1 and 2. Your financial institution must complete 

section 3. Your payments will be made in Canadian dollars to your account. 

Mail completed form to: U.S. Office of Personnel Management

 IDD Enrollment

 P.O. Box 7815

 Washington, DC 20044 USA

Section 1 (Please print your responses) 

Name (Last, First, middle initial) Claim number

Address (City, and Postal Code) Daytime telephone

Person entitled to payment

Section 2 (This Must Be A Canadian Dollar Account.)

Account ownership

G My Own Account G Joint Account

Payee Certification I certify that I have read and understand the instructions provided with this form. My signature authorizes 

the U.S. Office of Personnel Management to send my monthly civil service payment to the account at the 

financial instutution designated below.

Signature Date

Joint Account Holder's Certification

I certify that I have read and understand the instructions provided with this form, including the "Special 

Notice To Joint Account Holders"

Signature Date

Section 3 (To Be Completed By Your Financial Institution.)

Name/address of financial institution Type of Account

G Checking/Current

G Savings/Deposit

Please Insert Your MICR Encoded Direct Payment Routing Number

Branch/Transit number Institution number Account number (Must Be Canadian Dollar Account)

GGGGG GGGG GGGGGGGGGGGG

Verified by Telephone number Date< 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 83 

Chapter 40 

Employee Information Sheet #4 (Cont.)

>(EFT Direct Deposit Sign-up Form Information (Canada)) 

Important Information - Please Read Carefully 

The information you give on this form is confidential. We need this information to send your U.S. Civil Service 

Retirement payment directly to a Canadian dollar account at your financial institution in Canada. The information 

also helps us process your request as quickly as possible. 

If your address changes you must inform the U.S. Office of Personnel Management because important notices about 

your benefits will still be mailed to your home address. 

Information About Currency Conversion 

Your U.S. Civil Serive Retirement payment is automatically converted to Canadian dollars a few days before it is 

deposited into your account. The exchange rate used may be different from the rate in effect on the day you receive 

your payment. 

Special Notice to Joint Account Holders 

If a person who receives Civil Service Retirement payments dies, you must contact the U.S. Office of Personnel 

Management and your financial institution right away. Any payments that you receive after that person dies must be 

returned to the U.S. Office of Personnel Management. We can then work quickly to determine whether any other 

benefits are due. 

Changing Financial Institutions or Accounts 

If you change your financial institution or your account, you should notify the U.S. Office of Personnel Management. 

You will need to fill out a new sign-up form. Do not close your old account until your payments have started coming 

to your new account. 

Cancellation 

To cancel direct deposit, write to the U.S. Office of Personnel Management and contact your financial institution. 

Do not close your bank account until your payments have started coming to your home address. 

Completing the Direct Deposit Sign-Up Form 

! In Section 1, fill in your name, address, Civil Service Retirement Claim Number, daytime telephone 

number, and name of the person who is entitled to the payment. 

! The claim number is very important. "CSA" or "CSF" is followed by 7 numerical digits. At the end of the 

claim number there is an additional 1 digit number or letter (Examaples: CSA 1 111 111 0, CSF 1 111 111 

W). Note: Annuity applicants who have not yet been assigned a retirement (CSA) or survivor (CSF) 

number should leave the space blank. 

! In Section 2, sign the certification. If there is a joint account holder, that person should read the Special 

Notice to Joint Account Holders, above, and sign the Joint Account Holder's Certification on the RI 16-26. 

! Take or send this form to your financial institution. An official there will fill in Section 3 and then you or 

your financial institution should send the completed form to the U.S. Office of Personnel Management at the 

address shown at the front of the form. If you have not already submitted your application for retirement 

or survivor annuity, and you have an RI 16-26 fully completed by you and your financial institution, 

please attach the completed RI 16-26 to the signed EFT Information/Certification form and include 

both with your application package, instead of mailing the RI 16-26. If your financial institution is

submitting the RI 16-26 for you, they should mail it to the address indicated.

If you have any questions about direct deposit, you may call (202) 606-0540. If you have other questions, please call 

(888) 767-6738. Only English is spoken at these telephone numbers. 

CSRS and FERS Handbook April, 1998 
84 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Employee Information Sheet #4 (Cont.) 

(EFT Direct Deposit Sign-up Form Information (Canada) French) 

Renseignements Importants - Lire Soigneusement SVP 

Les renseignemets que vous nous donnez dans ce formulaire sont confidentials. Nous avons besoin de ces reseignements 

pour que les payments de retraite du U.S. Civil Service puuissent etre envoyes directement, en dollars canadiens, a votre 

compte dans une institution financiere de votre choix au Canada. Ces renseignements aident egalement a traiter vos 

requetes aussi rapidement que possible. 

Si vous changer d'adresse vous deves informer immediatement le U.S. Office of Personnel Management parce que des 

communications imporantes concernant vos benefices continueront a etre envoyees a votre ancienne adresse. 

Renseignements Concernant Le Conurs Du Change

Vos payments de retriate du Civil Service des Etats-Unis sont convertis automatiquement au cours du dollar canadien 

effectif quelques jours avanat d'etre deposes dans votre compte. Le taux du change peut etre different de celui ou vous 

recevez votre payment. 

Detenteurs De Comptes Joints

Si une personne recevant une retraite du Civil Service des Etats-Unis meurt, vous devez immediatement entrer en rapport 

avec le U.S. Office of Personnel Management et votre institution financiere. Tout payment recu apres la mort de cette 

personne doit entre immediatement renvoye au U.S. Office of Personnel Management. Nous pourrons alors determiner 

rapidement si d'autres benefices sont dus. 

Changement D'institution Financiere Ou De Compte

Si vous changez d'institution financiere ou de numero de compte, vous deves immediatement informer le U.S. Office of 

Personnel Management. Vous devrez remplir un nouveau formulaire "sign up". Ne fermez pas votre ancien compte jusqu'a 

ce que les payments arrivent a votre nouveau compte. 

Annulement

Pour annuler votre depot direct vous devez ecrire au U.S. Office of Personnel Management et entrer en rappport avec votre 

institution financiere. Ne fermez pas votre compte jusqu'a ce que les cheques arrivent a votre adresse. 

Comment Remplir Le Formulaire Direct Depot Sign-Up

! Dans la section 1, ecrivez votre nom, adresse, votre numero de pension du Civil Service, votre numero de telephone 

pendant la journee et le nom de la personne qui a droit au payment.

! Le numero de la pension est extrement important - "CSA" ou "CSF" suivi de sept chiffres. A la fin du numero de 

pension, il y a un chiffre supplementaire ou une lettre. Par exemple: CSA 1 111 111 ) ou CSF 1 111 111 W. Note: 

Annuity Applicants who have not yet been assigned a CSA or CSF number should leave the space blank. 

! Dans la section 2, signez la certification. S'il y a un detenteur de compte joint, la personne qui a le compte avec vous 

doit lire la note ci-dessus "Detenteur De Comptes Joints" et signer la certification de Dententuer de Compte Joint.

! Portez ou envoyez ce formulaire a votre institution financiere. Un officiel de votre institution financiere replira la 

section 3 du formulaire et vous, ou l'institution, enverrez le formulaire dument rempli au U.S. Office of Personnel 

Management a l'adresse indiquee sur la premiere page. If you have not already submitted your application for 

retirement or survivor annuity, and you have an RI 16-26 fully completed by you and your financial institution, 

please attach the completed RI 16-26 to the signed EFT Information/Certification form and include both with 

your application package instead of mailing the RI 16-26. If your financial institution is submitting the RI 16-26 

for you, they should mail it to the address indicated.

