20-Year Retirement Benefits
For
NNSA Federal Agents
(Nuclear Materials Couriers)
Table of Contents
Page
Background …………………………………………………………………..
1
Statutory Provisions ………………………………………………………..
1
Coverage ………….…………………………………………………………..
Primary Positions
Secondary Positions
Eligibility for Secondary Positions
2
Retirement Benefits ………………………………………………………….
CSRS and CSRS Offset
FERS
Computation of Benefits
Retirement Deductions
Retirement Eligibility
Mandatory Retirement
3
Crediting Military and Civilian Service …………………………………….
7
Sample FERS Retirement Benefit …………………………………………… 8
Sample CSRS Retirement Benefit ………………………………………….. 9
This handbook serves only as a quick reference for benefits under the 20-Year
“enhanced” retirement benefits for nuclear materials couriers. You should
consult with your servicing human resources office if you have questions
pertaining to regulatory requirements or provisions of the law regarding
enhanced benefits.
Background
The Department of Energy (DOE), in years past had approached the U.S. Office of Personnel
Management (OPM) to determine if “nuclear materials couriers” were eligible for coverage under
the “law enforcement” category for enhanced retirement benefits under the special “20-Year”
benefits under the Civil Service Retirement System (CSRS) and the Federal Employees
Retirement System (FERS). OPM determined that nuclear materials couriers did not meet the
definition of “law enforcement” for eligibility and coverage under the special 20-year retirement
benefits.
Despite this decision, the Department pursued and acquired congressional support for including
nuclear materials courier positions under the special 20-year retirement provisions. Congress
acknowledged the uniqueness and nature of the work performed by nuclear materials couriers,
and accepted the Department’s rationale for including this type of work under the enhanced
special 20-Year retirement benefits. Consequently, a new bill was introduced (1998 HR 3616)
that later was passed and resulted in establishment of new legislation under Public Law 105-261.
This law became effective on 10/17/98. The enactment of this law established a new category of
positions, “Nuclear Materials Courier,” for inclusion under the enhanced retirement benefits for
special 20-Year retirement under the CSRS and FERS retirement systems. The law authorized
retroactive credit of service, for the purpose of establishing an entitlement to an annuity, back to
the date the DOE was established. This date was October 1, 1977.
Employees who were on the rolls at the time the law was enacted, and who occupied eligible or
“covered” positions, began to contribute a higher percentage of their pay into the OPM retirement
and disability fund. Employee deductions became effective on 10/25/1998. The employee’s
official personnel record was also amended to reflect the change in retirement deductions as well
as identifying all qualifying service retroactive to 10/01/77 or later, depending on the employee’s
work history with the department and other qualifying service from work performed in other
agencies/categories as applicable.
As part of the overall implementation of this new retirement benefit for eligible employees, the
DOE agreed to pay to OPM both the employee share and agency share of the difference for the
higher retirement contributions into retirement and disability fund. The Department of Energy
made 5 equal annual payments in the amount of $3,510,000 with the first payment made on
January 1999 and the last payment made on January 2003. These payments covered the
difference retroactive to October 1, 1977 that would have otherwise been paid by both the
employees and the agency over the 20-year time span.
Statutory Provisions
With the enactment of PL 105-261, legislation established a new category of positions for
coverage under the enhanced retirement benefits for 20-Year retirement. Keep in mind that law
enforcement officers, fire fighters, and air-traffic controllers were already defined under their own
category for coverage prior to enactment of PL 105-261. Therefore, while the enhanced
retirement benefits are applicable across all category of positions, i.e., the retirement benefit
computation formula is the same regardless of the category, decisions regarding eligibility for
coverage, e.g., qualifications for primary and secondary positions, minimum and maximum age
requirements, or basic pay that is part of the high-three retirement computation, must be made in
accordance with the unique or distinct definitions contained in the statutes for each of these
different categories.
Employees under CSRS, including those who are “offset”, are covered by the Code of Federal
Regulations (CFR) Chapter 5, Part 831, Subpart H - Nuclear Materials Couriers.
