United States 

Office of 

Personnel Management

The Federal Government’s Human Resources Agency

Subject: Fiscal Year 2019 Federal Employee Benefits Cost Factors for Calculating 

Imputed Costs

In prior fiscal years (FY) OPM has issued two Benefits Administration Letters (BALs), the Cost 

Factors for Calculating Imputed Cost and the Federal Employees Benefits Cost Factors. 

Beginning with FY 2019 we are combining both BALs. 

This letter provides the FY 2019 cost factors for the Federal civilian benefit programs. Agencies 

will use these factors to calculate their imputed costs relating to the Civil Service Retirement 

System (CSRS), the Federal Employees Retirement System (FERS), the Federal Employees 

Health Benefits Program (FEHB) and the Federal Employees’ Group Life Insurance Program 

(FEGLI). The imputed costs are used to determine the actuarial liabilities which are included in 

Governmental financial statements. 

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

instructions for the computation and accounting for imputed costs related to the Federal civilian 

benefit programs; see http://www.opm.gov/retire/pubs/bals/2003/03-309.pdf for more 

information.

COST FACTORS

Pensions. The economic assumptions used to calculate the FY 2019 cost factors under 

Statement of Federal Financial Accounting Standard (SFFAS) 33: Pensions, Other Retirement 

Benefits, and Other Postemployment Benefits: Reporting the Gains and Losses from Changes in 

Assumptions and Selecting Discount Rates and Valuation Dates are based on 10-year historical 

averages. These economic assumptions differ from those established by OPM under guidance 

from the CSRS Board of Actuaries for the determination of certain statutory funding payments 

for CSRS and FERS. 

The FY 2019 cost factors for all categories of CSRS coverage are attached. While agency 

payments under CSRS are not affected by the CSRS normal cost percentages for the vast majority 

of agencies, the CSRS normal cost percentages determined under SFFAS 33 are used to 

Benefits Administration Letter 

Number: 19-304 Date: February 2019
determine the actuarial liabilities which are included in Governmental financial statements.

The FY 2019 cost factors reported in this BAL differ from the normal cost percentages used to 

determine the employer contributions agencies pay for FERS employees. The cost factors for all 

categories of FERS coverage are attached. Since the cost factors reported under SFFAS 33 are 

determined on a different basis than are the actual FERS normal cost contributions, agencies should 

expect to continue to report future imputed retirement costs for their FERS employees.

FEHB Program. Beginning this fiscal year, we are providing the FEHB cost factors for the 

United States Postal Service as well as the cost factors for the remainder of the Government in 

this letter. For FY 2019, the Non-Postal cost factor is $7,268.00 and the Postal cost factor is 

$8,018.00 per enrolled employee. Please note that the cost factors shown below are based on the 

actuarial assumptions required by SFFAS 33, as calculated by the FEHB actuary.

Non-Postal 

Quarter Factor

1st $1,787

2nd 1,807

3rd 1,827

4th 1,847

FY 2019 $7,268

Postal 

Quarter Factor

1st $1,971

2nd 1,993

3rd 2,015

4th 2,038

FY 2019 $8,018

FEGLI Program. The FY 2019 cost factor for the FEGLI is 0.02 percent of basic pay, the same

as in previous years. 

STATEMENT FOR AUDITORS

The FY 2019 cost factors provided in this letter are being issued before an opinion by OPM’s 

independent public accounting firm can be received for FY 2019. Nonetheless, the FY 2019 cost 

factors for “regular” CSRS and FERS coverage, as well as those for the FEHB and FEGLI 

Programs are consistent with the disclosures in the footnotes accompanying OPM’s consolidated 

FY 2018 financial statements. These statements received an unqualified audit opinion. The 

policies, procedures and controls pertaining to the calculations of the FY 2019 cost factors did 

not change from FY 2018. Consequently, auditors of FY 2019 financial statements can rely upon 

the disclosures in Office of Personnel Management’s FY 2018 financial statements and the related 

audit opinion. 
INQUIRIES

If you have any questions regarding this information, feel free to email us at 

FinancialBALs@opm.gov. You may also phone us at (202) 606-0606. 

 Tonya R. Johnson

 Associate Chief Financial Officer 

 Financial Services

Attachment
Attachment

2019 COST FACTORS FOR THE CSRS AND FERS

CSRS

CATEGORY COST FACTOR (%)

Regular Non-Postal 38.4

Regular Offset Non-Postal 28.8

Regular Postal Service 33.1

Regular Offset Postal Service 23.7

Law Enforcement Officers 62.3

Law Enforcement Officers - Offset 53.4

Air Traffic Controllers 51.0

Air Traffic Controllers – Offset 43.8

Members of Congress 42.4

Members of Congress – Offset 39.2

Congressional Employees 52.1

Congressional Employees – Offset 43.0

FERS

CATEGORY COST FACTOR (%)

Regular Non-Postal 16.9

Regular Postal Service 15.4

Law Enforcement Officers 34.9

Air Traffic Controllers 34.6

Members of Congress 23.4
Congressional Employees 24.0

Military Reserve Technicians 20.0

FERS-Revised Annuity Employees (RAE)

CATEGORY COST FACTOR (%)

Regular Non-Postal – RAE 17.3

Regular Postal Service – RAE 15.9

Law Enforcement Officers - RAE 35.4

Air Traffic Controllers - RAE 35.1

Military Reserve Technicians - RAE 20.4

FERS-Further Revised Annuity Employees (FRAE)

CATEGORY COST FACTOR (%)

Regular Non- Postal – FRAE 17.6

Regular Postal Service– FRAE 16.1

Law Enforcement Officers - FRAE 35.6

Air Traffic Controllers - FRAE 35.2

Military Reserve Technicians - FRAE 20.6