Retirement Policy

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Some federal employees have periods of service during which retirement deductions were not withheld from their salary.

Although that hasn’t been a common practice in recent years, it had been done in order to give a salary boost to people who were not expecting to make a career of federal employment. It was a practice among some members of Congress for their junior staffers, for example, as well as in certain short-term executive branch jobs such as summer work for college students.


In general, to capture credit toward an annuity, a deposit for this so-called “non-deduction service” is required equal to the retirement deductions, plus interest, that would have been withheld from your pay.

You are not required to make this type of payment, but failure to make it will affect the amount of your annuity.

You can make a deposit if you are working and covered by the FERS or CSRS systems or if you have left government and are eligible for a current or future retirement benefit. Widows, widowers, or former spouses of deceased employees who are eligible to receive a monthly death benefit can also make a deposit.

Interest is charged on any outstanding deposit balance. The computation of interest charges is based on your retirement coverage and when the service for which the deposit is being made was performed.

To apply use Standard Form (SF) 2803, “Application to Make Deposit or Redeposit (CSRS),” or Standard Form (SF) 3108, “Application to Make Service Credit Payment (FERS).” If you are currently employed, give your completed application to your agency first because they must certify it. If you no longer work for government, send your completed application to: Office of Personnel Management, Post Office Box 45, Boyers, PA 16017.

After OPM receives your application, it will send you instructions for making payment. You can make installment payments of at least $50, but interest accrues on any unpaid balance. Once you have made a deposit payment, it cannot be withdrawn unless you get a refund of all your retirement contributions.

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See also,

House Republicans Revive Retirement Benefit-Cutting Proposals

Installments vs. Annuity: Using Your TSP for Regular Income

Retiring from a Federal Job – Getting Started

Retiring from a Federal Job: Make Sure Your Agency Gets it Right

Nine Hours on Hold: Pressure Builds on TSP to Improve Customer Service

FERS Retirement Guide 2022