{ "id": "98-810", "type": "CRS Report", "typeId": "REPORTS", "number": "98-810", "active": true, "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department", "versions": [ { "source": "EveryCRSReport.com", "id": 607605, "date": "2019-11-13", "retrieved": "2019-12-13T15:25:12.701717", "title": "Federal Employees\u2019 Retirement System: Benefits and Financing", "summary": "Most civilian federal employees who were hired before 1984 are covered by the Civil Service Retirement System (CSRS). Federal employees hired in 1984 or later are covered by the Federal Employees\u2019 Retirement System (FERS). Both CSRS and FERS require participants to contribute toward the cost of their pensions through a payroll tax to the Civil Service Retirement and Disability Fund (CSRDF). \nThe Office of Personnel Management (OPM) estimates CSRS to cost an amount equal to 36.6% of employee pay. Of this amount, the federal government pays 29.6% and employees pay 7.0%. CSRS employees do not pay Social Security taxes or earn Social Security benefits.\nEffective beginning October 1, 2019, OPM estimates the FERS basic annuity to cost an amount equal to 16.8% of pay for employees first hired before 2013, 17.3% for employees first hired in 2013, and 17.5% for employees first hired in 2013 or later. (These FERS normal cost percentages apply to regular FERS employees. For special categories of employees\u2014such as Members of Congress and law enforcement officers\u2014higher normal costs apply. Beginning October 1, 2019, lower normal costs apply for employees of the U.S. Postal Service.) Of this amount, for regular FERS employees first hired \nbefore 2013, the federal government contributes 16.0% and employees pay the other 0.8%,\nin 2013, the federal government contributes 14.2% and employees pay the remaining 3.1%, and \nafter 2013 the federal government contributes 14.4% and employees pay 4.4% (with the additional sums from the higher FERS employee contributions [4.4%-3.1%=1.3%]) going to pay down the CSRS unfunded liability).\nAll FERS employees contribute 6.2% of wages up to the Social Security taxable wage base ($132,900 in 2019) to the Social Security trust fund.\nThe minimum retirement age (MRA) under CSRS is 55 for workers who have at least 30 years of service. The FERS MRA is 55 for employees born before 1948, is 56 for employees born between 1953 and 1964, and increases on an incremental basis to 57 for those born in 1970 or later. Both FERS and CSRS allow retirement with an unreduced pension at the age of 60 for employees with 20 or more years of service and at the age of 62 for employees with at least 5 years of service.\nThe Thrift Savings Plan (TSP) is a retirement savings plan similar to the 401(k) plans provided by many private-sector employers. In 2019, employees covered under either CSRS or FERS can contribute up to $19,000 to the TSP. Employees aged 50 and older can contribute an additional $6,000 to the TSP. Employees under FERS receive employer matching contributions of up to 5% of pay from their federal employing agency. Federal workers covered by CSRS also can contribute to the TSP, but they receive no employer matching contributions.\nEmployers pay three other costs for employees under FERS: (1) both the employer and employee pay Social Security taxes equal to 6.2% of pay up to the maximum taxable amount; (2) agencies automatically contribute an amount equal to 1% of employee pay to the TSP; and (3) agencies make matching contributions to the TSP equal to up to 4% of pay.\nAt the end of FY2017, the CSRDF had an unfunded liability of $968.1 billion, consisting of a $812.5 billion deficit for CSRS and a $155.6 billion deficit for FERS. Although the civil service trust fund has an unfunded liability, it is not in danger of becoming insolvent. OPM projects that the balance the CSRDF\u2019s balance will continue to grow through at least 2095, at which point it will hold assets equal to more than 6.5 times total payroll and about 20 times total annual benefit payments.\nThis report provides an overview of current benefits and financing under CSRS and FERS. For summary information on recent reform proposals related to CSRS and FERS, see CRS In Focus IF10243, Civilian Federal Retirement: Current Law, Recent Changes, and Reform Proposals, by Katelin P. Isaacs.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/98-810", "sha1": "26b4c8e233f5f6729bd31636eb76f0783e4d8de2", "filename": "files/20191113_98-810_26b4c8e233f5f6729bd31636eb76f0783e4d8de2.html", "images": { "/products/Getimages/?directory=RL/html/98-810_files&id=/0.png": "files/20191113_98-810_images_e74c5395e095ee8994f2dbe74f2e0cbe6ea864dc.png" } }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/98-810", "sha1": "262852e30c7f18b9ea0854fc3834ad050fcf2d9f", "filename": "files/20191113_98-810_262852e30c7f18b9ea0854fc3834ad050fcf2d9f.