Frequently Asked Questions

Civil Service Retirement System (CSRS) INTERIM

Covers employees first hired, rehired or converted to an appointment subject to retirement on or after January 1, 1984. CSRS Interim was a version of CSRS established pending the creation of the new retirement system. When the new system (FERS) was established on January 1, 1987, personnel offices were instructed to review the Official Personnel Folder of all employees covered under CSRS Interim to determine whether or not the employees, by law, were:

• Vested, meaning you had at least 5 years of creditable civilian service under the CSRS. If so, your retirement coverage would be either CSRS or CSRS Offset, or
• If you were not vested in CSRS, you would be covered automatically under FERS.

Civil Service Retirement System (CSRS) OFFSET

CSRS Offset is a version of CSRS established for employees who become subject to Old Age Survivors and Disability Insurance (OASDI), also known as FICA taxes, and have completed at least 5 years of creditable civilian service.

Generally, CSRS Offset coverage applies to employees rehired after a break of more than 365 days with 5 or more years of prior creditable civilian service as of:

• December 31, 1986, or
• As of the date of your last separation and you had at least 1 day of CSRS coverage or Foreign Service Retirement System coverage.
• Employees with at least a 4-day break in service have a 6-month opportunity to transfer to FERS.

Federal Insurance Contributions Act (FICA)

A Federal law that is monitored by the Social Security Administration that requires employees to pay social security tax on their earned income that provides future pension and other social security benefits. The Federal Insurance Contributions Act (FICA) establishes a Social Security and Medicare Tax on employers and employees. The employee's portion of the tax is deducted from the paycheck and then matched by the employer's portion of the tax. The tax applies to:

• Most employees on appointments specifically excluding them from any Federal retirement system coverage. For example, a temporary appointment not to exceed 1 year.
• Most employees first hired in Federal service before January 1, 1984 but were not covered under a Federal retirement system until after December 31, 1983, i.e. temporary employees and,
• Employees rehired after a break in service or break in CSRS coverage (covered service) of more than 365 days, which ended after December 31, 1983.
• Employees first hired on/or after January 1, 1984, with no prior federal employment.
• Employees covered under CSRS Offset and FERS.

Civil Service Retirement System (CSRS)

Covers most employees first hired prior to January 1, 1984.

Employees who have had a break in coverage of less than 1 year (365 days) also retain their CSRS coverage. However, if you have a break in service of at least 4 days, upon rehire you have a 6-month opportunity period to elect to transfer to FERS.

Federal Employees' Retirement System (FERS)

FERS became effective January 1, 1987 and covers most employees first hired on or after January 1, 1984.

Employees rehired after a break in service of more than 365 days with less than 5 years of creditable civilian service.

Employees who elected FERS coverage during transfer opportunities.

FERS is a retirement plan that provides benefits from three different sources: a Basic Benefit Plan, Social Security and the Thrift Savings Plan (TSP). Two of the three parts of FERS (Social Security and the TSP) can go with you to your next job if you leave the Federal Government before retirement. The Basic Benefit and Social Security parts of FERS require you to pay your share each pay period. Your agency withholds the cost of the Basic Benefit and Social Security from your pay as payroll deductions. Your agency pays its part too. Then, after you retire, you receive annuity payments each month for the rest of your life.

The TSP part of FERS is an account that your agency automatically sets up for you. Each pay period your agency deposits into your account amount equal to 1% of the basic pay you earn for the pay period. You can also make your own contributions to your TSP account and your agency will also make a matching contribution. These contributions are tax-deferred. The Thrift Savings Plan is administered by the Federal Retirement Thrift Investment Board.

Both CSRS and FERS retirement benefits are eligible for annual, automatic COLA. Cost-of-living adjustments (COLAs) for the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS) are based on the rate of inflation as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). COLAs for both CSRS and FERS are determined by the average monthly CPI-W during the third quarter (July to September) of the current calendar year and the third quarter of the base year, which is the last previous year in which a COLA was applied. The “effective date” for COLAs is December, but they first appear in the benefits issued during the following January.

All CSRS retirees and survivors receive COLAs. Under FERS, however, nondisabled retirees under the age of 62 do not receive COLAs. Survivors and disabled retirees are eligible for COLAs under FERS regardless of age. CSRS pays a COLA that is equal to the percentage change in the CPI-W during the measurement period, but COLAs under FERS are limited if the rate of inflation is greater than 2.0%. If the rate of inflation during the measurement period is between 2.0% and 3.0%, the COLA under FERS is 2.0%. If inflation is greater than 3.0%, then the COLA for FERS benefits is equal to the CPI-W minus one percentage point.

