Civil service retirement

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The Federal Employees' Retirement System Act of 1986 (P.L. 99-335) allows retiring Federal employees to elect to withdraw, in one lump-sum, their contributions into the retirement system in exchange for a reduced annuity. This paper describes (1) the withdrawal provision and Office of Personel Management (OPM) regulations for the annuity reduction, and (2) tax treatment of the lump-sum withdrawal.

Details
Title

Civil service retirement: Withdrawal of contributions ("lump-sum payments") and taxation of benefits

Creators/Contributors

Merck, Carolyn L. (Author)

Date Issued

1986

Notes

Abstract -- Introduction -- Withdrawal of Employee Contributions Under P.L. 99-335 -- Reduction of the Annuity. Retiree Characteristics Affecting the Annuity Reduction ; COLAs, Inflation, and Interest Rate Assumptions ; Accounting for Survivor Benefits -- Making the Withdrawal Decision -- Old Tax Law. Taxation of Pension Plan Distribution ; Old Tax Law Pertainting to Regular Pension Income -- Effects of New Tax Law on Withdrawals Under PL 99-335 -- Appendix A: Examples of Annuity Reduction Rates When CSRS Contributions are Withdrawn.

The Federal Employees' Retirement System Act of 1986 (P.L. 99-335) allows retiring Federal employees to elect to withdraw, in one lump-sum, their contributions into the retirement system in exchange for a reduced annuity. This paper describes (1) the withdrawal provision and Office of Personel Management (OPM) regulations for the annuity reduction, and (2) tax treatment of the lump-sum withdrawal.

Carolyn L. Merck, Specialist in Social Legislation, Education and Public Welfare Division

CRS 86-1023 EPW

"October 23, 1986"
"Updated December 10, 1986."

SuDoc # LC 14. 18/3

Language

eng

Date

1986-01-01T00:00:00Z

Extent

28 pages

Genre

book

Type/Format

text