Jul 29, 2012

Understanding Annuities Under CSRS Offset

"...The longest-serving feds are covered by the Civil Service Retirement System. Those hired in 1984 or later are covered by the Federal Employees Retirement System. In between are those covered by CSRS Offset, a hybrid that combines CSRS and Social Security.

To be covered by CSRS Offset, you have to have been a CSRS employee for at least five years before 1984, left government and returned after a break in service. If you returned in 1984 or later after a break of a year or more, you would have been automatically covered by CSRS and Social Security, with the option of transferring to FERS. If you elected to stay in CSRS Offset, your retirement contributions were divided between CSRS and Social Security. For most employees, 6.2 percent goes to Social Security and 0.8 percent to CSRS. For special-category employees, such as law enforcement officers and firefighters, 6.2 percent goes to Social Security and 1.3 percent to CSRS.

If you are like most CSRS Offset employees, your annuity will be calculated the same way it is for regular CSRS..."

Read more at FederalTimes.com

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