Until a law that was effective October 28, 2009, only CSRS-covered employees could make redeposits to capture service credit for a period of federal employment for which the employee took a refund at a separation from service. Since that date, that option has been available to FERS employees as well, although detailed guidance on that issue had not been issued.
Recent guidance from the Office of Personnel Management emphasizes that the option applies to annuity benefits based on a separation from FERS coverage on or that date—that is, those who retired under FERS before that date cannot make a payment retroactively to capture that time.
Employees covered by FERS on or after October 28, 2009, 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
Payment of the FERS redeposit for FERS service covered by a refund of FERS deductions and CSRS service (that is credited under FERS rules) covered by a refund of CSRS deductions allows the refunded service to be creditable for determining an employee’s retirement eligibility and for computing the amount of an employee’s annuity.
Payment not made of the FERS redeposit for FERS service covered by a refund of FERS deductions and CSRS service (that is credited under FERS rules) covered by a refund of CSRS deductions only allows the refunded service to be creditable for determining an employee’s retirement eligibility but it is not creditable for computing the amount of an employee’s annuity.
Employees wanting to make a FERS redeposit may complete the FERS Application to Make a Deposit, SF 3108. Employees must indicate on the application that the period of service was refunded and send the completed application through their agency for certification.
