csrs special computation formulas for law enforcement fers ... · officers, firefighters, and air...

CSRS Special Computation Formulas for Law Enforcement FERS iOfficers, Firefighters, and Air Traffic Controllers

Chapter 54

CSRS and FERS Handbook April, 1998

Table of Contents

Subchapter 54A CSRS

Part 54A1 General Information

Section 54A1.1-1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1A. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1B. Topics Covered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1C. Organization of Subchapter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1D. Reference to Chapter 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2E. Statement of Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Part 54A2 Components of the Basic Annuity

Section 54A2.1-1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3A. General Rule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3B. Basic Annuity Reductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Section 54A2.1-2 Computing Length of Service Periods . . . . . . . . . . . . . . . . . . . . . 4A. Applicable Provisions of Chapter 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4B. Crediting Unused Sick Leave for Certain Firefighters . . . . . . . . . . . . . . . . . . . . . 4C. Documentation of Sick Leave for Nonstandard Tours of Duty . . . . . . . . . . . . . . . . 4

Part 54A3 Computation of the Basic Annuity

Section 54A3.1-1 Formula for Computing the Basic Annuity for Law Enforcement Officers and Firefighters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

A. Formula . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Section 54A3.1-2 Formula for Computing the Basic Annuity for Air Traffic Controllers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

A. Formula . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6B. Guaranteed Minimum Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Section 54A3.1-3 Reductions in Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7A. Applicable Provisions of Chapter 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7B. Reduction for Retiring Under Age 55 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

ii CSRS Special Computation Formulas for Law Enforcement FERS Officers, Firefighters, and Air Traffic Controllers

Chapter 54

April, 1998 CSRS and FERS Handbook

Subchapter 54B FERS

Part 54B1 General Information

Section 54B1.1-1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9A. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9B. Organization of Subchapter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9C. Reference to Chapter 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10D. Statement of Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Part 54B2 Components of the Basic Annuity

Section 54B2.1-1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11A. General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11B. Reductions in Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Part 54B3 Computation of the Basic Annuity

Section 54B3.1-1 Formula for Computing the Basic Annuity for Law Enforcement Officers, Firefighters, and Air Traffic Controllers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

A. Formula . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12B. Employees With a CSRS Annuity Component . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Subchapter 54C Job Aids

Section 54C1.1-1 Charts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Chart 1. -- CSRS Factor Chart for Law Enforcement Officers and Firefighters . . . . . . . . 15Chart 2. -- FERS 1.7 Percent Factor Chart for Law Enforcement Officers, Firefighters, and

Air Traffic Controllers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Section 54C1.1-2 Computation Examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Example 1: CSRS firefighter--Optional retirement with full survivor benefits . . . . . . . . . 16Example 2: CSRS law enforcement officer--Optional retirement with maximum

annuity and full survivor benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Example 3: CSRS air traffic controller--Guaranteed minimum annuity with full

survivor benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29Example 4: CSRS air traffic controller--Earned annuity with less than full survivor

benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Example 5: FERS firefighter--Optional retirement with less than full survivor benefits . . 41Example 6: FERS air traffic controller--Optional retirement with full survivor benefits . . 46Example 7: FERS law enforcement officer who transferred to FERS--Optional

retirement with full survivor benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

CSRS Special Computation Formulas for Law Enforcement 1Officers, Firefighters, and Air Traffic Controllers

Chapter 54


Subchapter 54A CSRSPart 54A1 General Information

Section 54A1.1-1 Overview

A. Introduction This subchapter contains the rules and procedures that apply to thecomputation of annuities under CSRS for law enforcement officers,firefighters, and air traffic controllers.

Subchapter 54C contains illustrations of annuity computations using theformulas that apply to these special groups.

IMPORTANT: OPM uses an automated system to calculate benefits thatcarries calculations to six decimal places. The examplesin this Chapter were computed using OPM's automatedsystem; therefore, the answers are exact to the dollar.

Manual calculations and computations made by agenciesare not expected to be accurate to the dollar.

B. Topics Covered This subchapter covers:

• The components of the annuity payable to law enforcement officers,firefighters, and air traffic controllers; and

• The formulas used to compute the basic annuity for law enforcementofficers, firefighters, and air traffic controllers.

NOTE: This subchapter does not cover the computation of retirementbenefits for part-time employment. See Chapter 55, Computationfor Part-Time Employees, for computation for part-timeemployment.

C. Organization ofSubchapter

The CSRS subchapter has three parts.

Part Name of Part Page

54A1 General Information 1

54A2 Components of the Basic Annuity 3

54A3 Computation of the Basic Annuity 5

2 CSRS Special Computation Formulas for Law EnforcementOfficers, Firefighters, and Air Traffic Controllers

Chapter 54


Section 54A1.1-1 Overview (Cont.)

C. Organization ofSubchapter(Cont.)

NOTE: Subchapter 54B, about the computation of annuity for lawenforcement officers, firefighters, and air traffic controllers underFERS, begins on page 8.

D. Reference toChapter 50

The rules for computing a CSRS annuity under the general formula areexplained in subChapter 50A of Chapter 50, Computation of Annuity Underthe General Formula. Many of the rules discussed in subChapter 50Aapply to all CSRS annuity computations, including the special annuitycomputations for law enforcement officers, firefighters, and air trafficcontrollers.

The following provisions of subChapter 50A apply to this subchapter:

• Section 50A2.1-2: Length of Service

• Section 50A2.1-4: High-3 Average Salary

• Section 50A2.1-5: Basic Pay Rates

• Section 50A3.1-2: Maximum Annuity

• Section 50A3.1-3: Reductions in Annuity

• Section 50A3.1-4: CSRS Offset Employees

• Section 50A3.1-5: Additional Annuity--Voluntary Contributions

E. Statement ofAuthority

This subchapter is based on the laws and regulations cited below.

• United States Code: 5 U.S.C. 8339

• Code of Federal Regulations: 5 CFR Part 831


Chapter 54


Part 54A2 Components of the Basic Annuity

Section 54A2.1-1 Introduction

A. General Rule Basic annuity benefits for law enforcement officers, firefighters, and airtraffic controllers are based primarily on:

• The amount of creditable service (see section 54A2.1-2 of thissubchapter); and

• The individual's high-3 average salary (see Chapter 50, section50A2.1-4).

B. Basic AnnuityReductions

The basic annuity may be reduced for:

• Failure to pay a deposit for nondeduction service performed prior toOctober 1, 1982 (see Chapter 50, section 50A3.1-3, paragraph C);

• Failure to pay a redeposit of a refund based on a period of serviceending before October 1, 1990 (see Chapter 50, section 50A3.1-3,paragraph J);

• Election of (or court-ordered) survivor benefits for a current spouseand/or former spouse (see Chapter 50, section 50A3.1-3, paragraph D);

• Election of a survivor benefit for a person with an insurable interest(see Chapter 50, section 50A3.1-3, paragraph G);

• Election of the alternative annuity (see Chapter 53); and

• An offset amount for offset employees who are entitled to SocialSecurity benefits.


Chapter 54


Section 54A2.1-2 Computing Length of Service Periods

A. ApplicableProvisions ofChapter 50

The provisions of Chapter 50, section 50A2.1-3, apply to employeesretiring under this subchapter, with one exception. The exception is notedbelow in paragraph B.

B. Crediting UnusedSick Leave forCertainFirefighters

Many firefighters have unusual/uncommon tours of duty (for example,work schedules in excess of 80 hours per biweekly pay period) and earnsick leave at a higher than normal rate (that is, more than 4 hours perbiweekly pay period). In such cases, service credit for unused sick leave isbased on the length of calendar time that the unused sick leave would coverbased on the unusual tour of duty. The employing agency is responsible forannotating the employee's SF 2806 to show the date upon which theemployee's unused sick leave would have expired had the employeeused it. See the documentation procedures below in paragraph C.

