FERS-FRAE *effective 1 Jan 2014*


All employees who were hired into federal service on or after January 1, 2014 and have less than five (5) years creditable service coverage under FERS will be affected by the Bipartisan Budget Act of 2013.


What does this mean?  Retirement contributions are being under-withheld from impacted employees,  which means you will be accruing a debt until the Defense Civilian Pay System (DCPS) updates its software to comply with FERS-FRAE requirements.

When will this debt be taken out of my paycheck? DFAS expects FERS-FRAE software changes to be accomplished by the August 2014 timeframe.

How much of  a debt will I have? Debts incurred by currently impacted employees will range from $8-$1,300 per employee from the effective date of January 1, 2014 through the targeted DCPS implementation date, August 2014.

How will I know when I need to pay my debt?  A debt letter will be issued to all affected employees at the time of the DCPS implementation of the payroll system modifications.  Impacted employees will be afforded the opportunity to elect a repayment plan of no less than $25.00 per pay period until debt is repaid in full. Employee debts will not be automatically deducted until the employee provides the preference for repayment.

DCPAS Memorandum

DFAS Memorandum 

© NYS DMNA: Technician Resources - FERS-FRAE *effective 1 Jan 2014*
URL: http://dmna.ny.gov/hro/tech/?page=1397221544
Page Last Modified: 28 Dec 17