Federal Employees’ Retirement System:
Summary of Recent Trends
Updated December 12, 2023
Congressional Research Service
https://crsreports.congress.gov
98-972
Federal Employees’ Retirement System: Summary of Recent Trends
Summary
This report describes recent trends in the characteristics of annuitants and current employees
covered by the Civil Service Retirement System (CSRS) and the Federal Employees’ Retirement
System (FERS) as well as the financial status of the Civil Service Retirement and Disability Fund
(CSRDF).
• In FY2022, 98% of current civilian federal employees were enrolled in FERS,
which covers employees hired since 1984. Two percent were enrolled in CSRS,
which covers only employees hired before 1984.
• In FY2022, more than 2.7 million people received civil service annuity
payments, including 2,226,760 employee annuitants and 475,562 survivor
annuitants. Of these individuals, 56% received annuities earned under CSRS, and
44% received annuities earned under FERS.
• About one-third of all federal employee annuitants and survivor annuitants reside
in five states: California, Texas, Florida, Maryland, and Virginia.
• The average civilian federal employee who retired in FY2022 was 62.3 years old
and had completed 25.1 years of federal service.
• The average monthly annuity payment to workers who retired under CSRS in
FY2022 was $5,447. Workers who retired under FERS received an average
monthly annuity of $2,126. Employees retiring under FERS had a shorter
average length of service than those under CSRS. FERS annuities are
supplemented by Social Security benefits and the Thrift Savings Plan (TSP).
• At the end of FY2022, the balance of the CSRDF was $1.012 trillion, an amount
equal to more than 10 times the amount of outlays from the fund that year. The
trust fund balance is expected to reach $1.576 trillion by the end of FY2032.
• From FY1970 to FY1985, the number of people receiving federal civil service
annuities rose from fewer than 1 million to nearly 2 million, an increase of 105%.
Between FY1985 and FY2022, the number of civil service annuitants rose by
767,000, an increase of about 39%.
• In FY2022, all CSRS employees were aged 55 or older, compared with 32% of
FERS employees who were aged 55 or older (42.1% of FERS employees were
younger than 45). Ninety-one percent of CSRS employees were aged 60 or older,
whereas 15% of FERS employees were in this age range.
For additional information about CSRS and FERS, see CRS Report R47084, Federal Retirement
Plans: Frequently Asked Questions.
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Contents
Fundamentals of the Civil Service Retirement Programs ............................................................... 1 Retirement System Coverage of Current Federal Employees ......................................................... 2 Retirement System Coverage of Current Civil Service Annuitants................................................. 3 State of Residence of Civil Service Annuitants ............................................................................... 4 Average Age and Years of Service at Retirement ............................................................................ 6 Average Annuity Amounts Under CSRS and FERS ....................................................................... 6 Total and Median Annuity Payments to Retirees and Survivors ..................................................... 8 Average Age at Retirement of New Federal Retirees ...................................................................... 9 Cost-of-Living Adjustments Under CSRS and FERS ..................................................................... 9 Income and Expenditures of the Civil Service Retirement and Disability Fund ............................ 11 Recent Trends in the Balance of the Civil Service Retirement and Disability Fund ..................... 13 Number of Civil Service Annuitants and Total Annuity Payments ............................................... 14 Age Distribution of CSRS and FERS Employees ......................................................................... 16
Tables
Table 1. Retirement System Coverage of Federal Employees, by Fiscal Year ................................ 3 Table 2. Retirement System Coverage of Civil Service Annuitants, FY2022 ................................. 4 Table 3. State of Residence of Civil Service Annuitants, FY2022 .................................................. 4 Table 4. Number, Average Age and Years of Service, and Average Annuity of Civil
Service Annuitants Who Retired in FY2022 ................................................................................ 7
Table 5. Monthly Annuity Payments to Retirees and Survivors in FY2022.................................... 8 Table 6. Average Age at Retirement for New Federal Retirees, by Fiscal Year .............................. 9 Table 7. Cost-of-Living Adjustments Under CSRS and FERS ..................................................... 10 Table 8. Receipts and Obligations of the Civil Service Retirement and Disability Fund,
FY2022-FY2024 ........................................................................................................................ 12
Table 9. Income and Expenses of the Civil Service Retirement and Disability Fund,
FY1990-FY2024 ........................................................................................................................ 13
Table 10. Annuitants and Annuity Payments, by Fiscal Year ........................................................ 15 Table 11. Age Distribution of CSRS and FERS Employees, FY2022........................................... 17
Contacts
Author Information ........................................................................................................................ 17
Congressional Research Service
Federal Employees’ Retirement System: Summary of Recent Trends
Fundamentals of the Civil Service Retirement
Programs
The Civil Service Retirement System (CSRS) was established by P.L. 66-215 in 1920, 15 years
before Congress created the Social Security system for workers in the private sector. Because
CSRS was designed to provide both retirement and disability benefits, federal employees were
excluded from participating in Social Security. State and local governments were permitted to
bring their employees into the Social Security program in the early 1950s, and today about three-
fourths of state and local government employees are covered by Social Security.1
In the Social Security Amendments of 1983 (P.L. 98-21), Congress mandated participation in
Social Security by all civilian federal employees initially hired on or after January 1, 1984. To
coordinate federal employee retirement benefits with Social Security, Congress directed the
development of a new federal employee retirement system with Social Security as the
cornerstone. The result of this effort was the Federal Employees’ Retirement System (FERS) Act
of 1986 (P.L. 99-335). FERS is composed of three elements: (1) Social Security, (2) the FERS
basic retirement annuity, and (3) the Thrift Savings Plan (TSP).
Most permanent federal employees hired after December 31, 1983, are enrolled in the FERS, as
are employees who voluntarily switched from CSRS to FERS during “open seasons” in 1987 and
1998.2 Under FERS, workers who have completed at least 30 years of service can retire at the
plan’s minimum retirement age. The minimum retirement age was 55 for workers born before
1948, and it is scheduled to rise to 57 for those born in 1970 or later. For example, someone born
in 1968 would attain the minimum retirement age of 56 years and 8 months in the year 2024.