Si vous avez de questions concernant le depot direct au Canada, vous pouvez appeler le numero suivant: (202) 606-0540. 

Pour toute autre question, appelez le numero (888) 767-6738. On parle seulement anglais a cez deux numeros.< 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 85 

Chapter 40 

Employee Information Sheet #5 

Notice to Financial Institution Regarding Filing of SF 1199A 

ATTENTION FINANCIAL INSTITUTION -­

Federal Employee Applying for Retirement:

Your customer is a retiring Federal Civil Service employee who wants to have Civil Service annuity payments made 

by direct deposit to an existing bank account at your institution. Please provide your customer with an SF 1199A, 

Direct Deposit Sign-Up Form, and complete your portion. 

Give the SF 1199A form to your customer so that he or she may submit the direct deposit form with the application 

for retirement and other documents to his or her agency so that the agency may include the SF 1199A with the 

retiree's retirement package to the Office of Personnel Management. 

Note that your customer has not yet retired and, therefore, has not been assigned a Civil Service Retirement System 

claim number (CSA number). This retirement claim number will be inserted in the appropriate space on the 

SF 1199A when the application for retirement is processed by the Office of Personnel Management, Retirement 

Operations Center, Boyers, PA 16017. This Is the Only Information That Should Be Omitted From This Form. 

(A social security number is not acceptable for this purpose.) 

Retired Federal Employee:

Your customer has retired from the Federal Civil Service. Normally, when processing an SF 1199A, it is necessary 

that a CSA claim number be shown on the form for already retired Civil Service employees. Please assist retired 

employees by pointing out that the claim number should be included. For an employee who has already retired, 

handle the SF 1199A under your usual procedures. All Direct Deposit Sign-Up Forms, SF 1199A, should be sent to: 

Office of Personnel Management

Retirement Operations Center

P.O. Box 440

Boyers, PA 16017-0440

For more information about completing the SF 1199A, as well as any other questions about Direct Deposit, please see 

the Green Book. The Green Book is furnished to financial institutions (that is, to the Direct Deposit Coordinator) by 

the U.S. Department of the Treasury. 

CSRS and FERS Handbook April, 1998 
86 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Employee Information Sheet #6

Where and How to Direct Questions to OPM During Retirement Process and After Retirement (Including Types 

of Requests OPM Can Handle Over the Telephone).

Retirees and survivors should direct their questions about Federal retirement, life insurance, and health benefits to 

OPM's Office of Retirement Programs. Employees who have not retired should direct retirement-related inquiries to 

their agency personnel offices or retirement counselors. 

When calling OPM's Retirement Information Office you will be greeted by a caller assistance telephone system. 

During regular business hours you are able to speak to a Customer Service Representative; however, due to the high 

volume of calls that OPM receives, you may experience delays in speaking to a Representative. To help alleviate this 

situation, the caller assistance system provides 24 hours a day user-friendly, and interactive voice mail options. 

These voice mail options allow customers to request certain documents and services from OPM without the need to 

wait for a live operator. 

In the Following Situations:

Contact: 

Written Inquiries, General 

Anytime you write to OPM about retirement or survivor benefits, be Office of Personnel Management 

sure to include your claim number ("CSA" or "CSF" followed by 7 Retirement Operations Center

digits), date of birth, and social security number, and current mailing Boyers, PA 16017 

address in your letter. You must sign any correspondence that you send 

to OPM.

Telephone Inquiries, General

To speak to an OPM Retirement Information Specialist about specific Retirement Information Office:

retirement related questions, call the Retirement Information Office >1-888-767-6738< 

during regular business hours, 7:30 AM through 5:30 PM, Eastern Time 

Zone. OPM is able to communicate with annuitants with hearing Retirement Information Office

impairments via TDD telephone equipment. Callers should have their TDD: >1-800-878-5707< 

claim number ready, date of birth, social security number and a pen and 

paper to take notes. 

Application Status Inquiries (No Claim Number Available)

OPM maintains its records according to claim number. If you have Contact former personnel

recently retired, want to know about your refund of retirement or payroll office 

deductions, or are asking about the recent death of an employee, OPM 

will need to know the "payroll office number," "register number," and 

the date that the register was sent to OPM by the person's former 

agency. These registers are used to send applications for benefits and 

individual retirement records to OPM. You will need to contact the 

former personnel office or payroll office to get this information before 

calling OPM. (See Employee Information Sheet #8, Notification 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 87 

Chapter 40 

Letter.) 

Report of Deaths 

A family member or other person may write or call OPM to report the 

death of a retiree or survivor. Please be prepared to provide the 

deceased's full name, claim number, date of death, date of birth, and 

social security number, if known. Please note that any annuity checks 

received after the annuitant or survivor died should be returned to the 

Department of the Treasury. If annuity payments were sent directly to a 

bank, notify the financial institution so that it can return them to the 

Department of the Treasury. To apply for death benefits, survivors 

should request an Application for Death Benefits; the survivor will be 

advised regarding health insurance. If the deceased had FEGLI 

coverage, a Life Insurance Claim for Death Benefit form will be 

enclosed with the Application for Death Benefits. In the event of a 

spouse's death, the retiree will be advised regarding changing the 

annuity to single rate, health insurance to self only (unless there is a 

dependent child), and changing the life insurance beneficiary form.

Address Change: Payment

You may change your address in writing or by telephone. The retiree 

must provide his/her name, claim number, date of birth and social 

security number. Callers may be asked other identifying information to 

ensure account privacy. If you request Direct Deposit (EFT) by 

telephone, you must provide your bank account number, the type of 

account, and the correct routing number and telephone number of the 

financial institution where the payment is to go. It is your responsibility 

to assure the accuracy of the information given. If you request Direct 

Deposit (EFT) in writing, have your financial institution complete a 

Direct Deposit Sign-Up Form, SF 1199A, >or RI 16-26 (Canada)< 

and send it to OPM.

Address Change: Correspondence

You may change your address in writing or by telephone. When calling 

OPM the retiree must provide his/her name, claim number, date of 

birth, social security number and any other identifying information that 

may be required to ensure account privacy. The annuitant must sign 

written notifications.

Important Note: You must notify OPM about any change of address, 

even if you have your annuity payments sent directly to a bank. We 

need your mailing address to send important information (such as 

FEHBP "Open Season" packages) directly to you. If you do not keep us 

informed of changes in your mailing address, you risk not receiving 

important information. 

Office of Personnel Management 

Retirement Operations Center 

Boyers, PA 16017 

or call: >1-888-767-6738< 

Office of Personnel Management 

Retirement Operations Center 

Change of Address - Retirement 

PO BOX 440 

Boyers, PA 16017-0440

or call: >1-888-767-6738< 

Office of Personnel Management 

Retirement Operations Center 

Change of Address - Retirement 

PO BOX 440 

Boyers, PA 16017-0440

or call: >1-888-767-6738< 

CSRS and FERS Handbook April, 1998 
88 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Lost or Missing Payment(s)

Before contacting OPM, you should contact your Post Office (or bank if 

Direct Deposit) to see if the delivery might have been delayed. If you 

have not received your payment by the fifth business day after the 

expected payment date, or if your payment is lost or destroyed after it is 

received, you should contact OPM. Be prepared to give your name, 

claim number, date of birth, social security number, the date and 

amount of the lost or missing payment(s) and any other identifying 

information that may be required. We can only accept a telephone 

report of lost or missing payment(s) for recurring monthly payments. 