C. Documentation ofSick Leave forNonstandardTours of Duty

For individuals who have unusual or uncommon tours of duty, theretirement record, SF 2806, should be annotated to show the date when theunused sick leave would have expired, counting from the separation date. A typical posting would state: "Unused Sick Leave of xxx hours(uncommon tour of duty) would have expired xx-xx-xx (5 U.S.C.chapter 63)."


Chapter 54


Part 54A3 Computation of the Basic Annuity

Section 54A3.1-1 Formula for Computing the Basic Annuity for Law Enforcement Officers andFirefighters

A. Formula The basic annuity for employees eligible to retire under the specialprovisions for law enforcement officers and firefighters (see Chapter 46,Special Retirement Provisions for Law Enforcement Officers, Firefighters,Air Traffic Controllers, and Military Reserve Technicians) is computed asfollows:

• 2.5 percent of the high-3 average salary multiplied by the total servicenot to exceed 20 years; plus

• 2 percent of the high-3 average salary multiplied by any additional yearsof creditable service exceeding 20 years.

NOTE 1: This formula has been used to produce the computation chartprovided in section 54C1.1-1, Chart 1. -- CSRS Factor Chartfor Law Enforcement Officers and Firefighters.

NOTE 2: Subchapter 54C contains illustrations of annuity computationsusing the special formula described above.

NOTE 3: In computing a CSRS annuity, the law provides that all service,including non-law enforcement civilian service, military service,and credit for unused sick leave, receives credit at the 2.5percent and 2 percent accrual rates. However, since anemployee must have at least 20 years of lawenforcement/firefighter service to be able to retire under thespecial provisions, as a practical matter, non-lawenforcement/firefighter service is not credited at the 2.5 percentrate.


Chapter 54


Section 54A3.1-2 Formula for Computing the Basic Annuity for Air Traffic Controllers

A. Formula The general formula described in Chapter 50, section 50A3.1-1, is used tocompute the basic annuity of an air traffic controller; however, a minimumbenefit is guaranteed. The basic eligibility requirements are described inChapter 46.

B. Guaranteed Minimum Benefit

Once an employee has completed 20 years of service as an air trafficcontroller, he or she is guaranteed to receive the greater of:

• 50 percent of his or her high-3 average salary (the guaranteed minimumbenefit); or

• The basic annuity computed under the general formula based on allyears of service.

NOTE 1: An employee who owes a redeposit for air traffic controllerservice will not be entitled to the guaranteed 50 percentminimum benefit unless he or she pays the redeposit or it isdeemed paid under the alternative annuity provision. (SeeChapter 53, Alternative Annuity Elections.) > If the redepositis owed for refunded air traffic controller service that endedprior to October 1, 1990, the 50 percent guaranteed minimumbenefit will be subject to an actuarial reduction if the redepositis not paid. (See Chapter 50, section 50A3.1-3J.) <

NOTE 2: Subchapter 54C contains an illustration of an annuitycomputation using the special formula described above.


Chapter 54


Section 54A3.1-3 Reductions in Annuity

A. ApplicableProvisions ofChapter 50

The provisions of Chapter 50, section 50A3.1-3, generally apply under thissubchapter. The exceptions are noted below in paragraphs B, C, and D.

B. Reduction forRetiring UnderAge 55

The reduction in annuity that applies to employees who retire under age 55does not apply to employees who retire under the special provisionsdescribed in this Chapter because the retirement law permits theseemployees to retire voluntarily (optionally) before age 55 as long as theyhave the required years of service as a law enforcement officer, firefighter,or air traffic controller.

C. Unpaid DepositService

The reduction in annuity that applies if an employee owes a deposit tocover a period of civilian service performed prior to October 1, 1982, forwhich no retirement deductions were made, does not apply in thecomputation of the air traffic controller benefit if it brings the annuitybelow the guaranteed minimum 50 percent of the high-3 average salary.

D. Reduction forUnpaid RedepositCovering ServiceBefore October1990

The reduction in annuity that applies if an employee owes a redeposit forservice that ended before October 1, 1990, does not apply in thecomputation of the air traffic controller benefit if it brings the annuitybelow the guaranteed minimum 50 percent of the high-3 average salary, andthe service for which the redeposit is owed is not air traffic controllerservice. If the redeposit is owed for refunded air traffic controller servicethat ended prior to October 1, 1990, the 50 percent guaranteed minimumbenefit will be subject to an actuarial reduction if the redeposit is not paid.


Chapter 54


BLANK PAGE

Special Computation Formulas for Law Enforcement FERS 9Officers, Firefighters, and Air Traffic Controllers

Chapter 54


Subchapter 54B FERS

Part 54B1 General Information

Section 54B1.1-1 Overview

A. Introduction Subchapter 54B contains the rules and procedures that apply to thecomputation of a basic annuity for law enforcement officers, firefighters,and air traffic controllers under the Federal Employees Retirement System(FERS).

This subchapter explains how FERS differs from CSRS. It refers readers tothe applicable CSRS rule or gives the FERS rule if it is different.

Subchapter 54C contains illustrations of annuity computations using thespecial formula.

NOTE 1: The retiree annuity supplement is payable before age 62 inaddition to the basic annuity. See Chapter 51, Retiree AnnuitySupplement, for further details.

NOTE 2: This subchapter does not cover the computation of retirementbenefits for part-time employment. See Chapter 55 forcomputation for part-time employment.

B. Organization ofSubchapter

The FERS subchapter has three parts.

Part Name of Part Page

54B1 General Information 8

54B2 Components of the Basic Annuity 10

54B3 Computation of the Basic Annuity 11

10 Special Computation Formulas for Law Enforcement FERS Officers, Firefighters, and Air Traffic Controllers

Chapter 54


Section 54B1.1-1 Overview (Cont.)

C. Reference toChapter 50

The following provisions of Chapter 50, subchapter B (the FERSsubchapter), apply under this subchapter:

• Section 50B2.1-2: Length of Service

• Section 50B2.1-3: High-3 Average Salary

• Section 50B3.1-2: Maximum Annuity

• Section 50B3.1-3D-G: Reduction for Survivor Annuity

• Section 50B3.1-4: Additional Annuity -- Voluntary Contributions

• Part 50B4: CSRS Annuity Component

D. Statement of Authority

This subchapter is based on the laws and regulations cited below.

• United States Code: 5 U.S.C. 8415(d), 8416 through 8420, and 8425

• Code of Federal Regulations: 5 CFR 842.405 and Subpart F


Chapter 54


Part 54B2 Components of the Basic Annuity

Section 54B2.1-1 Introduction

A. General FERS basic annuity benefits for law enforcement officers, firefighters, andair traffic controllers are based primarily on:

1. The amount of the employee's creditable service (see Chapter 50,section 50B2.1-2); and

2. The individual's high-3 average salary (see Chapter 50, section50B2.1-3).

B. Reductions inAnnuity

An annuity computed based on the length of service and high-3 averagesalary may be reduced for any or all of the following:

• Election of (or court-ordered) survivor benefits for a current spouseand/or former spouse (see Chapter 50, section 50B3.1-3, paragraph D);

• Election of a survivor benefit to a person with an insurable interest (seeChapter 50, section 50B3.1-3, paragraph G);

• Election of the alternative annuity. (See Chapter 53.)

NOTE: The special benefits for law enforcement officers, firefighters, andair traffic controllers apply only to employees who separate withentitlement to an immediate annuity under the special provisions. Consequently, MRA + 10 and deferred retirement provisionsonly apply to special group employees who separate beforemeeting the age and service requirements for benefits under thespecial provisions.


Chapter 54


Part 54B3 Computation of the Basic Annuity

Section 54B3.1-1 Formula for Computing the Basic Annuity for Law Enforcement Officers,Firefighters, and Air Traffic Controllers

A. Formula The basic annuity for employees eligible to retire under the specialprovisions for law enforcement officers, firefighters, and air trafficcontrollers under FERS (see Chapter 46) is computed as follows:

• 1.7 percent of the high-3 average salary multiplied by 20; plus

• 1 percent of the high-3 average salary multiplied by any additionalcreditable service.

