581 General

 

Reference Note: For additional material concerning the subject matter found in 581, refer to: CSRS and FERS Handbook for Personnel and Payroll Offices, Chapters 10 and 20.

581.1 Scope

See 580 covers the basic portion of FERS. Social Security is covered in 570. The Thrift Savings Plan is covered in 590. The CSRS is covered in 560.

581.2 Administration

OPM administers the basic portion of FERS. The FERS laws, policies, and regulations issued by OPM, including those governing employee eligibility and benefits, are controlling in the event of conflict with the information in this subchapter.

581.3 Employees Covered

FERS applies to:

1. Employees whose initial career appointment was January 1, 1984, or later;
2. Employees whose initial career appointment was prior to January 1, 1984, but who subsequently had a break in service of 366 days or more and had less than 5 years of creditable civilian service prior to January 1, 1987;
3. Career employees who elected to be covered by FERS.

581.4 Exclusions

FERS does not apply to:

1. Noncareer employees;
2. Employees who had 5 or more years of creditable civilian service under CSRS rules as of December 31, 1986, even though none of this service was covered by CSRS deductions (such as substitute rural carriers) unless they elect FERS coverage;
3. Employees previously covered by CSRS who have a break in service of 365 days or less;
4. Employees serving under appointments limited to 1 year or less; and
5. Employees covered by another retirement system.

581.5 Employees Covered

FERS-Revised Annuity Employee (RAE) applies to:

1. Any employee who receives an appointment not excluded from FERS coverage on or after January 1, 2013, and would normally be placed in FERS.
2. There are three exceptions to this general rule; however, the date December 31, 2012, is a key date for each of these exceptions.

581.6 Exclusions

An employee will be excluded from FERS-RAE coverage if any of these exceptions apply:

1. The individual on December 31, 2012, was covered under FERS; or
2. The individual on December 31, 2012, was performing civilian service which is creditable or potentially creditable service under FERS; or
3. The individual on December 31, 2012, was not covered under FERS and was not performing civilian service, which is creditable or potentially creditable service under FERS, but as of December 31, 2012, had performed at least five years of creditable civilian service under FERS, including service subject to the Civilian Service Retirement System (CSRS or CSRS-Offset).

581.7 Employees Covered

FERS-Further Revised Annuity Employee (FRAE) applies to:

1. Any employee hired after December 31, 2013, who is not excluded from FERS coverage will be subject to FERS-FRAE, unless they meet specific requirements as of December 31, 2012, that would allow them to be subject to original FERS, or unless they meet specific service requirements as of December 31, 2013, that would allow them to be subject to FERS-RAE.
2. There are three exceptions to this general rule; however, the date December 31, 2013, is a key date for each of these exceptions.

581.8 Exclusions

An employee hired in 2014 or later will be subject to original FERS coverage if any of these exceptions apply:

1. The individual on December 31, 2012, was covered under FERS; or
2. The individual on December 31, 2012, was performing civilian service which is creditable or potentially creditable service under FERS; or
3. The individual on December 31, 2012, was not covered under FERS and was not performing civilian service, which is creditable or potentially creditable service under FERS, but as of December 31, 2012, had performed at least five years of civilian service creditable or potentially creditable under FERS, including service subject to the Civilian Service Retirement System (CSRS or CSRS-Offset).

An employee hired in 2014 or later who is not subject to original FERS coverage will be subject to FERS-RAE coverage if any of these exceptions apply:

1. The employee on December 31, 2013, was covered under FERS-RAE; or
2. The employee on December 31, 2013, was performing civilian service which is creditable or potentially creditable service under FERS; or
3. The employee on December 31, 2013, was not covered under FERS and was not performing civilian service which is creditable or potentially creditable service under FERS, but as of December 31, 2013, had performed at least five years of civilian service creditable or potentially creditable under FERS service subject to CSRS or CSRS Offset.