Congress passed the first law requiring automatic COLAs for federal civil service retirement benefits in 1962, and it has adjusted either the formula by which they are calculated or the date on which they take effect more than 10 times since then.

A Foreign Transfer Allowance (FTA) is a non-taxable allowance that helps employees pay for extraordinary expenses when transferring to a foreign post from the United States. The FTA has two parts: Pre-Departure Subsistence Expense and Miscellaneous Expense. The DSSR, Section 240 reflects current rates. 

Pre-Departure Subsistence Expense FTA

The Pre-Departure Subsistence Expense is a Foreign Transfer Allowance (FTA) for employees who transfer to a foreign post from the United States. The Pre-Departure Subsistence Expense helps with temporary lodging, meals, laundry, and dry cleaning. The allowance may be granted for up to ten (10) days before final departure from the United States, beginning not more than 30 days after the employee has vacated his/her permanent residence quarters. The employee must reside in temporary lodging to claim the expense, but dates do not have to be consecutive. The ten (10) days may be anywhere in the United States if travel has not started through travel orders and final departure is from the United States post of assignment. Receipts for authorized expenses are required for reimbursement. Reimbursement cannot exceed the maximum family per diem rate calculated using the per diem rates set by General Services Administration (GSA).

Miscellaneous Expense FTA (First- Duty Station Travel Orders only)

The Miscellaneous Expense portion is a supplement for expenses such as pet transportation, vehicle registration, driver’s license, utility fees or deposits not offset by an eventual refund, and conversion of appliances when transferring to a foreign post for first duty station orders only.  The allowance is offered as a flat rate or allows for itemized expenses. Limitations and rates are reflected in the DSSR for with and without family maximums.  Miscellaneous Expense FTA requests are processed through DoDEA Allowance Processing System (DAPS).

Employees who are completing other non- first duty station travel may be eligible for a different Miscellaneous Expense Allowance that is requested through the PCS travel voucher and is a taxable allowance.  Current employees submit the PCS travel voucher through the Resource Management Service Desk. Separated or retired employees submit MEA requests via email to hqpcsvouchers@dodea.edu.  Contact your servicing Human Resource Specialist for allowance eligibility.

Administrative Reemployment Rights

 If you are identified for conversion under Arbitrator Altman's decision, it means you are eligible to be converted to a permanent position.

 If you started as a teacher with DoDDS during school year (SY) 1994-95 or later, you would need to have qualifying NTE scores to be converted to a permanent position. If you started as a teacher with DoDDS before SY 1994-95, then you would not need to have the qualifying NTE scores on file. Former DoDDS educators, including former educators on "Not To Exceed" appointments, will not be required to take the National Teachers Examination upon being rehired, provided that the reemployment takes place on or before the beginning of the fourth year following separation.

 Labor Relations makes the initial eligibility determination and establishes the date of conversion to a permanent appointment. The case is then forwarded to the Staffing Branch for additional reviews, including a check for the NTE qualifying scores, receipt of the Mobility Statement, and a qualification review. Upon completion of staffing reviews and coding of the SF52s, Requests for Personnel Action, the case is then forwarded to the servicing Personnel Management Team within the Operations Branch. You will then be sent a letter explaining your benefit options. Once you respond, the SF52s are coded into the automated system. All actions which occurred between the effective date of conversion and present are coded as if the employee had been permanent all along. The resulting SF50s, Notification of Personnel Action, are filed in the employee's Official Personnel Folder. Copies are sent to the employee and to our payroll office, Defense Finance and Accounting Service (DFAS) - Charleston.

 You will be automatically placed in a retirement plan and may be eligible for health and life insurance and the Thrift Savings Program.

 As a permanent employee, you will be covered by either the Federal Employees Retirement System (FERS), the Civil Service Retirement System (CSRS), or the CSRS Offset, depending on your prior civilian service and breaks in service. Retirement fund deductions will be retroactive from the date of conversion.

