Are CSRS and FERS contributions matched?

• A. No; neither is matched.
• B. Yes; both are matched.
• C. Only CSRS is matched.
• D. Only FERS is matched.

Answer: (B)

Matching contributions mean the government contributes to an employee’s retirement based on the employee’s own contributions. In CSRS, the retirement funding comes from employer contributions and employee contributions, but there isn’t a government “match” of the employee’s contributions. The system is funded as a defined benefit with the government providing the bulk of the funding, and employee contributions are part of that funding, not a matched amount.

Under FERS, the government does match a portion of the employee’s contributions to the Thrift Savings Plan, up to 5% of base pay (with the typical structure being a 100% match on the first 3% and a 50% match on the next 2% of pay contributed). So, there is a matching feature under FERS.

Therefore, only FERS has a matching arrangement, while CSRS does not.