CSRS, the Civil Service Retirement System, is the federal pension for employees first hired before 1984 who did not switch to FERS. It pays 1.5 percent of high-3 for each of the first 5 years, 1.75 percent for the next 5, and 2 percent for every year after 10, up to 80 percent of high-3, with a full COLA at any age.
If you are covered by CSRS, you belong to a smaller group every year. Most CSRS employees have already retired, and the people reading this are often retirees, surviving spouses, or employees with long careers deciding when to leave. The rules have not stopped mattering, though. CSRS retirees still make survivor decisions, still receive COLAs every January, and recently saw a big change on the Social Security side.
Think of CSRS as a single tall pillar. FERS spreads retirement across three shorter legs: a pension, Social Security and the TSP. CSRS puts most of the weight on one pension built to stand alone. That makes the CSRS formula richer, and it makes the rules around it, especially CSRS Offset and Social Security, worth understanding carefully. This guide covers the formula, eligibility, CSRS Offset, how CSRS compares with FERS, COLAs and survivor benefits.
01What is CSRS and who is covered?
CSRS covers federal civilian employees first hired before January 1, 1984 who stayed in the system rather than transferring to FERS during an open season. It was designed as a full pension without Social Security, so CSRS employees generally do not pay Social Security tax on their federal wages.
- CSRSThe Civil Service Retirement System. A stand-alone defined-benefit pension for pre-1984 hires.
- CSRS OffsetA hybrid for employees covered by both CSRS and Social Security, usually because they were rehired after a break in service.
- FERS transfereeAn employee who switched from CSRS to FERS during an open season and has both a CSRS and a FERS component.
- High-3Your highest average basic pay over any three consecutive years of service.
- Full COLAA cost-of-living adjustment equal to the inflation measure, paid at any age.
If you are not sure which system covers you, your SF-50 shows a retirement plan code. Your agency's HR office can confirm it.
02How is the CSRS annuity calculated?
The CSRS annuity is 1.5 percent of high-3 for each of the first 5 years of service, 1.75 percent for each of the next 5 years, and 2 percent for each year beyond 10, capped at 80 percent of high-3 (OPM, retrieved 2026-10-11). Unused sick leave adds service credit on an immediate annuity.
| Years of service | Rate per year | Percent of high-3 earned |
|---|---|---|
| Years 1 to 5 | 1.5% | 7.5% |
| Years 6 to 10 | 1.75% | 8.75% (16.25% total at 10 years) |
| Each year after 10 | 2.0% | Adds 2% a year |
| Maximum | 80% of high-3, plus sick leave credit |
Source: U.S. Office of Personnel Management, CSRS computation, retrieved 2026-10-11.
The 80 percent cap generally affects only people with more than 41 years and 11 months of service. Unused sick leave can be added on top of the cap.
Law enforcement officers, firefighters and nuclear materials couriers under CSRS use a richer formula: 2.5 percent for each of the first 20 years and 2 percent for each year after (OPM, retrieved 2026-10-11). The FERS version of those rules is in the FERS special provisions guide.
03When can you retire under CSRS?
You can retire under CSRS with an immediate, unreduced annuity at 55 with 30 years of service, 60 with 20 years, or 62 with 5 years (OPM, retrieved 2026-10-11). Early and disability options exist too.
- Optional retirement. 55 with 30 years, 60 with 20, or 62 with 5. No reduction.
- Early optional or discontinued service. During an OPM-approved reorganization, reduction in force or transfer of function: 50 with 20 years, or any age with 25. The annuity is reduced 1/6 of 1 percent for each full month under 55, about 2 percent a year (OPM, retrieved 2026-10-11).
- Deferred retirement. If you leave before qualifying, a deferred annuity at 62 with at least 5 years of civilian service.
- Disability retirement. Any age with 5 years of service, for a disability expected to last more than a year. A minimum disability benefit (the statutory floor) may apply: the smaller of 40 percent of high-3 or the annuity figured as if you had worked to 60 (OPM, retrieved 2026-10-11).
Unpaid deposits for service before October 1982 and unpaid redeposits of refunds can reduce a CSRS annuity (OPM, retrieved 2026-10-11). Military service after 1956 also needs a deposit to count; for any portion figured under CSRS, it is 7 percent of military basic pay. The military buyback guide explains deposits in detail.
