FEDweek

Maximizing Your Retirement Benefits

While in general FERS coverage is not provided to anyone not making retirement contributions, some FERS employees have worked in the past in federal jobs where retirement contributions were not taken out of their salaries. In order to get credit for any such “non-deposit” service performed before 1989, FERS employees must make a deposit to the retirement fund. The deposit equals 1.3 percent of base pay for that period, plus interest. (See Retirement Interest Rate Table)
In most cases, FERS employees cannot make a deposit for non-deduction service after 1988. However, a deposit can be made to receive credit for VISTA or Peace Corps service, regardless of when it was performed. But if the deposit is not made and the retiree becomes eligible for Social Security, the annuity will be recomputed to eliminate that service.