Employees with 20 or more years of service can retire at the age of 60, and those with at least 5
years of service can retire at the age of 62. Federal employees and former employees who have
completed at least 10 years of service can receive a reduced FERS annuity at the minimum
retirement age. For those who choose this option, the FERS annuity is permanently reduced by
5% multiplied by the number of years between the worker’s age at retirement and the age of 62.
For example, the FERS annuity of an employee who retires at the age of 56 with fewer than 30
years of service would be permanently reduced by 5% multiplied by six, or 30%.
Under CSRS, the minimum retirement age is 55 for employees with 30 years of federal service,
60 for those with 20 years of service, and 62 for employees with at least 5 years of service. CSRS
has no provision for early retirement with a reduced benefit, except for special circ*mstances
such as a reduction in force. Agencies undergoing a reduction in force can, with the approval of
the Office of Personnel Management (OPM), offer retirement to employees aged 50 or older with
20 or more years of service or at any age with 25 or more years of service. An employee under
CSRS who is offered and accepts an offer of voluntary early retirement has his or her retirement
annuity permanently reduced by 2% multiplied by the number of years between the worker’s age
at retirement and the age of 55.
Under both CSRS and FERS, the amount of an employee’s retirement annuity is based on the
average of the individual’s highest three consecutive years of basic pay multiplied by his or her
years of service and the rate at which benefits accrue for each year of service.3 Under FERS, the
1 For additional background, see CRS Report R46961, Social Security Coverage of State and Local Government
Employees.
2 P.L. 105-61 (October 10, 1997) authorized an open season to be held from July through December 1998.
3 The retirement annuity is a monthly payment made for the life of the employee. High-three average pay is based on
(continued...)
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accrual rate is 1% of basic pay for each year of service. Workers with 20 or more years of service
who retire at the age of 62 or later are credited with an accrual rate of 1.1% for each year of
service. For example, a worker under FERS who retires at 61 with 29 years of service will receive
a FERS annuity equal to 29% of his or her high-three average pay. Delaying retirement by one
year would increase the annuity to 33% of high-three average pay (30 × 1.1 = 33.0).
Under CSRS, the benefit accrual rate increases with length of service. Workers accrue benefits
equal to 1.5% of high-three average pay for each of the first 5 years of service; 1.75% for the 6th
through 10th years of service, and 2.0% of high-three average pay for each year of service after
the 10th year. This yields a pension equal to 56.25% of high-three average pay for 30 years of
federal service under CSRS. Accrual rates are lower under FERS than under CSRS because
employees under FERS also earn Social Security retirement benefits.
For all federal workers enrolled in FERS, the agencies where they are employed contribute an
amount equal to 1% of the employees’ basic pay to the TSP, even if the employees make no
voluntary contributions to the TSP. In 2024, workers under FERS or CSRS can contribute up to
$23,000 to the TSP.4 Workers aged 50 and older can contribute an additional $7,500 to the TSP in
2024.5
Except in the case of the Roth TSP option, all contributions to the TSP are made on a pre-tax
basis, and neither the employee’s contribution nor any investment earnings are taxed until the
money is withdrawn from the account. Under the Roth TSP option, however, employee
contributions are made with after-tax income. Qualified distributions from the Roth TSP option—
generally, distributions taken five or more years after the participant’s first Roth contribution and
after he or she has reached the age of 59½—are tax-free.
In addition, the first 5% of employee pay contributed to the TSP generates agency matching
contributions for workers under FERS.6 Workers who are under CSRS can contribute to the TSP,
but they receive no matching contributions from their employing agencies.
Retirement System Coverage of Current Federal
Employees
Because enrollment in CSRS has been closed to new entrants since 1984, the proportion of
federal workers covered by FERS has been rising and coverage under CSRS has been declining.
(See Table 1.) FY1995 was the first year in which a majority of civilian federal employees (51%)
were enrolled in FERS. In FY2022, 98.4% of federal employees were enrolled in FERS.
nominal (current) dollars rather than indexed (constant) dollars. Years of service are pro-rated based on whole months
(defined as 30 days).
4 Employee contributions to the TSP are subject to the annual limit on salary deferrals established under Internal
Revenue Code §402(g).
5 Under the Setting Every Community up for Retirement Enhancement (SECURE) 2.0 Act of 2023 (P.L. 117-328),
beginning January 1, 2025, participants who are ages 60, 61, 62, and 63 will be subject to a higher contribution limit for
catch-up contributions: the greater of $10,000 (indexed to inflation) or 150% of the regular catch-up limit (see
“SECURE 2.0 and the TSP,” https://www.tsp.gov/news-and-resources/secure-2-0-and-the-tsp/).
6 All employees covered by FERS receive “agency automatic contributions” of 1% of pay. Employee contributions are
matched dollar-for-dollar on the first 3% of pay contributed and at $.50 on the dollar on the next 2% of pay contributed.
Thus, the maximum agency contribution to the TSP is 5% of employee pay.