NOTE 1: A retiree annuity supplement is payable before age 62 inaddition to the basic annuity. See Chapter 51, Retiree AnnuitySupplement, for further details.

NOTE 2: See section 54C1.1-1 for the 1.7 percent factor chart, Chart 2. --FERS 1.7 Percent Factor Chart for Law Enforcement Officers,Firefighters, and Air Traffic Controllers.

NOTE 3: The 1.1 percent formula does not apply to individuals who, atthe time of the separation on which retirement is based, are lawenforcement officers, firefighters, or air traffic controllers.

NOTE 4: Subchapter 54C provides examples of annuity computationsusing the special formula for law enforcement officers,firefighters, and air traffic controllers.

B. Employees Witha CSRS AnnuityComponent

Individuals who elect to transfer from CSRS coverage to FERS coverageafter completing 5 or more years of creditable civilian service as of theeffective date of the transfer, excluding service covered by both CSRS andSocial Security deductions, will have a CSRS annuity component.

The CSRS rules in subchapter 54A for creditability of service, calculationof length of service, average salary, reduction for unpaid CSRS deposit(s)and redeposit(s), and voluntary contributions annuity apply to the CSRScomponent of a FERS benefit.


Chapter 54


Section 54B3.1-1 Formula for Computing the Basic Annuity for Law Enforcement Officers,Firefighters, and Air Traffic Controllers (Cont.)

B. Employees Witha CSRS AnnuityComponent(Cont.)

See Part 50B4 in Chapter 50 for a general discussion of computationsinvolving a CSRS annuity component. See subchapter 54C for anillustration of a FERS annuity computation under the special provisions thathas a CSRS component.

NOTE 1: The guaranteed minimum benefit for air traffic controllers underCSRS (see section 54A3.1-2B) cannot be used in computing theCSRS component of an air traffic controller who transfers toFERS. Only the regular CSRS formula will be used incomputing the CSRS component.

NOTE 2: In computing the FERS component, law enforcement,firefighter, or air traffic controller service performed before thetransfer to FERS does not count toward the 20-year limit on the1.7 percent part of the formula described in paragraph A. Forexample, an individual who transfers to FERS after completing13 years of law enforcement, firefighter, or air traffic controllerservice can still accrue up to 20 years under FERS at the 1.7percent rate.

NOTE 3: In computing the CSRS component of a FERS benefit, only theyears and months of law enforcement/firefighter service qualifyfor the 2.5 percent accrual. Any other CSRS component service(such as military and non-law enforcement officer/firefighterservice) would be subject to the 2 percent accrual.


Chapter 54


BLANK PAGE

Special Computation Formulas for Law Enforcement Officers, Firefighters, and Air Traffic Controllers 15Chapter 54

Subchapter 54C Job Aids Section 54C1.1-1 Charts

Chart 1. -- CSRS Factor Chart for Law Enforcement Officers and Firefighters (Formula for computation chart: 2.5% of the high-3 average salarymultiplied by the total service not to exceed 20 years; plus, 2% of the high-3 average salary multiplied by any additional years of creditable serviceexceeding 20 years.)

No. ofYears

0Month

1Month

2Months

3Months

4Months

5Months

6Months

7Months

8Months

9Months

10Months

11Months

12345

0.0250000.0500000.0750000.1000000.125000

0.0270830.0520830.0770830.1020830.127083

0.0291670.0541670.0791670.1041670.129167

0.0312500.0562500.0812500.1062500.131250

0.0333330.0583330.0833330.1083330.133333

0.0354170.0604170.0854170.1104170.135417

0.0375000.0625000.0875000.1125000.137500

0.0395830.0645830.0895830.1145830.139583

0.0416670.0666670.0916670.1166670.141667

0.0437500.0687500.0937500.1187500.143750

0.0458330.0708330.0958330.1208330.145833

0.0479170.0729170.0979170.1229170.147917

678910

0.1500000.1750000.2000000.2250000.250000

0.1520830.1770830.2020830.2270830.252083

0.1541670.1791670.2041670.2291670.254167

0.1562500.1812500.2062500.2312500.256250

0.1583330.1833330.2083330.2333330.258333

0.1604170.1854170.2104170.2354170.260417

0.1625000.1875000.2125000.2375000.262500

0.1645830.1895830.2145830.2395830.264583

0.1666670.1916670.2166670.2416670.266667

0.1687500.1937500.2187500.2437500.268750

0.1708330.1958330.2208330.2458330.270833

0.1729170.1979170.2229170.2479170.272917

1112131415

0.2750000.3000000.3250000.3500000.375000

0.2770830.3020830.3270830.3520830.377083

0.2791670.3041670.3291670.3541670.379167

0.2812500.3062500.3312500.3562500.381250

0.2833330.3083330.3333330.3583330.383333

0.2854170.3104170.3354170.3604170.385417

0.2875000.3125000.3375000.3625000.387500

0.2895830.3145830.3395830.3645830.389583

0.2916670.3166670.3416670.3666670.391667

0.2937500.3187500.3437500.3687500.393750

0.2958330.3208330.3458330.3708330.395833

0.2979170.3229170.3479170.3729170.397917

1617181920

0.4000000.4250000.4500000.4750000.500000

0.4020830.4270830.4520830.4770830.501667

0.4041670.4291670.4541670.4791670.503333

0.4062500.4312500.4562500.4812500.505000

0.4083330.4333330.4583330.4833330.506667

0.4104170.4354170.4604170.4854170.508333

0.4125000.4375000.4625000.4875000.510000

0.4145830.4395830.4645830.4895830.511667

0.4166670.4416670.4666670.4916670.513333

0.4187500.4437500.4687500.4937500.515000

0.4208330.4458330.4708330.4958330.516667

0.4229170.4479170.4729170.4979170.518333

2122232425

0.5200000.5400000.5600000.5800000.600000

0.5216670.5416670.5616670.5816670.601667

0.5233330.5433330.5633330.5833330.603333

0.5250000.5450000.5650000.5850000.605000

0.5266670.5466670.5666670.5866670.606667

0.5283330.5483330.5683330.5883330.608333

0.5300000.5500000.5700000.5900000.610000

0.5316670.5516670.5716670.5916670.611667

0.5333330.5533330.5733330.5933330.613333

0.5350000.5550000.5750000.5950000.615000

0.5366670.5566670.5766670.5966670.616667

0.5383330.5583330.5783330.5983330.618333

2627282930

0.6200000.6400000.6600000.6800000.700000

0.6216670.6416670.6616670.6816670.701667

0.6233330.6433330.6633330.6833330.703333

0.6250000.6450000.6650000.6850000.705000

0.6266670.6466670.6666670.6866670.706667

0.6283330.6483330.6683330.6883330.708333

0.6300000.6500000.6700000.6900000.710000

0.6316670.6516670.6716670.6916670.711667

0.6333330.6533330.6733330.6933330.713333

0.6350000.6550000.6750000.6950000.715000

0.6366670.6566670.6766670.6966670.716667

0.6383330.6583330.6783330.6983330.718333

3132333435

0.7200000.7400000.7600000.7800000.800000

0.7216670.7416670.7616670.781667

0.7233330.7433330.7633330.783333

0.7250000.7450000.7650000.785000

0.7266670.7466670.7666670.786667

0.7283330.7483330.7683330.788333

0.7300000.7500000.7700000.790000

0.7316670.7516670.7716670.791667

0.7333330.7533330.7733330.793333

0.7350000.7550000.7750000.795000

0.7366670.7566670.7766670.796667

0.7383330.7583330.7783330.798333


16 Special Computation Formulas for Law Enforcement Officers, Firefighters, and air Traffic ControllersChapter 54

Chart 2. -- FERS 1.7 Percent Factor Chart for Law Enforcement Officers, Firefighters, and Air Traffic Controllers