You must make all other notifications of lost or missing payments in 

writing. 

Important Note: Write "NON-RECEIPT OF CHECK" on the outside of 

the envelope.

Federal Tax Withholding Amount Changes

By using a touch-tone phone, you can call OPM to change your Federal 

income tax withholdings. >Annuitant Express' Toll-Free Number, 1­

800-409-6528< can be used to make this change. You can also write 

OPM to make this change.

Federal or State Tax Inquiries

You can write or call OPM about general Federal tax inquiries; 

however, we cannot provide tax advice. Only the IRS can provide that 

service. In addition, OPM participates with a number of States to 

withhold State income tax from annuity payments. For specific 

information about State tax withholding, contact your respective State 

revenue service. (See Employee Information Sheet #7 for list of 

participating States.) 

Health Benefits: General Inquiries

OPM will accept telephone changes in health benefit coverage when you 

wish to change coverage from Family to Self Only; High to Low 

Option; and When Leaving the Service Area. Be ready to give OPM 

your name, claim number, date of birth, social security number and any 

other identifying information that may be required. You must make all 

other eligible health benefit changes or inquiries in writing.

Health Benefits: Disputed Claims

If you want OPM to review a dispute with your health benefit carrier, 

you must make your request in writing. Your request must be in writing 

OPM, include your name, claim number, date of birth, and social 

security number, as well as the specific health carrier and disputed claim

Office of Personnel Management 

Recertification: NON-RECEIPT OF 

CHECK 

PO BOX 7815 

Washington, DC 20044

or call: >1-888-767-6738< 

Office of Personnel Management 

Tax - Retirement 

PO BOX 961 

Washington, DC 20044

or call: >1-888-767-6738< 

Office of Personnel Management 

Tax - Retirement 

PO BOX 989 

Washington, DC 20044

or call: >1-888-767-6738< 

Office of Personnel Management 

Health Insurance - Retirement 

PO BOX 14172 

Washington, DC 20044

or call: >1-888-767-6738< 

Office of Personnel Management 

Health Insurance - Disputed Claim 

PO BOX 436 

Washington, DC 20044

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 89 

Chapter 40 

reference.

Court Order/Garnishment of Annuity

Inquiries about court order/garnishment of annuity for alimony or 

child support, apportionment of annuity awarded by a court, and 

court ordered survivor benefits should be made to OPM in 

writing. The letter should include a court-certified copy of the 

entire court order/garnishment document in reference. Include 

your claim number, date of birth and social security number when 

writing. OPM cannot respond to telephone inquiries regarding 

court order/garnishment until we have received the records in 

question.

Survey Responses: Disability Earnings or Marital Status

You can call OPM about a specific survey that you have received; 

however, your responses to the Disability Earnings or Marital 

Status surveys must be in writing. Make sure you have your 

name, claim number, date of birth, social security number and 

any other identifying information that may be required when you 

call OPM.

Adult Student Certification

Send certification of continued entitlement to adult student 

benefits to OPM. You can obtain the status of a certification by 

writing or calling OPM. Include the deceased annuitant's name, 

the survivor annuitant's name, claim number, date of death, social 

security number and any other identifying information that may be 

required.

Payments and Overpayments (debts)

You must mail all account payments to OPM. Include your claim 

number on the check and enclose the OPM statement to identify 

the payment being made. You may call OPM to inquire about 

payments. You should provide your name, claim or account 

number, date of birth, social security number and any other 

identifying information that may be required.

Reports of Waste, Fraud, or Abuse

You may write or call OPM to report suspected waste, fraud, or 

abuse of the Retirement Program. You need not provide your 

name to make a report.

Office of Personnel Management 

Court Order/Garnishment ­

Retirement 

PO BOX 17 

Washington, DC 20044

or call: >1-888-767-6738< 

Office of Personnel Management 

Inspections - Retirement 

PO BOX 579 

Washington, DC 20044

or call: >1-888-767-6738< 

Office of Personnel Management 

Inspections - Adult Student 

PO BOX 956 

Washington, DC 20044

or call: >1-888-767-6738< 

Office of Personnel Management 

Funds Control - Retirement 

PO BOX 7125 

Washington, DC 20044

or call: >1-888-767-6738< 

Office of Personnel Management 

Inspections - Retirement 

PO BOX 7174 

Washington, DC 20044

or call: (202) 606-0232

CSRS and FERS Handbook April, 1998 
90 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Topics Not Listed Above

You can write or telephone OPM:

* To ask any question about your annuity statement.

* To change or request information about retirement 

contributions or life insurance designations of 

beneficiary.

* To report a change in marital status and change of 

survivor election.

* To obtain verification of annuity income.

* To inquire about any matter not listed above.

Office of Personnel Management 

Retirement Operations Center 

Boyers, PA 16017

or call: >1-888-767-6738< 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 91 

Chapter 40 

Employee Information Sheet #7 

>Information About Federal and State Income Tax Withholdings, 

Savings Bond Purchases and Deductions

This sheet provides you with information on how to change the withholding rate for Federal income taxes 

from your annuity. It also tells you how to elect to have State income taxes withheld and/or start an 

allotment for Series EE U.S. Savings Bonds from your annuity. Because of technological limitations and 

the fact that your income is probably substantially changed in retirement, it is neither feasible nor desirable 

that your tax withholdings remain the same as when you were employed. 

Federal Income Tax Withholdings:

Your annuity payments are subject to Federal income tax withholding. Federal income tax is withheld from 

your initial payment and will continue to be withheld as though you were a married individual claiming 

three withholding allowances -- the rate required by law if you do not file an election to change the 

deduction. You may submit a W-4 Federal Tax Withholding form to OPM along with your retirement 

application, or when OPM receives your application, they will send you a notice with the election form you 

need, election form W-4P-A, to make any changes you need, along with instructions and a return envelope. 

Complete the W-4P-A election form, indicating on it your decision to increase or decrease the amount of 

monthly tax withholding, or to cancel tax withholding completely. Return the form to OPM. 

State Income Tax Withholdings:

If you wish to have State tax withholdings from your annuity, you may contact OPM directly if your State 

participates in the withholding program administered by OPM. OPM is unable to make State tax 

withholdings for non-participating states. 

Participating jurisdictions are: Arkansas, Arizona, California, Colorado, Connecticut, Delaware, District 

of Columbia, Georgia, Idaho, Indiana, Iowa, Louisiana, Maine, Maryland, Michigan, Minnesota, 

Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, North Carolina, North Dakota, 

Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, Utah, Vermont, Virginia, West Virginia, and 

Wisconsin. 

You must specify the monthly amount of State tax you want withheld. Deduction amounts must be in 

whole dollars. The minimum monthly amount OPM is able to withhold is $5. Your State tax deductions 

will be reflected on notices of annuity adjustment mailed when payments change and will be included in 

your yearly statement (Form 1099R) used for income tax filing purposes. 

Savings Bond Purchases and Deductions: 

The savings Bond allotment program offers you the opportunity to purchase Series EE U.S. Savings Bonds 

in a manner similar to the payroll savings plan available to employees. 