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Table 1. Retirement System Coverage of Federal Employees, by Fiscal Year
Covered Active Employeesa
CSRS
FERS
Total
FY2022
44,000
2,788,000
2,832,000
Percentage distribution
1.6
98.4
100
FY2020
70,000
2,740,000
2,810,000
Percentage distribution
2.5
97.5
100
FY2018
108,000
2,585,000
2,693,000
Percentage distribution
4.0
96.0
100
FY2016
159,000
2,529,000
2,688,000
Percentage distribution
5.9
94.1
100
FY2014
224,000
2,471,000
2,695,000
Percentage distribution
8.3
91.7
100
FY2012
274,000
2,477,000
2,751,000
Percentage distribution
10.0
90.0
100
FY2010
373,000
2,458,000
2,831,000
Percentage distribution
13.2
86.8
100
FY2008
477,000
2,195,000
2,672,000
Percentage distribution
17.9
82.1
100
FY2006
650,000
2,014,000
2,664,000
Percentage distribution
24.4
75.6
100
FY2004
795,000
1,875,000
2,670,000
Percentage distribution
29.8
70.2
100
FY2002
897,000
1,717,000
2,614,000
Percentage distribution
34.0
66.0
100
FY2000
961,000
1,629,000
2,590,000
Percentage distribution
37.1
62.9
100
FY1998
1,108,000
1,550,000
2,658,000
Percentage distribution
41.7
58.3
100
FY1996
1,235,000
1,385,000
2,620,000
Percentage distribution
47.1
52.9
100
FY1994
1,402,000
1,296,000
2,698,000
Percentage distribution
52.0
48.0
100
Source: Office of Personnel Management, Federal Civilian Workforce Statistics: The Fact Book, various years, and
Annual Report of the Board of Actuaries of the Civil Service Retirement and Disability Fund, various years.
a. Includes U.S. Postal Service. Does not include employees on leave without pay.
Retirement System Coverage of Current Civil
Service Annuitants
Although the majority of current federal employees are enrolled in FERS, about half of retired
federal workers and their surviving dependents receive benefits that were earned under CSRS. In
FY2022, 50.8% of employee annuitants were receiving pension benefits that were accrued under
CSRS, whereas 49.2% had retired under FERS. A higher percentage of the surviving dependents
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of federal employees receive benefits earned under CSRS (80.1% in FY2022) than under FERS
(19.9% in FY2022). (See Table 2.)
Table 2. Retirement System Coverage of Civil Service Annuitants, FY2022
CSRS
FERS
Total
Employee annuitants
1,131,411
1,095,349
2,226,760
Percentage
50.8
49.2
100
Survivor annuitants
380,974
94,588
475,562
Percentage
80.1
19.9
100
Total annuitants
1,512,385
1,189,937
2,702,322
Percentage
56.0%
44.0%
100
Source: U.S. Office of Personnel Management, FY2022 Statistical Abstract of Federal Employee Benefits Programs.
Note: Does not include retirees in interim pay status.
State of Residence of Civil Service Annuitants
Approximately 2.72 million people received civil service annuities in FY2022, either as retired
federal employees, surviving spouses, or surviving dependents. California had the largest number
of annuitants with 210,967 and Vermont had the fewest with 5,042. Five states—California,
Texas, Florida, Maryland, and Virginia—accounted for about one-third of all civil service
annuitants in FY2022. (See Table 3.)
Table 3. State of Residence of Civil Service Annuitants, FY2022
State of Residence
Number of Annuitants
Percentage of National Total
Alabama
60,114
2.2%
Alaska
9,011
0.3%
Arizona
64,822
2.4%
Arkansas
25,435
0.9%
California
210,967
7.7%
Colorado
53,550
2.0%
Connecticut
15,282
0.6%
Delaware
13,186
0.5%
District of Columbia
42,874
1.6%
Florida
200,896
7.4%
Georgia
95,381
3.5%
Hawaii
24,713
0.9%
Idaho
17,617
0.6%
Il inois
71,019
2.6%
Indiana
39,619
1.5%
Iowa
22,056
0.8%
Kansas
25,687
0.9%
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Federal Employees’ Retirement System: Summary of Recent Trends
State of Residence
Number of Annuitants
Percentage of National Total
Kentucky
34,970
1.3%
Louisiana
29,040
1.1%
Maine
14,860
0.5%
Maryland
169,637
6.2%
Massachusetts
41,533
1.5%
Michigan
49,472
1.8%
Minnesota
32,266
1.2%
Mississippi
26,934
1.0%
Missouri
56,324
2.1%
Montana
15,054
0.6%
Nebraska
14,131
0.5%
Nevada
27,918
1.0%
New Hampshire
13,910
0.5%
New Jersey
51,830
1.9%
New Mexico
29,540
1.1%
New York
94,028
3.5%
North Carolina
87,800
3.2%
North Dakota
6,973
0.3%
Ohio
78,038
2.9%
Oklahoma
47,539
1.7%
Oregon
35,256
1.3%
Pennsylvania
109,918
4.0%
Rhode Island
7,579
0.3%
South Carolina
50,669
1.9%
South Dakota
11,830
0.4%
Tennessee
53,115
1.9%
Texas
186,884
6.9%
Utah
34,695
1.3%
Vermont
5,042
0.2%
Virginia
150,604
5.5%
Washington
72,481
2.7%
West Virginia
19,708
0.7%
Wisconsin
31,080
1.1%
Wyoming
6,645
0.2%
U.S. Territories and other
countries
35,283
1.3%
Total
2,724,815
100.0%
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Source: Office of Personnel Management, FY2022 Statistical Abstract of Federal Employee Benefits Programs.
Note: Includes retirees in interim pay status.
Average Age and Years of Service at Retirement
In FY2022, 114,505 civilian federal employees (including U.S. Postal Service employees) retired.
(See Table 4.) Of this number, 95,846 (83.7%) were normal retirements7 and another 1,325
(1.2%) were voluntary early retirements. Under CSRS, normal retirement can occur as early as
the age of 55 for an employee with 30 years of service. Under FERS, the minimum retirement age
is currently 56 years old for individuals born in the years 1953-1964, and is scheduled to increase
to 57 years old for workers born in 1970 or later. Under both programs, normal retirement can be
taken at the age of 60 with 20 years of service or the age of 62 with five years of service. The
average age of workers taking voluntary, normal retirement in FY2022 was 65.9 for employees
under CSRS and 63.3 for those under FERS. Workers taking normal retirement under CSRS in
FY2022 had completed an average of 40.6 years of service, whereas those retiring under FERS
had an average of 24.3 years of service.
