FERS hired between 1984 and 1987

[shovelhead]

Hi all,
Been on the phone with G1, ABC, CHRA, numerous times. Searched the internet high and low and can't find the answer to my question that may impact anyone hired between 84 and 87.
If you are one of those, recall there was no FERS at the time. No CSRS for us either. No retirement at all. When I go to OPM calculator and enter my SCD of JULY 1984 it does not let me, says there was no FERS until 1987.
Everyone at HR either doesn't know what to make of it, or says I have to buy back that time with 1.3% contribution of my salary at that time...PLUS interest for all these years, meaning to buy back 3 years, I'd have to retire now and live to 100 to break even given I lost 3 years of service. Anyone experienced this dilemma?
Or can lead me to another forum I haven't discovered yet that covers this ?
Thanks much!
Shovel

 

[justjeff]

I am sorry that I do not have an answer for you, but I sure will be paying attention myself as I entered on duty on 10/27/1985.

 

[kb9nvh]

I was looking at this recently trying to use the calculators and it said somewhere that if you are in that special circumstance (I am as I hired in Jan of 1984), then you have to call and have someone do it manually. Of course I called in and waited on hold for 45 minutes. Guess we have to work until 62 like everyone else..

Hi all,
Been on the phone with G1, ABC, CHRA, numerous times. Searched the internet high and low and can't find the answer to my question that may impact anyone hired between 84 and 87.
If you are one of those, recall there was no FERS at the time. No CSRS for us either. No retirement at all. When I go to OPM calculator and enter my SCD of JULY 1984 it does not let me, says there was no FERS until 1987.
Everyone at HR either doesn't know what to make of it, or says I have to buy back that time with 1.3% contribution of my salary at that time...PLUS interest for all these years, meaning to buy back 3 years, I'd have to retire now and live to 100 to break even given I lost 3 years of service. Anyone experienced this dilemma?
Or can lead me to another forum I haven't discovered yet that covers this ?
Thanks much!
Shovel

 

[nnuut]

Welcome to the Forum shovelhead. I have never heard of anyone having that problem, but I was CSRS and just told them NO I don't want to switch to FERS! Hang in there, we have a very large and knowledgeable group of members here and someone will probably post something that could help you out.
Norman

 

[James48843]

Boy- you got me on that one.


Everything I've been able to dig up says you qualify for FERS, but I also found some stuff that says you had six months in 1987 to make a deposit for it.

Check this doc out- especially around pages 41 to 45.

http://www.opm.gov/retirement-services/publications-forms/csrsfers-handbook/c010.pdf

Let us know what you find out.

Good luck!

 

[shovelhead]

Thanks nnuut. Been lurking for awhile and in the birch tree camp. Lol! James thanks. Don't know how many entered service during that time but I don't recall being afforded an opportunity to buy in once fers started and it would of only costed me a few hundred bucks vs thousands now

 

[Scout333]

Page 2 of information provided by James. May give you a start.

D.
CSRS Interim
1.
CSRS Interim
is a version of CSRS established pending creation of a
new retirement system for employees first hired after December 31,
1983, and certain rehires.
2.
Employees covered by CSRS Interim provisions paid OASDI taxes and
a reduced CSRS contribution. CSRS retirement and survivor benefits
are offset by the value of the interim service in Social Security benefits.
3.
When FERS became effective, employees with CSRS Interim coverage
acquired either FERS or CSRS Offset coverage

 

[clester]

I was hired in 1984 and retired in 2010. Got all 26 years of FERS in my retirement. I was ATC so I got 1.7 % for first 20 then 1% for the last 6 for 40% of high 3.

I would just use last years salary (the middle of last 3) times % FERS for a good guess. Don't forget that you only get about 1/3 of full retirement including supplement until they get you all processed. Takes about 6 months. They don't give you the supplement until they start the full amount but you get the back pay and temporary pension is about 80% so it's low to start

 

[nasa1974]

I would have to do a little more research but I believe you would be classified a CSRS Offset Employee until January 1, 1987 when you would fall into FERS. I know a few folks that retired just before me that fell into this catagory.

Here is a link that might help;
http://www.opm.gov/retirement-services/publications-forms/pamphlets/ri83-19.pdf

 

[RazorCat]

I would have to do a little more research but I believe you would be classified a CSRS Offset Employee until January 1, 1987 when you would fall into FERS. I know a few folks that retired just before me that fell into this catagory.

Here is a link that might help;
http://www.opm.gov/retirement-services/publications-forms/pamphlets/ri83-19.pdf

I retired Dec. 31, 2013. They classified as CSRS-Offset from 8/14/84 (EOD date) thru 1987. From Jan. 1, 1988 - Dec. 31, 2013 I was classified as FERS.