1
Employees under FERS are covered by the Code of Federal Regulations (CFR) Chapter 5, Part
842, Subpart I - Nuclear Materials Couriers.
Coverage - Eligibility
The U.S. Office of Personnel Management has delegated to the DOE/NNSA, the authority to
determine positions eligible for coverage. Positions that have been identified for coverage are
categorized into either primary or secondary.
[CSRS - 5 CFR, Part 831, sections 831.802, 831.803, 831.804;FERS – 5 CFR, Part 842, sections 842.902,
842-903, 842.904]
Primary Positions - To be considered primary, the duties of the position must be to primarily
transport, and provide armed escort and protection during transit of, nuclear weapons, nuclear
weapon components, strategic quantities of special nuclear materials or other materials related to
national security. NNSA has determined that positions classified in the GS-0084 series are
primary.
[Note: The GS-0084 series became a single agency standard on 7/24/83 and is specific to nuclear
materials courier “primary” duties. The GS-0084 series is only used by DOE/NNSA Prior to July
1983 positions were classified in the GS-0080 and GS-0085 series and some of these positions
had been determined to meet the definition for “primary” position]
Age Requirements – As part of the overall special 20-Year retirement system, there is also a
maximum entry age for first appointment into a primary position. The DOE/NNSA has
established a maximum entry age of 37. A first time candidate/employee cannot be 38 or older at
time of entrance into position. For example, a candidate can be age 37 and 7 months at time of
first appointment into the primary position but cannot be age 38. The DOE/NNSA has also
established a minimum entry age of 21 years.
Secondary Positions – To be considered secondary, the position must: (1) be in the “nuclear
materials courier” field; (2) be in the organization having “nuclear materials courier positions, i.e.,
OST; and (3) is either supervisory (supervising nuclear materials couriers), or is administrative,
executive, managerial, technical, semiprofessional, or professional for which experience in a
primary (GS-0084) position is a mandatory prerequisite for minimum qualification requirements.
DOE/NNSA has approved positions for secondary coverage in varying occupational categories.
Positions descriptions are identified as secondary. Vacancy announcements will be clearly
marked as “secondary” and should state the prerequisites as indicated above as part of the
minimum qualifications.
Eligibility For a Secondary Position – An employee must have occupied a “primary” position for
3 years and move directly into the secondary position by reassignment, promotion or change to
lower grade. For example, if an OST training instructor position has been designated and
approved as a secondary position, a potential applicant for that vacant position must have been
in a primary, or GS-0084, position for three years in order to meet the minimum qualification
requirements. The 3-year requirement applies to employees covered by either CSRS (and
Offset) or FERS retirement systems.
[Note: Prior to the establishment of the single agency standard for the GS-0084 series, an
employee could have performed three years of qualifying primary duties in the GS-0085 or GS0080 job series. The HR office must verify qualifying service that might have been performed
between 10/01/77 and 7/24/83]
Retirement Benefits
As part of the “20-Year Special” enhanced retirement benefits, you are eligible for a higher
monthly retirement annuity (pension) plus you can retire at an earlier age than other CSRS and
2
FERS employees. Depending on whether you are a CSRS employee or FERS employee, you
will be eligible for additional benefits as described below.