More than 1,300 federal employees took voluntary early retirement in FY2022. These workers
were younger on average (58.4 years old for CSRS employees and 54.7 years old for FERS
employees) than those who took normal retirement. The average length of service for CSRS
employees who took voluntary early retirement was less (28.1 years) than CSRS employees who
took normal retirement (40.6 years). For FERS employees, however, the average length of service
of individuals taking early voluntary retirement was greater (26.3 years) than that of FERS
employees who took normal retirement (24.3 years).8 Approximately 3.2% of all retirements
among federal employees in FY2022 were taken for reasons of disability (3,652). CSRS disability
retirees were, on average, 51.5 years old with 23.7 years of service. The average age of FERS
disability retirees, who had 13.2 years of service, was 50.6. Involuntary retirements (such as those
resulting from agency downsizing) accounted for 0.5% of all retirements by federal employees in
FY2022 (519 retirements). Additionally, in FY2022, there were 6,510 special provision
retirements (5.7%) for law enforcement officers and related personnel, firefighters, air traffic
controllers, and Members of Congress.
Average Annuity Amounts Under CSRS and FERS
The average monthly annuity among civilian federal employees who retired under CSRS in
FY2022 was $5,447, whereas new FERS annuitants received an average annuity of $2,126 per
month. (See Table 4.) Employees retiring under CSRS received larger annuities than those
covered by FERS both because of their longer average length of service and because CSRS was
designed to provide an adequate retirement income from a single source. FERS was designed to
provide a smaller annuity than CSRS for any given length of service and level of compensation
because federal employees under FERS participate in Social Security and they also can elect to
7 Normal retirements include all retirements except disability retirements, voluntary early retirements, involuntary
retirements, and special provision retirements.
8 To qualify for voluntary early retirement, individuals must have at least 25 years of service or be at least age 50 with
at least 20 years of service. This requirement may be responsible for the greater years of service for individuals who
take FERS voluntary early retirement compared with FERS normal retirement. For more details on the Voluntary Early
Retirement Authority (VERA) that may grant eligibility for voluntary early retirement, see http://www.opm.gov/policy-
data-oversight/workforce-restructuring/voluntary-early-retirement-authority/.
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save for retirement with agency matching contributions through the TSP.9 Employees enrolled in
FERS who retire at the minimum retirement age or older with 30 years of federal service also
receive a supplement to their FERS annuity between their retirement date and the age of 62. The
supplement is equal to the Social Security benefit that they earned while employed by the federal
government and enrolled in FERS. Employees who retire at the age of 60 or 61 with 20 or more
years of service also receive this supplement. The FERS supplement terminates at the age of 62,
regardless of whether the individual applies for Social Security at that age.
Table 4. Number, Average Age and Years of Service, and Average Annuity of Civil
Service Annuitants Who Retired in FY2022
Civilian Federal Retirements
CSRS
FERSa
Average or Total
Normal Retirements
Number
10,329
85,517
95,846
Average age at retirement
65.9
63.3
NAb
Average years of service
40.6
24.3
NA
Average monthly annuity
$5,685
$1,982
NA
Disability Retirements
Number
36
3,616
3,652
Average age at retirement
51.5
50.6
NA
Average years of service
23.7
13.2
NA
Average monthly annuity
$2,745
$2,221
NA
Involuntary Retirements
Number
20
499
519
Average age at retirement
63.6
57.0
NA
Average years of service
32.7
24.6
NA
Average monthly annuity
$4,752
$2,162
NA
Voluntary Early Retirements
Number
4
1,321
1,325
Average age at retirement
58.4
54.7
NA
Average years of service
28.1
26.3
NA
Average monthly annuity
$4,733
$2,211
NA
Special Provision Retirementsc
Number
60
6,450
6,510
Average age at retirement
62.8
53.9
NA
Average years of service
37.6
25.1
NA
Average monthly annuity
$8,767
$4,130
NA
Total Retirements in FY2022d
Number
11,119
103,386
114,505
Average age at retirement
65.6
61.9
62.3
Average years of service
39.2
23.6
25.1
Average monthly annuity
$5,447
$2,126
$2,448
Source: CRS analysis of data from the Office of Personnel Management (OPM), FY2022 Statistical Abstract of
Federal Employee Benefits Programs.
9 In 2024, federal employees can contribute up to $23,000 of pay to the TSP. Workers aged 50 and older can contribute
an additional $7,500 to the TSP. Employees enrolled in FERS receive matching contributions up to a maximum of 5%
of pay. Employees enrolled in CSRS do not receive matching contributions.
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a. Employees covered by FERS also participate in Social Security. In October 2023, the average monthly Social
Security benefit for all retired workers was $1,844.
b. NA=not available in OPM published data.
c. Includes law enforcement officers, firefighters, air traffic control ers, and Members of Congress.
d. Includes other, unclassified retirements that are not shown separately.
Total and Median Annuity Payments to Retirees and
Survivors
The Civil Service Retirement and Disability Fund (CSRDF) paid annuities to 2,226,760 retired
federal employees (also referred to as employee annuitants) and 475,562 survivor annuitants in
FY2022. Of these beneficiaries, 1,512,385 individuals (56.0 %) received benefits earned under
CSRS and 1,095,349 (44.0%) received benefits under FERS. Employee annuitants under CSRS
received a median monthly annuity of $3,897. Survivors of CSRS annuitants received a median
monthly CSRS annuity of $1,712. Employee annuitants under FERS received a median monthly
payment of $1,452. The median monthly survivor benefit under FERS was $560. (See Table 5.)
