Re-deposits have been allowed by the contemporary employees of the FERS since late 2009 so we can’t really say that it’s going to be news to many people. These employees include those that left government and withdrew their retirement contributions. Before 2009, only the people that came under CSRS could do so.
Recapture FERS service:
When you make such a redeposit, it makes the service laudable to determine whether the employee is eligible for retirement and also for the calculation of the annuity. There are some details that can’t be overlooked in this regard:
- Also Read: Pros & Cons of Avoiding Common Tax Mistakes in Retirement for Public Employees
- Also Read: Case Study: How Beneficiary Forms Impact Public Sector Retirement Outcomes
- Also Read: Pros & Cons of Discontinued Service Retirement Pathways for Public Sector Workers
The first one is that this policy is only applicable to those officers that are covered by FERS on or after October 2009. Furthermore, it will only affect the benefits pertaining to a FERS coverage separation that would have occurred on or after the date. So, if you have retired before 28th October 2009, you can’t just recapture the time by making the deposit.
If you want to make redeposit then you need to fill out the FERS application that’s especially designed to allow employees to make deposits. You can find it in the forms section on the OPM website. The completed application would then have to be forwarded to the agency for approval and only then will it be processed.
The whole process is pretty flaw-proof and there aren’t any catches involved so if you are trying to make your mind on whether you should make a redeposit or not, know that there isn’t much that can go wrong. On the other hand, just to be sure that you are eligible for this program, you need to make sure that you meet all the preliminary conditions necessary for the application. The processing might take some time but the end result will be something that would be worth the wait.
