The rate applies to deposits and redeposits into the federal employee retirement fund. Image: chaylek/Shutterstock.com
By: FEDweek StaffThe interest rate charged on payments needed to capture credit for service toward federal retirement benefits in certain situations will rise in calendar year 2025 to 4.375 percent from this year’s 3.75 percent, the Treasury Department has announced.
The rate applies to deposits and redeposits into the federal employee retirement fund to get credit for service for which no retirement contributions were taken or for which refunds were received at a break in service. It applies as well as for payments to capture credit toward federal retirement for military service time.
The figure also is the interest rate paid on “voluntary contribution” retirement savings program, which allows CSRS (but not FERS) employees to set aside money in tax-deferred accounts that can be withdrawn as a lump-sum or turned into additional annuity payments at retirement.
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