CSRS and FERS Handbook April, 1998 
92 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Employee Information Sheet #7 (Con't) 

Savings bonds, in the amounts of $100, $200, and $500, can be purchased through monthly annuity 

deductions. The purchase price is one-half of the face value of the bond, in full, each month. For 

example, the cost of a $100 bond is $50. No partial or installment payments will be accepted for bond 

purchases. Bonds may be purchased in the anme of a single owner, with a co-owner, or to become payable 

to a beneficiary in the event of death. No more than two names may appear on a bond. You can name 

someone else as bond owner. Only one co-owner or one beneficiary may be names in addition to the bond 

owner. 

For information about savings bond interest rates and redemption, you may contact the U.S. Department of 

the Treasury at the following address: 

U.S. Savings Bonds

Bureau of Public Debt

Parkersburg, West Virginia 26106-1328

You can obtain information about savings bond interest rates by calling the Department of the Treasury at 

(800) 4US-BOND. 

Requests for Savings Bond and State Tax Deductions 

You will be notified when your payments are authorized about how you may begin to have these deductions 

taken from your regular annuity payments. State tax and savings bond deductions cannot be taken from 

interim payments. When you start to receive regular annuity payments, you may call (800 409-6528 to 

start, change, or stop savings bond and State tax deductions. A touchtone telephone is needed to access this 

system. If you do not have a touchtone telephone, you may contact an OPM Customer Service Specialist 

by dialing toll-free 1-888-767-6738. When calling, you will need your "CSA" or "CSF" claim 

identification number and Social Security number.< 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 93 

Chapter 40 

Employee Information Sheet #8

SAMPLE NOTIFICATION LETTER

(Prepared by agency payroll office; send to employee.) 

Date: ________________ 

Employee's Name:

Employee's Address:

The official records of your retirement deductions withheld by this agency have been certified correct and 

forwarded to the United States Office of Personnel Management (OPM) via a Register of Separations, along 

with any application you are making for benefits (retirement annuity or refund of retirement deductions). 

Identifying data from that Register is provided below for your information. You should refer to this data if 

you need to contact OPM. 

NAME: DATE OF BIRTH:

SEPARATION DATE: SOCIAL SECURITY NUMBER:

RETIREMENT SYSTEM (CSRS or FERS):

REGISTER NUMBER: REGISTER DATE:

PAYROLL OFFICE NUMBER: DATE REGISTER MAILED TO OPM:

If you have filed a nondisability application for retirement or a refund of your retirement deductions, allow 

5 to 6 weeks from the date of this letter for the processing of your claim. (Normally, you will receive 

correspondence from OPM well within this time frame.) After 6 weeks, if you haven't received 

notification or an interim payment from OPM, or you have any questions concerning your application for 

benefits, please contact OPM. You can call OPM's Retirement Information Office from 7:30 a.m. to 5:30 

p.m. (Eastern Time) at (202) 606-0500 >(if local) or toll-free 1-888-767-6738.< OPM's TDD telephone 

number for the hearing impaired is (202) 606-0551 >(if local) or toll-free 1-800-878-5707.< Address 

written inquiries to: 

U.S. Office of Personnel Management

Retirement Operations Center

Boyers, PA 16017

Your agency payroll office has submitted information (including what is called a "quit code") regarding 

your separation to the Thrift Savings Plan (TSP) Service Office. This letter verifies that your agency has 

made the submission. Please send your TSP-7 (Election of Benefits), TSP-3 (Designation of Beneficiary), 

and any other forms regarding the withdrawal of your TSP account to the TSP Service Office no later than 

90 days after the date of separation. Send form(s) to TSP, National Finance Center, P.O. Box 61500, New 

Orleans, LA 70161-1500. 

A copy of this letter has been provided to the Personnel Office shown below. 

cc: Servicing Personnel Office Address 

CSRS and FERS Handbook April, 1998 
94 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Employee Information Sheet #9 

Agency Retirement Coverage Letter to Employee 

(Use Letterhead Stationery) 

(Employee's Name

 and Address) 

Dear 

Your retirement was effective. I hope the following information will help answer questions about your 

coverages and guide you in matters concerning your retirement. 

Your retirement papers have been sent to the (agency personnel office) for review and will be forwarded on 

to Payroll. The Payroll Office will close your payroll records and forward them with your application and 

associated documents to the Office of Personnel Management (OPM) for processing your retirement in 

approximately 2 weeks. You agency Payroll Office will, at that time, send you a Notification letter 

containing all the information you will need to track the progress of your retirement. All salary you are 

due must have been paid before the payroll records can be closed from the system. 

If you are due a lump-sum payment for annual leave, you should receive it about 2 weeks after your 

retirement. Please notify me if you do not receive the lump-sum payment for leave within that timeframe. 

You will be assigned a Civil Service Annuity (CSA) number by OPM. When corresponding with OPM 

(such as for change of check mailing address), you must use this number to identify yourself to OPM. 

OPM normally issues monthly interim payments of approximately 80 percent to 90 percent of the annuity 

computation within 5 to 6 weeks of separation. These payments continue until final adjudication is 

complete. The checks are sent to the address shown on your Application for Retirement. If you do not 

receive a check within 90 days, with your CSA number in hand, call OPM at (202) 606-0500 >(if local) or 

toll-free 1-888-767-6738.< 

If you did not submit an SF-1199A, Direct Deposit Sign-Up Form, with your retirement application and 

you want your checks to go to your bank, you should wait until you receive your CSA number, and then 

contact your bank or financial institution. The bank should send the SF-1199A to: Office of Personnel 

Management, Retirement Operations Center, Boyers, PA 16017. OPM also accepts information to 

establish and/or change Direct Deposit (EFT) accounts over the telephone from annuitants. When you 

receive your CSA number, you may simply call OPM at >the number above<, 7:30 a.m. to 5:30 p.m. 

(Eastern Time) or TDD at (202) 606-0551 >(if local) or toll-free 1-800-878-5707<. Have ready your 

CSA number, social security number, date of birth, Direct Deposit (EFT) bank account number, the type of 

account, and the routing number and telephone number of the financial institution where the payment is to 

go. 

April, 1998 CSRS and FERS Handbook 
 

 CSRS Planning and Applying for Retirement FERS 95 

Chapter 40 

Employee Information Sheet #9 (Cont.) 

(Agency Retirement Coverage Letter to Employee) 

You appear to be eligible to continue health benefits into retirement. Deductions for your health insurance 

will be made from your annuity checks. The Government continues to pay a portion of the total cost of the 

insurance, and you have the same coverage you now have. Also, you will be eligible to make changes 

during the health benefits open season. OPM will provide you with information about open season that 

usually occurs in November/December of each year. 

Your life insurance has been transferred to OPM. You appear to have met the requirements for continuing 

the life insurance coverage shown below and have made elections to continue the following coverages: 

*Agency, see box at end of letter for options to be listed here. 

If you had a designation of beneficiary form for retirement and/or life insurance on file, it was transferred 

to OPM, and remains in effect. 

If you transferred to FERS and earlier filed an SF 2808, CSRS Designation of Beneficiary, you need to 

submit a new designation, SF 3102, for your designation of FERS benefits distribution. If you were 

automatically covered by FERS, the SF 2808 was not canceled and remains on file with OPM. 

If you want to designate beneficiaries for both retirement and life insurance, you must file two separate 

designations. 

