Special Category Basics: What is a Special Category Employee?

The Office of Personnel Management (OPM) classifies Air Traffic Controllers (ATCs), Firefighters (FFs), Law Enforcement Officers (LEOs), Nuclear Materials Couriers (NMCs), Customs and Border Patrol Officers (CBPOs), and Military Reserves Technicians (MRTs) as Special Category Employees (SCE), also known as Special Provisions Employees. Therefore, special rules apply to these employees regarding their pension benefits in CSRS and FERS. Because OPM determines law enforcement officer coverage on a position-by-position basis, the listings below are not all-inclusive regarding Special Category Employees.

Law Enforcement Officers and Firefighters

An LEO’s duties are to investigate, apprehend or detain individuals suspected or convicted of offenses against federal criminal laws. The definitions of duties differ between CSRS and FERS, with those definitions under FERS being more stringent.

An FF’s duties are primarily to perform work directly with the control and extinguishing of fires or the maintenance and use of firefighter apparatus and equipment.

The Federal Agents assigned as Nuclear Materials Couriers transport nuclear weapons and special nuclear materials in the contiguous United States. Public Law 105-261, Division C, Section 3154 established retirement coverage the same as LEOs. LEOs and FFs may voluntarily retire early with a special annuity computation if they meet age and service requirements. They must be at least age 50 with 20 years of LEO or FF service. Special Category Employees with FERS may also retire at any age with 25 years of service.

Contributions

LEOs and FFs pay an extra one-half percent salary deduction under CSRS/CSRS Offset or FERS. As a result, they receive benefits under an enhanced formula and can retire earlier than other federal employees.

CSRS employee contributions

• 7.5% of their salary

FERS employee contributions

• 1.3% (FERS) of their salary for employees hired before 2013
• 3.6% (FERS-RAE) of their salary for employees hired on January 1, 2013
• 4.9% (FERS-FRAE) of their salary for employees hired on January 1, 2014

Retirement Eligibility

CSRS LEOs and FFs must have at least 5 years of service and have at least 1 year out of the last 2 in the CSRS. There is no such requirement for FERS. There are minimum age and service requirements that must also be met.

CSRS – minimum age for an immediate annuity is age 50 with 20 years of service

FERS – minimum age for an immediate annuity is age 50 with 20 years of service or at any age with 25 years of service.

Both CSRS and FERS are subject to mandatory separation at age 57. However, an agency head can retain an LEO until age 60 if doing so serves the public interest. Positions with a mandatory retirement requirement usually have a max entry age of 37 for the employee to have at least 20 years of service prior to 57 and mandatory retirement. Applicants with veterans’ preference can have the entry age limits waived unless the agency decides the limit is essential to the position.

Calculating LEO and FF High-Three Average Pay

CSRS

“High-three salary” x first 20 years x 2.5%
“High-three salary” x remaining years of service x 2.0%

Example:

High-three:                       $82,000
Service:                           26 Years
$82,000 x 20 x 2.5% =    $41,000
$82,000 x 6 x 2.0% =        $9,840
Basic Annuity                  $50,840 annually before taxes

FERS

“High-three salary” x first 20 years x 1.7%
“High-three salary” x remaining years of service x 1.0%

Example:

High-three:                   $82,000
Service:                        26 Years
$82,000 x 20 x 1.7% = $27,880
$82,000 x 6 x 1.0% =    $4,920
Basic Annuity                $32,800 annually before taxes

Law Enforcement Officers’ Availability Pay (LEAP) is included in calculating the High-Three average pay for certain LEOs. However, LEAP is not available for NMCs or FFs.

FERS Supplement

LEOs and FFs may also receive the FERS Supplement at retirement up to age 62.

Customs and Border Protection Officers

Customs and Border Protection is charged with keeping terrorists and their weapons out of the US while facilitating lawful international travel and trade. Prior to Public Law 110-161, Division E, Section 535, CBPOs did not have special retirement provisions and were treated as regular CSRS and FERS employees. The new law enacted on December 26, 2007, provided CBPOs with retirement coverage similar to that of LEOs. CBPO employees within the GS-1895 job series (and other closely related positions) are covered under the special retirement provisions.

Contributions

CBPOs pay an extra one-half percent salary deduction under CSRS/CSRS Offset or FERS. As a result, they receive benefits under an enhanced formula and can retire earlier than other federal employees.