As was noted earlier, FERS benefits are smaller than those under CSRS both because employees
retiring under FERS had fewer years of service than workers who retired under CSRS, and
because FERS benefits are intended to be supplemented by Social Security and the TSP.10
Table 5. Monthly Annuity Payments to Retirees and Survivors in FY2022
(benefit amounts are in thousands of dollars)
All Retirees
CSRS
FERS
and Survivors
Retired Employees
1,131,411
1,095,349
2,226,760
Annuitants
Percentage of Total
50.8
49.2
100
Mean monthly benefit
$4,464
$1,810
$3,159
Median monthly
$3,897
$1,452
$2,588
benefit
Survivor Annuitants
380,974
94,588
475,562
Percentage of Total
80.1
19.9
100
Mean monthly
$1,938
$715
$1,695
benefit
Median monthly
$1,712
$560
$1,472
benefit
Total Annuitants
1,512,385
1,189,937
2,702,322
Percentage of Total
56.0
44.0
100
Source: Office of Personnel Management, FY2022 Statistical Abstract of Federal Employee Benefits Program.
10 In October 2023, the average monthly Social Security benefit among all retired workers was $1,844. The average
monthly benefit for a nondisabled surviving spouse was $1,717.
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Average Age at Retirement of New Federal Retirees
In FY2022, the average age of federal employees taking normal retirement was 63.6, which was
higher than in FY1990 (61.3). (See Table 6.) The average age for all retirements in FY2022 was
62.3, which was higher than in FY1990 (59.4). Federal agencies undergoing a major
reorganization can request permission from the Office of Personnel Management to offer their
employees voluntary early retirement or voluntary separation incentive payments (buyouts).
Under voluntary early retirement, an employee with 20 or more years of service can retire as
early as the age of 50. Voluntary separation incentives are cash payments of up to $25,000 (before
taxes) offered to employees who retire or otherwise separate from federal employment
voluntarily. Because these incentives are generally offered to retirees who have not yet reached
the combined age and years of service that are required for normal retirement, they tend to reduce
the average age of employees who retire in any given year.
Table 6. Average Age at Retirement for New Federal Retirees, by Fiscal Year
Average Age at Retirement
Normal Retirements
as a Percentage of All
Fiscal Year
All Retirements
Normal Retirementsa
Retirementsa
1990
59.4
61.3
79.0
1994
58.1
61.8
56.8
1998
57.6
61.5
57.1
2002
58.1
60.6
67.6
2006
59.1
61.0
73.1
2010
59.9
61.6
77.1
2014
60.8
62.7
76.2
2018
61.5
62.8
79.8
2022
62.3
63.6
83.7
Source: Office of Personnel Management, Statistical Abstracts, Federal Employee Benefits Programs (various years).
Note: Normal retirements include all retirements except disability retirements, voluntary early retirements,
involuntary retirements, and special provision retirements.
a. CRS analysis of information from Office of Personnel Management Statistical Abstracts (various years)
Cost-of-Living Adjustments Under CSRS and FERS
Cost-of-living adjustments (COLAs) for both CSRS and FERS are based on the rate of inflation
as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-
W). COLAs are determined by the percentage change in the average monthly CPI-W during the
third quarter (July to September) of the current calendar year compared with the third quarter of
the last year in which a COLA was applied. If consumer prices as measured by the CPI-W do not
increase (or if they decrease) between the third quarter of the base year and the third quarter of
the current calendar year, there is no COLA for annuities paid under CSRS or FERS (and the base
year used for the COLA calculation remains the last year that a COLA was applied). The
“effective date” for COLAs is December, but they first appear in benefit checks issued in January.
Under FERS, COLAs are paid only to retired workers who are 62 or older and to disabled and
survivor beneficiaries of any age. COLAs paid under FERS are less than the rate of inflation
whenever the increase in the CPI-W is greater than 2.0%. If the rate of inflation during the
measurement period is between 2.0% and 3.0%, the FERS COLA is 2.0%. If inflation is greater
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than 3.0%, then the COLA for FERS benefits is equal to the CPI-W minus one percentage point.
These limits do not apply to the CSRS COLA.11
From the third quarter of 2022 to the third quarter of 2023, the CPI-W increased by 3.2%.
Therefore, beginning in January 2024, the CSRS COLA is 3.2% and the FERS COLA is 2.2%.
(See Table 7.)
Table 7. Cost-of-Living Adjustments Under CSRS and FERS
(in percentage)
Change in CPI from
Date Paid
CSRS COLA
FERS COLA
3rd Qtr to 3rd Qtr
January 1990
4.7%
3.7%
4.7%
January 1991
5.4
4.4
5.4
January 1992
3.7
2.7
3.7
January 1993
3.0
2.0
3.0
April 1994
2.6
2.0
2.6
April 1995
2.8
2.0
2.8
April 1996
2.6
2.0
2.6
January 1997
2.9
2.0
2.9
January 1998
2.1
2.0
2.1
January 1999
1.3
1.3
1.3
January 2000
2.4
2.0
2.4
January 2001
3.5
2.5
3.5
January 2002
2.6
2.0
2.6
January 2003
1.4
1.4
1.4
January 2004
2.1
2.0
2.1
January 2005
2.7
2.0
2.7
January 2006
4.1
3.1
4.1
January 2007
3.3
2.3
3.3
January 2008
2.3
2.0
2.3
January 2009
5.8
4.8
5.8
January 2010
0.0
0.0
-2.1
January 2011
0.0
0.0
-0.6
January 2012
3.6
2.6
3.6
January 2013
1.7
1.7
1.7
January 2014
1.5
1.5
1.5
January 2015
1.7
1.7
1.7
January 2016
0.0
0.0
-0.4
January 2017
0.3
0.3
0.3
January 2018
2.0
2.0
2.0
January 2019
2.8
2.0
2.8
January 2020
1.6
1.6
1.6
11 Workers who switched from CSRS to FERS receive a COLA that is weighted by the proportion of their federal
service that was spent under each retirement system. For additional details on the CSRS and FERS COLAs, see CRS
Report 94-834, Cost-of-Living Adjustments for Federal Civil Service Annuities.
