---
kind: "section"
citation: "5 C.F.R. § 841.706"
title: "5"
number: "841.706"
heading: "Increases on combined CSRS/FERS annuities."
url: "https://uscodex.org/cfr/5/841.706"
---

# §841.706. Increases on combined CSRS/FERS annuities.

- (a) COLA's on combined CSRS/FERS annuities are computed by increasing the CSRS component by the percentage change and the FERS component by the amount of COLA's under [§ 841.703(a)](/cfr/5/841.703.md?p=a).
- (b) **The initial monthly rate is computed by—**
  - (1) Applying CSRS rules to CSRS service to obtain the annual rate of the self-only annuity (as defined in [§ 831.603](/cfr/5/831.603.md) of this chapter) based on the CSRS service; then
  - (2) Applying FERS rules to FERS service to obtain the annual rate of annuity determined under [§ 842.403](/cfr/5/842.403.md), [§ 842.405](/cfr/5/842.405.md), [§ 842.406](/cfr/5/842.406.md), or [§ 842.407](/cfr/5/842.407.md) of this chapter based on the FERS service; then
  - (3) Making any applicable FERS reductions for age and/or survivor benefits to the amounts computed under paragraphs [(b)(1)](#b-1) and [(b)(2)](#b-2) of this section; then
  - (4) Dividing the sum of the reduced amounts computed under [paragraph (b)(3)](#b-3) of this section by 12; then
  - (5) **Dropping any cents.**
- (c) **The initial monthly CSRS component is computed by—**
  - (1) Applying CSRS rules to CSRS service to obtain the annual rate of the self-only annuity (as defined in [§ 831.603](/cfr/5/831.603.md) of this chapter) based on the CSRS service; then
  - (2) Making any applicable FERS reductions for age and/or survivor benefits; then
  - (3) Dividing the annual amount by 12; then
  - (4) **Dropping any cents.**
- (d) The initial monthly FERS component is computed by subtracting the initial monthly CSRS component from the initial monthly rate.
- (e) **A retiree who was covered under FERS for at least one month has a FERS component.** If the amount of the FERS component as computed under [paragraph (d)](#d) of this section is zero (because the CSRS component is equal to the monthly rate, leaving no balance for the FERS component), the FERS component is $1 per month. The retiree is due a full dollar increase on the FERS component with the next COLA. An employee with less than a month of FERS service has no FERS component and is not due any FERS COLA's.
- (f) COLA's are determined by applying the appropriate increase to each component and rounding to the next lower dollar (each component must increase by at least one dollar if a COLA applies to each component) before adding them together for the new monthly amount payable.

## Notes

### Source

Source: 55 FR 14229, Apr. 17, 1990, unless otherwise noted.

### Authority

Authority: 5 U.S.C. 8461; Sec. 841.108 also issued under 5 U.S.C. 552a; Secs. 841.110 and 841.111 also issued under 5 U.S.C. 8470(a); subpart D also issued under 5 U.S.C. 8423; Sec. 841.504 also issued under 5 U.S.C. 8422; Sec. 841.507 also issued under section 505 of Pub. L. 99-335; subpart J also issued under 5 U.S.C. 8469; Sec. 841.506 also issued under 5 U.S.C. 7701(b)(2); Sec. 841.508 also issued under section 505 of Pub. L. 99-335; Sec. 841.604 also issued under Title II, Pub. L. 106-265, 114 Stat. 780; Sec. 5001 of Pub. L. 112-96 at 126 Stat. 199.