CSRS employee contributions

• 7.5% of their salary

FERS employee contributions

• 1.3% (FERS) of their salary for employees hired before 2013
• 3.6% (FERS-RAE) of their salary for employees hired on January 1, 2013
• 4.9% (FERS-FRAE) of their salary for employees hired on January 1, 2014

Retirement Eligibility

Mandatory retirement or maximum entry ages do not apply to CBPOs onboard on or before July 5, 2008.​
CSRS – minimum age for an immediate annuity is age 50 with 20 years of service in a covered position.
FERS – minimum age for an immediate annuity is age 50 with 20 years of service or at any age with 25 years of service.
Customs and Border Protection Officers hired on or after July 6, 2008, are subject to the law enforcement retirement provisions with mandatory retirement at age 57 with 20 years of service.

Calculating CBPO High-Three Average Pay

CBPOs already hired as of December 26, 2007, could “Opt Out” of the new CBPO special retirement provisions coverage.

CSRS retirement calculations for CSRS employees who elected to opt out of the new CBPO special retirement provisions coverage:

“High-three salary” x first 5 years of service x 1.5%
“High-three salary x the next 5 years of service x 1.75%
“High-three salary x the remaining years of service x 2.0%

Example:

High-three:                    $82,000
Service:                         30 years
$82,000 x 5 x 1.5% =    $6,150
$82,000 x 5 x 1.75% =  $7,175
$82,000 x 20 x 2% =   $32,800
Basic annuity               $46,125 annually before taxes

CSRS retirement calculations for CSRS employees who elected to opt into the new CBPO special retirement provisions coverage:

“High-three salary” x 1 year of service x 2.50%
“High-three salary” x 4 years of service x 1.50%
“High-three salary” x 5 years of service x 1.75%
“High-three salary” x all remaining years of service x 2.00%

Example:

High-three:                  $82,000
Service:                        30 years
$82,000 x 1 x 2.5% =   $2,050
$82,000 x 4 x 1.5% =   $4,920
$82,000 x 5 x 1.75% = $7,175
$82,000 x 20 x 2% =  $32,800
Basic annuity             $46,945 annually before taxes

FERS retirement calculations for FERS employees who elected to opt out of the new CBPO special retirement provisions coverage:

“High-three salary” x all years of service x 1.0%

Example:

High-three:                   $82,000
Service:                       30 years
$82,000 x 30 x 1.0% = $24,600
Basic annuity                $24,600 annually before taxes

FERS retirement calculations for FERS employees who elected to opt into the new CBPO special retirement provisions coverage:

“High-three salary” x 10 years of service (assuming years under new special provisions) x 1.7%
“High-three salary” x 20 years of service (assuming years with no special provisions coverage) x 1%

Example:

High-three:                   $82,000
Service:                        30 years
$82,000 x 10 x 1.7% = $13,940
$82,000 x 20 x 1.0% = $16,400
Basic annuity                $30,340 annually before taxes

CBPOs hired between December 27, 2007, and July 6, 2008, and CBPO employees hired after were automatically covered under the new special retirement provisions and were not allowed to “Opt Out.”

FERS retirement calculations for CBPO FERS employees are calculated the same as LEOs and FFs:

“High-three salary” x first 20 years x 1.7%
“High-three salary” x remaining years of service x 1.0%

Example:

High-three: $82,000
Service: 26 Years
$82,000 x 20 x 1.7% = $27,880
$82,000 x 6 x 1.0% = $4,920
Basic Annuity            $32,800 annually before taxes

FERS Supplement

CBPOs may also receive the FERS Supplement at retirement up to age 62.

Air Traffic Controllers

Air Traffic Controllers provide a vital public service to guide pilots, their planes, and millions of daily passengers from taxi to takeoff, through the air, and safely back on the ground.

Contributions

CSRS ATCs do not contribute the one-half percent extra towards their retirement as do most other Special Category Employees. They contribute 7% of their salary to help finance their retirement benefits and still receive the enhanced formula to calculate their retirement benefits.

FERS ATCs contribute .5% more of their salary than regular FERS employees.

• 1.3% (FERS) of their salary for employees hired before 2013
• 3.6% (FERS-RAE) of their salary for employees hired on January 1, 2013
• 4.9% (FERS-FRAE) of their salary for employees hired on January 1, 2014

Eligibility

Like LEOs and FFs, ATCs may retire early with a special provisions annuity computation if they meet age and service requirements.

CSRS/CSRS Offset ATCs can retire when they attain age 50 and have 20 years of service or retire at any age after 25 years. CSRS/CSRS Offset ATCs are guaranteed to receive 50% of their high-three years of average pay after at least 20 years of service.