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Change in CPI from
Date Paid
CSRS COLA
FERS COLA
3rd Qtr to 3rd Qtr
January 2021
1.3
1.3
1.3
January 2022
5.9
4.9
5.9
January 2023
8.7
7.7
8.7
January 2024
3.2
2.2
3.2
Source: Office of Personnel Management.
Income and Expenditures of the Civil Service
Retirement and Disability Fund
The CSRDF began FY2022 with a balance of $978.0 billion. By law, these assets are invested in
special-issue U.S. Treasury bonds. The balance of the trust fund represents budget authority
available to pay benefits under both CSRS and FERS. The fund’s end-of-FY2022 balance of $1.0
trillion was more than 10 times the value of the CSRS and FERS annuities paid from the fund that
year. (See Table 8.)
The CSRDF receives income from several sources. Some of the fund’s income results from cash
transactions. Other income comes from intragovernmental transfers. The largest cash transaction
($5.6 billion in FY2022) consists of employee contributions to CSRS and FERS. These
contributions are equal to 7.0% of base pay under CSRS; 0.8% of base pay under FERS for
employees first hired before 2013; 3.1% of pay under FERS for employees first hired in 2013;
and 4.4% of pay under FERS for employees first hired after 2013.12 Smaller cash payments are
received from the District of Columbia to finance retirement benefits for its employees and from
additional cash contributions made by federal workers. These usually are former federal
employees who are returning to government service and who had previously withdrawn their
retirement contributions.
The CSRDF’s largest sources of income are (1) annual payments from the general fund of the
Treasury to make up for the insufficient funding of benefits accrued under CSRS, (2) payments
from federal agencies and the Postal Service on behalf of their employees, and (3) interest
payments on the U.S. Treasury bonds it holds. Agency contributions under CSRS are equal to
7.0% of payroll, and are supplemented by transfers from the general fund of the Treasury. Agency
contributions to FERS are required by law to be equal to the full actuarial cost of the program
minus employee contributions. Effective FY2024, employing agencies contribute 18.4% of
payroll on behalf of FERS employees first hired before 2013, 16.5% on behalf of FERS
12 Under the Balanced Budget Act of 1997 (P.L. 105-33), employee contribution rates under CSRS and FERS rose by
0.25% in January 1999 and by a further 0.15% in January 2000. They were scheduled to increase by another 0.1% in
January 2001 before reverting to their previous levels—7.0% under CSRS and 0.8% under FERS—after December 31,
2002, but the increased contributions were repealed by P.L. 106-346. The Middle Class Tax Relief and Job Creation
Act of 2012 (P.L. 112-96) increased the FERS employee contributions by 2.3 percentage points for FERS employees
hired (or rehired with less than five years of FERS service) after December 31, 2012. Individuals subject to the
increased employee contributions under P.L. 112-96 are referred to as FERS-Revised Annuity Employees (FERS-RAE).
The Bipartisan Budget Act of 2013 (P.L. 113-67) further increased the FERS employee contribution by an additional
1.3 percentage points for FERS employees hire (or rehired with less than five years of FERS service) after December
31, 2013. Individuals subject to the increased employee contributions under P.L. 113-67 are referred to as FERS-
Further Revised Annuity Employees (FERS-FRAE).Therefore, the FERS employee contribution rate is 3.1% of pay for
FERS-RAE (i.e., employees first hired in 2013) and 4.4% of pay for FERS-FRAE (i.e., employees first hired after
2013).
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employees first hired in 2013, and 16.8% of pay on behalf of FERS employees first hired after
2013 (with the additional sums from the higher FERS employee contributions [4.4%-
3.1%=1.3%]) going to pay down the CSRS unfunded liability).13 These three sources of income
are intragovernmental transfers that increase the fund’s budget authority, as recorded in the
accounts of the U.S. Treasury. The fund receives Treasury bonds as a record of this budget
authority, which it redeems periodically as annuity payments come due.14
Expenditures from the CSRDF consist mainly of payments to retired federal employees and their
surviving dependents. Annuity payments totaled $96.6 billion in FY2022. Payments to the estates
of decedents and payments to separating employees accounted for another $452 million. The
administrative expenses of the fund were $204 million, or 0.2% of obligations.
Table 8. Receipts and Obligations of the Civil Service Retirement and
Disability Fund, FY2022-FY2024
(in millions of dollars)
FY2023
FY2024
FY2022
(est.)
(est.)
Beginning balance
$986,351
$1,011,691 $1,033,044
Receipts to the fund
Cash receipts:
—Employee contributions
$5,577
$6,269
$6,911
—District of Columbia
$24
$30
$30
—Other employee deposits
$586
$570
$576
Intragovernmental transfers:
—Agency contributions
$42,022
$42,902
$45,400
—Postal Service contributions
$5,097
$6,290
$6,416
—Interest on securities
$22,326
$22,594
$22,173
—General fund receipts
$46,380
$47,532
$47,732
—Reemployment offseta
$39
$41
$43
Total receipts to the fund
$122,051
$126,228
$129,281
Obligations from the fund
—Employee and survivor annuities
-$96,556
-$105,107
-$110,662
—Refunds and payments to estates
-$452
-$409
-$412
13 These agency contributions are effective on or after October 1, 2023, and are based on FERS “normal cost
percentages” net of employee contributions. See OPM, “Federal Employees’ Retirement System: Normal Cost
Percentages,” 88 Federal Register 23108-23109, April 14, 2023.
FERS agency contribution rates may be adjusted in future fiscal years based on changes in OPM’s annual actuarial
calculations of the dynamic normal cost of FERS benefits as well as any changes in required employee contribution
rates. For a discussion of the dynamic normal cost of FERS benefits, including the calculation of agency contributions,
see CRS Report RL30023, Federal Employees’ Retirement System: Budget and Trust Fund Issues.
The FERS normal cost percentages, and costs to the federal government as discussed in this report, apply to regular
FERS employees. For special categories of employees—such as Members of Congress and law enforcement officers—
higher normal costs apply. Beginning October 1, 2019, lower normal costs have applied for employees of the U.S.