Your Monthly Retirement Benefit
CSRS and CSRS-Offset
FERS
Monthly FERS Annuity
Supplemental Social Security Benefit
payable upon retirement until age 62
Thrift Savings Plan (automatic agency
contributions plus your contributions and
agency matching contributions)
Social Security Benefit at age 62
Monthly CSRS Annuity
Thrift Savings Plan (if you have
contributed)
Social Security benefit for CSRS-Offset
employees
Computation of Your Monthly Benefit
CSRS and CSRS-Offset Annuity
FERS Annuity
2.5% X High-3 Salary X First 20 years of
“special service”
Plus
2.0% X High-3 Salary X Years and months of
service over 20 years (including creditable
military service and sick leave)
1.7% X High-3 Salary X First 20 years of
“special service”
Plus
1.0% X High-3 X Years and months of service
over 20 years (including creditable military
service)
CSRS-Offset: Your annuity will be computed using
the same rules/formula for CSRS even though you
are contributing a lesser amount into the retirement
fund. However, at age 62 OPM will offset (or reduce)
your monthly annuity. The reason for this is because
as a CSRS-Offset employee you are contributing a
lesser amount into the CSRS retirement fund but you
are also contributing into the social security fund (see
page 4, deductions). Your “offset” service is later
used by the SSA in computing your overall social
security benefit. At age 62, OPM will determine how
much of your SS benefit is based on your “offset”
service. For example, let’s say your total social
security benefit is $1500 per month with $600 of that
benefit based on your CSRS-Offset service. Your
monthly CSRS benefit would them be offset by $600,
but not until age 62.
Note: The high-three salary is an average of
your highest salary that is typically the last
three years of your employment.
Note: The high-three salary is an average of
your highest salary that is typically the last three
years of your employment.
Plus your TSP. You may also be eligible for a
social security benefit depending on whether
you have other employment subject to social
security deductions. CSRS-Offset employees
will establish a social security benefit.
3
Plus your Supplemental Social Security
benefit and TSP. The supplemental benefit
uses the SSA benefit computation rules and
uses only your FERS service and earnings
when computing the monthly benefit.
Retirement Deductions
Employees occupying a primary or secondary position pay a higher percentage of their
pay into the OPM retirement and disability fund. This higher rate is in turn received in
the form of a higher monthly benefit at time of retirement. The agency must also pay a
higher rate into the retirement and disability fund.
CSRS and CSRS-Offset Deductions
Employee Pays
CSRS - 7.75%
CSRS-Offset
1.55% (plus 6.2%
for SS)
1.45% Medicare
FERS Deductions
Agency Pays
9.01%
9.01% (plus 6.2%
for SS)
1.45% Medicare
TSP – Employee can contribute up to 8%
(03); 9% (04); 10% (05); and in 06 up to
the IRS limit. There is no automatic 1% or
agency matching contributions.
Employee Pays
FERS - 1.55%
(plus 6.2% for
SS)
1.45% Medicare
Agency Pays
23.3% (plus
6.2% for SS)
1.45% Medicare
TSP- Automatic agency 1% contribution
plus up to 5% match provided employee
contributes 5%. Employee can contribute
13% (03); 14% (04); 15% (05); and in 06
up to the IRS limit.
Retirement Eligibility
An employee may take advantage of the special retirement based on the service and
age criteria below. An employee who completes the required service does not have to
occupy a primary or secondary position in order to retire under the special provisions.
For example, a CSRS or FERS employee may complete 20 years of special service but
only be age 46. He/she can move to a non-covered position and once he/she reaches
age 50, can submit an application to retire under the special provisions.
CSRS and CSRS-Offset
FERS
Must complete 20 years of “special service”
in a primary or combination of primary and
secondary service.
AND
Must be at least age 50.
4
Must complete 20 years of “special
service” in a primary or combination of
primary and secondary service.
AND
Must be at least age 50.
OR
Must have 25 years of “special service” as
indicated above regardless of your age.
Mandatory Retirement
An employee who occupies a primary or secondary position, and who has completed at
least the minimum amount of “special service” of 20 years, is subject to the “mandatory”
retirement provisions of the law for the “special 20-Year” retirement system. The
mandatory retirement age for nuclear material couriers in a primary or secondary
position is age 57. There are some exceptions for those employees who were hired
prior to enactment of PL 105-261 and who were above age 37 at the time of their
appointment. The mandatory retirement effective date is the last day of the month in
which the employee reaches age 57 or completes 20 years of service. [Title 5, Section
8335 (CSRS) and Title 5 Section 8424 (FERS)]
See Examples Below
Prior to PL 105-261 (Before 10/17/98)
Under PL 105-261 (After 10/17/98)
Bill was hired on 10/12/96 at the age of 45. Bill
will be age 57 in 2015; however, Bill will only
have 19 years of special service. Bill’s
mandatory retirement will therefore be when he
completes 20 years of special service in 2016.