04What is CSRS Offset?
CSRS Offset is a hybrid for employees covered by both CSRS and Social Security, usually people who left federal service after at least five years under CSRS and were rehired after 1983 following a break of more than a year (OPM CSRS/FERS Handbook, retrieved 2026-07-05). They pay into both systems and receive both benefits, with a coordination rule at 62.
- 01
Before 62
A CSRS Offset retiree receives the full CSRS annuity, figured with the regular CSRS formula.
- 02
At 62
OPM reduces the CSRS annuity by the portion of the Social Security benefit attributable to CSRS Offset service.
- 03
Whether or not you claim
The reduction applies once you are eligible for Social Security at 62, even if you delay claiming.
- 04
Only federal Offset service
Social Security earned from non-federal work is not part of the offset.
The practical point: a CSRS Offset annuity drops at 62. Many Offset retirees plan to claim Social Security at or near 62 so the two payments meet, while others delay for a larger benefit and cover the gap another way. Either way, the drop should be in the plan from the start. Because the offset formula has several parts, ask OPM for an estimate of your figure before you retire.
05How does CSRS compare with FERS?
CSRS pays a larger pension by itself, with a full COLA at any age, but generally no Social Security on federal wages and no agency TSP contributions. FERS pays a smaller pension but adds Social Security and agency TSP contributions, and it travels better if you leave government early.
| Feature | CSRS | FERS |
|---|---|---|
| Who is covered | Hired before 1984, did not transfer | Most employees hired since 1984 |
| Pension formula | 1.5% / 1.75% / 2% per year, up to 80% | 1% per year, or 1.1% at 62 with 20+ years |
| Unreduced retirement | 55/30, 60/20, 62/5 | MRA/30, 60/20, 62/5 |
| Social Security on federal wages | Generally no (yes under CSRS Offset) | Yes |
| TSP agency contributions | None (you can contribute) | 1% automatic plus match up to 4% more |
| COLA | Full COLA at any age | Diet COLA, generally from 62 |
| Survivor benefit | Up to 55% of the annuity | 50% or 25% of the unreduced annuity |
Sources: OPM CSRS and FERS computation and eligibility pages (retrieved 2026-10-11); OPM cost-of-living page (retrieved 2026-07-05).
Neither system is better for everyone. A long CSRS career produces a pension FERS cannot match on its own. A FERS employee with a full career, steady TSP saving and Social Security can end up with comparable total income, and more flexibility. If you transferred from CSRS to FERS, your annuity has two parts: a CSRS component figured with the CSRS formula and a FERS component figured with the FERS formula (OPM, retrieved 2026-10-11). The FERS hub and FERS annuity guide explain the FERS side, and the FERS pension estimator can figure a FERS component.
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06How do CSRS COLAs work?
CSRS annuities receive the full cost-of-living adjustment each year, based on the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers, at any age (OPM, retrieved 2026-07-05). The first COLA after retirement is prorated by how many months you have been retired.
The gap between CSRS and FERS comes from the FERS diet-COLA rule. When inflation runs between 2 and 3 percent, FERS is capped at 2 percent; above 3 percent, FERS gets the full figure minus one point. CSRS always gets the full figure. Over a long retirement that difference compounds. The COLA guide explains the rules, and the COLA history data lists every adjustment by year.
CSRS retirees feel inflation least of anyone in the federal system, because their COLA tracks it in full from the first year.
07What are the CSRS survivor benefit rules?
A CSRS retiree can provide a survivor annuity of up to 55 percent of the annuity, paid for by a reduction of 2.5 percent of the first $3,600 of the base elected plus 10 percent of the amount above that (OPM, retrieved 2026-07-05). You may elect a smaller base, which costs less and pays less, with your spouse's consent.
As under FERS, the survivor election also protects health coverage: a surviving spouse can only continue FEHB if they receive a survivor annuity (OPM, retrieved 2026-07-05). The FERS survivor benefits guide explains that link in more depth, and the FEHB guide covers survivor coverage.
CSRS retirees can also name an insurable interest survivor, such as a child or sibling, if they are in good health at retirement. The reduction runs from 10 percent to 40 percent of the annuity depending on how much younger the person is (OPM, retrieved 2026-10-11).
