Misclassified retirement system coverage.

CFR · 2024-01-01 · US · Title 5

(a) If a CSRS participant is misclassified by an employing agency as a FERS participant, when the misclassification is corrected: (1) Employee contributions that exceed the applicable contribution percentage for the pay period(s) involved may remain in the participant's account. The participant may request the return of excess employee contributions made on or after January 1, 2000; those contributed before January 1, 2000, must remain in the participant's account. If the participant requests a refund of employee contributions, the employing agency must submit a negative adjustment record to remove these funds under the procedure described in § 1605.12. (2) All agency contributions that were made to a CSRS participant's account will be forfeited. An employing agency may submit a negative adjustment record to request the return of an erroneous contribution that has been in the participant's account for less than one year. (b) If a FERS participant is misclassified by an employing agency as a CSRS participant, when the misclassification is corrected: (1) The participant may not elect to have the contributions made while classified as CSRS removed from his or her account; (2) The participant may, under the rules of § 1605.11, elect to make up contributions that he or she would have been eligible to make as a FERS participant during the period of misclassification; (3) The employing agency must, under the rules of § 1605.11, make agency automatic (1%) contributions and agency mat

official document · source cfr-2024 · id 5:§ 1605.14