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4751, "name": "Federal Workforce" }, { "source": "IBCList", "id": 4869, "name": "Pensions & IRAs" } ] }, { "source": "EveryCRSReport.com", "id": 443091, "date": "2015-07-15", "retrieved": "2016-04-06T18:47:21.086905", "title": "Federal Employees\u2019 Retirement System: Benefits and Financing", "summary": "Most civilian federal employees who were hired before 1984 are covered by the Civil Service Retirement System (CSRS). Federal employees hired in 1984 or later are covered by the Federal Employees\u2019 Retirement System (FERS). Both CSRS and FERS require participants to contribute toward the cost of their pensions through a payroll tax. Employees who are covered by CSRS contribute 7.0% of pay to the Civil Service Retirement and Disability Fund (CSRDF). They do not pay Social Security taxes or earn Social Security benefits. Employees enrolled in FERS and first hired \nbefore 2013 contribute 0.8% of their pay to the CSRDF,\nin 2013 contribute 3.1% of pay to the CSRDF, and\nafter 2013 contribute 4.4% of pay to the CSRDF. \nAll FERS employees contribute 6.2% of wages up to the Social Security taxable wage base ($118,500 in 2015) to the Social Security trust fund.\nThe minimum retirement age (MRA) under CSRS is 55 for workers who have at least 30 years of service. The FERS MRA is 55 for employees born before 1948. The MRA for employees born between 1953 and 1964 is 56, increasing to the age of 57 for those born in 1970 or later. Both FERS and CSRS allow retirement with an unreduced pension at the age of 60 for employees with 20 or more years of service and at the age of 62 for employees with at least 5 years of service.\nThe Thrift Savings Plan (TSP) is a retirement savings plan similar to the 401(k) plans provided by many employers in the private sector. In 2015, employees covered under either CSRS or FERS can contribute up to $18,000 to the TSP. Employees aged 50 and older can contribute an additional $6,000 to the TSP. Employees under FERS receive employer matching contributions of up to 5% of pay from their federal employing agency. Federal workers covered by CSRS also can contribute to the TSP, but they receive no matching contributions from their employing agencies.\nThe Office of Personnel Management (OPM) estimates the cost of CSRS to be an amount equal to 29.3% of employee pay. Of this amount, the federal government pays 22.3% and employees pay 7.0%. Effective for FY2015, OPM estimates the cost of the FERS basic annuity at an amount equal to 14.0% of pay for employees first hired before 2013 and 14.2% for employees first hired in 2013 or later. Of this amount, for FERS employees first hired \nbefore 2013, the federal government contributes 13.2% and employees pay the other 0.8%,\nin 2013 or later, the federal government contributes 11.1% and employees pay the remaining 3.1%, and \nafter 2013 pay 4.4% (with the additional sums above the cost of FERS going to pay down the CSRS unfunded liability). \nEmployers pay three other costs for employees under FERS: (1) both the employer and employee pay Social Security taxes equal to 6.2% of pay up to the maximum taxable amount; (2) agencies automatically contribute an amount equal to 1% of employee pay to the TSP; and (3) agencies make matching contributions to the TSP equal to up to 4% of pay.\nAt the end of FY2014, the CSRDF had an unfunded liability of $785.0 billion, consisting of a $751.4 billion deficit for CSRS and a $33.6 billion deficit for FERS. Although the civil service trust fund has an unfunded liability, it is not in danger of becoming insolvent. OPM projects that the balance of the CSRDF will continue to grow through at least 2080, at which point it will hold assets equal to more than 5.3 times total payroll and about 20 times total annual benefit payments.\nThis report provides an overview of current benefits and financing under CSRS and FERS. For summary information on recent reform proposals related to CSRS and FERS, see CRS Report IF10243, Civilian Federal Retirement: Current Law, Recent Changes, and Reform Proposals, by Katelin P. Isaacs.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/98-810", "sha1": "1a885b22414f621e3841446ad87bb5737b63e3c1", "filename": "files/20150715_98-810_1a885b22414f621e3841446ad87bb5737b63e3c1.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/98-810", "sha1": "da0ea612e12b28810d7f8ccf499fb54cb5065e1d", "filename": "files/20150715_98-810_da0ea612e12b28810d7f8ccf499fb54cb5065e1d.