 If you were on a full-time temporary position and are being converted to a full-time permanent position, DFAS-Charleston will send you a letter with a form to elect a repayment plan. If you were not employed or were part time or intermittent and are being converted to a full time permanent position, the retro payments will be deducted from any back pay you are owed. This aspect is the responsibility of our payroll office and you must work with them directly. Personnel is not involved in payment arrangements.

 If you are now being converted to a permanent position for the first time with the Federal government, you are treated as a newly hired FERS employee. In that case, you are first eligible to contribute to the TSP during the second TSP open season following your date of conversion. If you are a rehired FERS employee who was previously eligible to participate, you are eligible to contribute to the TSP during the open season following your date of conversion. If you are a rehired FERS employee who was not eligible to participate in the TSP, you are not eligible for TSP now until the second open season following your date of conversion. The first open season each year is May 15-July 31, and the second is November 15-January 31. The letter sent to you will indicate when you are eligible and will contain the form you need to complete. You must return the completed form within 30 days and indicate the date you want your contributions to begin.

 This is done directly between you and DFAS-Charleston. If you were on a full-time temporary position and are being converted to a full-time permanent position, DFAS-Charleston will send you a letter with a form to elect a repayment plan. If you were not employed or were part time or intermittent and are being converted to a full time permanent position, the retro payments will automatically be deducted from any back pay due you. All retroactive contributions to TSP must come from future, pretaxed earnings.

 No, Personnel staff does not set up retroactive payment schedules for TSP, retirement or any other benefit. This is accomplished between the employee and DFAS-Charleston.

 You are eligible to enroll in a Federal Employees Health Benefits (FEHB) plan of your choice effective at the time of conversion, in conjunction with any subsequent annual open season, or in connection with other events which permit enrollment and changes in enrollment. If you elect retroactive coverage, you will be required to pay the retroactive premiums back to the effective date of coverage. If you are nearing retirement, you should be aware that in order to be eligible for post-retirement coverage, you must generally have been enrolled in a FEHB plan for the last five years of service immediately preceding retirement or since the first opportunity to enroll.

 Yes, you are eligible to participate in the Federal Employee Group Life Insurance (FEGLI) program. You will be automatically enrolled in Basic Life insurance effective the first day in a pay status following the conversion and will be indebted for retroactive premiums unless you elect to waive coverage by completing a Standard Form 2817. You should also be aware of the requirement to be enrolled in FEGLI for the full period of service during which FEGLI was available or for the last 5 years immediately before the annuity commences in order to continue FEGLI into retirement.

 Generally not. Most of the converted employees began their teaching careers with DoDDS as local hires and were not eligible for LQA: The arbitration award does not confer this additional benefit. However, there may be some situations where converted teachers were at closing schools during the covered period and would have been transferred by management to another area as a condition of continued employment. In such cases, if the management directed reassignment would have been outside of the commuting area of the closing school, the employee would have been issued permanent change-of-station (PCS) orders to the new duty location and may now be eligible for LQA: Determinations on eligibility for LQA will have to be made on a case-by-case basis.

 There may be isolated cases where an employee could be entitled to retroactive PA: The authorization would depend on whether or not a post allowance was authorized for the employee's post of assignment during the period of retroactive conversion for which the employee has not already been paid. However, this would not apply to a part-time employee since post allowance may only be authorized to a full-time U.S. citizen employee stationed in a foreign area:

 Generally not. Most employees being converted began their careers with DoDDS as local hires that were not eligible to negotiate a transportation agreement. The arbitration award does not automatically confer this benefit. However, there may be situations where teachers were at closing schools during the covered period that would have been reassigned by management outside the commuting distance of the closing school or to another geographical area that might become eligible. A move within the same geographical locality may confer eligibility to negotiate a transportation agreement for PCS allowances from the old duty station to the new station. There is no other eligibility. A move to a different geographical locality may confer eligibility for PCS allowances from the old duty station to the new duty station, and subject to meeting eligibility requirements, for renewal agreement and separation travel. Determinations on eligibility to negotiate a transportation agreement will have to be made on a case-by-case basis.

 Arbitrator Altman has already determined that "Any employees who have been displaced as a result of their NTE status shall be reinstated retroactively with back pay, benefits and interest, as required under the Back Pay Act." DFAS-Charleston will calculate the amount.

 If you had a break in service while on a temporary appointment and will be eligible for back pay during the period you were unemployed, you may be eligible for retroactive educator leave. This determination would be made by DFAS-Charleston upon review of the new SF50s and their payroll records.