Civil Service Retirement System

The Civil Service Retirement System (CSRS) was created in 1920 and provides benefits for most federal employees hired before 1984. It is a comprehensive entitlement system that provides a full range of pension benefits and wage insurance protection.

CSRS provides a defined benefit pension. This means that employees who retire at a certain age, with a certain number of years of creditable service, will receive a percentage of their “High-3” salary each year for the rest of their life. CSRS requires a 7% contribution of an employee’s base pay, but CSRS employees do not pay into Social Security. CSRS members are eligible to contribute money to the Thrift Savings Plan (TSP) but receive no matching funds from their federal agency.

FEATURES

401(k)-type retirement plans such as TSP are defined contribution plans that offer a non-guaranteed, lump sum of money at retirement based on the accumulation of wealth in the retiree’s account; CSRS guarantees a set income for life. This income is based on a complex set of criteria, formulas, and rules. CSRS retirees also receive annual cost-of-living adjustments (COLAs) based on the Consumer Price Index (CPI).

YOUR OPTIONS

CSRS employees have a number of formulas, calculations, and scenarios to shift through, making it especially important for you to plan as early as possible. As a CSRS employee, you will face several difficult decisions that will affect your post-retirement quality of life. The Federal Evaluation Office can prepare a personalized retirement benefit evaluation that will thoroughly examine all of your options and guide you in making the right choices.