Creditable Service,
clearly explained.
Not all federal service counts the same way toward retirement. Understanding which periods qualify — and when you need to make a deposit or redeposit — can make a significant difference in your final annuity.
What counts as creditable service?
Creditable service is the total period of federal employment that counts toward retirement eligibility and annuity computation. Not every period of employment qualifies automatically — some require a deposit, and military service has its own rules.
Retirement eligibility can be confusing, especially when military service is involved. You need a minimum of 5 years of civilian service to be eligible for a civilian retirement annuity.
However, once the 5-year civilian minimum is met, military service is creditable toward years of service for all other voluntary retirement eligibility requirements: MRA+10, MRA+30, age 60 with 20 years, and even VERA requirements (age 50 with 20 years, or any age with 25 years).
Creditable service isn't limited to service covered by retirement deductions — but uncovered service may require a deposit to count fully.
The rules differ between FERS and CSRS, and between deposits (paying in for service where deductions were never withheld) and redeposits (repaying deductions that were refunded to you). Both affect your final annuity calculation, and understanding the distinction can be worth significant money at retirement.
FERS & CSRS
creditable service rules.
Each retirement system has its own definition of what qualifies as creditable service. The rules overlap in some areas and differ sharply in others — particularly around non-covered service and special programs.
FERS
Federal Employees Retirement System
- Federal "covered service" — service in which pay is subject to FERS retirement deductions, such as service under a career or career-conditional appointment.
- Federal service performed before 1989 where retirement deductions were not withheld (e.g. temporary appointments) — as long as a deposit is paid. Exceptions that allow a deposit regardless of date:
- U.S. Senate Child Care Center service
- Peace Corps / VISTA service
- Service under the Foreign Service Pension System (FSPS)
- Service before 12/31/90 with Democratic or Republican Senatorial / Congressional Campaign Committees
- Library of Congress Child Development Center service prior to 12/21/00
- Postal Service part-time service — see USPS part-time guidance
CSRS
Civil Service Retirement System
- Federal "covered service" — service in which pay is subject to CSRS retirement deductions, such as service under a career or career-conditional appointment.
- Federal service where pay is not subject to retirement deductions, such as service under a temporary appointment.
- Service for which a specific statute allows credit, such as:
- Peace Corps enrollment
- Certain pre-1969 National Guard technician service
- Service under statute allowing CSRS deductions during employment with specified entities, such as:
- Employees of Gallaudet University or D.C. Government
- Federal employees on Intergovernmental Personnel Act assignments
- Full-time officers or employees of an employee organization
Getting credit for
non-covered service.
FERS — Making a Deposit
A deposit is the payment of retirement deductions — plus interest — that would have been withheld from your pay if you had been covered by FERS during a period when deductions were not withheld. You are not required to make this payment, but without it that period won't count toward your annuity.
Complete Standard Form 3108
Apply by completing Standard Form 3108 "Application to Make Service Credit Payment / FERS." Use this form even if a portion of your annuity will be computed under CSRS rules.
Submit to your agency for certification
Send your completed application to your department or agency — they must certify it before it goes to OPM. If you are within six months of retirement, submit your deposit request at the same time as your retirement application. OPM will notify you of amounts due, and cannot authorize your regular annuity payments until you make a decision on payment.
Not a current federal employee? Mail directly to OPM
OPM Retirement Operations CenterDeposit Section
P.O. Box 45
Boyers, PA 16017-0045
Reference
OPM FERS Deposit Guidance — official rules and interest rate tables for FERS service credit payments.
FERS — Redeposit for Prior Refunded Service
A redeposit is the repayment of retirement deductions that were previously withheld and refunded to you, plus interest. You can repay any refund received for any period of civilian service where deductions were withheld and later returned to you.
Interest is charged from the date of the refund and compounded annually, through the date full payment is made or your annuity begins — whichever comes first.
CSRS — Making a Deposit
A CSRS deposit works the same way as a FERS deposit — it covers the retirement deductions, plus interest, that would have been withheld during a period when they weren't. You are not required to make the payment, but without it your annuity may be reduced.
Complete Standard Form 2803
Apply by completing Standard Form 2803 "Application to Make Deposit or Redeposit / CSRS."
Submit to your agency — or directly to OPM if separated
Current federal employees send to their department or agency for certification. Do not file if you plan to retire within 6 months — OPM will notify you of amounts due when it computes your annuity. If within six months of retirement, include the deposit request with your retirement application.
If you are no longer a federal employee, mail directly to:
OPM Retirement Operations CenterDeposit Section
P.O. Box 45
Boyers, PA 16017-0045
CSRS — Redeposit for Prior Refunded Service
CSRS redeposit rules depend on when your refunded service ended. The October 1, 1990 date is the key dividing line.
Service ending on or after October 1, 1990
The service covered by the refund cannot be included in computing your annuity unless the refund is repaid after you become reemployed. It will still count toward service used to qualify for retirement.
Service ending before October 1, 1990
The service will still be credited when you retire even without repayment — however, it will cause a permanent actuarial reduction in your annuity based on the redeposit amount and your age at retirement. This exception does not apply if you retire for disability. You can avoid the reduction entirely by repaying the refund.
Interest rules: Refunds paid before 10/1/82 accrue interest through the billing date; full payment within 30 days of billing incurs no additional interest. Refunds paid on or after 10/1/82 compound annually through December 31 of the prior year.
Reference
OPM CSRS Guidance — interest rate tables and detailed redeposit rules for CSRS service.