This is a quick question for Federal CSRS types (or anyone).* I retired a couple of months ago.* I worked a variety of civil service jobs during and after college.* These were all temporary appointments, and Social Security was deducted rather than CSRS.*
OPM allows you to deposit the amount that would have been deducted for CSRS, plus interest, in order to increase your annuity permanently.* The rule that applies to me is as follows:
For nondeduction service performed before October 1, 1982, you will receive credit toward your retirement annuity.* Your annuity will be permanently reduced by 10% of the amount due as a deposit.* For example, if a deposit of $600 is required and it is not paid, the annuity is permanently reduced by $60 a year (or $5 a month).* On the other hand, if a deposit of $600 is made, it will increase the annuity by $60 a year.
Both my previous employer's retirement counselor, and a couple of OPM specialists have told me that practically nobody chooses to deposit for time "early in their career."* I am having trouble understanding why not.* Now, I am more than a little irritated because my previous employer advised me OPM would give me one last chance to deposit for my temporary service.* However, my OPM claim has now been adjudicated, and I am seeing at least some guidance that I am no longer allowed to deposit for temporary service since my claim has reached "final adjudication."
We're not talking a huge amount of money here, less than $500/year for about a $5000 deposit.* Before I decide to lock horns, churn out paper, and probably ultimately lose, can anyone explain why most people would choose not to deposit?* Does anyone have any experience with either a CSRS deposit or redeposit?