CSRS, also known as the Civil Service Retirement System, is a federal retirement program in the United States. It provides retirement, disability, and survivor benefits for eligible federal employees and their beneficiaries.
Established in 1920, CSRS was the primary retirement system for federal employees until the introduction of the Federal Employees Retirement System (FERS) in 1987. However, it still covers employees who were hired before 1984 and have not opted for FERS.
CSRS operates as a defined benefit plan, meaning that retirees receive a fixed monthly payment based on a formula that considers their length of service and average salary during the highest three consecutive years of their federal career. This formula generally provides higher benefits than those offered by FERS.
CSRS participants contribute to the system through payroll deductions, while the federal government also contributes a portion of the funding. The retirement benefits are designed to provide financial security to federal employees during their retirement years.
CSRS also offers disability benefits for eligible employees who become incapacitated and are unable to continue working. In the unfortunate event of a CSRS participant's death, the system provides survivor benefits to their eligible dependents, including a monthly annuity to the surviving spouse or children.
Overall, CSRS is an important retirement program for federal employees, ensuring their financial well-being after dedicating their careers to serving the government and the American people.