If you have any questions or problems, call or write me at the following: 

(Name)

(Title)

(Agency name)

Personnel Office

(Address)

Phone: ( ) 

Page 2

CSRS and FERS Handbook April, 1998 
 

96 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Employee Information Sheet #9 (Cont.) 

(Agency Retirement Coverage Letter to Employee) 

If I am not available, you may contact (give name of alternate contact in your agency) on ( ) . Please 

accept my best wishes for a long and happy retirement. 

Sincerely, 

Personnel Office

Enclosure(s)

*Instructions for Agency 

Show level of protection chosen in continuing the Basic coverage, including the 

amount of that coverage at retirement and the reductions that begin at age 65 if the 

75 percent reduction or the 50 percent reduction is chosen; and the cost for No 

Reduction. 

Show the amount of Option A (normally $10,000, but for some this could be a larger 

amount), the requirements for continuing the coverage, and the reduction in coverage 

when the retiree reaches 65 and the withholdings cease (if the employee is 65 at 

retirement, the reduction begins at retirement). 

Show the amount of insurance under Option B -- Additional, the cost in retirement, 

and when and how it reduces. 

Show the amount of insurance under Option C -- Family, the cost in retirement, and 

when and how it reduces. 

See pages 6 and 7 of RI 76-21, FEGLI, Federal Employees' Group Life Insurance; 

Basic Life Plus Optional A Standard, Option B Additional, and Option C Family, 

Description and Certification of Enrollment in the FEGLI Program, for requirements 

for continuing these coverages into retirement. 

NOTE: Accidental Death and Dismemberment coverage does not continue after 

retirement.

Page 3 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 97 

Chapter 40 

Employee Information Sheet #10 

ROLLOVER OF PAYMENTS UNDER CSRS AND FERS AS AN ALTERNATIVE

TO 20 PERCENT TAX WITHHOLDING

Public Law 102-318, enacted July 3, 1992, amended the Internal Revenue Code regarding the payment 

of funds from qualified retirement plans. To be of service to our customers, the Office of Personnel 

Management has worked with the Internal Revenue Service to present a general explanation of how this 

legislation affects those who receive our benefits. However, the IRS remains the authority on tax 

matters, and questions and requests for additional or clarifying information should be directed to them. 

The official tax publications that will govern how benefits are taxed are referenced at the end of the 

enclosed notice. OPM does not stock IRS publications. We cannot provide official tax information nor 

can we advise individuals on tax matters. 

Basically, the law allows certain kinds of payments to be "rolled over" to another eligible retirement 

plan, including an Individual Retirement Arrangement (IRA). If not "rolled over," payments are 

subject to mandatory tax withholding. The law affects payments received after December 31, 1992. 

The kinds of CSRS and FERS payments that can be rolled over include: 

• The taxable portion (85 to 90 percent, generally) of lump sums paid as a result of an 

election of an alternative form of annuity (whether paid in one installment or two); 

• The taxable portion of the Basic Employee Death Benefit (BEDB), whether paid in a 

lump sum or in 36 installments. (All of the BEDB is taxable except the one-time $5,000 

death benefit exclusion applied to the BEDB when elected to be paid in one lump sum.); 

and 

• Interest included in payments of employee contributions, including refunds paid to a 

former employee or survivor of retirement deductions, and/or voluntary contributions. 

Additionally, to qualify for rollover treatment, the lump sum must be paid to a qualifying payee, which 

includes the employee or former employee, his or her surviving spouse, or a former spouse under a 

court order that properly apportions benefits under CSRS or FERS law. 

Under this law, if any portion of a rollover eligible payment is paid to a former employee, surviving 

spouse, or former spouse, after December 31, 1992, it will be subject to 20 percent tax withholding. 

However, before payment is authorized, OPM will give the payee an opportunity to direct the payment, 

or a portion of the payment, to the trustee of an IRA or other qualified retirement plan, as a "rollover" 

under the tax law. These "direct rollovers" must be at least $500, or all of the taxable portion of the 

payment, if less than $500. Direct rollovers are not subject to the 20 percent 

CSRS and FERS Handbook April, 1998 
98 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Employee Information Sheet #10 (Cont.) 

withholding. When the taxable portion of a payment that would otherwise qualify for rollover 

treatment is less than $200, it is excluded from both the 20 percent withholding and the direct rollover 

option. OPM cannot refund the 20 percent withholding, once it has been withheld. 

Additional Information for Recipients of the Basic Employee Death Benefit Who Elect Payment in 

Monthly Installments 

All the of Basic Employee Death Benefit (BEDB), when paid in installments, is taxable. If a surviving 

spouse elects to roll over part of each monthly installment into an IRA, the monthly amount rolled over 

must be equal to at least $500. The spouse may change the election regarding this rollover at any time 

in the future while still receiving BEDB installments by writing to OPM at the time he/she wants to 

change their election. The election will take effect with the monthly benefit payable at the time the 

request is received. The spouse cannot receive a partial payment of the lump sum now and receive the 

remainder in installments. While receiving BEDB monthly installments, the spouse can elect to: 

! stop payments to an IRA,

! begin payments to an IRA,

! change the amount rolled over to the IRA,

! change the financial institution that will administer direct rollover payments, and

! stop installment payments and receive the remainder as a lump sum.

Enclosed is a copy of a model tax information notice. Because this notice is designed to meet the 

notice requirements of Internal Revenue Service regulations, its provisions are general and far reaching. 

Not every provision will apply to each payee. 

OPM can expedite the IRA rollover process by allowing the elections to be made at the time of 

application based on the information provided by the deceased employees' employing agency. (See 

Chapter 70, Spouse Benefits - Death of an Employee for detailed information.) When OPM receives an 

application from someone who is eligible to make a rollover and no rollover election is included, OPM 

will send the individual a tax information notice and an election letter. Note: All BEDB's are payable to 

surviving spouse/former spouse only. 

Enclosure: Special Tax Notice Regarding Rollovers, RI 37-22 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 99 

Chapter 40 

Employee Information Sheet #10 (Cont.) 

Special Tax Notice

Regarding Rollovers, RI 37-22

This notice contains important Federal income tax and other information you will need before you decide how to 

receive your lump-sum payment from the Civil Service Retirement System (CSRS) or the Federal Employees 

Retirement System (FERS). To be of service to our customers, the Office of Personnel Management has worked with 

the Internal Revenue Service to present a general explanation of how P.L. 102-318 affects those who receive our 

benefits. However, the IRS remains the authority on tax matters and questions. Requests for additional or clarifying 

information should be directed to them. The official tax publications that govern how benefits are taxed are 

referenced at the end of this notice. OPM does not stock IRS publications. We cannot provide official tax 

information nor can we advise individuals on tax matters. The following discussion applies to the taxable portion 

of your lump-sum payment. 

Summary 

A taxable payment from the Office of Personnel Management (OPM) that is eligible for "rollover" can be paid in one 

of two ways. You can have all or any part of your payment either (1) paid in a "direct rollover" or (2) paid to you. 

A rollover is a payment of the taxable portion of your CSRS or FERS benefit to your individual retirement 

arrangement (IRA) or to another employer retirement plan. This choice will affect the tax you owe. 

If you choose a direct rollover of the taxable portion -­

- Your payment will not be taxable income in the year it is paid, and no income tax will be withheld.

- Your payment will be made directly to your IRA or, if you choose, to another employer retirement plan that 

accepts your rollover.

- Your payment will be taxable income later when you take it out of the IRA or the employer retirement plan.

