The interest paid in the voluntary contribution retirement savings program available to CSRS (but not FERS) employees will fall from 2.75 percent to 2.25 percent in 2020.

That rate also applies as the interest rate for required deposits and redeposits into the retirement fund to get credit for service for which no contributions were taken or for which refunds were received at a break in service.


It also applies to payments to capture credit toward federal retirement for military service time, for those eligible.

Voluntary Contributions Under CSRS/CSRS Offset

CSRS and CSRS Offset employees may make voluntary contributions to the retirement fund and earn market interest rates (of around 2 percent in recent years) tax-deferred. However, voluntary contributions may only be made if you do not owe a deposit or redeposit to the retirement fund.

Voluntary contributions may be made at any time and in any amount, as long as they are at least $25 (or multiples of $25). Total contributions may not exceed 10 percent of the total basic pay you received during your entire federal career. Since that number increases with every pay period, you have a moving target of opportunity.

To open an account, use SF 2804, Application to Make Voluntary Contributions, available at www.opm.gov/forms.

On retirement, the funds can be used to purchase additional annuity. Each $100 will buy you $7 a year plus an additional 20 cents for each year you are over age 55 when you retire.

Read more on Voluntary Contributions CSRS Retirement at ask.FEDweek.com