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 446, "name": "Pensions and Retirement Savings" }, { "source": "IBCList", "id": 554, "name": "Federal Workforce: Human Resource Management" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc287973/", "id": "98-810_2014Jan30", "date": "2014-01-30", "retrieved": "2014-06-05T20:55:02", "title": "Federal Employees' Retirement System: Benefits and Financing", "summary": "This report discusses the retirement systems in place for federal employees including the Civil Service Retirement System (for employees hired before 1984) and the Federal Employees' Retirement System (for employees hired in 1984 or later). Both programs require participants to contribute toward the cost of their pensions through a payroll tax. This report also summarizes relevant legislation in the 113th Congress that would make significant changes to federal benefits and financing, including H.J.Res. 59, S. 18, S. 1678, and H.R. 3639.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20140130_98-810_9e44fd7b94b6e6c2ead3211979bd167768e250cc.pdf" }, { "format": "HTML", "filename": "files/20140130_98-810_9e44fd7b94b6e6c2ead3211979bd167768e250cc.html" } ], "topics": [ { "source": "LIV", "id": "Government employees", "name": "Government employees" }, { "source": "LIV", "id": "Federal employees -- Law and legislation", "name": "Federal employees -- Law and legislation" }, { "source": "LIV", "id": "Pension funds -- Law and legislation", "name": "Pension funds -- Law and legislation" }, { "source": "LIV", "id": "Pensions", "name": "Pensions" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc271992/", "id": "98-810_2013Dec20", "date": "2013-12-20", "retrieved": "2014-02-03T19:46:03", "title": "Federal Employees' Retirement System: Benefits and Financing", "summary": "This report discusses the retirement systems in place for federal employees. Most civilian federal employees who were hired before 1984 are covered by the Civil Service Retirement System, and contribute 7.0% of their pay to a retirement fund. Federal employees hired in 1984 or later are covered by the Federal Employees' Retirement System and contribute 0.8% of their pay to a retirement fund. Both require participants to contribute toward the cost of their pensions through a payroll tax. This report also summarizes relevant legislation in the 113th Congress that would make significant changes to federal benefits and financing, including H.J.Res. 59, S. 18, S. 1678, and H.R. 3639.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20131220_98-810_295227d307d95eddea566965a5e69a8eccd0c9ac.pdf" }, { "format": "HTML", "filename": "files/20131220_98-810_295227d307d95eddea566965a5e69a8eccd0c9ac.html" } ], "topics": [ { "source": "LIV", "id": "Government employees", "name": "Government employees" }, { "source": "LIV", "id": "Federal employees -- Law and legislation", "name": "Federal employees -- Law and legislation" }, { "source": "LIV", "id": "Pension funds -- Law and legislation", "name": "Pension funds -- Law and legislation" }, { "source": "LIV", "id": "Pensions", "name": "Pensions" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc86532/", "id": "98-810_2012May10", "date": "2012-05-10", "retrieved": "2012-06-15T10:07:48", "title": "Federal Employees' Retirement System: Benefits and Financing", "summary": "Report discussing the retirement systems in place for federal employees. Most civilian federal employees who were hired before 1984 are covered by the Civil Service Retirement System, and contribute 7.0% of their pay to a retirement fund. Federal employees hired in 1984 or later are covered by the Federal Employees' Retirement System and contribute 0.8% of their pay to a retirement fund. Both require participants to contribute toward the cost of their pensions through a payroll tax. The taxable wage base is $110,100 in 2012. This report discusses both retirement funds.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20120510_98-810_490b2708017932b31aabd26b21dde08a118c07bc.pdf" }, { "format": "HTML", "filename": "files/20120510_98-810_490b2708017932b31aabd26b21dde08a118c07bc.html" } ], "topics": [ { "source": "LIV", "id": "Government employees", "name": "Government employees" }, { "source": "LIV", "id": "Federal employees - Pension funds - Law and legislation", "name": "Federal employees - Pension funds - Law and legislation" }, { "source": "LIV", "id": "Pensions", "name": "Pensions" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc813967/", "id": "98-810_2012Mar07", "date": "2012-03-07", "retrieved": "2016-03-19T13:57:26", "title": "Federal Employees\u2019 Retirement System: Benefits and Financing", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20120307_98-810_dcfccbc2754d090dcf3c231ef84d5bd12a2d8aa7.pdf" }, { "format": "HTML", "filename": "files/20120307_98-810_dcfccbc2754d090dcf3c231ef84d5bd12a2d8aa7.html" } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc83862/", "id": "98-810_2012Feb14", "date": "2012-02-14", "retrieved": "2012-04-27T15:49:45", "title": "Federal