Chapter 10. Coverage 10-1 - OPM.gov

1 Chapter 10. Coverage 10-1. Chapter 10. Coverage . Table of Contents Chapter 10. 1. Subchapter 10A. CSRS and 5. Part 10A1. General Information .. 5. Subpart Overview and Definitions .. 5. Section 5. A. Organization of This Chapter .. 5. B. Organization of Subchapter .. 5. C. Statement of Authority .. 5. Section Definitions .. 6. A. Creditable Civilian Service .. 6. B. Conversions .. 6. C. CSRS .. 6. D. CSRS Interim .. 6. E. CSRS Offset .. 6. F. Federal Employee .. 6. G. FERS, (including FERS-RAE and FERS FRAE) .. 7. H. First Hires .. 7. I. 5-Year Test .. 7. J. Member .. 9. K. Rehires .. 9. L. OASDI Coverage .. 9. M. Senior 9. N. Transfers .. 9. O. Temporary Limited Employees .. 9. P. Provisional Employees .. 9. Subpart Historical Background .. 10. Section Background: Retirement System Coverage .. 10.

2 A. Introduction .. 10. B. Civilian Retirement Prior to 1984 .. 10. C. CSRS and Social Security .. 10. D. CSRS Interim .. 10. E. FERS .. 10. F. CSRS Offset .. 11. G. Open Season .. 11. H. Coverage After Open Season .. 11. I. Summary .. 11. Section Background: Social Security Coverage .. 13. A. Introduction .. 13. B. Reference .. 13. C. Relation to Federal 13. D. Chart .. 13. Subpart Coverage Rules: Inclusions, Exclusions, Exceptions .. 14. 10-2 Chapter 10. Coverage Section Retirement Coverage : General Rule .. 14. A. General Rule .. 14. Section CSRS: General Rules: CSRS Coverage .. 15. A. General Rule .. 15. Section CSRS: Exclusions and Exceptions .. 16. A. Authority .. 16. B. Exclusions by Law (5 8331(1)) .. 16. C. Exclusions by Regulation (5 CFR (a).. 17. D. Exceptions to Exclusions by Regulation (5 CFR (b).))

3 18. E. Summary: CSRS Quick 18. Section FERS: General Coverage Rule .. 19. A. General Rule .. 19. B. Automatic Coverage .. 19. C. Coverage by Election .. 19. Section FERS: Exclusions .. 21. A. Authority .. 21. B. General Exclusions by Law (5 8401(11)).. 21. C. Exclusions by Law Unless FERS Coverage is Elected (5 8402(b)) .. 22. D. Regulatory Exclusions (5 CFR ) .. 22. E. FERS Quick Reference .. 22. Section Social Security Amendments of 1983: Inclusions, Exclusions, and Exceptions .. 24. A. Authority .. 24. B. Coverage of New Hires .. 24. C. Coverage of Senior Officials .. 24. D. Coverage of Legislative Employees .. 25. E. Inclusion by History of Service .. 25. F. DC Employees and Other Non-Federal Employment Covered by CSRS Only26. G. Social Security Amendments of 1983 Quick Reference .. 26. Section Decision Factors in Determining Coverage .

4 27. A. Introduction .. 27. B. Factors .. 27. C. Prior FERS Coverage .. 27. D. History of Service .. 27. E. Type of Appointment .. 28. F. Summary of Decision Factors .. 29. Part 10A2. Procedures for Determining Coverage .. 30. Subpart Procedure .. 30. Section Procedure for First Hires .. 30. A. 30. B. General Rule .. 30. C. Exceptions .. 30. D. Non-Federal Service Covered by CSRS .. 30. E. Coverage Determination Table .. 30. Section Procedure for Transfers and Conversions to New Appointments .. 32. A. 32. Chapter 10. Coverage 10-3. B. General Rule .. 32. C. Exceptions .. 32. D. Cross Servicing Arrangements .. 32. E. Coverage .. 33. Section Procedure for Rehires .. 35. A. 35. B. General Rules .. 35. C. Election Opportunity .. 35. D. Coverage Determination Procedure .. 35. Part 10A3. FERS RAE and FERS FRAE.