If you choose to have the taxable portion of your benefit paid to you -­

- You will receive only 80 percent of the payment, because OPM is required to withhold 20 percent of the 

payment and send it to the Internal Revenue Service as income tax withholding to be credited against your 

taxes.

- Your payment will be taxed in the year it is paid unless you roll it over. You may be able to use special tax 

rules that could reduce the tax you owe. However, if you receive the payment before age 59-1/2, you also 

may have to pay an additional 10 percent tax.

- You can roll over the payment by paying it to your IRA or to another employer retirement plan that accepts 

your rollover within 60 days after you receive the payment. The amount rolled over will not be taxed until 

you take it out of the IRA or employer retirement plan.

- If you want to roll over 100 percent of the payment to an IRA or an employer retirement plan, you must find 

other money to replace the 20 percent that was withheld. We cannot refund the 20 percent once it has been 

withheld. If you roll over only the 80 percent you receive, you will be taxed on the 20 percent that was 

withheld and that is not rolled over.

CSRS and FERS Handbook April, 1998 
100 CSRS Planning and Applying for Retirement FERS 

Chapter 40 

Employee Information Sheet #10 (Cont.) Special Tax Notice Regarding Rollovers (Cont.) 

MORE INFORMATION

I. PAYMENTS THAT CAN AND CANNOT BE 

ROLLED OVER

Certain payments from the OPM are "eligible 

rollover distributions." This means they can be rolled 

over to an IRA or to another employer retirement 

plan that accepts rollovers. In general, only the 

"taxable portion" of your payment is an eligible 

rollover distribution. Information on the portion of 

your payment that is eligible for rollover is enclosed. 

The following types of payments cannot be rolled 

over:

Non-taxable Payments. In general, the nontaxable portion of your payment is not an eligible 

rollover distribution. If you have made "after-tax" 

employee contributions, these contributions will be 

non-taxable when they are paid to you, and they 

cannot be rolled over. (After-tax employee 

contributions generally are contributions you made 

from your own pay that was already taxed.)

Payments Spread Over Long Periods. You 

cannot roll over a payment if it is part of a series of 

equal (or almost equal) payments that are made at 

least once a year and that will last for 

! your lifetime (or your life expectancy), or

! your lifetime and your beneficiary's lifetime 

(or life expectancies), or

! a period of ten years or more.

Required Minimum Payments. Beginning in 

the year you reach age 70-1/2, a certain portion of 

your payment cannot be rolled over because it is a 

"required minimum payment" that must be paid to 

you. You must compute and exclude this amount 

from a direct rollover if you will be age 70-1/2 or 

older when the payment is made. 

II. DIRECT ROLLOVER

You can choose a direct rollover of all or any 

portion of your payment that is an "eligible rollover 

distribution" as described above. In a direct rollover, 

the eligible rollover distribution is paid directly from 

OPM to an IRA or another employer retirement plan 

that accepts rollovers (or is sent to you in a check 

made payable to the IRA or other retirement plan). 

If you choose a direct rollover, you are not taxed on 

a payment until you later take it out of the IRA or the 

employer retirement plan. OPM will not pay a direct 

rollover or withhold tax on taxable payments under 

$200, but recipients themselves may roll over such 

payments tax free within 60 days after receipt. The 

minimum direct rollover amount is $500 if you 

designate part of your payment as a direct rollover 

with the remainder payable to you. OPM will pay a 

direct rollover to only one IRA or retirement plan at 

any one time. 

Direct Rollover to an IRA. You can open an 

IRA to receive the direct rollover. (the term "IRA," 

as used in this notice, includes individual retirement 

accounts and individual retirement annuities.) If you 

choose to have your payment made directly to an 

IRA, contact an IRA sponsor (usually a financial 

institution) to find out how to have your payment 

made in a direct rollover to an IRA at that institution. 

If you are unsure of how to invest your money, you 

can temporarily establish an IRA to receive the 

payment. However, in choosing an IRA, you may 

wish to consider whether the IRA you choose will 

allow you to move all or part of your payment to 

another IRA at a later date, without penalties or other 

limitations. See IRS Publication 590, Individual 

Retirement Arrangements, for more information on 

IRA's (including limits on how often you can roll 

over between IRA's). 

Direct Rollover to an Employer Retirement 

Plan. If you are employed by a new employer that 

has a retirement plan and you want a direct rollover 

to that plan, ask the administrator of that plan 

whether it will accept your rollover. An employer 

retirement plan is not legally required to accept a 

rollover. If your new employer's retirement plan 

does not accept a rollover, you can choose a direct 

rollover to an IRA.

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 101 

Chapter 40

Employee Information Sheet #10 (Cont.) Special Tax Notice Regarding Rollovers (Cont.)

Direct Rollover of a Series of Payments. If you 

receive eligible rollover distributions that are paid in 

a series of less than 10 years, your choice to make or 

not make a direct rollover for a payment will apply to 

all later payments in the series unless you change 

your election. You are free to change your election 

for any later payment in the series by contacting 

OPM. 

III. PAYMENT PAID TO YOU

If you have the payment made to you, it is 

subject to 20 percent Federal income tax withholding. 

The payment is taxed in the year you receive it 

unless, within 60 days after receiving it, you roll it 

over to an IRA or another plan that accepts rollovers. 

If you do not roll it over, special tax rules apply. 

Mandatory Federal Income Tax Withholding. 

If any portion of the payment to you is an eligible 

rollover distribution, OPM is required by law to 

withhold 20 percent of that amount. This amount is 

sent to the IRS as income tax withholding. For 

example, if your eligible rollover distribution is 

$10,000, only $8,000 will be paid to you because 

OPM must withhold $2,000 as income tax. However, 

when you prepare your income tax return for the 

year, you will report the full $10,000 as a payment 

from OPM. You will report the $2,000 as tax 

withheld, and it will be credited against any income 

tax you owe for the year. 

Sixty-Day Rollover Option. If you have an 

eligible rollover distribution paid to you, you can still 

decide to roll over all or part of it to an IRA or 

another employer retirement plan that accepts 

rollovers. If you decide to roll it over, you must 

make the rollover within 60 days after you receive 

the payment. The portion of your payment that is 

rolled over will not be taxed until you take it out of 

the IRA or the employer retirement plan. 

You can roll over up to 100 percent of the 

eligible rollover distribution, including an amount 

equal to the 20 percent that was withheld, If you 

choose to roll over 100 percent, you must find other 

money within the 60-day period to contribute to the 

IRA or the employer retirement plan to replace the 20 

percent that was withheld. On the other hand, if you 

roll over only the 80 percent that you received, you 

will be taxed on the 20 percent that was withheld. 

Example: Your eligible rollover distribution is 

$10,000, and you choose to have it paid to you. You 

will receive $8,000, and $2,000 will be sent to the 

IRS as income tax withholding. Within 60 days after 

receiving the $8,000, you may roll over the entire 

$10,000 to an IRA or employer retirement plan. To 

do this, you roll over the $8,000 you received from 

OPM, and you will have to find $2,000 from other 

sources (your savings, a loan, etc.). In this case, the 

entire $10,000, is not taxed until you take it out of the 

IRA or employer retirement plan. If you roll over the 

entire $10,000, when you file your income tax return 

you may get a refund of the $2,000 withheld. 

If, on the other hand, you roll over only $8,000, the 

$2,000 you did not roll over is taxed in the year it 

was withheld. When you file your income tax return, 

you may get a refund of part of the $2,000 withheld. 

