CSRS Retirement Basics: Key Pros & Cons for Federal Employees in 2026

Preparing for retirement as a federal employee means knowing exactly how your benefits work. If you belong to the Civil Service Retirement System (CSRS), you face a unique set of rules, advantages, and tradeoffs. Here, you’ll discover how CSRS functions in 2026—so you can make well-informed decisions.

What Is CSRS Retirement?

The Civil Service Retirement System (CSRS) is the original federal retirement program, established in 1920. CSRS provides a defined benefit pension to eligible civilian federal employees, based on their years of service and average pay. Unlike the more recent Federal Employees Retirement System (FERS), CSRS does not typically include Social Security coverage.

By 2026, only those federal employees who were hired before January 1, 1984, and did not elect to switch to FERS remain under CSRS. Nearly all new federal hires after 1983 are ineligible; CSRS is now a closed system for active employees. In summary, if you started federal service before 1984 and kept your CSRS coverage, you remain eligible.

How Does CSRS Pension Work?

Your CSRS pension is calculated using a set formula based on your years of creditable federal service and your highest average salary over any consecutive three-year period (“high-3”). The basic formula increases your annuity with longer service, up to a maximum of 80% of your high-3 average pay—with certain exceptions, such as unused, accumulated sick leave.

Unused sick leave is added to your creditable service when calculating your retirement benefit under CSRS. This means your final pension can be slightly higher if you retain unused sick leave at retirement.

What Are CSRS Pros for 2026?

Reliable pension structure

CSRS provides a straightforward and predictable pension payment based on your federal service and earnings. Benefits do not depend on investment returns or outside market performance, offering a stable income in retirement.

Cost-of-living adjustments (COLAs)

CSRS retirees receive annual cost-of-living adjustments that keep up with inflation, closely following the Consumer Price Index (CPI). These adjustments generally match inflation changes and help maintain your purchasing power.

Ability to retire at earlier ages

CSRS allows many employees to retire with full benefits sooner than under FERS, depending on their years of federal service and age. For example, you may qualify for an immediate, unreduced pension by age 55 with 30 years of service.

Survivors and disability protection

CSRS includes automatic coverage for disability and offers survivor annuity options, ensuring your spouse or loved ones are protected if you pass away or become disabled before or after retirement.

What Are CSRS Cons for 2026?

No Social Security coverage for most participants

Most federal employees covered only by CSRS do not pay into Social Security during their federal service, so they do not earn Social Security credits from that employment. As a result, many CSRS retirees are not eligible for Social Security retirement benefits on their government service.

Limited portability relative to newer systems

CSRS benefits are best suited for those who spend their entire career in federal service. If you leave for another type of employment, there’s less portability than with the newer FERS system, which integrates Social Security and a Thrift Savings Plan.

Considerations for health and survivor benefits

Certain health (FEHB) and survivor benefits require you to make specific choices at retirement. These options may involve reducing your monthly pension, and the rules for electing or maintaining benefits are stricter than under FERS.

How Does CSRS Differ from FERS?

CSRS and FERS differ in several important ways. CSRS relies solely on your pension, with no Social Security coverage in most cases. FERS, introduced in 1987, combines a smaller defined benefit pension with Social Security participation and a government-matched Thrift Savings Plan (TSP).

Eligibility and benefit calculations also differ—CSRS often provides a higher pension for career federal employees, but FERS offers more flexibility and portable benefits. Some CSRS employees chose to remain in the legacy system for its higher pension calculations and generous COLAs.

Can You Switch from CSRS to FERS?

In the past, some CSRS employees were given a choice to transfer to FERS. This option is no longer generally available as of 2026. Eligibility windows for transfer closed decades ago, and by now, most remaining CSRS members do not have the option to switch. Specific rules applied in the past for who could transfer, but current law does not allow new switches.

If transfer rules ever change, it’s important to assess the impact on your pension, TSP, and Social Security eligibility before making a decision.

What Happens to CSRS After Leaving Federal Service?

If you resign before reaching retirement eligibility, your options with CSRS contributions depend on your years of service. You may be eligible for a deferred retirement annuity if you meet minimum age and service requirements. Otherwise, you can usually request a refund of your CSRS contributions, but if you do so, you forfeit future pension eligibility for those years.

Retirement (as opposed to resignation) via CSRS allows you to begin collecting your annuity immediately, with full or reduced benefits based on your eligibility and election of survivor benefits.

How Does CSRS Affect Social Security Eligibility?

CSRS participation affects how Social Security rules apply to you. Because you likely did not pay Social Security taxes on federal earnings, your Social Security retirement benefit (if you qualify from other work) can be reduced by the Windfall Elimination Provision (WEP). If you receive both a CSRS pension and a Social Security spousal or survivor benefit, the Government Pension Offset (GPO) may also apply. These provisions can reduce or even eliminate certain Social Security benefits.

Dual entitlement is possible if you’ve earned enough Social Security credits outside of federal service. However, these credits must meet the minimum required for Social Security support, and offset rules are applied.

What Are the Survivor Benefit Options?

CSRS includes survivor benefit protections for spouses and former spouses. At retirement, you may elect to provide a survivor annuity—which results in a reduced pension during your lifetime, but continued income for your designated survivor.

Enrollment in the survivor annuity is necessary to keep your spouse or eligible former spouse covered under the Federal Employees Health Benefits (FEHB) program after your death. If no survivor annuity is elected, FEHB coverage for survivors typically ends, with limited exceptions.

FAQs: Understanding CSRS in 2026

Can I still join CSRS today?
No. CSRS is closed to new members. Only employees who were continuously covered by CSRS since before 1984 remain in the system.

How do COLAs work for CSRS retirees?
CSRS annuitants receive annual COLAs based on the Consumer Price Index. Adjustments are applied to payments to help keep up with inflation.

Does CSRS count for Medicare eligibility?
If you paid Medicare (Hospital Insurance) taxes during your federal service, your work counts toward Medicare eligibility. Many CSRS employees are eligible for Medicare at age 65.

Can CSRS retirees receive TSP payouts?
If you made contributions to the Thrift Savings Plan (TSP), you can withdraw those funds just like FERS participants, regardless of your pension system.