The Civil Service Retirement Act came into effect in January of 1920. It served as the established retirement system in place for all civil servants at that time. However, that act would eventually be replaced by the Federal Employee Retirement System (FERS). The Federal Employees Retirement System is for Federal employees who first entered covered service on and after the date of January 1, 1987.
The Civil Service Retirement System (CSRS) serves as a defined benefit, contributory retirement benefit program. This means that federal employees share in the cost of annuities when they are entitled to them. The amount of the contribution can vary (7, 7 1/2, or 8 percent). CSRS employees can even increase their earned annuity if they contribute up to 10 percent of the basic pay for their creditable service into a voluntary contribution account.
Federal employees generally do not pay on Social Security Retirement, Survivor and Disability Tax. However, they do have to pay the Medicare tax. Furthermore, there is a requirement for the employing agency to match the federal employee’s CSRS contributions.
Need more information on CSRS? Check that page for more in-depth questions about eligibility, computation, creditable service, and other factors involved in the calculation. This includes whether you can receive credit for military service.