Some of your Federal service may not be creditable for retirement eligibility and/or annuity computation if you do not pay a deposit or redeposit first. This is true for both the Civil Service Retirement System (CSRS) and for the Federal Employees Retirement System (FERS). Paying for deposits and redeposits can be quite a lengthy process so it is best to find out about it early so that you can pay off what you need to before you decide to retire.
A deposit and/or redeposit may be necessary if you have:
- Temporary or Non-Deduction Federal service
- Received a refund of your retirement contributions during a break in service
- Any period of Peace Corps or VISTA volunteer service
Exception: Under FERS, temporary (non-deduction) service performed on and after January 1, 1989 is not creditable for retirement purposes (exception: Peace Corps/VISTA).
What is a deposit? It is a payment for service that was not covered by retirement deductions, also called non-deduction service. Typically, it is for periods of temporary service at the beginning of your career that you may have forgotten about.
What is a redeposit? A redeposit is the repayment of retirement deductions. It applies when you had a break in your federal service and you requested a refund of the retirement contributions previously withheld from your pay.
Go to the Military Service Deposits Web page for separate details about service credit for active duty military service.
Should I pay the deposit and/or redeposit?
- Payment of deposits and redeposits is not required
- Not paying will result in a permanent reduction to your annuity
- You may be able to retire earlier by paying for the additional service
- Interest accrues annually on any unpaid balance owed
- To help you make an informed decision, contact your Benefits Specialist for counseling and comparison estimates
- Taking care of this early in your career can save you substantial accrued interest
What are the steps for paying Deposits and Redeposits?
Step 1. Complete the application form – Be sure to read the instructions on pages 3 and 4.
If you are within 6 months of retirement, wait to submit the application form with your retirement application. You will be allowed to pay in full prior to finalization of your retirement.
- CSRS / CSRS Offset, complete the SF 2803, Application to Make Deposit or Redeposit
- FERS, complete the SF 3108, Application to Make Service Credit Payment
NOTE: The SF 3108 instructions have not been updated to include a change in the law that allows you to repay a refund of FERS contributions. Ignore the instructions that say you cannot do this.
Step 2. Submit completed page 1 of the application form to your Benefits Specialist who will complete the agency portion of the form and submit it to the Office of Personnel Management (OPM) for processing. OPM will compute the amount owed including accrued interest and will mail you a statement to your home address.
- NOTE: If you have submitted an application form in the past and just want to receive an updated copy, do not submit a new form. You may contact OPM at email@example.com or 1-888-767-6738 to request a current statement.
Step 3. It is currently taking up to 12 months for OPM to process applications and send out statements. Once you receive your statement, begin making installment payments of at least $50, or pay the balance in full. Payments are made directly to OPM. There is no obligation to pay if you receive a statement – it is your decision.
Step 4. Keep the statement you receive that shows you have paid a deposit and/or redeposit in full. You can also provide a copy to your Benefits Specialist to file in your electronic Official Personnel File (eOPF) so that it is available when you apply for retirement. If applicable, your Service Computation Date (SCD) for Retirement will be updated in the payroll database by the Benefits Specialist once confirmation of payment is received.
Contact your Benefits Specialist for assistance.