What percent of salary contribution under CSRS and FERS?

• A. 5% and 2%.
• B. 7% and 0.8%.
• C. 10% and 1%.
• D. 3% and 0%.

Answer: (B)

Understanding how much a federal employee contributes toward retirement shows the difference in funding these two systems. In CSRS, the employee contribution is 7% of basic salary, while in FERS the employee contribution is 0.8% of basic salary. This gap reflects the shift from a solely employer-funded, CSRS-style defined benefit to the hybrid FERS system, which includes Social Security coverage and government contributions to the Thrift Savings Plan, allowing a much smaller employee deduction. The other percentages don’t match how these systems are typically funded, so the 7% and 0.8% pair is the standard representation.