Q. How is a retirement annuity calculated for someone who switched from CSRS to FERS?
A. Individuals can transfer from CSRS to FERS in an open season (there have only been two of them and the most recent one was almost 20 years ago), or if they leave federal employment and return after a break in service of three days or more.
Transferees (also called TransFERS employees) get both a CSRS annuity (covering the years they worked under CSRS) and a FERS annuity (covering the years they worked under FERS).
Let’s say that an employee left federal service after spending 15 years under CSRS and, upon their return to federal service, elected to be covered under FERS. They retired after having worked 18 years under FERS. This employee has a high-three salary of $75,000.
| Years of service | Percentage factor | Amount |
|---|---|---|
| 15 years of CSRS | 26.25% | $19,687.50 |
| 18 years of FERS |
18% at the 1% factor 19.8% at the 1.1% factor |
$13,500 $14,850 |
| Total pension |
If FERS time = 1% If FERS time = 1.1% |
$33,187.50 $34,537.50 |
The CSRS part of the pension would receive CSRS cost-of-living adjustments, while the FERS part would receive FERS cost-of-living adjustments. Survivor benefits would be based strictly on FERS rules. Rules for deposit service, redeposit service and military deposits would be based on when the service took place.