His effective date will be 10/31/2016. This is
the last day of the month in which he completes
20 years of service although he will be age 58.
Susan was hired on 10/20/98 at the age of 35.
She will turn age 57 on 5/4/2020. She will
complete 20 years of special service on
10/20/2018. Her mandatory retirement
effective date would be 5/31/2020 because
although she will have more than 20 years of
service, she does not reach age 57 until
5/4/2020.
George was hired at the age of 33. When
George reaches age 57 on 6/22/08 he will have
27 years of service. His mandatory retirement
effective date will be effective on 6/31/08
because George has already met the minimum
service requirement and he reaches age 57 on
6/22/08.
Ray was hired at the age of 37 and 6 months
on 10/20/98. Ray will turn age 57 on
4/24/2018. However, Ray will not complete 20
years of service until 10/20/2018. His
mandatory retirement effective date will be
10/31/2018. This is the day he completes 20
years of service although he will be age 57 and
6 months on this date.
How to Avoid the Mandatory Retirement Date – As employee, you may not be ready to leave
federal service simply because you attained age 57 and had 20 years or more of “special service”
or you were just above age 57 when you completed 20 years of “special service”. Keep in mind
that mandatory retirement only applies to you if you occupy a primary or secondary position when
you meet the specified criteria above. If you move to a non-covered position, e.g., a
reassignment or promotion, in another OST office or even another NNSA organization or even
another agency, you will not be subject to the mandatory retirement provisions of the law. As long
as you have fulfilled your minimum amount of “special service” (20 or more years), and you other
wise meet the minimum age requirement (or 25 years of service if you are FERS), you can opt to
retire under the special retirement provisions at anytime, even if you are now in a non-covered
position in NNSA or in another agency.
Note: If you transfer to another agency, make sure the DOE/NNSA HR office certifies your
completion of the “special service” and places a copy of this service period in your Official
Personnel File. Make sure you keep a copy. The certification should include specific start and
end dates and it should specify periods by primary and secondary service. This document must
be submitted with your retirement application at the time you retire. Keep in mind that your new
personnel office may not be familiar with the 20-year retirement system and may not understand
how you could be eligible to retire.
Crediting Military and Civilian Service
5
Credit for Military Service
Military service is potentially creditable for the purpose of computing your monthly
annuity when you retire. Credit will depend on which retirement system you are under.
To receive credit for your active duty military service you must make a deposit into the
OPM retirement and disability fund for that period (s) of service. The amount owed will
depend on your total basic pay for that period of service and the retirement system you
are under, i.e., CSRS or FERS. There are some exceptions for making the deposit if
you are a CSRS CSRS-Offset employee. This will depend on whether you will be
eligible for a social security benefit at age 62.
Military service does not count towards fulfilling the 20 years of “special service” in a
primary or secondary position, even if your military position was in a law enforcement
capacity. Creditable military service counts as part of the service in “excess” of the
special service when computing your annuity. [See section on page 3; computation of your
annuity]
Creditable service is “active duty” service. Army and Air Force Reserves “active duty”
annual training (e.g., your summer camp) is creditable. Annual active duty for training
in the Air or Army National Guard is not creditable service (due to being a component of
the state). All active duty, e.g., to attend a tech school or called into active service by
the president, e.g., Desert Storm, 911 and War on Iraq, is creditable. Your Human
Resources Office must verify all potentially creditable military service. [Note: This is
referring to military service prior to your appointment])
In general, you must make a deposit into the OPM retirement and disability fund to
receive credit for military service (see exceptions below). If you are retired military
your service is not creditable; however, there are some exceptions and you should
contact your HR office for more information. Typically you must waive your retired
military pay at the time you retire from your civilian position and you must make a
deposit for your entire military service.
