T
tozz
Guest
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?
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?