(However, any tax refund is likely to be larger if you 

roll over the entire $10,000.) 

Additional 10 Percent Tax If You Are Under 

Age 59-1/2. If you receive a payment before you 

reach age 59-1/2 and you do not roll it over, then, in 

addition to the regular income tax, you may have to 

pay an extra tax equal to 10 percent of the taxable 

portion of the payment. The additional 10 percent tax 

does not apply to your payment if it is (1) paid to you 

because you separate from service with your 

employing agency during or after the year you reach 

age 55, (2) paid because you retire due to disability 

(as determined by IRS), (3) paid to you as equal (or 

almost equal) payments over your life or life 

expectancy (or your and your beneficiary's lives of 

life expectancies), or (4) used to pay certain medical 

expenses. See IRS Form 5329, Return for 

Additional Taxes..., for more information on the 

additional 10 percent tax. 

CSRS and FERS Handbook April, 1998 
102 CSRS Planning and Applying for Retirement FERS 

Chapter 40

Employee Information Sheet #10 (Cont.) Special Tax Notice Regarding Rollovers (Cont.)

Special Tax Treatment. If your eligible 

rollover distribution is not rolled over, it will be taxed 

in the year you receive it. However, if it qualifies as 

a "lump-sum distribution," it may be eligible for 

special tax treatment. A lump-sum distribution is a 

payment within 1 year, of your entire balance under 

CSRS or FERS that is payable to you because you 

have separated from service with your agency. For 

a payment to qualify as a lump-sum distribution, you 

must have been a participant under CSRS or FERS 

for at least 5 years. The special tax treatment for 

lump-sum distributions is described below. 

Five-Year Averaging. If you receive a lumpsum distribution after you are age 59-1/2, you 

may be able to make a one-time election to 

figure the tax on the payment by using "5-year 

averaging." Five-year averaging often reduces 

the tax you owe because it treats the payment 

much as if it were paid over 5 years. 

Ten-Year Averaging If You Were Born Before 

January 1, 1936. If you receive a lump-sum 

distribution and you were born before January 1, 

1936, you can make a one-time election to figure 

the tax on the payment by using "10-year 

averaging" (using 1986 tax rates) instead of 5­

year averaging (using current tax rates). Like 

the 5-year averaging rules, 10-year averaging 

often reduces the tax you owe. 

Capital Gain Treatment If You Were Born 

Before January 1, 1936. In addition, if you 

receive a lump-sum distribution and you were 

born before January 1, 1936, you may elect to 

have the part of your payment that is attributable 

to your pre-1974 participation under CSRS or 

FERS (if any) taxed as long-term capital gain at 

a rate of 20 percent. 

There are other limits on the special tax 

treatment for lump-sum distributions. For example, 

you can generally elect this special tax treatment only 

once in your lifetime, and the election applies to all 

lump-sum distributions that you receive in that same 

year. If you have previously rolled over a payment 

from OPM, you cannot use this special tax treatment 

for later payments from OPM. If you roll over your 

payment to an IRA, you will not be able to use this 

special tax treatment for later payments from the 

IRA. Also, if you roll over only a portion of your 

payment to an IRA, this special tax treatment is not 

available for the rest of the payment. Additional 

restrictions are described in IRS Form 4972, which 

has more information on lump-sum distributions and 

how you elect the special tax treatment. 

IV. SURVIVING SPOUSES, ALTERNATE

 PAYEES, AND OTHER BENEFICIARIES

In general, the rules summarized above that 

apply to payments to employees also apply to 

payments to surviving spouses of employees and to 

spouses or former spouses who are "alternate 

payees." You are an alternate payee if your benefit 

results from an order issued by a court, usually in 

connection with a divorce or legal separation. Some 

of the rules summarized above also apply to a 

deceased employee's beneficiary who is not a spouse. 

However, some exceptions for payments to surviving 

spouses, alternate payees, and other beneficiaries 

should be mentioned. 

If you are a surviving spouse, you may choose to 

have an eligible rollover distribution paid in a direct 

rollover to an IRA or paid to you. If you have the 

payment paid to you. you can keep it or roll it over 

yourself to an IRA, but you cannot roll it over to an 

employer retirement plan. If you are an alternate 

payee, you have the same choices as the employee. 

Thus, you can have the payment paid as a direct 

rollover or paid to you. If you have it paid to you, 

you can keep it or roll it over yourself to an IRA or to 

another employer retirement plan that accepts 

rollovers. If you are a beneficiary other than a 

surviving spouse or alternate payee, you cannot 

choose a direct rollover, and you cannot roll over the 

payment yourself. 

If you are a surviving spouse, an alternate payee, 

or another beneficiary, your payment is not subject to 

the additional 10 percent tax described in section III 

above, even if you are younger than age 59-1/2. If 

you are a surviving spouse, an alternate payee, or 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement FERS 103 

Chapter 40 

Employee Information Sheet #10 (Cont.) Special Tax Notice Regarding Rollovers (Cont.) 

another beneficiary, you may be able to use the 

special tax treatment for lump-sum distributions, as 

described in section III above. If you receive a 

payment because of the employee's death, you may 

be able to treat the payment as a lump-sum 

distribution if the employee met the appropriate age 

requirements, whether or not the employee had 5 

years of service under CSRS or FERS. 

HOW TO OBTAIN ADDITIONAL 

INFORMATION

This notice summarizes only the Federal (not State or 

local) tax rules that might apply to your payment. 

The rules described above are complex and contain 

many conditions and exceptions that are not included 

in this notice. Therefore, you may want to consult 

with a professional tax advisor before you take a 

payment of your benefits from OPM. Also, you can 

find more specific information on the tax treatment of 

payments from qualified retirement plans in IRS 

Publication 575, Pension and Annuity Income, IRS 

Publication 590, Individual Retirement 

Arrangements, and IRS Publication 721, Tax Guide 

to U.S. Civil Service Retirement Benefits. These 

publications are available from your local IRS office 

or by calling 1-800-TAX-FORMS. 

CSRS and FERS Handbook April, 1998 
104 CSRS Planning and Applying for Retirement 

Chapter 40 

Employee Information Sheet #11 

VOLUNTARY CONTRIBUTIONS NOTICE

RI 38-125

If you have made voluntary contributions (VC), you can elect to receive a refund or you can use the VC to purchase 

additional annuity when you retire. Most people choose a refund but please read the following information before 

making your election. Please keep a copy of this notice for your records. If you are retiring, you can make your 

election after the Office of Personnel Management (OPM) receives your retirement package and sends you more 

detailed information specific to your case; however, interest on your account stops on the date you retire. If you want 

a refund and wish to avoid any loss of interest, send your application directly to OPM 60 days before you retire. 

l. If You Want a Refund of Your Voluntary Contributions:

If you receive a refund, you may roll over the interest portion to an Individual Retirement Account (IRA) to defer 

income tax. (For purposes of this notice, the term "IRA" includes qualified employer retirement plans that accept 

rollovers.) Your rollover options depend on the amount of interest payable on your VC account. The Voluntary 

Contributions Annual Statement of Account that is sent to you at the beginning of each year shows the amount of 

interest as of December 31 for the preceding year. As a general rule, your voluntary contributions stop earning 

interest on the earliest of the following dates: (1) the date OPM authorizes payment of a refund of your VC; (2) the 

date you separate from Federal service; and (3) the date you transfer to a position not subject to the Civil Service 

Retirement System or the Federal Employees Retirement System. 