CSRS and CSRS-Offset
FERS
You do not have to make a deposit into the
OPM retirement and disability fund. You will
receive credit for active duty service and the
service will be used in computing your monthly
annuity at time of retirement. Your military
service will continue to count until you reach
age 62. If at age 62 you are eligible for a social
security benefit, OPM will re-compute your
annuity by subtracting your military service. This
will result in a reduced annuity. To avoid this
reduction, you must make a deposit into the
OPM retirement and disability fund before you
retire. If you make the deposit, you will continue
to receive credit for your military service at age
62 and beyond.
The amount owed will be 7% of your total
military earnings for the period(s) of active duty.
6
In order to receive credit for your active duty
military service, you must make a deposit into
the OPM retirement and disability fund before
you retire. There are no exceptions.
The amount owed will be 3% of your total
military earnings for the period(s) of active
duty. You will have a two-year grace period
from the date of your first appointment to make
the deposit without having to pay interest.
After this two-year period expires, interest will
be added at the end of each fiscal year based
on the balance due.
(Military Service Credit Continued)
How Do I Make A Deposit For My Military Service – You should contact your Human
Resources servicing personnel office. They can assist you with completion of the required form to
request your military earnings. Once your earnings are received, your HR office can assist you
with completing the application to make the deposit. The application and earnings will be
forwarded to the DOE payroll office and that office will compute the amount owed. The payroll
office will notify in writing and provide you with options for making the payment, e.g., a $50.00 biweekly deduction from your pay.
Federal Civilian Service Credit
In general, federal civilian service is creditable towards total years of service for
computing a retirement benefit. For example, John Doe was employed with National
Park Service as a program analyst for 5 years. He was hired for a Nuclear Materials
Courier position with NNSA and transferred without a break in service. John’s prior 5
years of service are creditable towards total years of service but do not count towards
meeting the 20 years of “special” service because his position with the National Park
Service was not in a primary or secondary position. In this example John’s regular
retirement service computation date (SCD) for total years of service credit would be the
date of his first appointment with the prior agency. If John also had creditable military
service, that service would also be reflected in the regular retirement SCD. His 20-year
special retirement service computation date (also referred to as the LEO SCD) would
be the date of his appointment with NNSA as a Nuclear Materials Courier.
In some instances civilian service may be creditable for the purposes of fulfilling the 20
years of “special” service needed to retire. To be creditable, this service must have
been under a primary position and you must have transferred directly into another
primary position without a break in service. For example, John Doe was employed with
the National Park Service Police for 6 years and was hired for a Nuclear Materials
Courier position. He was age 34 so he met the maximum entry age requirement for the
NMC position. John’s position with the Park Police was a primary position. Since he
transferred from one primary position to another primary position without a break in
service, his LEO SCD would be the date of his initial appointment in the primary position
held in the other agency. His regular retirement date would be different if he happened
to also have creditable military service.
You should contact your servicing Human Resources Office if you have had breaks in
service (e.g., you held a civilian position, then resigned, and later returned to federal
service) to determine how service is creditable. Other temporary appointments/service
may also be creditable. Your HR office can explain the special rules that apply to
service for which you received a refund of your retirement deductions or rules that apply
to temporary appointments.
Contact your servicing Human Resources office for information on other employee benefits such
as Health Insurance, Life Insurance, Thrift Savings Plan and Long Term Heath Care.
SAMPLE RETIREMENT BENEFITS
Example A - Special Agent “Smokey”
7
Smokey is covered by the FERS retirement system. He has prior military service and began his
first civilian federal service with DOE/NNSA as a Materials Courier (primary position), then was
later promoted to a Lead Agent position. He retired as a Lead Agent at the GS-12 grade level.
Smokey wanted to receive credit for his military
service so he made the deposit during the first two
years he was employed.
Smokey’s Service History
01/15/80 to 01/14/83
Military (Air Force)
01/05/84 to 01/30/04
DOE/NNSA
Smokey has completed 20 years and 26 days of “special
service.