08What changed for CSRS retirees with the Social Security Fairness Act?
The Social Security Fairness Act, signed January 5, 2025, repealed the Windfall Elimination Provision and the Government Pension Offset for Social Security benefits payable for months after December 2023 (SSA, retrieved 2026-10-11). Those two rules had reduced or eliminated Social Security for many people with CSRS pensions.
- Your own Social Security. If you earned Social Security from non-federal work, it is no longer reduced by the Windfall Elimination Provision.
- Spouse and survivor benefits. Social Security spouse or widow(er) benefits are no longer reduced by the Government Pension Offset because of a CSRS pension.
- Retroactive payments. SSA paid retroactive amounts back to January 2024 for people already receiving benefits.
- Never applied? If you held off applying for spouse or survivor benefits because GPO would have erased them, check eligibility with SSA now.
- CSRS Offset is separate. The CSRS Offset reduction at 62 is an OPM rule, not WEP or GPO, and it still applies.
This is one of the biggest changes for CSRS households in decades. If you are a CSRS retiree or the spouse of one, a fresh look at Social Security is worthwhile. The Social Security guide covers the details.
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09Moving forward with CSRS
CSRS is a system near the end of its run, but the decisions it asks for are still live: when to retire, what survivor base to elect, how the Offset reduction at 62 fits your budget, and what the Social Security Fairness Act now means for your household. The pillar stands tall on its own. Make sure the ground around it is level.
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10Questions federal employees ask
What is the difference between CSRS and FERS?
CSRS is a stand-alone pension for employees first hired before 1984, with a richer formula (up to 2 percent per year) and full COLAs, but generally no Social Security on federal wages. FERS pays a smaller pension (1 percent or 1.1 percent per year) plus Social Security and TSP agency contributions.
What is CSRS Offset?
CSRS Offset covers employees, mostly people rehired after 1983 following a break in service, who are under both CSRS and Social Security. They receive a full CSRS annuity until 62; then OPM reduces it by the Social Security benefit attributable to their CSRS Offset service.
How much is the CSRS COLA?
CSRS annuities receive the full cost-of-living adjustment based on inflation, at any age. The COLA first paid in January 2026 was 2.8 percent for CSRS, compared with 2.0 percent for FERS (OPM, retrieved 2026-07-05).
What survivor benefit does CSRS provide?
A CSRS retiree can provide a survivor annuity of up to 55 percent of the annuity. The cost is 2.5 percent of the first $3,600 of the base elected plus 10 percent of the amount above that (OPM, retrieved 2026-07-05).
Did the Social Security Fairness Act affect CSRS retirees?
Yes. The law, signed January 5, 2025, repealed the Windfall Elimination Provision and Government Pension Offset for Social Security benefits payable for months after December 2023 (SSA, retrieved 2026-10-11). Many CSRS retirees and their spouses saw Social Security benefits rise.
What is the maximum CSRS annuity?
The CSRS annuity is capped at 80 percent of high-3, not counting credit for unused sick leave (OPM, retrieved 2026-10-11). The cap generally affects people with more than 41 years and 11 months of service.
Reviewed by the FFEBA education team. Last reviewed October 2026.
Sources
- U.S. Office of Personnel Management, CSRS computation, retrieved 2026-10-11
- U.S. Office of Personnel Management, CSRS eligibility, retrieved 2026-10-11
- U.S. Office of Personnel Management, CSRS survivors, retrieved 2026-07-05
- U.S. Office of Personnel Management, cost-of-living adjustments, retrieved 2026-07-05
- U.S. Office of Personnel Management, FERS computation (CSRS component for transfers), retrieved 2026-10-11
- U.S. Office of Personnel Management, how the insurable interest reduction is calculated, retrieved 2026-10-11
- U.S. Social Security Administration, Social Security Fairness Act, retrieved 2026-10-11
- U.S. Office of Personnel Management, CSRS/FERS Handbook (CSRS Offset), retrieved 2026-07-05
Every government figure on this page carries its source and retrieval date. Worked examples are educational estimates on the assumptions shown, not a projection of any person's benefit. FFEBA is an education organization, not a financial advisor.