Postal Service.
14 See CRS Report RL30023, Federal Employees’ Retirement System: Budget and Trust Fund Issues.
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FY2023
FY2024
FY2022
(est.)
(est.)
—Administration
-$204
-$143
-$146
Transfer to Merit Systems Protection Boardc
-$2
-$2
-$2
Total obligations from the fund
-$97,214
-$105,661
-$111,222
Ending balancec
$1,011,691 $1,033,044 $1,051,568b
Source: U.S. Office of Management and Budget, Budget of the United States Government, FY2024.
a. CSRS or FERS retirees may be reemployed by the federal government in some situations (they are referred
to as reemployed annuitants); yet, in most circ*mstances, such individuals may not simultaneously col ect a
federal civil service retirement benefit and a salary for current employment with the federal government.
Reemployed annuitants generally have their federal salaries reduced by the amount of their CSRS or FERS
retirement benefits while they are reemployed (i.e., are subject to a “reemployment offset”). The amount of
this reemployment offset is required to be deposited into the CSRDF (see 5 U.S.C. §8468).
b. Current law authorizes the transfer of funds from the CSRDF to the Merit Systems Protection Board, an
independent, quasi-judicial agency established to protect the civil service merit system, for the purposes of
administering CSRS and FERS appeals (see 5 U.S.C. §8348(a)(3)).
c. Totals include various adjustments for additional, unobligated balances.
Recent Trends in the Balance of the Civil Service
Retirement and Disability Fund
Between FY1990 and FY2024 (estimated), the balance of the CSRDF rose from $238 billion to
$1.1 trillion, an increase of 372%. (See Table 9.) The balance of the fund has been rising partly
because the civil service retirement programs are in a long-term transition from pay-as-you-go
financing under CSRS to advance-funding under FERS.
Until 1969, CSRS benefits were funded on a pay-as-you-go basis with a small reserve equal to
about one year of benefit payments to meet unexpected contingencies. Employee contributions
and agency contributions were less than the actuarial value of the benefits that were accrued each
year by federal employees. In 1969, P.L. 91-93 mandated annual payments to the fund from the
general revenues of the U.S. Treasury to make up most of this shortfall.15 When Congress passed
the legislation that created FERS in 1986, the law required that the full actuarial value of benefits
accrued each year by federal employees under FERS (including the value of future COLAs) must
be funded by the sum of employee and agency contributions.
Table 9. Income and Expenses of the Civil Service Retirement and Disability Fund,
FY1990-FY2024
(in billions of dollars)
Fiscal Year
CSRDF Income
CSRDF Expenditures
Net Assets at End of Year
1990
$52.7
-$31.4
$238.0
1995
66.1
-38.6
371.3
1996
67.7
-39.9
398.9
1997
70.4
-41.8
427.5
15 The Office of Management and Budget has estimated that employee and agency contributions and the transfers from
the general fund are sufficient to meet all of the actuarial costs of CSRS except for the increase in benefits represented
by COLAs.
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Fiscal Year
CSRDF Income
CSRDF Expenditures
Net Assets at End of Year
1998
72.8
-43.2
457.1
1999
73.7
-44.0
486.8
2000
76.0
-45.2
521.5
2001
77.9
-47.1
548.2
2002
80.1
-48.7
579.5
2003
77.8
-50.0
607.1
2004
82.1
-52.0
637.1
2005
83.5
-55.4
665.9
2006
87.0
-57.6
695.0
2007a
89.5
-78.1
706.4
2008
90.8
-63.5
733.7
2009
92.7
-67.6
758.7
2010
95.2
-69.3
784.6
2011
94.1
-70.3
808.4
2012
94.8
-73.9
829.1
2013
92.6
-77.1
844.6
2014
93.3
-79.4
858.6
2015
96.6
-81.7
873.3
2016
97.8
-82.5
888.4
2017
103.5
-83.6
908.7
2018
105.5
-85.8
928.8
2019
107.6
-88.7
948.2
2020
112.7
-99.2c
962.2
2021
115.6
-92.2
986.3
2022b
140.8
-96.7
1030.3
2023b
145.5
-100.1
1075.7
2024b
149.5
-102.7
1122.5
Source: U.S. Office of Management and Budget, Budget of the United States Government, various years. Office of
Personnel Management, Annual Report of the Board of Actuaries of the Civil Service Retirement and Disability Fund
various years.
a. Expenditures for 2007 include a $17.1 bil ion payment to the Postal Service Retiree Health Fund.
b. Data for FY2022-FY2024 are estimated.
c. Expenditures for 2020 include an expense of $8.2 bil ion for doubtful accounts for unpaid amounts due from
the Postal Service in FY2014-FY2019.
Number of Civil Service Annuitants and Total
Annuity Payments
The number of people receiving civil service annuity payments has risen more than 185% since
1970, but the rate of increase has slowed since 1985. (See Table 10.) The rapid rise in the number
of civil service annuitants from less than 1 million in 1970 to approximately 2 million in 1985
resulted from the increase in federal employment that occurred between 1940 and 1955.
Throughout the 1930s, civilian federal employment (including postal employees) was less than 1
million. The first year in which there were more than 1 million people in the federal workforce
was 1940. By 1955, civilian federal employment had reached 2.4 million. After 1955, civilian
federal employment increased much more slowly. It reached nearly 3 million in 1970, due in part
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Federal Employees’ Retirement System: Summary of Recent Trends
to the war in Vietnam and the creation of such large-scale social programs as Medicare and
Medicaid in the 1960s. The slower but still steady increase in the number of federal employees in
the years between 1955 and 1970 had as one of its consequences the steady increase in the
number of civil service annuitants in the years since 1985. Between 1985 and 2022, the number
of civil service annuitants rose from just under 2 million to more than 2.7 million.