Total Service Credited for Retirement Eligibility: 23 years, 0 months, and 26 days.
Smokey is eligible to retire with the enhanced special benefit under the 20-Year retirement
system because he has completed 20+ years of “special service” and is age 50 on the date of
retirement. (Note: As a FERS employee, you can retire with 25 years of special service regardless of your
age)
Total Service Credit for Computation of Annuity:
Years Mnths Days
This is service in excess of the 20 years of “special service” and will be
computed using the regular computation formula.
03
0
26
20
00
00
23
00
26 Total Service
This is Smokey’s “special” 20 years of service and will be computed using the
“enhanced” computation formula. Smokey had more than 20 years of special
service but it will be computed as part of the excess service above.
Smokey’s Monthly FERS Benefit
The high three average salary does not include “overtime” pay. It
only takes into account the employee’s rate of basic pay.
High-Three Average Salary: $58,555
Monthly FERS Benefit: $1,624
Supplemental Monthly SS Benefit: $636
Annual Benefit: $27,156
This does not include Smokey’s TSP benefit. Keep in
mind your TSP benefit will depend on your
contributions and your investments.
If Smokey was to elect a full survivor’s benefit for his wife, it would cost $180 per month and his
wife would be eligible for a monthly survivor’s benefit in the amount of $902.
Note: This estimate does not reflect cost of health insurance and life insurance. Contact your HR specialist
for more information regarding related retirement benefits with regard to health and life insurance.
8
Example B - Special Agent “Bob”
Bob is covered by the CSRS retirement system. He has prior military service and began his first
civilian federal service with the U.S. Bureau of Prisons as a Correctional Officer. His position with
Bureau of Prisons was covered by the “law enforcement” category and was therefore eligible for
the enhanced retirement benefits under the 20-Year “special” retirement program. He left
Bureau of Prisons and started working with DOE/NNSA as a Nuclear Materials Courier (primary
position), then was later reassigned into a secondary position and retired as a Transportation
Specialist at the GS-13 grade level.
Bob made a deposit for his military service because
he knew he would be eligible for a social security
benefit at age 62 and did not want to lose this credit.
Bob’s Service History
04/16/76 to 10/10/83
Military (US Marines)
12/10/83 to 05/09/85
Bureau of Prisons
05/10/85 to 06/30/07
DOE/NNSA
Bob’s service with Bureau of Prisons was in a primary position
and he went directly to NNSA. Bob therefore has a total of 23
years, 6 months, and 21 days of “special service.”
Total Service Credited for Retirement Eligibility: 31 years, 0 months, and 16 days.
Bob is eligible to retire with the enhanced special benefit under the 20-Year retirement system
because he has completed 20+ years of “special service” and is age 50 on the date of retirement.
Total Service Credit for Computation of Annuity:
Years Mnths Days
11
This is service in excess of the 20 years of “special service” and will be
computed using the regular computation formula.
0
16
08
19
20
00
00
31
09
05 Total Service
Bob’s Monthly CSRS Benefit
At time of retirement Bob had 1500 hours of sick leave that was converted to
additional service. It is also considered excess service and is computed using the
regular computation formula.
This is Bob’s “special” 20 years of service and will be computed using the
“enhanced” computation formula. Bob had more than 20 years of special
service but that “excess” service will be computed as indicated above.
The high three average salary does not include “overtime” pay. It
only takes into account the employee’s rate of basic pay.
High-Three Average Salary: $78,850
Monthly Benefit: $4,829
This does not include Bob’s TSP benefit.
Annual Benefit: $57,940
If Bob was to elect a full survivor’s benefit for his wife, it would cost $460 per month and his wife
would be eligible for a monthly survivor’s benefit in the amount of $2,656 (55% of Bob’s annual
benefit).
Note: This estimate does not reflect cost of health insurance and life insurance. Contact your HR specialist
for more information regarding related retirement benefits with regard to health and life insurance.
9