Years ofService

0Month

1Month

2Months

3Months

4Months

5Months

6Months

7Months

8Months

9Months

10Months

11Months

12345

0.0170000.0340000.0510000.0680000.085000

0.0184170.0354170.0524170.0694170.086417

0.0198330.0368330.0538330.0708330.087833

0.0212500.0382500.0552500.0722500.089250

0.0226670.0396670.0566670.0736670.090667

0.0240840.0410840.0580840.0750840.092083

0.0255000.0425000.0595000.0765000.093500

0.0269170.0439170.0609170.0779170.094917

0.0283340.0453340.0623340.0793340.096333

0.0297500.0467500.0637500.0807500.097750

0.0311670.0481670.06516700.821670.099167

0.0325830.0495830.0665830.0835830.100583

678910

0.1020000.1190000.1360000.1530000.170000

0.1034170.1204170.1374170.1544170.171417

0.1048330.1218330.1388330.1558330.172833

0.1062500.1232500.1402500.1572500.174250

0.1076670.1246670.1416670.1586670.175667

0.1090830.1260830.1430830.1600830.177083

0.1105000.1275000.1445000.1615000.178500

0.1199170.1289170.1259170.1629170.179917

0.1133330.1303330.1473330.1643330.181333

0.1147500.1317500.1487500.1657500.182750

0.1161670.1331670.1501670.1671670.184167

0.1175830.1345830.1515830.1685830.185583

1112131415

0.1870000.2040000.2210000.2380000.255000

0.1884170.2054170.2224170.2394170.256417

0.1898330.2068330.2238330.2408330.257833

0.1912500.2082500.2252500.2422500.259250

0.1926670.2096670.2266670.2436670.260667

0.1940830.2110830.2280830.2450830.262083

0.1955000.2125000.2295000.2465000.263500

0.1969170.2139170.2309170.2479170.264917

0.1983330.2153330.2323330.2493330.266333

0.1997500.2167500.2337500.2507500.267750

0.2011670.2181670.2351670.2521670.269167

0.2025830.2195830.2365830.2535830.270583

1617181920

0.2720000.2890000.3060000.3230000.340000

0.2734170.2904170.3074170.3244170.340833

0.2748330.2918330.3088330.3258330.341667

0.2762500.2932500.3102500.3272500.342500

0.2776670.2946670.3116670.3286670.343333

0.2790830.2960830.3130830.3300830.344167

0.2805000.2975000.3145000.3315000.345000

0.2819170.1989170.3159170.3329170.345833

0.2833330.3003330.3173330.3343330.346667

0.2847500.3017500.3187500.3357500.347500

0.2861670.3031670.3201670.3371670.348333

0.2875830.3045830.3215830.3385830.349167

2122232425

0.3500000.3600000.3700000.3800000.390000

0.3508330.3608330.3708330.3808330.390833

0.3516670.3616670.3716670.3816670.391667

0.3525000.3625000.3725000.3825000.392500

0.3533330.3633330.3733330.3833330.393333

0.3541670.3641670.3741670.3841670.394167

0.3550000.3650000.3750000.3850000.395000

0.3558330.3658330.3758330.3858330.395833

0.3566670.3666670.3766670.3866670.396667

0.3575000.3675000.3775000.3875000.397500

0.3583330.3683330.3783330.3883330.398333

0.3591670.3691670.3791670.3891670.399167

2627282930

0.4000000.4100000.4200000.4300000.440000

0.4008330.4108330.4208330.4308330.440833

0.4016670.4116670.4216670.4316670.441667

0.4025000.4125000.4225000.4325000.442500

0.4033330.4133330.4233330.4333330.443333

0.4041670.4141670.4241670.4341670.444167

0.4050000.4150000.4250000.4350000.445000

0.4058330.4158330.4258330.4358330.445833

0.4066670.4166670.4266670.4366670.446667

0.4075000.4175000.4275000.4375000.447500

0.4083330.4183330.4283330.4383330.448333

0.4091670.4191670.4291670.4391670.449167



Chapter 54


Section 54C1.1-2 Computation Examples

The examples in this section demonstrate the correct procedures for computing annuity estimates. Eachexample consists of an explanatory text that refers to a completed work sheet immediately following thetext for that example. The circled numbers in the text correspond to circled numbers on the work sheet. The worksheets are identical to those in Chapter 50.

Most of the information needed to perform annuity estimates should be readily available to theemploying agency through sources such as the Official Personnel Folder and payroll records. Occasionally, the employing agency may need to contact OPM for certain kinds of informationconcerning prior employment, unless the employee can provide accurate information from personalrecords. For example, information about refunds of retirement contributions or deposits for militaryservice might not be available at the current employing agency.

Example 1: CSRS firefighter--Optional retirement with full survivor benefits:

Name: Jason FitzpatrickDate of Retirement: 4-30-91

Date of Birth: 4-25-39Civilian Service: 5-1-69 to 4-30-91 Covered Firefighter

ServiceUnused Sick Leave: 1113 hours

High-3 Average Salary: $48,125Survivor Benefits: Based on Full Annuity

±1 Compute age at separation to determine eligibility for retirement:

3191 - 04 - 30 (Date of Retirement)

- 39 - 04 - 25 (Date of Birth)52 - 00 - 06 (Age at Separation)

±2 Compute total service for computation purposes. Enter each period ofservice by following the steps below.

a. Enter the first beginning date of creditable service (5-1-69) in columnA.

b. Enter the last day of the period of service (4-30-91) in column B.

c. Determine whether the period of service is:

Example 1 (Cont.) i. Covered: Retirement deductions were withheld


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NOTE: Periods of LWOP in excess of 6 months in a calendar yearare not creditable. (See Chapter 20, Creditable Service,for more information about creditable service.)

ii. Nondeduction: Retirement deductions were not withheld

NOTE: Determine if nondeduction service occurred before, on orafter October 1, 1982, and whether or not a deposit for theservice has been made. If the nondeduction service wasperformed on or after October 1, 1982, the service countstoward eligibility to retire but is not used to compute theretirement benefit. (See Chapter 21, Service CreditPayments for Civilian Service, for additional information.)

iii. Refunded: Retirement deductions were withheld and refunded

NOTE: If a redeposit for a refund based on a period of serviceending before October 1, 1990, is not paid, the servicecovered by the refund is creditable for both eligibility andcomputation purposes, but the annuity will be actuariallyreduced.

If a redeposit for a refund based on a period of serviceending after September 30, 1990, is not paid, the servicecovered by the refund counts toward eligibility to retire butis not used to compute the retirement benefit. (SeeChapter 21 for more information.)

iv. Military: Military service that is creditable for retirement purposes

NOTE: See Chapter 22, Creditable Military Service, for moreinformation on creditable military service.

v. Part-time: See Chapter 55

d. Subtract column A from column B to determine the total service duringthat period (B - A):

90 - 16 - 3191 - 04 - 30

- 69 - 05 - 0121 - 11 - 30 (22 years)

Example 1 (Cont.) e. Follow steps a through d for subsequent periods of service.

±3 Total the civilian and military periods of service in column D.

±4 Determine how much credit is allowed for unused sick leave by usingChart 2. -- the 2087 Sick Leave Chart provided in Chapter 50, section50C1.1-1:


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1113 hours = 6 months 12 days

±5 Compute the total creditable service by adding the unused sick leave (6months 12 days) to the total civilian and military periods of service.

±6 Compute the total service for computation purposes (22 years6 months) by using whole years and months and dropping any extradays.

