What is the Civil Service Retirement System?
Definition:
The Civil Service Retirement System is one of two retirement systems for US government employees. It is basically a pension plan for federal workers.
Maintaining Two Retirement Systems:
Between 1920 and 1986 CSRS was the only retirement system for US government employees. The Federal Employees Retirement System was created in 1987 to eventually replace CSRS. FERS consists of three components -- a pension, retirement savings account (called the Thrift Savings Plan) and Social Security -- while CSRS is only a pension plan.
When FERS was created, federal employees had the option to stay with CSRS or transition to FERS. Since not all made the transition, the US Office of Personnel Management maintains two retirement systems. Unless Congress intervenes, CSRS will continue until all its annuitants have deceased.
Participation in the FERS Thrift Savings Plan:
Employees under CSRS may participate in the Thrift Savings Plan offered under FERS; however, they do not operate under the same rules. FERS employees receive an amount equal to 1.0% of their salary in the Thrift Savings Plan and can contribute more that will be matched by the government up to a certain percentage. CSRS employees may participate in the Thrift Savings Plan, but the government does not kick in any additional contributions.
Exemption from Social Security:
CSRS employees do not contribute to Social Security; therefore, CSRS retirees do not receive Social Security benefits. CSRS was designed to be a comprehensive retirement plan.
Retirement Age:
CSRS employees may retire at age 55 provided they have 30 years of service. They may also retire at 60 with 20 years of service or 62 with five years of service.
The Civil Service Retirement System is one of two retirement systems for US government employees. It is basically a pension plan for federal workers.
Maintaining Two Retirement Systems:
Between 1920 and 1986 CSRS was the only retirement system for US government employees. The Federal Employees Retirement System was created in 1987 to eventually replace CSRS. FERS consists of three components -- a pension, retirement savings account (called the Thrift Savings Plan) and Social Security -- while CSRS is only a pension plan.
When FERS was created, federal employees had the option to stay with CSRS or transition to FERS. Since not all made the transition, the US Office of Personnel Management maintains two retirement systems. Unless Congress intervenes, CSRS will continue until all its annuitants have deceased.
Participation in the FERS Thrift Savings Plan:
Employees under CSRS may participate in the Thrift Savings Plan offered under FERS; however, they do not operate under the same rules. FERS employees receive an amount equal to 1.0% of their salary in the Thrift Savings Plan and can contribute more that will be matched by the government up to a certain percentage. CSRS employees may participate in the Thrift Savings Plan, but the government does not kick in any additional contributions.
Exemption from Social Security:
CSRS employees do not contribute to Social Security; therefore, CSRS retirees do not receive Social Security benefits. CSRS was designed to be a comprehensive retirement plan.
Retirement Age:
CSRS employees may retire at age 55 provided they have 30 years of service. They may also retire at 60 with 20 years of service or 62 with five years of service.
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