Ë If your VC interest is less than $200--You may roll over the interest portion to defer income tax within 

60 days after you receive the payment. OPM will not withhold Federal income tax from interest amounts 

of less than $200.

Ë If your VC interest is $200 or more--You have two rollover options.

Option 1: OPM pays the interest to you. You may roll over the interest portion to an IRA within 60 

days after you receive the payment. However, OPM will withhold 20% of the interest portion for 

Federal income tax. You may apply for a refund of any excess tax withholding when you file your tax 

return.

Option 2: OPM pays all or part of the interest portion directly to your IRA. OPM will not withhold 

Federal tax on the amount rolled over directly to an IRA. The amount of a direct rollover by OPM 

must be at least $500 if you want part of the interest paid to you and part of it paid directly to the IRA. 

Interest not rolled over is subject to 20% Federal income tax withholding.

If your interest is at least $200 and you want it paid directly to an IRA, contact an IRA sponsor (usually a financial 

institution) for assistance in establishing a qualified account. You must have the financial institution complete Part 

II of Form RI 38-124, Voluntary Contributions Election. Do not make your rollover election until you have read the 

Special Tax Notice Regarding Rollovers, Form RI 37-22. Your agency should provide you with this notice. 

II. If You Want to Purchase Additional Annuity:

If you do not receive a refund, your voluntary contributions, plus interest, will purchase an additional annuity to you 

at the rate of $7 per year plus 20 cents for each full year you are over age 55 for each $100 you have in voluntary 

contributions. 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement 105 

Chapter 40 

You may also elect a reduction to provide a survivor annuity for any person you name. This reduction is 10% of your 

VC annuity, plus an additional 5% for each full 5 years the person you name is younger than you, up to a maximum 

reduction of 40%. The amount of the benefit payable to the survivor is 50% of your reduced voluntary contributions 

annuity. 

Example: Suppose you are 57 years old at retirement and have voluntary contributions of $25,000, including interest. 

Your VC annuity is $154 per month ($25,000 divided by $100 = 250 multiplied by $7.40 = $1,850 per year divided 

by 12 months = $154, rounded down). 

Suppose you provide a VC survivor annuity for someone who is age 50. Your VC annuity is reduced by 15%, to $131 

per month. ($1,850 - $277.50 (15%) = $1,572.50 per year divided by 12 months = $131, rounded down.) Your 

survivor would receive $65 per month after your death ($1572.50 x .5 = $786.25 per year divided by 12 months = 

$65 rounded down). 

You should consider the following facts before electing a VC annuity.

Ë Your VC annuity will be included in your regular monthly annuity payments. However, your VC annuity 

(and any VC survivor annuity payable after your death) will NOT be increased by cost-of-living adjustments.

Ë A VC annuity is subject to apportionment and garnishment if OPM receives a qualified court order, but is 

not subject to reduction to provide a court-ordered survivor annuity benefit.

Ë If you are married, you do not need the consent of your current spouse if you decide not to provide a VC 

survivor annuity, or if you decide to name another person to receive this benefit.

Ë The reduction to provide a VC survivor annuity is permanent and will not stop even if the person named to 

receive the benefit dies. The survivor benefit cannot be transferred to another person.

Ë A VC annuity or survivor annuity cannot be changed or canceled unless your signed request is received at 

OPM within 30 days after your first regular annuity payment.

How to Make Your Election: Please complete Form RI 38-124, Voluntary Contributions Election. If you are 

applying for a refund, send the completed form to the Office of Personnel Management, Retirement Operations 

Center, (Attn: Refunds Section), P.O. Box 45, Boyers, PA 16017. If you are retiring and want a VC annuity or your 

want additional information before making your election, return the form to your personnel office. 

CSRS and FERS Handbook April, 1998 
106 CSRS Planning and Applying for Retirement

Chapter 40

Voluntary Contributions Election

Please read all of the information in the Voluntary Contributions Notice (RI 38-125) before making

your election. If you want to receive a refund, make your election in Part I below by checking the

appropriate spaces.

If you want to purchase additional annuity, complete Part III on the reverse side of this form.

If you are retiring and do not want to make an election at this time, complete Part IV.

Before you make your election, please provide the following information about yourself (please print

clearly)

Your name Date of birth

Your address

Your Voluntary Contributions Account Number

VC

Your Social Security Number

If you will retire within 60 days, provide the date you will separate for retirement 

I. Refund of Voluntary Contributions

I want to receive a refund of my voluntary contributions, plus interest.

Complete one of the following options. You can elect to have OPM roll over the interest to 

your account only if your interest is at least $200 when you retire. 

Pay all of the interest to me. I understand that the interest will be subject to 20% income tax withholding if it is over $200, but I can roll it over within 60 days to an IRA account (or other qualified employer retirement plan) 

to defer income tax.

I want (enter "all" or a dollar amount at or above $500) of the interest made payable to the account shown in Part II with no tax withholding on the amount rolled over. I understand that any balance of the interest paid to me will be subject to 20% tax withholding, but that I can roll over any part of it within 60 days to an 

IRA account (or other qualified employer retirement plan) to defer income tax. (If you check this block, your financial institution must complete Part II on the reverse side of this notice.)

Send the payment directly to my 

account.

Send the payment to me, made payable to my account. I will 

deliver it to the account within 60 days.

Provide Your Certification: By my signature below, I certify that I have read and understood the information in the accompanying Voluntary Contributions Notice.

Signature Date

This form may be locally reproduced (Continued on reverse) RI 38-124 

September 1994 
 CSRS Planning and Applying for Retirement 107 

Chapter 40

CSRS and FERS Handbook August, 1996 

CSRS and FERS Handbook April, 1998 
108 CSRS Planning and Applying for Retirement

Chapter 40

II. Certification by Financial Institution or Retirement Plan

This part must be completed by your financial institution or retirement plan if all or part of the interest is made payable to a qualified account. 

Name of institution or retirement plan IRA Account number

Address of institution or retirement plan

Certification: As a representative of the financial institution or plan named above, I confirm the account number for the individual named above and the address of the institution or retirement plan. I certify that the financial institution or plan named above agrees to receive funds from the individual and deposit them in an eligible IRA or retirement

plan as defined in the Internal Revenue Code. 

Typed or printed name of certifying representative

Signature of certifying representative

Daytime phone (area code & number) Date of certification

III. Additional Annuity

I want to use my voluntary contributions (VC) to purchase additional annuity.

T Check one of the following options

I do not want to provide a VC survivor annuity. I want to provide a VC survivor annuity for the

person described below

Name of Person His/Her Date of Birth

His/Her Address

His/Her Social Security Number His/Her Relationship to You, if Any

Warning: Any intentionally false or willfully misleading statement or response you provide in this election is a violation of 

Provide Your Certification: By my signature below, I certify that I have read and understood the information in the accompanying Voluntary Contributions Notice.

Signature Date

IV. Send Me Additional Information After I Retire

I do not want to make an election at this time. I want the Office of Personnel Management (OPM) to send me

information that is specific to my case. I understand this information will be sent after OPM receives my

application for retirement.

Signature Date

Reverse of RI 38-124 

April, 1998 CSRS and FERS Handbook 
 CSRS Planning and Applying for Retirement 109 

Chapter 40

CSRS and FERS Handbook April, 1998