±7 Compute the unreduced CSRS annuity.

a. Enter the high-3 average salary ($48,125).

b. Enter the years and months of total service for computation purposes(22 years 6 months).

c. Use Chart 1. -- CSRS Factor Chart for Law Enforcement Officers andFirefighters, provided in section 54C1.1-1, to obtain the retirementfactor for 22 years 6 months of firefighter service (.550000).

d. Multiply the high-3 average salary ($48,125) by the retirement factor(.550000) to obtain the unreduced CSRS annuity ($26,468.75).

±8 Compute the monthly annuity.

a. Enter the unreduced CSRS annuity from step 7 ($26,468.75).

NOTE 1: A reduction for retirement before age 55 does not apply toemployees who retire under the special provisions for lawenforcement officers and firefighters.

NOTE 2: In this example, the employee has no unpaid deposits forservice prior to October 1, 1982.

b. Enter the base selected by the retiree for the survivor annuity. (In thisexample, the retiree has selected the full annuity as the base, or$26,468.75).


Chapter 54


Example 1 (Cont.) c. Multiply the first $3,600 of the base selected by 2.5 percent, whichequals $90.

d. Multiply the remainder over $3,600 ($22,868.75) by 10 percent, whichequals $2,286.88.

e. Total the reduction for survivor annuity ($2,376.88).

f. Subtract the total reduction for survivor annuity ($2,376.88) from theunreduced CSRS annuity ($26,468.75), which equals the annualannuity amount payable ($24,091.87).

g. Divide the annual annuity amount payable ($24,091.87) by 12 andround to the next lower dollar to obtain the monthly annuity rate($2,007).

±9 Compute the monthly survivor annuity.

a. Multiply the amount designated as the survivor base ($26,468.75) by55 percent, which equals the annual survivor rate ($14,557.81).

b. Divide the annual survivor rate ($14,557.81) by 12 and round to thenext lower dollar to obtain the monthly survivor annuity rate ($1,213).


Chapter 54


Example 1 (Cont.)COMPUTATION OF SERVICE CREDIT

YR MO DY31

NAME: Jason Fitzpatrick DATE OF RETIREMENT: 1991 - 04 - 30 DATE OF BIRTH: 1939 - 04 - 25 ±1

AGE: 52 - 00 - 06

TYPE OF SERVICE SHOWN

Gx CSRS

G FERS

G CSRS COMPONENT OF FERSTRANSFEREE

A B C D(Do not list noncreditable

periods of service)

STARTINGYR-MO-DY

ENDINGYR-MO-DY

COVERED/REFUNDED/NONDEDUCTION/MILITARY

YRS MOS DAYS

2± 69-05-01 91-04-30 Covered firefighter 22 0 0

±3 TOTAL CIVILIAN/MILITARY 22 0 0

±4 UNUSED SICK LEAVE * 6 12

±5 TOTAL CREDITABLE SERVICE 22 6 12

±6 TOTAL SERVICE FOR COMPUTATION PURPOSES 22 6

*For FERS transferee use lesser of amount at date of transfer or date of retirement. Do not complete for FERSonly or deferred retirements.


Chapter 54


Example 1 (Cont.)

CSRS NONDISABILITY ANNUITY COMPUTATION

EMPLOYEE ANNUITY COMPUTATION

High-3 Average Salary $ 48,125.00

Retirement Factor ( 22 ) yrs. ( 6 ) mos. x .550000

±7 Unreduced CSRS Annuity $ 26,468.75

Reductions are made for:

1) Under age 55 x

Reduced Annuity $

2) Non-deposit for service prior to 10-1-82 (subtract 10% of depositdue) -

Reduced Annuity $ 26,468.75

3) Survivor Annuity:

Base selected by retiree $26,468.75Amount up to $3600 - 3,600.00 x .025 = $ 90.00 Amount over $3600 = 22,868.75 x .10 = + 2,286.88

Total Reduction = $2,376.88 - 2,376.88

Annual Annuity $ 24,091.87

±8 MONTHLY ANNUITY (Divide by 12, round down to next lower dollar) $ 2,007.00

±9 SURVIVOR ANNUITY COMPUTATION

Amount designated as survivor base $ 26,468.75

Spouse or former spouse entitled to 55% of survivor base x .55

Annual Survivor Annuity $ 14,557.81

MONTHLY SURVIVOR ANNUITY (Divide by 12, round down to next lower dollar) $ 1,213.00


Chapter 54


Example 2: CSRS law enforcement officer--Optional retirement with maximum annuityand full survivor benefits:

Name: Eugene SingerDate of Retirement: 7-30-91

Date of Birth: 8-15-31Civilian Service: 10-1-54 to 7-30-91

Covered Law Enforcement Service:Unused Sick Leave: 1478 hours



90 - 19 - 3191 - 07 - 30 (Date of Retirement)



a. Enter the first beginning date of creditable service (10-1-54) incolumn A.



i. Covered: Retirement deductions were withheld

NOTE: Periods of LWOP in excess of 6 months in acalendar year are not creditable. (See Chapter 20for more information about creditable service.)


NOTE: Determine if nondeduction service occurred before,on or after October 1, 1982 , and whether or not adeposit for the service has been made. If thenondeduction service was performed on or afterOctober 1, 1982, the service counts towardeligibility to retire but is not used to compute theretirement benefit. (See Chapter 21 for additionalinformation.)


Chapter 54


Example 2 (Cont.) iii. Refunded: Retirement deductions were withheld and refunded

NOTE: If a redeposit for a refund based on a period ofservice ending before October 1, 1990, is not paid,the service covered by the refund is creditable forboth eligibility and computation purposes, but theannuity will be actuarially reduced.

If a redeposit for a refund based on a period ofservice ending after September 30, 1990, is notpaid, the service covered by the refund countstoward eligibility to retire but is not used to computethe retirement benefit. (See Chapter 21 for moreinformation.)

iv. Military: Military service that is creditable for retirementpurposes

NOTE: See Chapter 22 for more information on creditablemilitary service.


d. Subtract column A from column B to determine the total serviceduring that period (B - A):

90 - 19 - 3191 - 07 - 30

- 54 - 10 - 0136 - 09 - 30 (36 years 10 months)

e. Follow steps a through d for subsequent periods of service.


±4 Determine how much credit is allowed for unused sick leave by usingthe 2087 Sick Leave Chart provided in Chapter 50, section 50C1.1-1:


±5 Compute the total creditable service by adding the unused sick leave(8 months 15 days) to the total civilian and military periods ofservice.

±6 Compute the total service for computation purposes (37 years 6 months)by using whole years and months and dropping any extra days.


Chapter 54


Example 2 (Cont.) ±7 Compute the unreduced CSRS annuity.



c. Use the CSRS Computation Chart for Law Enforcement Officers andFirefighters provided in section 54C1.1-1 to obtain the appropriateretirement factor. In this example, the retirement factor for themaximum annuity ( which is attained at 35 years of service whenusing the law enforcement/firefighter computation ) is .800000. However, Eugene has 8 months of sick leave that may be creditedabove the maximum amount. The retirement factor for 8 months ofservice is .013333, which is not shown on the CSRS ComputationChart for Law Enforcement Officers and Firefighters -- seecomputation in the following note. Therefore, the retirement factorto be used in this example is .813333 (.800000 plus .013333).

NOTE 1: For each year of service over 20 years, a lawenforcement officer or firefighter receives 2 percent ofhis or her high-3 average salary. Thus, to obtain theretirement factor for the 8 months of unused sick leavethat may be used in excess of the maximum annuity,multiply:

8 months12 months (.666666) x 2 percent = .013333

NOTE 2: The employee will be eligible for a refund of excessdeductions withheld after reaching the 80 percentlimitation. ( See 50A3.1-2(C). )

d. Multiply the high-3 average salary ($65,448) by the retirement factor(.813333), which equals the unreduced CSRS annuity ($53,231.02).



NOTE 1: A reduction for retirement before age 55 does not applyto employees who retire under the special provisions forlaw enforcement officers and firefighters.


