If you have received an email stating that you owe a debt to the federal government due to an error in FERS (Federal Employee Retirement System) deductions, please know that you can and should request that the debt be waived. No employee should suffer because of mistakes made by the Department.
As a reminder, FERS provides an annuity (pension) to eligible federal employees upon retirement. In 2012 and 2013, Congress passed legislation raising the contribution rates for employees hired in 2013 and 2014, respectively. Here are the required contributions based on hire date:
- Employees hired before January 1, 2013, contribute 0.8% of their salary to FERS.
- Employees hired between January 1, 2013, and December 31, 2013, pay 3.1% and are coded as RAE (Revised Annuity Employees).
- Employees hired on or after January 1, 2014, pay 4.4% and are coded as FRAE (Further Revised Annuity Employees).
Here is a summary chart:
| FERS Plan | Contribution Amount | Date Range |
| Traditional | 0.8% of salary | 01/01/1987 – 12/31/2012 |
| RAE | 3.1% of salary | 01/01/2013 – 12/31/2013 |
| FRAE | 4.4% of salary | 01/01/2014 – Current |
Waivers are typically granted if the official determines that collecting the debt would be inequitable or against good conscience, and there is no evidence of fraud, misrepresentation, or lack of good faith on the part of the employee. Waivers are usually denied if the employee knew or should have known that an error occurred. This is a link to the DFAS guide to waivers for FERS retirement code errors, and includes helpful templates: fersretcode_waiverguide_v13_rev_b.final040523.pdf (osd.mil)
Here is a great FAQ about FERS Retirement Code Errors:
https://afgelocal17.org/wp-content/uploads/2024/07/FERS-Error-FAQs-and-Fact-Sheet.pdf
If you have any questions or concerns, please reach out to AFGE Local 17.
