CSRS FERS
CSRS
Computation of Annuity Under the General Formula
Chapter 50
Table of Contents
FERS i
Subchapter 50A CSRS
Part 50A General Information
Section 50A1.1-1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
A. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
B. Topics Covered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
C. Organization of Subchapter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
D. Statement of Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Part 50A2 Components of the Basic Annuity
Section 50A2.1-1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
A. General Rule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
B. Basic Annuity Reductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Section 50A2.1-2 Length of Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
A. Creditable Service for Computation Purposes . . . . . . . . . . . . . . . . . . . . . . . . 4
B. Calculating Length of Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Section 50A2.1-3 Computing Length of Service Periods . . . . . . . . . . . . . . . . . . 7
A. General Rule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
B. 30-Day Month/360-Day Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
C. Adding a Day When Subtracting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
D. Period of Service Ending on the Last Day of a Month . . . . . . . . . . . . . . . . . . 8
E. Borrowing Years and Months During Subtraction . . . . . . . . . . . . . . . . . . . . . 8
F. Unused Sick Leave . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
G. Intermittent Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
H. Seasonal Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
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April, 1998
ii CSRS
Computation of Annuity
Under the General Formula
Chapter 50
FERS
Section 50A2.1-4 High-3 Average Pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
A. General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
B. Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
C. Period Used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
D. Consecutive Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
E. Use of Noncreditable Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
F. Excess LWOP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
G. Unused Sick Leave . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Section 50A2.1-5 Basic Pay Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
A. Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
B. General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
C. Included in Basic Pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
D. Excluded from Basic Pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
E. Hourly, Daily, and Similar Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
F. Intermittent Employment Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
G. Piecework Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
H. Multiple Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
I. Salary Supplemented by Workers' Compensation . . . . . . . . . . . . . . . . . . . . . 17
Part 50A3 Computation of the Basic Annuity
Section 50A3.1-1 General Formula for Computing the Basic Annuity . . . . . . . . . 18
A. General Formula . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
B. Part-Time Service Annuity Computations . . . . . . . . . . . . . . . . . . . . . . . . . . 18
C. Special Computation In Cases With Certain Overseas Service . . . . . . . . . . . . . 18
Section 50A3.1-2 Maximum Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
A. General Rule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
B. When the Annuity Exceeds 80 Percent . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
C. Deductions During Excess Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
April, 1998
CSRS and FERS Handbook
CSRS
Computation of Annuity
Under the General Formula
Chapter 50
FERS iii
Section 50A3.1-3 Reductions in Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
A. Order of Reductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
B. Reduction for Retirement Before Age 55 . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
C. Unpaid Deposit Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
D. Reduction to Provide Survivor Annuity for Current Spouse or Former Spouse . . 22
E. Elimination of the Current Spouse Survivor Reduction . . . . . . . . . . . . . . . . . . 23
F. Amount of Current Spouse Survivor Benefit . . . . . . . . . . . . . . . . . . . . . . . . 23
G. Reduction for Election of Survivor Annuity to Person With an Insurable
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
H. Elimination of the Insurable Interest Reduction . . . . . . . . . . . . . . . . . . . . . . . 25
I. Amount of Insurable Interest Survivor Benefit . . . . . . . . . . . . . . . . . . . . . . . 25
J. Reduction for Unpaid Redeposit Covering Service Before October 1990 . . . . . . 26
Section 50A3.1-4 CSRS Offset Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
A. General Rule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
B. Exception: Offset at Age 62 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
C. Amount of Offset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Section 50A3.1-5 Additional Annuity -- Voluntary Contributions . . . . . . . . . . . . 29
A. General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
B. Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
C. Additional Survivor Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
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iv CSRS
Subchapter 50B FERS
Computation of Annuity
Under the General Formula
Chapter 50
FERS
Part 50B1 General Information
Section 50B1.1-1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
A. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
B. Organization of Subchapter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
C. Applicable CSRS Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
D. Statement of Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Part 50B2 Components of the Basic Annuity
Section 50B2.1-1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
A. General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
B. Reductions in Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
C. Employees With a CSRS Component . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Section 50B2.1-2 Length of Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
A. Creditable Service for FERS Computation Purposes . . . . . . . . . . . . . . . . . . . 35
B. Employees With a CSRS Component . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Section 50B2.1-3 High-3 Average Pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
A. Applicable CSRS Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
B. Noncreditable Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
C. "Total Service" Average Pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
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CSRS and FERS Handbook
CSRS
Computation of Annuity
Under the General Formula
Chapter 50
Part 50B3 Computation of the Basic Annuity
FERS v
Section 50B3.1-1 General Formula for Computing the Basic Annuity . . . . . . . . . 38
A. General Formula . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
B. Employees Who Are Age 62 With 20 Years of Service . . . . . . . . . . . . . . . . . 38
C. Other Exceptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Section 50B3.1-2 Maximum Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
A. General Rule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
B. Transferees With a CSRS Component . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Section 50B3.1-3 Reductions in Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
A. Rule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
B. Reduction Under Early Deferred or MRA + 10 Provisions . . . . . . . . . . . . . . . 41
C. No Age Reduction in Disability and Special Provision Retirement Cases . . . . . . 42
D. Reduction to Provide Survivor Annuity for Current Spouse or Former Spouse . . 42
E. Elimination of Reduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
F. Amount of Current Spouse Survivor Benefit . . . . . . . . . . . . . . . . . . . . . . . . 43
G. Reduction for Election of Survivor Annuity to Person With an Insurable
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Section 50B3.1-4 Additional Annuity--Voluntary Contributions . . . . . . . . . . . . . 44
A. General Rule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Part 50B4 Computation With a CSRS Component
Section 50B4.1-1 General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
A. Eligibility for CSRS Component . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
B. Applicability of CSRS or FERS Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
C. Service Credited in Each Component . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
D. Odd Days Are Dropped . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Section 50B4.1-2 Computation of Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
A. High-3 Average Pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
B. Basic Annuity Computation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
CSRS and FERS Handbook
April, 1998
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