Since late 2009, redeposits have been allowed by current FERS employees who had earlier left government and withdrawn their retirement contributions. Previously, only CSRS-covered persons could do so.
Making such a redeposit makes the service creditable for determining an employee’s retirement eligibility and for computing the amount of the employee’s annuity.
There are some important details, however.
First, the policy only applies to employees covered under FERS on or after October 28, 2009, and only affects the annuity benefits based on a separation from FERS coverage on or after that date. That is, those who retired before that date cannot go back and recapture that time by making a deposit and boost their annuities.
Employees covered by FERS on or after that date may redeposit any FERS deductions previously refunded to them. They may also redeposit any CSRS deductions previously refunded to them that covered CSRS service that is credited under FERS rules.
Employees wanting to make a FERS redeposit may complete the FERS Application to Make a Deposit, SF 3108, available at www.opm.gov/forms. Employees must indicate on the application that the period of service was refunded and send the completed application through their agency for certification.
Employees wanting to make a FERS redeposit for refunded service and a FERS deposit for non-covered service will be assigned two service credit account numbers and will receive two separate statements based on each service credit account calculation. (The two accounts will be set up based on one application – two applications are not necessary.) Payments must be submitted for each account separately.