Civil Service Pensions In Depth

Civil service careers will prove to be among the most wanted in the United States. Aside from stable positions and competitive salaries, one of the more attractive factors in regards to civil service jobs is the Civil Service Retirement System and the civil service pensions plan. The Civil Service Retirement System was implemented in 1920, which provided for the benefits to all employees of the United States Government.

However, people that were hired after 1987 will not be covered under the Civil Service Retirement System. All employees that have been hired after 1987 are currently enrolled in the Federal Employees Retirement System.

The Civil Service Retirement System will prove to act more like civil service pensions, where the Federal Employees Retirement System is slightly different. The FERS is considered to be a three tiered system which includes a smaller defined benefit, Social Security, and a 401(k) style system.

Employees under the Civil Service Retirement System do not participate in Social Security benefits, for they do not pay any taxes into the Social Security System. However, under certain circumstances, some employees may qualify for Social Security under certain conditions, usually by criteria met upon being rehired into a civil service position.

The civil service pensions benefits will be contingent upon a certain age, which is known as the Minimum Retirement Age. The MRA is based upon the person's year of birth, and will have different MRA dependent on the year. For individuals born after 1970, the MRA is 57 years, though those born in previous will have a lower MRA.