The same rules apply for FERS as it does CSRS for when an ATC can retire, but FERS ATCs do not have a guaranteed 50% of the high-three benefit. Instead, FERS provides the same special benefits to ATCs as it does LEOs and FFs.

Both CSRS and FERS ATCs are subject to mandatory retirement effective on the last day of the month when the ATC attains age 56. Waivers are available where an ATC can be retained until age 61

Calculating ATCs High-Three Average Pay

CSRS

“High-three salary” x first 5 years of service x 1.5%
“High-three salary x the next 5 years of service x 1.75%
“High-three salary x the remaining years of service x 2.0%

Example:

High-three:                  $82,000
Service:                       26 years
$82,000 x 5 x 1.5% =   $6,150
$82,000 x 5 x 1.75% = $7,175
$82,000 x 16 x 2% =  $26,240
Basic annuity              $39,565 annually before taxes

(CSRS ATCs are guaranteed an annuity no less than 50% of the high-three pay)
High-three of $82,000 x 50% = $41,000 annually before taxes

FERS

“High-three salary” x first 20 years x 1.7%
“High-three salary” x remaining years of service x 1.0%

Example:

High-three:                    $82,000
Service:                       26 Years
$82,000 x 20 x 1.7% = $27,880
$82,000 x 6 x 1.0% =     $4,920
Basic Annuity                $32,800 annually before taxes

FERS Supplement

FERS ATCs may also receive the FERS Supplement at retirement up to age 62.

Military Reserve Technicians

An MRT or a National Guard technician is a member of one of the Reserve Components of the armed forces or the National Guard. They hold a civilian position with administrative and training duties of Reserve or National Guard components. As a condition of employment, they must be a member of the Reserve Component or National Guard serving in a specified military grade. This “dual status” service is creditable for a CSRS or FERS retirement and a military Reserve Retirement.

Contributions

CSRS employee contributions

• 7.0% of their salary

FERS employee contributions

• 0.8% (FERS) of their salary for employees hired before 2013
• 3.1% (FERS-RAE) of their salary for employees hired on January 1, 2013
• 4.4% (FERS-FRAE) of their salary for employees hired on January 1, 2014

Eligibility

CSRS MRTs must have been covered by CSRS for one year out of the last two years before separation. In addition, five years of civilian is a mandatory requirement. If a CSRS/CSRS Offset technician is involuntarily separated (not for delinquency or misconduct) from their position, they can get a discontinued service annuity at any age with 25 years of service or age 50 with 20 years of service. However, there is a 2% reduction in the retirement annuity for each year under age 55.

FERS MRTs must have 5 years of creditable civilian service under FERS for an immediate unreduced annuity. If a FERS MRT is involuntarily separated (not for delinquency or misconduct) from their position, they can get a discontinued service annuity at any age with 25 years of service or at age 50 with 20 years of service. FERS MRTs are eligible for the FERS Supplement up to age 62, and the Earnings Test does not apply until an MRT reaches their Minimum Retirement Age (MRA).

Calculating MRTs High-Three Average Pay

CSRS/CSRS Offset

Use the following calculations to determine annuity:

“High-three salary” x first 5 years of service x 1.5%
“High-three salary” x the next 5 years of service x 1.75%
“High-three salary” x the remaining years of service x 2.0%

Example:

High-three:                  $82,000
Service:                       35 years
$82,000 x 5 x 1.5% =   $6,150
$82,000 x 5 x 1.75% = $7,175
$82,000 x 25 x 2% =   $41,000
Basic annuity              $54,325 annually before taxes

FERS
Use the following calculations to determine annuity:

Basic calculation

“High-three salary” x years of service x 1%

Example:

Age: 58
High-three:                $82,000
Service:                     30 years
$82,000 x 30 x 1% = $24,600 annually before taxes

Enhanced Calculation

“High-three salary” x years of service x 1.1%*
*For those with 20 years of service or more and retiring at the age of 62 or later

Example:

Age: 63
High-three:                   $82,000
Service:                        35 years
$82,000 x 35 x 1.1% = $31,570 annually before taxes

No Early TSP Withdrawal Penalty for Public Safety Employees (most Special Category Employees)

The Defending Public Safety Employees Retirement Act of 2015 amended the Internal Revenue Code to allow specified federal LEOs, NMCs, CBPOs, FFs, and ATCs who separate from service during or after the year they become age 50 to make withdrawals from the Thrift Savings Plan (TSP) without incurring a 10% early withdrawal penalty. This change is effective for withdrawals from the TSP paid after December 31, 2015.