Chapter 54


Example 2 (Cont.) NOTE 2: In this example, the employee has no unpaid deposits forservice prior to October 1, 1982.

b. Enter the base selected by the retiree for the survivor annuity. (Inthis example, the retiree has selected the full annuity as the base, or$53,231.02)

c. Multiply the first $3,600 of the base selected by 2.5 percent, whichequals $90.

d. Multiply the remainder over $3,600 ($49,631.02) by 10 percent,which equals $4,963.10.


f. Subtract the total reduction for survivor annuity ($5,053.10) fromthe unreduced CSRS annuity ($53,231.02), which equals the annualannuity amount payable ($48,177.92).




b. Divide the annual survivor rate ($29,277.06) by 12 and round to thenext lower dollar to obtain the monthly survivor annuity rate($2,439).


Chapter 54



YR MO DY

1990 19 31NAME: Eugene Singer DATE OF RETIREMENT: 1991 - 07 - 30 DATE OF BIRTH: 1931 - 08 - 15 ±1

AGE: 59 - 11 - 16TYPE OF SERVICE SHOWN

Gx CSRS

G FERS



periods of service)

STARTINGYR-MO-DY

ENDINGYR-MO-DY


YRS MOS DAYS

±2 54-10-01 91-07-30 Covered law enforcement 36 10 0





*For FERS transferee use lesser of amount at date of transfer or date of retirement. Do not complete for FERS onlyor deferred retirements.


Chapter 54


Example 2 (Cont.)







1) Under age 55 x

Reduced Annuity $




Base selected by retiree $53,231.02Amount up to $3600 - 3,600.00 x .025 = $ 90.00Amount over $3600 = 49,631.02 x .10 = + 4,963.10

Total Reduction = $5,053.10 - 5,053.10









Chapter 54


Example 3: CSRS air traffic controller--Guaranteed minimum annuity with full survivorbenefits:

Name: Geraldine MartlingDate of Retirement: 8-1-91

Date of Birth: 11-5-40Civilian Service: 7-12-68 to 8-1-91 Covered Air

Traffic Controller ServiceUnused Sick Leave: 638 hours



19 - 3290 - 07 - 0291 - 08 - 01 (Date of Retirement)







NOTE: Periods of LWOP in excess of 6 months in a calendar yearare not creditable. (See Chapter 20 for more informationabout creditable service.)


NOTE: Determine if nondeduction service occurred before, on orafter October 1, 1982, and whether or not a deposit for theservice has been made. If the nondeduction


Chapter 54


Example 3 (Cont.) service was performed on or after October 1, 1982, theservice counts toward eligibility to retire but is not used tocompute the retirement benefit. (See Chapter 21 foradditional information.)


NOTE: If a redeposit for a refund based on service ending beforeOctober 1, 1990, is not paid, the service covered by therefund will be used to compute the employee's annuityunder the general formula, but the annuity will beactuarially reduced. The annuity will not be reducedbelow the guaranteed minimum 50 percent benefit unlessthe service covered by the refund was air traffic controllerservice.

If a redeposit for a refund based on a period of serviceending after September 30, 1990, is not paid, or deemedpaid under the alternative annuity provision, the servicecounts toward eligibility to retire, but is not used tocompute the retirement benefit. (See Chapter 21 for moreinformation.) The 50 percent guaranteed minimumbenefit can still be paid unless the service for which theredeposit is owed is air traffic controller service.


NOTE: See Chapter 22 for more information on creditable militaryservice.



3207 - 02

91 - 08 - 01- 68 - 07 - 12

23 - 00 - 20 (23 years 20 days)


Chapter 54


Example 3 (Cont.) e. Follow steps a through d for subsequent periods of service.




±5 Compute the total creditable service by adding the unused sick leave (3months 20 days) to the total civilian and military periods of service.

±6 Compute the total service for computation purposes (23 years 4months) by using whole years and months and dropping any extradays.




c. For air traffic controllers who retire with at least 20 years but less than26 years and 11 months of air traffic controller service, the retirementfactor is .500000. Otherwise, use the CSRS General FormulaComputation Chart provided in Chapter 50, section 50C1.1-1.




NOTE 1: A reduction for retirement before age 55 does not apply toemployees who retire under the special provisions for airtraffic controllers.



Chapter 54


Example 3 (Cont.) b. Enter the base selected by the retiree for the survivor annuity. (In thisexample, the retiree has selected the full annuity as the base, or$25,869.50).


d. Multiply the remainder over $3,600 ($22,269.50) by 10 percent, whichequals $2,226.95.


f. Subtract the total reduction for survivor annuity ($2,316.95) from theunreduced CSRS annuity ($25,869.50), which equals the annualannuity amount payable ($23,552.55).






Chapter 54



YR MO DY

1990 - 19 - 32NAME: Geraldine Martling DATE OF RETIREMENT: 1991 - 08 - 01

DATE OF BIRTH: 1940 - 11 - 05 ±1AGE: 50 - 08 - 27


Gx CSRS

G FERS



periods of service)

STARTINGYR-MO-DY

ENDINGYR-MO-DY


YRS MOS DAYS

±2 68-07-12 91-08-01 Covered air traffic controller 23 0 20







Chapter 54


Example 3 (Cont.)







1) Under age 55 x

Reduced Annuity $




Base selected by retiree $25,869.50Amount up to $3600 - 3,600.00 x .025 = $ 90.00Amount over $3600 = 22,269.50 x .10 = + 2,226.95

Total Reduction = $2,316.95 - 2,316.95









Chapter 54


Example 4: CSRS air traffic controller--Earned annuity with less than full survivorbenefits:

Name: Russell CanfieldDate of Retirement: 9-30-91

Date of Birth: 10-6-31Military Service: 5-12-53 to 9-30-63Civilian Service: 9-24-71 to 10-1-91 -

Covered air traffic controller serviceUnused Sick Leave: 1072 hours

High-3 Average Salary: $60,815Survivor Benefits: Based on Less than Full Annuity









NOTE: Periods of LWOP in excess of 6 months in a calendar yearare not creditable. (See Chapter 20 for more informationabout creditable service.)


NOTE: Determine if nondeduction service occurred before, on orafter October 1, 1982, and whether or not a deposit for theservice has been made. If the nondeduction service wasperformed on or after October 1, 1982, the service countstoward eligibility to retire but is not used to compute theretirement benefit. (See Chapter 21 for additionalinformation.)


Chapter 54



NOTE: If a redeposit for a refund based on service ending beforeOctober 1, 1990, is not paid, the service covered by therefund will be used to compute the employee's annuityunder the general formula, but the annuity will beactuarially reduced. The annuity will not be reducedbelow the guaranteed minimum 50 percent benefit unlessthe service covered by the refund was air traffic controllerservice.

If a redeposit for a refund based on a period of serviceending after September 30, 1990, is not paid, or deemedpaid under the alternative annuity provision, the servicecounts toward eligibility to retire, but is not used tocompute the retirement benefit. (See Chapter 21 for moreinformation.) The 50 percent guaranteed minimumbenefit can still be paid unless the service for which theredeposit is owed is air traffic controller service.


NOTE: See Chapter 22 for more information about creditablemilitary service.



3163 - 09 - 30

- 53 - 05 - 1210 - 04 - 19 (10 years 4 months 19 days)






Chapter 54


Example 4 (Cont.) ±5 Compute the total creditable service by adding the unused sick leave(6 months 5 days) to the total civilian and military periods of service.

±6 Compute the total service for computation purposes (30 years11 months) by using whole years and months and dropping any extradays.




c. For air traffic controllers who retire with at least 20 years but less than26 years and 11 months of air traffic controller service, the retirementfactor is .500000. Otherwise, use the CSRS General FormulaComputation Chart provided in Chapter 50, section 50C1.1-1. In thisexample, the appropriate retirement factor for 30 years 11 months ofservice (.580833) must be obtained from the CSRS General FormulaComputation Chart.




