As stated previously, CSRDF is a single fund and does not maintain separate accounts for individual agencies. The actual securities of the CSRDF are not allocated separately to CSRS or FERS, or to Postal and non-Postal beneficiaries. The assets of the CSRDF are composed entirely of special issue Treasury securities with maturities ranging up to 15 years. The long-term securities bear interest rates ranging from 3.25% to 7.00%, while the short-term securities bear interest rates ranging from 2.88% to 7.25%.
The assumed rates of return on the CSRS fund balance for both 2008 and 2007 were 6.25% while the actual rates of return were 5.45% and 5.63%, respectively. For the FERS fund, the assumed rate of return for both 2008 and 2007 was 6.25%, while the actual rate of return was 5.42% for both years. The projected rates of return on both the CSRS and FERS fund balance for 2009 remain at 6.25%.
