A question came into my inbox about calculating the annuity for part-time employees. The calculation of the annuity for part-time employees takes into consideration the high-3 average salary at the full-time rate of pay. The benefit, however, is based on the full-time rate reduced in accordance with the part-time schedule. Who is covered under FERS is another consideration because there are exceptions to the FERS automatic coverage of employees hired after December 31, 1983:
- Also Read: 3 Reasons Certain Federal Employees Can Retire Years Earlier Than Their Peers Without Penalties
- Also Read: CSRS Retirement in 2024: Are You Making the Most of What This Classic Plan Has to Offer?
- Also Read: Roth IRA Basics for Beginners: What’s There to Learn?
                  If you were covered under CSRS without Social Security and left the government for less than a year, you would be reemployed under CSRS coverage. Although you would be covered under CSRS, you have the option of transferring to FERS whereby you will also be subject to Social Security deductions and coverage. If you elect to transfer to FERS it must be done within 6 months.
You are automatically covered under FERS if you have less than 5 years under CSRS.Five years or more under CSRS, you would be covered by the CSRS Offset plan(components of both CSRS and Social Security). The CSRS contributions are reduced by 100 percent of the Social Security Old-Age, Survivor Disability Insurance (OASDI).
The CSRS benefit will be offset or reduced by any and all Social Security benefits creditedto you during your Federal employment.
                            If you were never covered by CSRS but had 5 years of creditable civilian service prior to January 1, 1987 you are eligible for CSRS Offset coverage.
P. S. Always Remember to Share What You Know.
Dianna Tafazoli