NOTE 1: A reduction for retirement before age 55 does not apply toemployees who retire under the special provisions for airtraffic controllers.


b. Enter the base selected by the retiree for the survivor annuity. (In thisexample, the retiree has selected less than the full annuity, or $20,000,as the base.)


Example 4 (Cont.) d. Multiply the remainder over $3,600 ($16,400) by 10 percent, whichequals $1,640.

e. Total the reduction for survivor annuity ($1,730).


Chapter 54


f. Subtract the total reduction for survivor annuity ($1,730) from theunreduced CSRS annuity ($35,323.36), which equals the annualannuity amount payable ($33,593.36).



a. Multiply the amount designated as the survivor base ($20,000) by 55percent, which equals the annual survivor rate ($11,000).

b. Divide the annual survivor rate ($11,000) by 12 and round to the nextlower dollar to obtain the monthly survivor annuity rate ($916).


Chapter 54



YR MO DY

1990 21 31NAME: Russell Canfield DATE OF RETIREMENT: 1991 - 09 - 30 DATE OF BIRTH: 1931 - 10 - 06 ±1

AGE: 59 - 11 - 25


Gx CSRS

G FERS



periods of service)

STARTINGYR-MO-DY

ENDINGYR-MO-DY


YRS MOS DAYS

±2 53-05-12 63-09-30 Military 10 4 19

71-09-24 91-10-01 Covered air traffic controller 20 0 8





*For FERS transferee use lesser of amount at date of transfer or date of retirement. Do not complete for FERS, onlyor deferred retirements.


Chapter 54


Example 4 (Cont.)







1) Under age 55 x

Reduced Annuity $




Base selected by retiree $20,000.00Amount up to $3600 - 3,600.00 x .025 = $ 90.00 Amount over $3600 = 16,400.00 x .10 = + 1,640.00

Total Reduction = $1,730.00 - 1,730.00







MONTHLY SURVIVOR ANNUITY (Divide by 12, round down to next lower dollar) $ 916.00


Chapter 54


Example 5: FERS firefighter--Optional retirement with less than full survivor benefits:

Name: Vivian DanielsDate of Retirement: 2-28-2013

Date of Birth: 2-17-1965Civilian Service: 3-1-1987 to 2-28-2013

Covered Firefighter ServiceHigh-3 Average Salary: $54,836

Survivor Benefits: Based on One-half Annuity


292013 - 02 - 28 (Date of Retirement)



a. Enter the first appointment date of creditable service (3-1-87) incolumn A.




NOTE: Periods of LWOP in excess of 6 months in a calendar yearare not creditable. (See Chapter 20 for more informationabout creditable covered service.)


NOTE: Under FERS, nondeduction service performed prior toJanuary 1, 1989, is creditable only if a deposit is made forthe service. Nondeduction service performed on or afterJanuary 1, 1989, is not creditable. (See Chapter 21 foradditional information about service credit payments forcivilian service.)


Chapter 54



NOTE: Redeposit cannot be made for FERS service. Refundedservice is not creditable for either eligibility orcomputation purposes. (See Chapter 21.)





2012 - 14 - 312013 - 02 - 28

- 1987 - 03 - 0125 - 11 - 30 (26 years)



±4 Compute the total service for computation purposes (26 years) by usingwhole years and months and dropping any extra days.

±5 Compute the unreduced FERS basic annuity.


b. Enter the years and months of total service for computation purposes(26 years).

c. Use the FERS 1.7 Percent Accrual Factor Chart provided in section54C1.1-1 to obtain the retirement factor for 26 years service(.400000).

d. Multiply the high-3 average salary ($54,836) by the retirement factor(.400000), which equals the unreduced FERS basic annuity($21,934.40).


Chapter 54


Example 5 (Cont.) ±6 Compute the monthly annuity.

a. Enter the unreduced FERS basic annuity from step 5 ($21,934.40).

NOTE: A reduction for age does not apply for employees retiringunder the special provisions for law enforcement officers,firefighters, and air traffic controllers.

b. Enter the base selected by the retiree for the survivor annuity($10,967.20).

c. Multiply the base selected ($10,967.20) by 10 percent, which equalsthe total survivor reduction ($1,096.72).

d. Subtract the total survivor reduction ($1,096.72) from the basic annuity($21,934.40), which equals the annual annuity ($20,837.68).

e. Divide the annual annuity ($20,837.68) by 12 and round to the nextlower dollar to obtain the monthly annuity amount payable ($1,736).



b. Divide the annual survivor rate ($5,483.60) by 12 and round to thenext lower dollar to obtain the monthly survivor annuity rate ($456).


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YR MO DY29

NAME: Vivian Daniels DATE OF RETIREMENT: 2013 - 02 - 28DATE OF BIRTH: 1965 - 02 - 17 ±1

AGE: 48 - 00 - 12


G CSRS

Gx FERS



periods of service)

STARTINGYR-MO-DY

ENDINGYR-MO-DY


YRS MOS DAYS

±2 1987-03-01 2013-02-28 Covered firefighter 26 0 0


UNUSED SICK LEAVE *

TOTAL CREDITABLE SERVICE




Chapter 54


Example 5 (Cont.)

FERS BASIC ANNUITY COMPUTATIONNONDISABILITY


±5 High-3 Average Salary $ 54,836.00


Unreduced FERS Basic Annuity $ 21,934.40


1) Under age 62 (not 60/20 or MRA/30) x



Base selected by retiree $10,967.20 (full or one-half)x .10

Total reduction $ 1,096.72

- 1,096.72




Survivor Base Selected (full or one-half) $ 10,967.20





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Example 6: FERS air traffic controller--Optional retirement with full survivor benefits:

Name: Eric DeMottDate of Retirement: 5-30-2008

Date of Birth: 12-26-1953Civilian Service: 5-22-1988 to 5-30-2008 -

Covered Air Traffic Controller ServiceHigh-3 Average Salary: $58,906

Survivor Benefits: Based on Full Annuity













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312008 - 05 - 30

- 1988 - 05 - 2220 - 00 - 09 (20 years 9 days)



±4 Compute the total service for computation purposes (20 years) by usingwhole years and months and dropping any extra days.

±5 Compute the unreduced FERS basic annuity.


b. Enter the years and months of total service for computation purposes(20 years).

c. Use the FERS 1.7 Percent Accrual Factor Chart provided in section54C1.1-1 to obtain the retirement factor for 20 years of air trafficcontroller service (.340000).

d. Multiply the high-3 average salary ($58,906) by the retirement factor(.340000), which equals the unreduced FERS basic annuity($20,028.04).


Chapter 54


Example 6 (Cont.) ±6 Compute the monthly annuity.

a. Enter the unreduced FERS basic annuity from step 5 ($20,028.04).



c. Multiply the base selected ($20,028.04) by 10 percent, which equalsthe total survivor reduction ($2,002.80).

d. Subtract the total survivor reduction ($2,002.80) from the basic annuity($20,028.04), which equals the annual annuity ($18,025.24).

e. Divide the annual annuity ($18,025.24) by 12 and round to the nextlower dollar to obtain the monthly annuity amount payable ($1,502).



b. Divide the annual survivor rate ($10,014.02) by 12 and round to thenext lower dollar to obtain the monthly survivor annuity rate ($834).


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YR MO DY

2007 17 31NAME: Eric DeMott DATE OF RETIREMENT: 2008 - 05 - 30

DATE OF BIRTH: 1953 - 12 - 26 ±1AGE: 54 - 05 - 05


G CSRS

Gx FERS



periods of service)

STARTINGYR-MO-DY

ENDINGYR-MO-DY


YRS MOS DAYS

±2 1988-05-22 2008-05-30 Covered air traffic controller 20 0 9


UNUSED SICK LEAVE *

TOTAL CREDITABLE SERVICE




Chapter 54


Example 6 (Cont.)

