VA employee on older FERS contribution of 0.8%, effect of break in service


I’ve been employed as a health care provider in the VA health care system for about 10 years. I’m currently under the lower FERS contribution rate of 0.8%. If I were to break service and accept employment for a different health care system, but return to the VA system in the future, would I able to continue the original lower FERS contribution rate?

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Posted by (Questions: 1, Answers: 1)
Asked on August 17, 2018 2:11 pm
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The simple answer is YES. The critical date is December 31, 2012. If you were a FERS employee as of December 31, 2012, and had at least 5-years of creditable or potentially creditable service under FERS on that date, upon your return to federal service you will retain your original FERS rate of .8%.

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Posted by (Questions: 0, Answers: 351)
Answered on August 17, 2018 3:04 pm
<p>A really appreciate your response to my question Elaine. I&#8217;m still currently employed within the VA system. Here&#8217;s a follow up question regarding the critical December 31, 2012 date. I was first employed into the VA system in August 2008. That would be less than 5 years of creditable service before the December 31st date, but I&#8217;ve certainly eclipsed the 5 year marker of creditable service since then. Will that consideration be any issue at all? Or is it safe to say that employment needs to be prior to the critical date and the total creditable service before breaking service just needs to be at least 5 years? Thanks so much.</p>
( at August 17, 2018 6:30 pm)