CSRS excess years of service counted for annuity?
A column from April 3, 2018 reads: “Any days of service beyond the last full month will be converted in hours and added to your unused sick leave hours.” I have been trying to find additional information or citation on this without success. I am coming up on 49 years of service. Do the years beyond 41 years 11 months count toward annuity, and if so, how?
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I will explain how this works for CSRS but first, can you please link me to the article you are referencing as I would like to read it myself.
OPM states for CSRS the basic annuity of any employee may not exceed 80 percent of the employee’s high-3 average pay. Normally, 41 years 11 months total service (excluding unused sick leave credit) produces the maximum annuity. Sick leave credit will be in addition to the 80 percent. If the computed basic annuity exceeds 80 percent of the high-3 average pay, the annuity is adjusted to an amount equal to 80 percent of the high-3 average pay and any retirement deductions withheld from the first of the month after an employee has performed sufficient service to entitle him or her to the maximum annuity, plus 3 percent interest compounded annually to the date of retirement, are automatically applied toward any deposit due for civilian non-deduction service, and/or redeposit due for civilian refunded service that ended on or after March 1, 1991. OPM then refunds any balance with the initial annuity payment. At this time, the retiree is advised by letter of the amount of additional annuity the excess deductions and interest would purchase. If the retiree returns the excess deductions and interest to OPM, this amount is treated as voluntary contributions and the annuity is recomputed accordingly.
Excess deductions are not automatically applied toward a redeposit due for civilian refunded service that ended before March 1, 1991. The actuarial reduction described in section 50A3.1-3 of the CSRS FERS Handbook applies to the maximum annuity. However, if the retiree elects to purchase an additional annuity with the excess deductions, the redeposit has to be paid in full.
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