 

[shovelhead]

I retired Dec. 31, 2013. They classified as CSRS-Offset from 8/14/84 (EOD date) thru 1987. From Jan. 1, 1988 - Dec. 31, 2013 I was classified as FERS.

so what did you get for t hose 3 years as a CSRS offset? do you get those years of service to calculate the pension? Its still unclear for me if I retire with 35 years of SERVICE, will they use 32X or 35X the high three avg and 1.1%?

 

[Talan150]

I was hired in on 1 Oct 1985 and block 19 of my Leave and Earning statement says FERS and i have been getting matching funds so I guess I am FERS. Don't know if that helps.

 

[kb9nvh]

During the 3 year offset you paid into CSRS some reduced amount so if they exclude those years from FERS then they would have to make it up with CSRS some how.
All I know is that my Service comp date is April of 1984 and they better count my years from there since I was paying in the entire time.

so what did you get for t hose 3 years as a CSRS offset? do you get those years of service to calculate the pension? Its still unclear for me if I retire with 35 years of SERVICE, will they use 32X or 35X the high three avg and 1.1%?

 

[clester]

During the 3 year offset you paid into CSRS some reduced amount so if they exclude those years from FERS then they would have to make it up with CSRS some how.
All I know is that my Service comp date is April of 1984 and they better count my years from there since I was paying in the entire time.

so what did you get for t hose 3 years as a CSRS offset? do you get those years of service to calculate the pension? Its still unclear for me if I retire with 35 years of SERVICE, will they use 32X or 35X the high three avg and 1.1%?

I feel certain you will be given fers service credit those years as well as those years counting toward fers supplement and social security. It as if you were fers the whole time

 

[Stoplight]

I feel certain you will be given fers service credit those years as well as those years counting toward fers supplement and social security. It as if you were fers the whole time

I'm with Clester...without digging into it too deep, I went back and looked at my Agency's written "Estimate" for my retirement benefit, shortly before I submitted my retirement paperwork. It was pretty darn close to my final OPM number !

I started in 6/84...don't remember what kind of deductions, etc, were taken out of my paycheck back then, but my retirement calcs made no mention of CSRS offset, CSRS payback, etc etc. Military time buy-back, yes...which I had done years ago....everything was calculated as if I was FERS the whole time.

If you haven't done it already, I'd recommend you get your Agency HR to give you a written estimate of your "Retirement Benefit"...I think most Agencies have a procedure to request one, usually with some strings attached (like, you gotta be within 5 years of retiring, or only request 1 every 2 years, etc). It also may take a month or 2 to get it...HRs have been consolidated, and are way overworked !!!

Good luck !


Stoplight...

 

[wheeble]

Yes, you will get credit for those years as if they were FERS. they will show on an estimate as CSRS Offset. FERS folks hired between 1984 and 1987 had no choice and had to fall under the FERS program. I started in April of 1984 and hav 3 yrs and a couple of months CSRS Offset. but the calculation for FERS includes all the time. Yes, I am going to retire the day after my 56 Birthday.

 

[alevin]

Aaaannnd yes again. I got picked up as career-conditional in mid-1986. My record shows one whopping month of CSRS-offset in 1986, but in reality that month will really be covered by FERS, as will all the rest of my time prior to 1987 when FERS officially started. rules are that you had to have 5 years of CSRS before 1984 to be covered by CSRS-offset between 1984 and 1987, otherwise all time during those years got rolled into FERS and counts under FERS. CSRS-offset people paid a small amount into CSRS but also paid into SS at the same time, during that 1984-1987 timeframe. the contributions to CSRS get rolled into FERS annuity in actuality.

I bought back 5 months of temp time that I accumulated prior to 1984, so that added to my time towards FERS retirement as well. I mainly bought it back (GS-2 and GS-4 time) because it added to my seniority in case of RIF, in addition to allowing me to retire that much sooner if I choose.

 

[DreamboatAnnie]

I joined late Sept 1986, so I am full FERS but do need credit for 3 months. It's all FERS. Less than 5 years until retirement. Will check it outs.

 

[alevin]

I joined late Sept 1986, so I am full FERS but do need credit for 3 months. It's all FERS. Less than 5 years until retirement. Will check it outs.

You might want to crunch those numbers before you decide. The more time passes before buying back the time, the more it'll cost you to buy it back. they charge interest. OPM will tell you how much.

 

[shovelhead]

You might want to crunch those numbers before you decide. The more time passes before buying back the time, the more it'll cost you to buy it back. they charge interest. OPM will tell you how much.

Im hearing you all say I'm covered for those 3 years, but everything I have read, or heard from HR people, who don't know much, is that I have a SCD and a Retirement (RCD) that aren't the same. and even the OPM calculator won't let me enter JUL 84 as my service entry date and very clearly posts a note that "there was no FERS prior to 1987...so you can't put any date between 84 and 87 in there" essentially.