CSRS Retirement & Medicare Health Benefits

Most federal government employees hired before January 1, 1984 are covered by the Civil Service Retirement System. Under this plan, employees do not pay into Social Security, but are eligible for Medicare when they reach the age of eligibility.

Full Annuity and Computation

• Employees receive a full annuity at 55 years old and 30 years of federal government service. The annuity is based on the employee's average high-3, which represents the highest three years of salary earned by the employee.

Health Benefits

• Federal employees can continue health benefits through retirement if desired. To receive health benefits upon retirement, a federal employee must be working and maintaining health coverage for a minimum of five years. An employee with less than five years of federal service also is eligible for health benefits as long as the individual immediately enrolls in a health plan when permitted.

Medicare

• Federal employees pay a small Medicare tax, which allows them to receive Medicare when eligible. As of 2010, the Medicare tax is 1.45 percent of the employee's salary. Medicare becomes the primary carrier when the employee turns 65 years old.