TRANSCRIPT:
Jim: I'm Jim with United Benefits. In this video, we're gonna be talking about the CSRS: Civil Service Retirement System.
The CSRS retirement system is a defined benefit contributory pension plan. It was established August 1st, 1920. It was later replaced by FERS in 1987.
So for CSRS, when are you eligible for full retirement– “full retirement” meaning full benefits? At age 55, you've got to have 30 years of service. 20 years of service at age 60. Five years of service at age 62.
What are you paying into the CSRS retirement system? 1.45% Medicare, 7% for retirement, zero for Social Security, for a total of 8.45%.
Now how do you compute the CSRS annuity? 30 years of service is equal to 56.25%, so that would be your factor. For every year above 30 years, you're gonna add 2%. So once you know your factor, you're gonna multiply that times your high three and that's gonna give you your pension.
If you would like to get some more information on this calculation, check out our videos or contact United Benefits.
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