Many federal employees have a period of temporary, non-deduction, or temporary appointment service early in their careers — often before they converted to a career appointment. That service may not be creditable toward your FERS pension unless you pay a deposit. Similarly, if you took a refund of FERS retirement contributions during a break in service, you can reclaim that service credit through a redeposit. Both situations involve interest that has been accruing since that service or refund date.
Deposit: You worked in a federal position before 1989 and no retirement deductions were withheld (typically temporary or non-career appointments). You can pay 1.3% (FERS) of your basic pay for that period, plus interest, to have the service credited. Without paying, the service counts toward retirement eligibility but NOT toward your pension computation. Redeposit: You took a refund of FERS retirement contributions (typically after leaving federal service and returning). To reclaim that service credit, you repay the refunded amount plus interest. Without paying, you lose credit for that service in your pension computation entirely (for post-3/1/1991 refunds).
Section I Civilian Service Deposit Calculator
Calculate My Civilian Deposit
Section II Deposit vs. Redeposit Rules
The rules are different depending on when the service occurred and whether it involves a deposit or redeposit.
| Situation | Rate | Consequence if Unpaid | Deadline |
|---|---|---|---|
| FERS deposit — pre-1989 non-deduction service | 1.3% of basic pay | Service counts for eligibility ONLY — not pension computation | Before retirement separation |
| FERS redeposit — post-3/1/1991 refund | Refunded amount + interest | Service eliminated from pension computation entirely | Before OPM finalizes retirement claim |
| FERS redeposit — pre-3/1/1991 refund | Refunded amount + interest | Actuarial reduction to annuity | Before or after retirement |
| CSRS deposit — non-deduction service | 7% of basic pay | 10% reduction to CSRS annuity if pre-10/1/1982; service not counted if post-10/1/1982 | Before retirement |
| CSRS redeposit — pre-10/1/1982 refund | Refunded amount + interest | Actuarial reduction (can be avoided by paying) | Before or after retirement |
Section III Is It Worth Paying?
The typical FERS deposit decision
An employee has 2 years of temporary non-deduction service from early in their career. Their basic pay during that period was $65,000 total. The FERS deposit is $65,000 × 1.3% = $845 principal. After 8 years of interest at 4.25% compounded, the total due is approximately $1,192. Their projected high-3 is $125,000 and they plan to retire at 57. Without the deposit, those 2 years count for eligibility but not pension. With the deposit, their annual FERS pension increases by $125,000 × 1% × 2 years = $2,500/year. Break-even: $1,192 ÷ $2,500 = 0.5 years. They break even in six months of retirement and then collect the extra $2,500/year for life.
Section IV Frequently Asked Questions
The best way is to review your Official Personnel File (OPF), particularly your SF-50 Notification of Personnel Action forms. Any temporary or non-career appointments are identified there. You can request your OPF from your agency's HR office. Additionally, OPM's retirement processing will identify any deposit or redeposit obligations when you submit your retirement application — but waiting until retirement means maximum interest has accrued. Request a Service Credit statement from your HR office well before your planned retirement date to identify and address any outstanding deposits.
Generally no. Under FERS, non-deduction service performed on or after January 1, 1989 is not creditable for retirement purposes — you cannot make a deposit to credit it. The only exceptions are: certain temporary part-time or intermittent "PIT" service performed abroad between 1989 and 1998 under specific Foreign Service Act appointments, service under the Federal Reserve Board's pension plan, and Peace Corps or VISTA volunteer service regardless of when it was performed. For virtually all other post-1988 non-deduction service, no deposit option exists.
If you begin a redeposit but do not complete it before OPM finalizes your retirement claim, OPM will refund the incomplete payments to you. The service that was subject to the redeposit will then be treated as if no payment was made — meaning the service is excluded from pension computation (for post-3/1/1991 refunds) or an actuarial reduction applies (for pre-3/1/1991 refunds). There is no partial credit for partial redeposit payments. If you are close to retirement, do not begin a redeposit you cannot finish before your retirement date is finalized.