The Civil Service Retirement System (CSRS) is commonly referred to as the “old system”. Employees under CSRS were hired prior to January 1, 1987. Under this retirement system, employees participate in the CSRS pension available at retirement. They do not receive Social Security credits for their CSRS service. CSRS employees are eligible to participate in the Thrift Savings Program, the Federal government’s 401(k), but do not receive a government match on their contributions.
CSRS retirees have robust pensions. They may also receive Cost of Living Adjustments (COLAs) on their pension every January. These COLAs are the same as the Consumer Price Index for Wage Earners. There are some things to look out for because CSRS pension are large. Survivor’s Annuity is a very important consideration that must be made when completing the retirement application. Another concern is what taxes will be like in retirement.
To learn more about the CSRS retirement system see the articles below.