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 BAL 24-101 Annual Changes
The Office of Personnel Management (OPM) annually updates Benefits Administration Letters (BALs) to reflect changes in variable interest rates and cost-of-living adjustments (COLA). The purpose of BAL 24-101 Annual Changes is to provide updated information on variable interest and COLA rates for 2024.
BAL 24-102 Revised Present Value Factors and Discount Factors Effective October 1, 2023
We are issuing BAL 24-102 Revised Present Value Factors and Discount Factors eff. 10/01/2023 to notify agencies that the present value factors and discount factors have been amended as of October 1, 2023.
Several statutory provisions of the Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS) require that certain annuities to be reduced on an actuarial basis. The Office of Personnel Management (OPM) calculates the actuarial reductions required by law using present values. The actuarial reductions permissible by statute enables annuitants to obtain benefits without being compelled to pay a deposit or redeposit for sum owed to the Civil Service Retirement and Disability Fund (Fund). Instead of providing a lump-sum deposit or redeposit, OPM reduces the annuity in such a way that OPM can collect the amount owed to the Civil Service Retirement and Disability Fund through the annuitant’s lifetime. The actuarial reduction becomes a permanent reduction in the annuitant’s benefit.
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