What is FERS deposit service?

Deposit service is the period of service during which retirement contributions were not withheld from your salary.   Some examples would include temporary time and time while working on an intermittent work schedule.

As a Federal Employee Retirement System (FERS) covered employee, you must pay a deposit of 1.3 percent of the basic pay earned during the non-deduction service, plus interest, in order to receive credit for that period of service.  (Click here to view the interest rate chart). FERS employees can only make a deposit for service prior to January 1, 1989.  Deposit time on or after January 1, 1989 this date is not creditable and payment cannot be made to receive credit.

Is It Beneficial To Make A FERS Deposit?
Generally, yes. Payment should be made because otherwise the employee will not receive credit for the period(s) of deposit service in determining eligibility to retire or in computing the basic annuity.

Does Nonpayment Of A Deposit Have An Effect On Crediting Service For Purposes Other Than Retirement?

No. Full credit is granted for leave, promotion, pay increases, retention credits in reductions-in-force, and continuation of life insurance and health benefits after retirement, whether or not the deposit is made.

How Is A Deposit Made?

Form SF 3108, Application to Make Service Credit Payment for Civilian Service (FERS)must be filed with your current personnel office. They will estimate the amount you actually owe and explain further how your future retirement benefits may be affected. 

Can I Make A Deposit After Separation From Service?

You may make a deposit after separation from service if the employee has present or future annuity rights (i.e., the employee has at least 5 years of creditable service and did not take a refund of retirement contributions at his or her last separation from service). Payment in such cases may be made any time before final adjudication of the retirement claim.

Can I Make A Deposit After Retirement?

A deposit cannot be made after final adjudication of an annuity claim. However, you need not postpone filing an application for retirement because a deposit is due. OPM automatically contacts retirees who owe FERS deposits to advise them of the amount of deposit due and the offset on their annuity of making or not making payment. If a retiree wishes to make payment, he or she may do so at this time.