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Who is covered, how the annuity is figured from your High-3, and the four things that move the number after that.
What CSRS is and who it covers
Civilian employees of the federal government hired before January 1, 1984 qualify for the Civil Service Retirement System. The position held must be classified as a CSRS covered position.
Contributions are withheld automatically, and all of them are made after taxes. Eligibility is determined by your age and your years of creditable service.
What you receive in retirement comes down to two things: the length of your creditable service, and your High-3 Average Salary.
How your CSRS annuity is figured
Your High-3 Average Salary is the highest average basic salary you earned during any three consecutive years of service. For most employees the final three years on the job are the highest paid. That is not true for everyone, so the High-3 may be calculated from an earlier three-year period in your career.
If your total service was under three years, the average is simply calculated across all of your creditable work periods.
Social Security
The vast majority of CSRS employees are not eligible for Social Security, because CSRS employees do not pay into the Social Security system over the course of their careers.
FERS employees pay the standard 6.2 percent of salary into Social Security with each paycheck, and receive a standard Social Security benefit in retirement.
What changes your CSRS benefit
Four things change the number after the service time and the High-3 are settled. Each one is worth deciding on purpose rather than by default.
The retirement option you pick
A single life annuity pays a benefit for your life only and pays more. A survivor annuity pays less, and continues a reduced benefit to your spouse after you die. This is the choice people make in the last two weeks, and it cannot be undone.
The age you retire
Generally, the earlier you go, the lower the benefit. The annuity is meant to provide the same level of income across your lifetime, so leaving earlier means paying it out over a longer period.
Deposits and redeposits
If you previously withdrew contributions from the retirement fund, you may need to make a deposit or redeposit to receive full benefits. The amount depends on how long you were in covered employment and how much was withdrawn.
Disability retirement
If you are approved for disability retirement, the benefit may be higher than a regular retirement, because it is intended to replace a higher percentage of your pre-disability salary.
Keep reading
Run these rules against your own record.
A counselor walks your annuity, deposits and survivor elections using your service computation date, not a general example.
CSRS questions we get asked most
Who is covered by CSRS?
Civilian federal employees hired before January 1, 1984, in a position classified as CSRS covered. Contributions are withheld automatically and all of them are made after taxes.
What is the High-3 average salary?
Your High-3 is the highest average basic salary you earned during any three consecutive years of service. For most employees that is the final three years on the job, but not for everyone, so the High-3 may come from an earlier period in your career. If your total service was under three years, the average is taken across all your creditable work periods.
Does overtime or a bonus count toward my High-3?
No. Only basic pay counts. Overtime, bonuses and any other payment beyond basic salary are excluded.
How much do CSRS employees contribute?
Regular CSRS employees contribute 7.0 percent of salary. Special provision employees, meaning law enforcement, firefighters and air traffic controllers, contribute 7.5 percent. All of it is withheld after taxes.
Do CSRS employees get Social Security?
The vast majority do not, because CSRS employees do not pay into Social Security over the course of their careers. Where a CSRS retiree does qualify through other work, those benefits are reduced by the amount of the CSRS pension.
What is CSRS Offset?
CSRS Offset works the other direction from regular CSRS. The pension is reduced by the amount of Social Security received, rather than the Social Security benefit being cut.
What changes my CSRS benefit after service time and High-3 are set?
Four things. The retirement option you pick, single life or survivor. The age you retire, since going earlier generally means a lower benefit spread over a longer period. Any deposit or redeposit you owe. And whether you are approved for disability retirement.
What is a deposit or redeposit?
If you previously withdrew contributions from the retirement fund, you may need to pay money back in to receive full benefits. The amount depends on how long you were in covered employment and how much was withdrawn.
Should I take the single life annuity or the survivor annuity?
A single life annuity pays a benefit for your life only, and it pays more. A survivor annuity pays less and continues a reduced benefit to your spouse after you die. This is the decision people most often make in the last two weeks before filing, and it cannot be undone. It is worth deciding on purpose.
Does disability retirement pay more?
It can. A disability retirement benefit may be higher than a regular retirement, because it is meant to replace a higher percentage of your pre-disability salary.
Still have a question? A counselor will answer it against your own record. Request a free review or call 210-660-4040.