How Are My Benefits Handled If I Transfer Systems

John Faith
October 3, 2014

TransFERS

Federal employees under the old civil service system – CSRS and the interim plan CSRS Offset had the option during two open seasons (1987 and 1998) to transfer to the new retirement system – FERS

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. Another condition was also possible to make the transfer – reemployment. If you were rehired under CSRS or CSRS Offset within 6 you could transfer to FERS; however, making the election would involve doing some administrative housekeeping where the following rules would apply:

Federal Employees: Rules for Transferring to FERS

-All survivor and disability benefits would be paid under the rules governing FERS.
-When you enroll in FERS you will have Social Security coverage.
-The combined service credits for both CSRS and FERS will count towards the years needed to qualify for retirement, disability, survivor benefits and the Thrift Savings Plan benefits under the Federal Employees Retirement System.
-The credit you earned in CSRS will be effectively frozen. Your combined CSRS and FERS annuity will still be based on the average of the highest three consecutive years of earnings.
-Now that you are covered under FERS you will receive Government contributions to your TSP account.
-A full Civil Service Retirement System (CSRS) COLA will be received on the CSRS’s portion of your annuity.
-Unused sick leave is credited under CSRS rules based on the accrued amount of sick leave at the date of transfer or at retirement. The lesser number will be used.
-Once you have transferred to FERS from CSRS or CSRS Offset your service will be treated under the FERS plan

In addition, when you transfer to FERS with 5 years or less of non-Offset CSRS service all of your service will be treated under the rules governing FERS.

When you convert from an appointment that is excluded from FERS coverage to an appointment that is covered under FERS you will automatically be covered by the Federal Employees Retirement System. If you are not automatically covered you will have a 6-month window to transfer to the retirement system.

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