United States Office of Personnel Management The Federal Government's Human Resources Agency
SUBJECT: Rollback of CSRS and FERS Withholdings Rates P.L. 106-346, signed by the President on October 23, 2000, rolls back CSRS and FERS withholdings rates for all employees, other than Members of Congress, to those in effect before 1999. The new lower rates will be effective on the first day of the first pay period beginning on or after January 1, 2001. [The 0.1 percent increase in CSRS and FERS withholdings rates will be effective in January 2001 only for Members of Congress.] EMPLOYEE WITHHOLDINGS For your convenience, the following charts provide the CSRS and FERS withholding rates that will be effective on the first day of the first pay period beginning on or after January 1, 2001:
AGENCY CONTRIBUTIONS P.L. 106-346 does not immediately reduce the agency contribution rate for CSRS-covered employees. Rather, the contribution rate for "regular" CSRS employees will remain 8.51 percent of basic pay through September 2002. Effective with the first day of the first pay period in October 2002, however, the CSRS agency contribution rates will be reduced to 0.5 percent above the employee withholding rates. Then, on the first day of the first pay period in January 2003, the CSRS agency contribution rate will revert to that in effect before 1999. [The Postal Service and Metropolitan Washington Airports Authority will continue to use the agency contribution rates in effect before 1999.] For your convenience, the following chart shows the CSRS agency contribution rates that are in effect currently, in October 2002, and in January 2003:
INQUIRIES If you have any questions about the matters discussed in this letter, we would prefer that you email them to us at finance@opm.gov, so that we may retain a record of them. You may also call us on (202) 606-0606.
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Page created November 17 2000