5 38. SubPart Enhanced Retirement Deductions .. 38. Section General .. 38. A. Overview .. 38. B. Background .. 38. Section : Procedures.. 39. A. Coverage 39. B. Potentially Creditable Service .. 39. C. Performing Active Duty Military Service on December 31, 2013, Following a Separation from Civilian Service .. 40. D. Break in Service of Three Days or Less that Spans December 31, 2013 .. 40. Part 10A4. Prior Coverage Determinations .. 41. Subpart Review of Prior Coverage 41. Section Performing a Review of Prior Coverage .. 41. A. Purpose .. 41. B. Resources Required .. 41. C. Procedure .. 41. Section Review: Employment History Checklist .. 42. A. Worksheet .. 42. B. Description of Checklist Items .. 42. Section Example: Review of Prior Determinations .. 43. A. Introduction .. 43. B. Step 1: Check for FERS or FERCCA Election.

6 43. C. Step 2: Compile Checklist History .. 43. D. Step 3: Verify Determination .. 43. E. Decision Factor Table .. 44. Subchapter 10B. Examples of Application of Coverage Rules .. 49. Part 10B1. General Information .. 49. SubPart New Hires .. 49. Section Examples of Coverage Determinations for New 49. A. Organization of Subchapter .. 49. B. Description .. 49. Part 10B2 Transfers and 53. SubPart : Transfers and Conversions.. 53. Section Examples of Coverage Determinations for Transfers and 53. A. Description .. 53. 10-4 Chapter 10. Coverage Part 10B3 Rehires .. 70. SubPart : Rehires.. 70. A. Description .. 70. Subchapter 10C Job Aids .. 103. Subpart Job Aids .. 103. Section Copies of Job Aids .. 103. A. Description .. 103. B. Job Aids .. 103. Section : Where to Find Listing of Retirement Codes .. 110.

7 A. Location of Retirement Codes List .. 110. Chapter 10. Coverage 10-5. Subchapter 10A. CSRS and FERS. Part 10A1. General Information Subpart Overview and Definitions Section Overview A. Organization of This Chapter This Chapter contains the rules for determining whether an employee is covered by the Federal Employees Retirement System (FERS) or the Civil Service Retirement System (CSRS). This Chapter also contains rules to determine whether an employee with CSRS Coverage has regular CSRS Coverage or CSRS Offset Coverage . Subchapter A contains definitions, historical background information, rules and procedures for determining Coverage , and information on reviewing prior Coverage determinations. Subchapter B contains examples of application of the Coverage rules. Subchapter C contains job aids for use in making Coverage decisions.

8 B. Organization of Subchapter The CSRS Subchapter has three parts. Part Name of Part Page 10A1 Overview and Definitions 10-7. 10A2 Procedures for Determining Coverage 10-31. 10A3 Review of Prior Coverage Determinations 10-39. C. Statement of Authority This subchapter and its contents are based on the laws and regulations cited below. United States Code: Chapter 83 and Chapter 84 of title 5, Code Code of Federal Regulations: 5 CFR Parts 831, 841, 842, and 846. 10-6 Chapter 10. Coverage Section Definitions A. Creditable Civilian Service Creditable civilian service for making a Coverage decision is any service that would be creditable under CSRS, even if this service was not covered by CSRS deductions or if deductions have been refunded. For the purpose of the 5-year test, it includes all potentially creditable service, such as service performed under another retirement system, which would be creditable if any necessary deposit were made.

9 See Section for more information. B. Conversions Conversions occur when employees move from one appointment in an agency to another appointment in the same agency with no break in service or with a break in service of 3 days or less. C. CSRS. 1. CSRS is the Civil Service Retirement System established in subchapter III of Chapter 83 of title 5, Code. The law that created CSRS was enacted in 1920. 2. Individuals covered under CSRS pay CSRS employee deductions. Unless they are CSRS. Offset, they are excluded from OASDI taxes of Social Security. They may contribute up to the Internal Revenue Service elective deferral limit each year to the Thrift Savings Plan (TSP), but, but CSRS employees who contribute do not receive any government contribution. D. CSRS Interim 1. CSRS Interim is a version of CSRS established pending creation of a new retirement system for employees first hired after December 31, 1983, and certain rehires.

10 2. Employees covered by CSRS Interim provisions paid OASDI taxes and a reduced CSRS. contribution. CSRS retirement and survivor benefits are offset by the value of the interim service in Social Security benefits. 3. When FERS became effective on 01-01-1987, employees with CSRS Interim Coverage acquired either FERS or CSRS Offset Coverage . E. CSRS Offset 1. CSRS Offset is a version of CSRS established for employees who become subject to OASDI. taxes and have completed at least 5 years of civilian service creditable under CSRS. 2. Individuals covered under CSRS Offset pay OASDI taxes and a reduced CSRS contribution. CSRS retirement and survivor benefits are offset by the value of the offset service in their Social Security benefits. F. Federal Employee 1. The basic definition of the term "Federal employee" is contained in 5 2105.