Coming back to federal service
Most of what you earned is still there. A refund is the exception.
Check two things with HR in your first month: your FERS contribution category and your recredited sick leave. Both are easy to get wrong and hard to fix later.
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1. Your earlier service
If you left federal service without taking a refund of your retirement contributions, that service is still yours. When you return, it combines with your new service for both retirement eligibility and the annuity computation.
Two practical effects. First, you reach retirement milestones sooner — 20 years at 60, or 30 at your minimum retirement age — counting the old years. Second, your high-3 is your highest three consecutive years of basic pay from either period, so a strong earlier salary isn't wasted.
If you left with a deferred annuity you hadn't started collecting, returning simply adds to it. You retire later on the combined total. That scenario is covered in the deferred annuity. If you were already collecting an annuity, different rules apply; see reemployed annuitants.
2. If you took a refund
A refund of your contributions voided that service. But if you are covered by FERS on or after October 28, 2009, you can make a redeposit: the refund you received plus interest. Paying it restores the service for both eligibility and the annuity computation.
- File SF-3108 through your agency, noting that the service was refunded.
- OPM calculates the amount and bills you. Don't send a payment with the application.
- Interest compounds annually from the date the refund was paid until the redeposit is paid in full — so paying sooner is cheaper.
The full comparison is in buying back refunded FERS service.
3. Your contribution rate
This one gets missed, and it shows up in every paycheck.
| Category | Employee contribution |
|---|---|
| FERS | 0.8% |
| FERS-RAE (generally hired in 2013) | 3.1% |
| FERS-FRAE (generally hired 2014 or later) | 4.4% |
The higher rates generally don't apply to someone who had at least five years of creditable civilian service as of December 31, 2012. So a returning employee with that history may come back under regular FERS at 0.8% rather than 4.4%. On a $100,000 salary, that difference is $3,600 a year.
Look at your first leave and earnings statement back, and ask HR to confirm which FERS category you're in and why. A returning employee coded as FRAE when they should be regular FERS overpays every pay period until someone notices.
4. Leave, FEHB, and the TSP
| Item | When you return |
|---|---|
| Sick leave | Generally recredited — and can later add to service credit at retirement |
| Annual leave | Paid out when you left, so it doesn't return; your accrual rate reflects total service |
| FEHB | New enrollment; the five-year rule looks at the years immediately before retirement |
| TSP | Contributions and the agency match resume |
Sick leave matters more than it looks: at retirement, unused sick leave converts to service credit. See sick leave service credit. For FEHB, ask HR how your earlier coverage is counted, and plan to stay enrolled continuously once you're back; see the five-year rule.
5. Your first month back
- Confirm your FERS category and contribution rate.
- Confirm your recredited sick leave balance.
- Check your service computation date includes the earlier service.
- If you took a refund, file SF-3108 to start the redeposit.
- Enroll in FEHB and set your TSP contribution.
Getting the service record right early saves trouble at retirement, when a wrong record turns into a wrong annuity. See why your HR estimate can differ from OPM's.
6. Frequently asked questions
Does my earlier federal service count if I come back?
Yes. Creditable service from an earlier federal career still counts when you return, as long as you did not take a refund of your retirement contributions. It combines with your new service for both retirement eligibility and the annuity computation. Your high-3 is your highest three consecutive years of basic pay from either period.
I took a refund when I left. Can I get the service back?
Usually. If you are covered by FERS on or after October 28, 2009, you can redeposit the refund plus interest, which restores that service for both eligibility and the annuity computation. Interest accrues annually from the date the refund was paid until the redeposit is paid in full, so the sooner you pay, the cheaper it is.
Will I pay the higher FERS contribution rate when I come back?
Not necessarily. The higher FERS-RAE and FERS-FRAE rates generally do not apply to someone who had at least five years of creditable civilian service as of December 31, 2012, so a returning employee with that history may come back at the regular 0.8 percent rate. Confirm your category with HR, because it affects every paycheck.
What happens to my deferred annuity if I return?
If you left with at least five years of service and had not yet started receiving a deferred annuity, returning simply adds your new service to your old. You retire later on the combined total, usually with a larger annuity. If you were already receiving an annuity, different rules for reemployed annuitants apply.
Does my old sick leave come back?
Generally yes. Sick leave you had when you separated is recredited when you are reemployed, and it can later add to your service credit when you retire. Annual leave was paid out when you left, so it does not come back.