Retirement Planning Retirement PlanningRetirement Planning
Advice on how to prepare for life after government.

Deposit Directions

ARCHIVES
As I've noted before, service credit deposits -- payments that employees make into the federal retirement fund in order to receive credit later on for past service -- are often a subject that leads to unpleasant surprises for federal employees.

It's often in an employee's interest to pay such a deposit, because it can result in a big payback down the road in the form of increased retirement benefits. Let's look this week at a particular form of such deposits -- those covering civilian service.

Payment Options

Civilian service deposits are payments current federal employees make to the retirement fund to cover one of the following:

  • Creditable civilian service that was not covered by Civil Service Retirement System contributions.
  • Pre-1989 civilian service that was not covered by Federal Employees Retirement System contributions.
  • Refunded CSRS contributions.

If you think you're in a position where you could pay money to the retirement fund in exchange for credit for past service, you should contact your agency's human resources office to speak with a retirements specialist. You can request a computation of the amount you owe, along with the effect on your retirement benefit. Depending on the amount you owe and the effect it will have on your benefit, you then can decide whether to pay the deposit.

If you decide to do so, you'll need to complete form SF 2803 (CSRS) or SF 3108 (FERS). Both can be found in the forms section of the Office of Personnel Management Web site. The forms must be submitted through your agency to OPM. In most cases, OPM will send out a bill with instructions for payment within two to three weeks of receiving the form.

You won't receive written acknowledgment when you make your deposit payment, so you have to watch your bank statement to see that the payment was processed. If you need confirmation of payment, contact your HR office. Someone there will know who to contact at OPM to confirm the payment.

OPM experienced some significant delays in processing last year due to a computer glitch that caused certain types of deposits to be computed inaccurately. But that issue has been resolved, and the 2008 backlog has cleared.

For More Information

For further background on civilian (and military) service credit deposits, see the following past columns:

Tammy Flanagan is the senior benefits director for the National Institute of Transition Planning Inc., which conducts federal retirement planning workshops and seminars. She has spent 25 years helping federal employees take charge of their retirement by understanding their benefits.

For more retirement planning help, tune in to "For Your Benefit," presented by the National Institute of Transition Planning Inc. live on Monday mornings at 10 a.m. ET on federalnewsradio.com or on WFED AM 1500 in the Washington metro area.

Tammy Flanagan has spent 30 years helping federal employees take charge of their retirement by understanding their benefits. She runs her own consulting business at www.tammyflanagan.com and provides individual counseling as well as online training for the National Active and Retired Federal Employees Association, Plan Your Federal Retirement as well as the Federal Long Term Care insurance Program. She also serves as the senior benefits director for the National Institute of Transition Planning Inc., which conducts federal retirement planning workshops and seminars.

For more retirement planning help, tune in to "For Your Benefit," presented by the National Institute of Transition Planning Inc. live on Federal News Radio on Mondays at 10 a.m. ET on WFED AM 1500 in the Washington-metro area. Archived shows are available on NITPInc.com.

FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Sponsored by Brocade

    Best of 2016 Federal Forum eBook

    Earlier this summer, Federal and tech industry leaders convened to talk security, machine learning, network modernization, DevOps, and much more at the 2016 Federal Forum. This eBook includes a useful summary highlighting the best content shared at the 2016 Federal Forum to help agencies modernize their network infrastructure.

    Download
  • Sponsored by CDW-G

    GBC Flash Poll Series: Merger & Acquisitions

    Download this GBC Flash Poll to learn more about federal perspectives on the impact of industry consolidation.

    Download
  • Sponsored by One Identity

    One Nation Under Guard: Securing User Identities Across State and Local Government

    In 2016, the government can expect even more sophisticated threats on the horizon, making it all the more imperative that agencies enforce proper identity and access management (IAM) practices. In order to better measure the current state of IAM at the state and local level, Government Business Council (GBC) conducted an in-depth research study of state and local employees.

    Download
  • Sponsored by Aquilent

    The Next Federal Evolution of Cloud

    This GBC report explains the evolution of cloud computing in federal government, and provides an outlook for the future of the cloud in government IT.

    Download
  • Sponsored by Aquilent

    A DevOps Roadmap for the Federal Government

    This GBC Report discusses how DevOps is steadily gaining traction among some of government's leading IT developers and agencies.

    Download
  • Sponsored by LTC Partners, administrators of the Federal Long Term Care Insurance Program

    Approaching the Brink of Federal Retirement

    Approximately 10,000 baby boomers are reaching retirement age per day, and a growing number of federal employees are preparing themselves for the next chapter of their lives. Learn how to tackle the challenges that today's workforce faces in laying the groundwork for a smooth and secure retirement.

    Download
  • Sponsored by Hewlett Packard Enterprise

    Cyber Defense 101: Arming the Next Generation of Government Employees

    Read this issue brief to learn about the sector's most potent challenges in the new cyber landscape and how government organizations are building a robust, threat-aware infrastructure

    Download
  • Sponsored by Aquilent

    GBC Issue Brief: Cultivating Digital Services in the Federal Landscape

    Read this GBC issue brief to learn more about the current state of digital services in the government, and how key players are pushing enhancements towards a user-centric approach.

    Download
  • Sponsored by CDW-G

    Joint Enterprise Licensing Agreements

    Read this eBook to learn how defense agencies can achieve savings and efficiencies with an Enterprise Software Agreement.

    Download
  • Sponsored by Cloudera

    Government Forum Content Library

    Get all the essential resources needed for effective technology strategies in the federal landscape.

    Download

When you download a report, your information may be shared with the underwriters of that document.