Civilian Redeposits - OPM.gov...Redeposit Service (New Rules) P. L. 111-84 •Section 1904 permits...
Transcript of Civilian Redeposits - OPM.gov...Redeposit Service (New Rules) P. L. 111-84 •Section 1904 permits...
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Civilian Redeposits
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Civilian Redeposits
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Objectives
• Identify the steps for in processing an
application to make a redeposit
• Explain the effects of not paying a
redeposit
• Understand and be able to explain
how redeposits are computed
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Making Redeposits
• Employees may redeposit CSRS and
FERS deductions that were refunded
to them during a break in service
• Payment is voluntary
• Affects the amount of annuity received
in most cases
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Redeposit Service
Any period of civilian service for which
an employee received a refund
and owes a redeposit
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Amount of Redeposit
Amount of refund received, plus interest
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Refunded Service
(Old Rules)
CSRS refunded service ending
before 10-01-90
(for retirements prior to 10-28-2009)
• Generally creditable for eligibility and
computation, regardless of whether or
not a redeposit was paid
• Annuitants could elect an actuarial
reduction in lieu of paying the
redeposit
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Refunded Service
(Old Rules)
CSRS refunded service ending on or
after 10-01-90
(for retirements prior to 10-28-2009)
• Generally creditable for eligibility,
regardless of whether or not a
redeposit was paid
• Creditable for computation only if a
redeposit was paid
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Refunded Service
(Old Rules)
FERS
(for retirements prior to 10-28-2009)
• Refunded service was not credible for
eligibility or computation purposes if you
retired before 10-28-2009
• No redeposit could be made
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Redeposit Service
(New Rules)
P. L. 111-84
• Section 1902 now permits actuarial
reductions in lieu of cash redeposits
for refunds covering periods of service
ending prior to 03-01-91
• The amendment applies only to
non-disability annuities based on a
separation from service occurring on
or after 10-28-2009
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Redeposit Service
(New Rules)
P. L. 111-84
• Section 1904 permits individuals who are subsequently reemployed to make a redeposit of the amount refunded, plus interest, and to have credit for the service reinstated
• For the purpose of survivor annuities, redeposits may also be made by survivors
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Who may make a Redeposit
Employees currently covered under
• CSRS
• CSRS Offset
• FERS
Separated employees entitled to
an immediate annuity
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Who may make a Redeposit
• Former employees entitled to a
deferred annuity
• Spouse or former spouse of a
deceased employee, who is entitled to
a survivor benefit
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When A Redeposit Can Be Made
Anytime prior to final adjudication
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Responsibilities
Employee Responsibilities
• Schedule appointment with
your Agency Benefits Officer
• Make a decision as to
whether or not to make a
redeposit
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Responsibilities
Employee Responsibilities
Complete the Application
SF 2803, (CSRS)
SF 3108, (FERS)
Decide on a payment
option
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Responsibilities
Agency Responsibilities
• Obtain records of
service
• Obtain refund
information from OPM
• Provide estimates of
redeposit amounts
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Responsibilities
Agency Responsibilities
Advise employee of the effect of making
a redeposit
Provide employee with correct
Application
• SF 2803 (CSRS)
• SF 3108 (FERS)
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Responsibilities
Agency Responsibilities
• Verify that information on front of
application is correct
• Complete reverse side of application
• Note any claimed but unverified service
• Certify the application
• Complete and attach the Checklist to
the application
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Responsibilities
Agency Responsibilities
Forward Application to:
Office of Personnel Management
Retirement Operations Center
PO Box 45
Boyers PA 16017-0045
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Address for Payments
OPM
PO Box 952015
St Louis MO 63195-2015
Make sure to include
• CSD number
• Date of birth
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Reminder
Do not submit payments until the initial
account statement is received from OPM
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Receipt of Account Statement
Once the initial account statement is
received:
• Installment payments of $50 or more
can be made
• Payment in Full avoids further interest
charges
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Reminders
Once the payment is received:
• Payment is credited to the
individual’s retirement
account
• Payment cannot be
returned unless the
individual meets the
eligibility requirements for a
refund
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Interest on Redeposits
3% interest
• Refunded service applied for prior to
10-01-82
3% through 12-31-84
Variable rate thereafter
• Refunded service applied for on or
after 10-01-82
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Grace period for interest
Pre 10-01-82
Redeposit Service
Additional interest accrues
at 3% on accounts not
paid in full within 30 days
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Grace period for interest
Post 09-30-82
Redeposit Service
Interest is charged through
12-31of the year prior to the
year in which the statement
is issued
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Change of Address or
Correspondence
OPM
Retirement Operations Center
PO Box 45
Boyers PA 16017
Be sure to include:
• CSD number
• Social Security Number
• Date of Birth
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Payment Process
• Payments sent to lockbox at
Mercantile Bank in St. Louis
• Bank deposits payments
• Payment info sent to OPM’s Financial
Management Division
• Payment info will update account and
generate a new statement
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Payment Order
Amount due for FERS
Post 09/30/82 redeposit
Pre 10/1/82 redeposit
Post 09/30/82 deposit
Pre 10/01/82 deposit
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To change payment order
• Make a note on the Application
• Make the request in writing if an
account statement has been sent
• Do not make a payment until an
amended statement is received
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How long accounts stay open
Billing system was automated
May 1977
May 2006
Accounts computed prior to 05-77:
• Closed if no payments were received
Current accounts stay open until:
• Paid in full
• Applicant separates and requests a
refund
• Retires
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Request for Information
Verification of previous covered service
Fax request to
OPM/ROC
724.794.4668
Please allow 10-12 working
days for reply
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Computing Interest on
Redeposits
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Interest on CSRS Redeposit
Refunded service
Prior to 10-01-82
Accrues daily and is compounded
annually
• 4% through 12-31-47
• 3% from 1948-date of deposit
Computed from date of refund
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Interest on CSRS Redeposits
Refund Application received
on or after 10-01-82
• Computed from date of refund
• Interest accrues annually
• Compounded annually on 12-31 of
each year
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Interest on CSRS Redeposits
Refund Application received
on or after 10-01-82
• 3% through 12-31-84
• Variable rate beginning 01-01-85
• No interest charged for the year in
which payment in full is received by
12-31 of that year