05/19/2026
๐ Attention Army-Serviced Federal Civilians! Leaving federal service before retirement? Letโs talk about your contributions!
Whether you are covered under the Federal Employees Retirement System (FERS) or the Civil Service Retirement System (CSRS), leaving your DoW agency role before retirement eligibility means you have an important financial decision to make.
Here is what you need to know about your options, the rules, and how to apply! ๐
๐ก Option 1: Deferred Retirement
If you have at least 5 years of creditable service, you don't have to cash out! You can leave your money in the retirement fund and wait until you reach retirement age to apply for a monthly annuity.
๐ต Option 2: Request a Lump-Sum Refund
If you want immediate access to your funds, you can request a refund of your retirement deductions.
โ ๏ธ The Trade-Off: A refund voids your right to a future annuity and survivor benefits for that period of service.
๐ What if I return to Federal Service? (Redeposits)
CSRS: You have always been allowed to "buy back" (redeposit) refunded CSRS deductions, plus interest, if reemployed.
FERS: If you were covered under FERS on or after Oct. 28, 2009, you can redeposit refunded FERS service. If you don't pay it back, that time is used for retirement eligibility and average salary computation, but NOT to compute the actual annuity payout.
Transfers (CSRS to FERS): OPM will refund deductions under both systems. However, you can specify on your application if you only want a refund of your CSRS deductions.
๐ How to Apply (The Paperwork)
FERS Employees: Download SF 3106 (Application for Refund) and SF 3106A (Spousal Notification).
CSRS Employees: Download SF 2802.
(Both are available at OPM.gov/forms)
๐ฌ Where to Send Your Forms
30 Days or Less Since Separation: Submit your forms to your command-aligned Civilian Human Resources Service Center (CHRSC). The fastest way to do this is to select โMake a Requestโ through the Civilian HR Portal (https://service.chra.army.mil/chra/).
More Than 30 Days Since Separation: Mail your application directly to OPM:
U.S. Office of Personnel Management
Retirement Operations Center
P.O. Box 45, Boyers, PA 16017
๐ A Note on Interest & Taxes
Your actual contributions are not taxable, but any interest earned is!
FERS: Earns interest if you worked more than 1 year (government securities rate).
CSRS: Earns interest (3%) if you have more than 1 but less than 5 years of service.
Taxes/Rollovers: If the taxable interest is over $200, OPM automatically withholds 20% for Federal taxes. You can avoid this withholding by electing a Direct Rollover to an IRA or employer-sponsored plan like the Thrift Savings Plan (TSP). You have 60 days to complete a rollover!
๐ Pro-Tip for Transitions
Before you log off for the last time, visit MyBiz+ to self-update your info and check myPay for your final Leave and Earnings Statement (LES).
For more comprehensive benefits information, visit the Army Benefits Center โ Civilian (ABC-C)! https://abc.chra.army.mil/abc