FERS BASIC ANNUITY COMPUTATIONNONDISABILITY


±5 High-3 Average Salary $ 58,906.00









- 2,002.80









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Example 7: FERS law enforcement officer who transferred to FERS--Optionalretirement with full survivor benefits:

Name: Dale RichmondDate of Retirement: 1-31-2001

Date of Birth: 12-13-1950Military Service: 9-6-1970 to 9-5-1972Civilian Service: 6-20-1976

Career Appointment(CSRS)12-20-1987 Transfer (FERS)1-31-2001 Retired

Unused Sick Leave: Date of Transfer = 1500 hoursDate of Retirement = 916 hours



2000 - 13 2001 - 01 - 31 (Date of Retirement)


±2 Compute CSRS service for computation purposes. Enter each periodof service by following the steps below.







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Example 7 (Cont.) ii. Nondeduction: Retirement deductions were not withheld

NOTE: Under CSRS, determine if nondeduction service occurredbefore, on or after October 1, 1982, and whether or not adeposit for the service has been made. If the nondeductionservice was performed on or after October 1, 1982, theservice counts toward eligibility to retire but is not used tocompute the retirement benefit. (See Chapter 21 foradditional information.)


NOTE: Under CSRS, if a redeposit for a refund based on a periodof service ending before October 1, 1990, is not paid, theservice covered by the refund is creditable for botheligibility and computation purposes, but the annuity willbe actuarially reduced.

If a redeposit for a refund based on a period of serviceending after September 30, 1990, is not paid, the servicecovered by the refund counts toward eligibility to retire butis not used to compute the retirement benefit. (SeeChapter 21 for more information.)





0672 - 09 - 05

- 70 - 09 - 0602 - 00 - 00 (2 years)

e. Follow steps a through d for subsequent periods of CSRS service untilthe day before the date of transfer (12-19-87).


Chapter 54


Example 7 (Cont.) ±3 Total the civilian and military periods of service in column D.



NOTE: Creditable sick leave applied to the CSRS component for aFERS transferee is the lesser of the balance accrued effectiveon:

• The date of transfer to FERS; or• The date of retirement.

±5 Compute the total CSRS creditable service by adding the unused sickleave (5 months 8 days) to the total civilian and military periods ofservice.

±6 Compute the total CSRS service for computation purposes (13 years 11months) by using whole years and months and dropping any extradays.

±7 Compute FERS creditable service for annuity computation purposes.

a. Enter periods of creditable service beginning with the date of transfer(12-20-87).

b. Determine whether the period of service is:






Chapter 54







c. Total the civilian and military periods of service in column D(13 years 1 month 11 days).

NOTE: No credit for unused sick leave is applied to the FERS service.

d. Compute the total service for computation purposes (13 years1 month) by using whole years and months and dropping any extradays.

±8 Compute unreduced CSRS basic annuity.


b. Enter the years and months of CSRS service from step 6 above(13 years 11 months).

c. Use Chart 1, the CSRS Computation Chart for Law EnforcementOfficers and Firefighters, provided in section 54C1.1-1 to obtain theretirement factor for 11 years 6 months of law enforcement service(.287500). A separate retirement factor must be used for the 2 years 5months of additional service (2 years of military service and 5 monthsof sick leave) because the employee is not entitled to the 2.5 percentaccrual for service other than law enforcement service (see section54A3.1-1). To obtain the factor for the non-law enforcement service,multiply .02 by the factor for 2 years 5 months, using the 360 DayFactor Chart in Chapter 50, section 50C1.1-1 (.02 x 2.416667 =.048333). The combined retirement factor for the CSRS earned benefitis, therefore, .335833 (.287500 plus .048333).


Chapter 54


Example 7 (Cont.) d. Multiply the high-3 average salary ($58,613) by the retirement factor(.335833), which equals the CSRS earned annuity benefit($19,684.18).

±9 Compute reduced CSRS annuity.

The reduction for retirement under age 55 does not apply to employeeswho retire under the special provisions for law enforcement officers andfirefighters. In addition, the employee in this example does not owe adeposit for nondeduction service performed before October, 1 1982. Therefore, the reduced CSRS annuity is $19,684.18.

±10 Compute the FERS basic annuity.


b. Enter the years and months of FERS service from step 7 (13 years1 month).

c. The FERS 1.7 Percent Accrual Factor Chart in section 54C1.1-1should be used to obtain the retirement factor for 13 years 1 month oflaw enforcement service (.222417).

d. Multiply the retirement factor (.222417) by the high-3 average salary($58,613), which equals the FERS earned basic annuity benefit($13,036.53).

±11 Compute the total monthly basic annuity.

a. Add the FERS earned annuity from step 10 ($13,036.53) to the CSRSearned annuity from step 9 ($19,684.18), which equals the totalunreduced basic annuity ($32,720.71).



c. Multiply the base selected ($32,720.71) by 10 percent, which is thetotal survivor reduction ($3,272.07).


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Example 7 (Cont.) d. Subtract the total survivor reduction ($3,272.07) from the totalunreduced basic annuity ($32,720.71), which equals the annual basicannuity ($29,448.64).

e. Divide the annual basic annuity ($29,448.64) by 12 and round to thenext lower dollar to obtain the monthly annuity rate ($2,454).





Chapter 54



YR MO DY

2000 13 NAME: Dale Richmond DATE OF RETIREMENT: 2001 - 01 - 31 DATE OF BIRTH: 1950 - 12 - 13 ±1


G CSRS

G FERS

Gx CSRS COMPONENT OF FERSTRANSFEREE


periods of service)

STARTINGYR-MO-DY

ENDINGYR-MO-DY


YRS MOS DAYS

±2 70-09-06 72-09-05 Military 2 0 0

76-06-20 87-12-19 Covered law enforcement 11 6 0







Chapter 54



YR MO DY

2000 13 NAME: Dale Richmond DATE OF RETIREMENT: 2001 - 01 - 31 DATE OF BIRTH: 1950 - 12 - 13


G CSRS

Gx FERS



periods of service)

STARTINGYR-MO-DY

ENDINGYR-MO-DY


YRS MOS DAYS

±7 1987-12-20 2001-01-31 Covered law enforcement 13 1 11

TOTAL CIVILIAN/MILITARY

UNUSED SICK LEAVE *

TOTAL CREDITABLE SERVICE 13 1 11

TOTAL SERVICE FOR COMPUTATION PURPOSES 13 1



Chapter 54


Example 7 (Cont.)

FERS TRANSFEREE NONDISABILITYANNUITY COMPUTATION

CSRS BASIC ANNUITY COMPUTATION


Retirement Factor for CSRS service ( 13 ) yrs. ( 11 ) mos. x .335833

±8 Unreduced CSRS Basic Annuity $ 19,684.18


1) Under age 55 x

Reduced CSRS Annuity $

2) Non-deposit for service prior to 10-1-82 (Subtract 10% of deposit due) -

±9 Reduced CSRS Annuity $ 19,684.18

FERS BASIC ANNUITY COMPUTATION ±10


Retirement Factor for FERS service ( 13 ) yrs. ( 01 ) mos. x .222417



Chapter 54


Example 7 (Cont.)

FERS TRANSFEREE NONDISABILITYANNUITY COMPUTATION

(Continued)

TOTAL BASIC ANNUITY COMPUTATION ±11

Unreduced FERS Basic Annuity $13,036.53 + Reduced CSRS Annuity $19,684.18 $ 32,720.71







- 3,272.07


MONTHLY BASIC ANNUITY (Divide by 12, round down to next lower dollar) $ 2,454.00

SURVIVOR ANNUITY COMPUTATION ±12




MONTHLY SURVIVOR ANNUITY (Divide by 12, round down to next lowerdollar)

$ 1,363.00

csrs special computation formulas for law enforcement fers ... · officers, firefighters, and air...

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