Expenditures for civil service annuities have grown by a greater percentage than the number of
annuitants because they are affected not only by the number of people employed by the federal
government, but also by increases in average life-span, growth in real wages, and inflation. Cost-
of-living adjustments—which have been applied to civil service annuities since 1962—increase
the nominal value of civil service annuities, but do not increase the real value of these annuities.
COLAs are intended to keep purchasing power from eroding due to the effects of inflation.16
Under current law, the real value of a civil service annuity either remains constant (CSRS) or
declines (FERS) during retirement.17 Rates of increase in the “high-three” average pay of retiring
federal employees (on which these annuities are based) are in turn affected by (1) adjustments to
pay for each grade-and-step level, (2) special pay increases such as locality pay adjustments, (3)
the distribution of federal employees among various grade-and-step levels over time, and (4)
average length of service (because each additional year of service tends to increase the high-three
average pay). The average real value of civil service annuities per annuitant can be expected to
decline in the future as a growing number of new retirees will be workers who were enrolled in
FERS rather than CSRS. FERS annuities are smaller than CSRS annuities, but they are
supplemented by Social Security benefits and the TSP.
Table 10. Annuitants and Annuity Payments, by Fiscal Year
Total Annuitants
Payments in Nominal
Payments in Constant
Fiscal Year
(thousands)
Dollars (millions)
2022 Dollars (millions)
1970
962
$2,746
20,157
1975
1,391
7,048
37,312
1980
1,675
14,662
50,679
1985
1,971
23,012
60,912
1990
2,143
31,036
67,632
1995
2,311
38,319
71,614
2000
2,372
45,072
74,548
2001
2,380
47,244
75,978
2002
2,383
48,838
77,319
2003
2,290
50,248
77,780
2004
2,404
52,048
78,476
2005
2,423
54,593
79,616
2006
2,449
57,809
81,671
2007
2,463
60,860
83,601
2008
2,471
63,432
83,911
16 Federal tax revenues increase each year partly as a result of inflation. Income tax brackets are indexed in recognition
of increases in personal income that result solely from inflation.
17 Some CSRS COLAs in the 1970s exceeded the rate of inflation because P.L. 91-93, enacted in 1969, called for
COLAs of “CPI plus one percentage point.” The additional one percentage point was repealed by P.L. 94-440, enacted
in 1976.
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Federal Employees’ Retirement System: Summary of Recent Trends
Total Annuitants
Payments in Nominal
Payments in Constant
Fiscal Year
(thousands)
Dollars (millions)
2022 Dollars (millions)
2009
2,510
67,618
89,769
2010
2,522
69,261
90,466
2011
2,530
70,209
88,898
2012
2,544
74,342
92,223
2013
2,563
77,513
94,769
2014
2,616
79,644
95,819
2015
2,638
81,898
98,414
2016
2,652
82,956
98,444
2017
2,649
83,003
96,407
2018
2,665
86,062
97,078
2019
2,689
88,587
98,947
2020
2,713
90,742
98,895
2021
2,727
91,942
98,819
2022
2,738
96,556
96,556
Sources: Office of Personnel Management, FY2022 Statistical Abstract of Federal Employee Benefits Program; and
Office of Management and Budget, Budget of the United States Government, various years.
Notes: Does not include retirees in interim pay status. Depending on the day that the fiscal year begins, a year
can have 11, 12, or 13 payments.
Age Distribution of CSRS and FERS Employees
Under CSRS, an employee with 30 or more years of service can retire with an immediate,
unreduced annuity at the age of 55. Under FERS, workers who have completed at least 30 years
of service can retire at the plan’s minimum retirement age. The minimum retirement age was 55
for workers born before 1948, and it is scheduled to rise to 57 for those born in 1970 or later. For
example, someone born in 1968 would attain the minimum retirement age of 56 and 8 months in
the year 2024. In both CSRS and FERS, an employee with 20 or more years of service can retire
at the age of 60. About one in four federal employees will reach age 55 within 10 years, but not
all of them will have 30 years of service at that age. Of those who have 30 or more years of
service, not all will retire as soon as they are eligible. The average age among all federal
employees who retired in FY2022 was 62.3. The average age among individuals who took normal
retirement—as opposed to early retirement or disability retirement—was 63.6.18
Because CSRS has been closed to new entrants since 1984, the distribution of current CSRS
employees is older than FERS. For example, there were no CSRS employees under the age of 55
as of September 2021. Forty-one percent of FERS employees, however, were under the age of 45
during this same period, and 27% of FERS employees were between the ages of 45 and 54. All
CSRS employees were aged 55 or older, while only 32% of FERS employees were aged 55 or
older. (See Table 11.)
18 Retirements other than normal retirements include disability retirements, voluntary early retirements, involuntary
retirements, special retirements for law enforcement officers and firefighters, and other unclassified retirements.
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Federal Employees’ Retirement System: Summary of Recent Trends
Table 11. Age Distribution of CSRS and FERS Employees, FY2022
(number as of September 30, 2021)
65 or
Age
Under 45
45 -49
50 -54
55 -59
60 -64
Older
Total
Number of
CSRS employees
0
0
0
3,886
15,954
24,160
44,000
Percentage
0.0
0.0
0.0
8.8
36.3
54.9
100%
Number of FERS
employees
1,174,234
350,663
412,914
420,817
287,012
142,359 2,788,000
Percentage
42.1
12.6
14.8
15.1
10.3
5.1
100%
Source: Office of Personnel Management, FY2022 Annual Report of the Board of Actuaries of the Civil Service
Retirement and Disability Fund.
Note: Due to rounding columns may not sum exactly to totals.
Author Information
Katelin P. Isaacs
Specialist in Income Security
Acknowledgments
Sylvia Bryan, research assistant at CRS, contributed to the updating of this report.
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in
its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or
material from a third party, you may need to obtain the permission of the copyright holder if you wish to
copy or otherwise use copyrighted material.
Congressional Research Service
98-972 · VERSION 22 · UPDATED
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