Key Takeaways
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Although the Civil Service Retirement System (CSRS) was closed to new enrollees in 1984, thousands of employees still work under it in 2025 and face very different retirement considerations than those under FERS.
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Understanding your unique benefits, timelines, and coordination options with Social Security and Medicare is essential to avoid losing out on entitlements or making irreversible mistakes.
You’re Part of a Closing Chapter in Public Sector History
- Also Read: 6 Important Changes That Could Impact CSRS Retirees in the Future—And What You Should Watch For
- Also Read: 3 Hidden Costs of Early Retirement Under FERS That Can Take You by Surprise
- Also Read: 6 Important Updates Federal Employees Should Know About Hiring, Pay, and Retirement
Unlike FERS, which integrates Social Security and the Thrift Savings Plan (TSP), CSRS is a standalone pension system with no automatic Social Security coverage. That makes your retirement timeline and benefits work differently from the majority of your colleagues.
Your Retirement Eligibility Under CSRS
Retirement eligibility rules under CSRS are based on your age and years of creditable service. Here are the primary combinations that determine when you can retire with a full annuity:
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Age 55 with 30 years of service
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Age 60 with 20 years of service
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Age 62 with 5 years of service
You may also be eligible for early retirement in certain scenarios like involuntary separation or voluntary early retirement authority (VERA) offerings, but penalties apply if you don’t meet the standard combinations.
How Your CSRS Annuity Is Calculated
One of the biggest advantages of CSRS is the size of the annuity you can earn. The formula is generous by modern standards, especially if you’ve had a long career:
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1.5% of your “high-3” average salary for the first 5 years of service
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1.75% for the next 5 years
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2.0% for all remaining years
Your “high-3” is the average of your highest-paid consecutive 3 years. In 2025, with most CSRS employees nearing or exceeding 40 years of service, many receive 75-80% of their final salary as a monthly annuity.
You Likely Don’t Pay Into Social Security
Most CSRS employees were not covered by Social Security because CSRS predated it. Unless you had a break in service and returned under interim rules or opted for CSRS Offset, you probably do not receive Social Security coverage on your federal service earnings.
This lack of coverage has two major effects:
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You may receive reduced or no Social Security benefits unless you earned them through non-federal employment.
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You will not be subject to payroll deductions for Social Security taxes during your CSRS-covered employment.
If you qualify for Social Security through outside work, your benefits could still be reduced by the Government Pension Offset (GPO) or the Windfall Elimination Provision (WEP)—but only the GPO still applies in 2025, as WEP was repealed in January 2025.
GPO Still Applies to Spousal and Survivor Benefits
As of 2025, the Government Pension Offset (GPO) remains in effect. This can significantly reduce or eliminate any spousal or survivor benefits you might expect from Social Security if you receive a CSRS annuity. The GPO typically reduces your Social Security benefit by two-thirds of your CSRS annuity.
It’s important to plan around this, especially if your spouse relies on Social Security or if you’re expecting to inherit spousal benefits.
What About the Thrift Savings Plan (TSP)?
While TSP participation is optional for CSRS employees, many do contribute. Unlike FERS employees, you do not receive agency matching contributions. Still, contributing to the TSP is a smart way to build supplemental retirement savings and diversify your income sources.
The 2025 TSP contribution limits are as follows:
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$23,500 annual elective deferral limit
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$7,500 catch-up contribution if you are age 50 or older
If you are between ages 60 and 63, you can contribute up to $11,250 in catch-up contributions under Secure Act provisions.
Coordinating Medicare with CSRS Benefits
Once you turn 65, you become eligible for Medicare. Since you didn’t pay Social Security taxes, you may have to pay full premiums for Medicare Part A unless you or your spouse earned enough credits (typically 40 quarters) through non-CSRS employment.
In 2025, the standard premium for Part A is:
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$518 per month if you have fewer than 30 quarters
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$284 per month if you have between 30-39 quarters
You will also pay the Part B premium, which is $185 in 2025, unless your income requires an IRMAA adjustment. Many CSRS retirees keep their Federal Employees Health Benefits (FEHB) plan and pair it with Medicare for broader coverage.
Survivor Benefits Under CSRS
If you elect a survivor benefit, your annuity is reduced, but it ensures continued income for your spouse. You can choose to:
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Provide a full survivor annuity (55% of your unreduced annuity)
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Provide a partial survivor annuity
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Decline the survivor benefit entirely (only with your spouse’s written consent)
This decision has long-term implications and should be made with care. Survivor benefits also tie into FEHB eligibility for your spouse after your death.
Cost-of-Living Adjustments Still Apply
One of the key advantages of CSRS is that retirees continue to receive full cost-of-living adjustments (COLAs), unlike FERS retirees who receive reduced COLAs when inflation is under 3%.
The COLA for 2025 is 3.2%. Your annuity will increase accordingly, helping preserve purchasing power in retirement.
Planning Your Exit: Application Timelines and Processing
You should submit your retirement application to your agency’s HR office at least 60 to 90 days before your planned retirement date. Include all necessary forms:
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SF 2801 (Application for Immediate Retirement)
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SF 2809 (Health Benefits Election)
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SF 2821 (Life Insurance Certification)
It can take several months for your Office of Personnel Management (OPM) claim to be finalized, so expect to receive interim payments first. Delays in processing are common, and checking your status regularly can help prevent errors.
Considerations If You’re Offered a FERS Transfer
While rare in 2025, some agencies may still offer CSRS Offset employees the option to switch fully to FERS. If this happens, weigh the pros and cons carefully:
Advantages of switching:
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Eligibility for Social Security and full Medicare credits
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Access to agency TSP matching
Disadvantages of switching:
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Lower pension accrual rate under FERS
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Reduced COLAs
You may not be able to reverse the decision once made, so consult your benefits officer or a licensed agent before taking action.
What to Watch For in the Final Years of CSRS
As the CSRS population shrinks, fewer HR specialists and financial advisors are familiar with its details. This increases your responsibility to:
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Double-check retirement calculations
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Keep copies of all service records
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Stay informed about changing legislation
Make sure you document all deposits, redeposits, and military service buybacks if applicable. Errors in service credit can delay or reduce your annuity.
Why It Pays to Be Proactive
You’re part of a system that was designed in a different era. While it offers excellent benefits, it requires more self-awareness and proactive planning than modern systems. From Medicare coordination to spousal benefits and COLAs, each decision carries weight.
Don’t wait until your final year of service to start planning. The choices you make today will affect the next few decades of your life.
Take Control of Your Retirement Journey
You’ve stayed the course under CSRS—now it’s time to finish strong. Make sure you:
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Confirm your eligibility and benefit calculations
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Understand how your CSRS annuity interacts with Social Security and Medicare
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Strategize your TSP withdrawals for tax efficiency
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Review survivor benefit elections thoroughly
If you need assistance evaluating your retirement options or preparing your paperwork, speak with a licensed agent listed on this website for professional advice.
