Employee Deductions

CSRS EMPLOYEE DEDUCTIONS

CSRS is a defined benefit, contributory retirement system. Employees share in the expense of the annuities to which they become entitled. The exact amount of retirement deductions to the Civil Service Retirement and Disability Fund withheld from basic pay is set by law.

SUMMARY OF EMPLOYEE DEDUCTIONS

Retirement Group	% of Basic Pay to CSRS	% of Basic Pay to Social Security (through the end of 2013)	% of Basic Pay to Medicare
Regular CSRS Employee CSRS Air Traffic Controller (Retirement code 1)	7%	0	1.45%
CSRS Firefighters CSRS Law Enforcement Officers (Retirement code 6)	7.5%	0	1.45%
Regular CSRS Offset Employees CSRS Offset Air Traffic Controller (Retirement code C)	0.8%*	6.2%	1.45%
CSRS Offset Firefighters CSRS Law Enforcement Officer (Retirement code E)	1.3%**	6.2%	1.45%

* When the total basic pay paid in a calendar year reaches the Social Security maximum taxable wage base, the deduction rate reverts to the "full" CSRS employee withholding rate of 7 percent.

** When the total basic pay paid in a calendar year reaches the Social Security maximum taxable wage base, the deduction rate reverts to the "full" CSRS employee withholding rate of 7.5 percent.

*** An additional 0.9% Additional Medicare Tax applies to an employee’s wages that exceeds a threshold amount based on the employee’s filing status. The threshold amounts are $250,000 for married taxpayers who file jointly, $125,000 for married taxpayers who file separately, and $200,000 for all other taxpayers.

ADDITIONAL INFORMATION

Office of Personnel Management Retirement Handbook Chapter 30, Employee Deductions and Agency Contributions