Employees' Retirement System: Benefits and Financing", "summary": "Most civilian federal employees who were hired before 1984 are covered by the Civil Service Retirement System, and contribute 7.0% of their pay to a retirement fund. Federal employees hired in 1984 or later are covered by the Federal Employees' Retirement System and contribute 0.8% of their pay to a retirement fund. Both require participants to contribute toward the cost of their pensions through a payroll tax. The taxable wage base is $110,100 in 2012. This report discusses both retirement funds.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20120214_98-810_955478df26ba826759088d62bcaa8a0caefc7294.pdf" }, { "format": "HTML", "filename": "files/20120214_98-810_955478df26ba826759088d62bcaa8a0caefc7294.html" } ], "topics": [ { "source": "LIV", "id": "Government employees", "name": "Government employees" }, { "source": "LIV", "id": "Federal employees - Pension funds - Law and legislation", "name": "Federal employees - Pension funds - Law and legislation" }, { "source": "LIV", "id": "Pensions", "name": "Pensions" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc83861/", "id": "98-810_2011Jan05", "date": "2011-01-05", "retrieved": "2012-04-27T15:49:45", "title": "Federal Employees' Retirement System: Benefits and Financing", "summary": "Most civilian federal employees who were hired before 1984 are covered by the Civil Service Retirement System, and contribute 7.0% of their pay to a retirement fund. Federal employees hired in 1984 or later are covered by the Federal Employees' Retirement System and contribute 0.8% of their pay to a retirement fund. Both require participants to contribute toward the cost of their pensions through a payroll tax. The taxable wage base is $106,800 in 2011. This report discusses both retirement funds.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20110105_98-810_9af44893f9824600863eab6c271d085b9795c1d9.pdf" }, { "format": "HTML", "filename": "files/20110105_98-810_9af44893f9824600863eab6c271d085b9795c1d9.html" } ], "topics": [ { "source": "LIV", "id": "Government employees", "name": "Government employees" }, { "source": "LIV", "id": "Federal employees - Pension funds - Law and legislation", "name": "Federal employees - Pension funds - Law and legislation" }, { "source": "LIV", "id": "Pensions", "name": "Pensions" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc83860/", "id": "98-810_2010Sep15", "date": "2010-09-15", "retrieved": "2012-04-27T15:49:45", "title": "Federal Employees' Retirement System: Benefits and Financing", "summary": "Most civilian federal employees who were hired before 1984 are covered by the Civil Service Retirement System, and contribute 7.0% of their pay to a retirement fund. Federal employees hired in 1984 or later are covered by the Federal Employees' Retirement System and contribute 0.8% of their pay to a retirement fund. Both require participants to contribute toward the cost of their pensions through a payroll tax. The taxable wage base is $106,800 in 2010. This report discusses both retirement funds.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20100915_98-810_44498ad0c83d35a29fce6cb5bfe6fc9e8c1d4bef.pdf" }, { "format": "HTML", "filename": "files/20100915_98-810_44498ad0c83d35a29fce6cb5bfe6fc9e8c1d4bef.html" } ], "topics": [ { "source": "LIV", "id": "Government employees", "name": "Government employees" }, { "source": "LIV", "id": "Congressional retirement", "name": "Congressional retirement" }, { "source": "LIV", "id": "Federal employees - Pension funds - Law and legislation", "name": "Federal employees - Pension funds - Law and legislation" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc818534/", "id": "98-810_2007Mar08", "date": "2007-03-08", "retrieved": "2016-03-19T13:57:26", "title": "Federal Employees\u2019 Retirement System: Benefits and Financing", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20070308_98-810_31fe9f7be10b19ab4d2786bd892df9994a91ec7b.pdf" }, { "format": "HTML", "filename": "files/20070308_98-810_31fe9f7be10b19ab4d2786bd892df9994a91ec7b.html" } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc810800/", "id": "98-810_2003Jun06", "date": "2003-06-06", "retrieved": "2016-03-19T13:57:26", "title": "Federal Employees\u2019 Retirement System: Benefits and Financing", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20030606_98-810_853ab88152ef9279c2d4e77c2554829031e46552.pdf" }, { "format": "HTML", "filename": "files/20030606_98-810_853ab88152ef9279c2d4e77c2554829031e46552.html" } ], "topics": [] } ], "topics": [ "Domestic Social Policy" ] }