Voluntary contribution
| Voluntary contribution |
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| See also |
Voluntary contribution "earn a variable interest rate determined by the Treasury Department each calendar year, based on the average yield of new investments purchased by the Retirement Fund during the previous fiscal year. The interest cred ited to each voluntary contributions account is compounded annually on December 31". Interest is accrued until the date of calculation of reimbursement, separation (including retirement) or transfer to a position not subject to CSRS or federal employee retirement system, whichever comes first. If you expect to leave the federal service, you can avoid the period in which your funds will not earn by planning ahead. If you disconnect from the federal service with the right to a deferred pension at the age of 62, interest will accrue until the beginning date of your pension or death, whichever comes first. However, if you disconnect from the federal service with the right to a deferred pension at the age of 62 and request a refund from the voluntary contribution account, the interest will be paid only until the date of this settlement, regardless of whether the pension is deferred[1]
References
- U.S. Office of Personnel Management, (1998), Voluntary Contributions Under the Civil Service Retirement System, U.S.Depository Property, United States
Footnotes
- ↑ U.S. Office of Personnel Management, 1998, p.2
Author: Weronika Nowak
