RETIREMENT
Sections
Appendix A - Retirement Annuity - CSRS and CSRS Offset
Appendix B - Federal Employees Retirement
System (FERS)
10.15.01
PURPOSE
The purpose of this subchapter is to provide information on the different
types of retirement benefits in the Federal Government.
10.15.02
SCOPE
This subchapter applies to all NIST employees.
10.15.03
LAWS/REGULATIONS
The laws and regulations cited in United States Code Chapters 83 and
84 and Code of Federal Regulations: Parts 831, 841, 842, 843, 844,
845, and 846 and the CSRS and FERS Handbook (references at http://www.opm.gov/asd/htm/hod.htm)
are the applicable laws relating to retirement.
10.15.04
RESPONSIBILITIES
a. Employees are responsible for obtaining knowledge of the retirement
system in order to make decisions appropriate to their individual situations
and for submitting their application for retirement to the Human Resources
Management Division (HRMD).
b. Organizational Units are responsible for submitting Standard Form 52, Request for Personnel Action to the HRMD as soon as possible after being informed by the employee of the retirement date.
c. The National Finance Center (NFC) is responsible for assigning register numbers and forwarding retirement papers to the Office of Personnel Management (OPM) for current employees.
d. The HRMD is responsible for providing employees with information
on changes in the retirement systems resulting from legislation or OPM
regulations and interpreting laws and regulations. Additionally,
HRMD provides counseling and advises employees on retirement eligibility,
TSP options and prepares final calculations on annuity estimates.
Annuity calculators and other retirement information can be accessed at
http://www-i.nist.gov/admin/pers/hrbenefi.htm. Employees are encouraged
to use retirement calculators. HRMD will provide calculations only
to employees who are eligible to retire within one year. Only one
calculation is computed per year, except for those employees who have submitted
their retirement application.
10.15.05
DEFINITIONS
a. Alternative form of Annuity - The alternative form of annuity
(AFA) is a provision in the retirement law that allows certain employees
to elect to withdraw their contributions from the retirement fund in a
lump sum when they retire. Employees who retire on a nondisability
annuity and who have a life-threatening medical condition may elect the
AFA. If the employee makes this election, the CSRS annuity is reduced
by an amount equal to the employee’s lump-sum credit divided by an actuarial
factor for the employee’s age at the time of retirement. Election
of the AFA does not affect the amount of the survivor annuity.
b. Annuity -The annual sum payable to a former employee who has retired.
c. High-3 -The "high-3 average pay" is the largest annual rate resulting from averaging an employee's rates of basic pay in effect over any period of 3 consecutive years of creditable civilian service, with each rate weighted by the length of time it was in effect.
d. Civil Service Retirement System (CSRS) – CSRS is the Civil Service Retirement System established in Subchapter III of Chapter 83 of Title 5, U.S. Code. The law that created CSRS was enacted in 1920. CSRS is a defined benefit, contributory retirement system. Employees share in the expense of the annuities to which they become entitled. Individuals covered under CSRS pay CSRS employee deductions. Unless they are covered under CSRS Offset, they are excluded from the Old-Age, Survivors', and Disability Insurance (OASDI) taxes of Social Security. They may contribute to the thrift savings plan, but they do not receive any government contribution.
e. CSRS Offset - Employees covered by CSRS Offset are those rehired into Federal service on or after January 1, 1984, who have a break in covered CSRS service exceeding 1 year, and who meet one of the following tests:
(1) A break in service after December 31, 1986, had at least 5 years of creditable civilian service as of their last break in service, and have at least 1 day covered by CSRS; or
(2) Five years of creditable civilian service as of December 31, 1986, regardless of a break in service after that date.
f. Disability Retirement - The Office of Personnel Management determines if an employee is eligible for disability retirement based on the information submitted by both the employee and their agency. A determination of disability is made when the information provided indicates that the employee can no longer perform “useful and efficient service” in their position due to disease or injury.
g. Discontinued Service Retirement (DSR) - A discontinued service retirement provides an immediate, possibly reduced, annuity for employees who are involuntarily separated. Employees who are separated for cause on charges of misconduct or delinquency are not eligible for discontinued service retirement.
h. Federal Employees Retirement System (FERS) - FERS is the Federal Employees Retirement System established by Public Law 99-335 in Chapter 84 of Title 5 U.S. Code, and effective January 1, 1987. FERS is a retirement plan that provides benefits from three different sources: A Basic Benefit Plan, Social Security, and the Thrift Savings Plan (TSP). Two of the three parts of FERS (Social Security and TSP) are portable should an employee leave the Federal Government before retirement. Individuals covered under FERS pay Social Security taxes and FERS basic benefit deductions. They also receive an automatic 1 percent government contribution to the Thrift Savings Plan, and can receive up to four percent matching government contributions.
i. Involuntary Separation for Retirement Eligibility Purposes - A separation against the will of and without the consent of the employee.
j. Optional Retirement - A retirement in which an employee has attained the age and sufficient years of service to retire on an immediate annuity without a reduction in annuity due to age.
k. The Thrift Savings Plan (TSP) - A retirement savings and investment plan for Federal employees. Congress established the TSP in the Federal Employees' Retirement System Act of 1986. The purpose of the TSP is to provide retirement income. It offers Federal civilian employees the same type of savings and tax benefits offered under "401(k)" plans.
l. Survivor Annuity - An amount of money payable at regular intervals to the spouse and children (if eligible) of a deceased employee or annuitant.
m. Voluntary Early Retirement Authority (VERA) - VERA permits an eligible employee to retire early when OPM determines that his or her agency is undergoing a major RIF, reorganization, transfer of function, or other workforce restructuring or reshaping.