How Long to Get FERS Refund
The Timeline Starts at 31 Days
SF 3106 has a 31-day separation rule: you are not entitled to keep a refund if you return to a FERS- or CSRS-covered position within 31 days after separating. You can submit the application while still employed or within 30 days after separation through your servicing personnel office; after more than 30 days, submit it directly to OPM.
After OPM receives your application and verified agency records, the refund processing time depends on the completeness of your paperwork.
Where to Send Your SF 3106
If you separate and file within the first 30 days, your application routes through your former agency's human resources office. They certify your service history and forward it to OPM.
If you file more than 30 days after separation — which is the more common scenario for people weighing refund vs. deferred annuity — you submit SF 3106 directly to OPM's Retirement Operations Center in Boyers, Pennsylvania.
The mailing address is:
Office of Personnel Management
Retirement Operations Center
P.O. Box 45
Boyers, PA 16017-0045
Current Processing Times
A typical estimate is 30 to 45 days after OPM receives all required forms and verified agency records. Missing spousal notifications or incomplete service history can delay payment.
Free Download
Get the Leaving Federal Service — Deferred, Postponed or Refund? Checklist
Everything in this article as a printable checklist — plus action plans and reference guides you can start using today.
What Slows Things Down
Spousal notification issues can delay payment. Your current spouse and any qualifying former spouse must be notified using SF 3106A; the spouse's signature acknowledges notice, and two witnesses attest to the signature. If a spouse refuses or cannot be located, follow the alternative-notice instructions in the form package.
Court orders affecting retirement deductions need special handling. If an order expressly relates to your retirement deductions and you believe paying the refund would end a former spouse's court-ordered entitlement to a survivor annuity or a portion of your annuity, send a copy of the order and a cover letter to OPM as directed by SF 3106A.
Incomplete service records cause delays when OPM can't verify your creditable service from the Official Personnel Folder on file. This happens most often with employees who transferred between agencies, had breaks in service, or performed military service that wasn't properly documented with a DD-214.
Wrong form is surprisingly common. SF 3106 is for contribution refunds. SF 3107 is for immediate retirement. RI 92-19 is for deferred or postponed retirement. Filing the wrong one sends your claim into a correction loop.
The Payment Itself
Once OPM approves the refund, payment comes as a lump sum. The amount includes your employee contributions (non-taxable, since you paid them with after-tax dollars) plus accrued interest if you had more than one year of creditable civilian service.
FERS interest accrues at variable market rates tied to Treasury securities — not the fixed 3% rate that applies to CSRS refunds. The interest portion is taxable income. For refunds of $200 or more, OPM withholds 20% from taxable interest paid directly to you. You may also owe a 10% early distribution penalty if you're under 59½.
To avoid the withholding and penalty, you can direct-roll the taxable interest into a traditional IRA or your TSP account using Form TSP-60. Specify this option on the SF 3106 before submitting — it's harder to arrange after the fact.
Before You File
An SF 3106 refund removes the covered service from the amount calculation for your FERS annuity and any survivor annuity. If you were covered by FERS on or after October 28, 2009, refunded service still counts toward retirement and survivor-benefit eligibility, but not toward those benefit amounts unless a full redeposit with interest is paid. If you were not covered by FERS on or after that date, the refund permanently forfeits retirement rights based on that service.
The Leaving Federal Service Early guide includes a refund vs. deferred annuity break-even calculator and a step-by-step SF 3106 completion walkthrough.
Get Your Free Leaving Federal Service — Deferred, Postponed or Refund? Checklist
Download the Leaving Federal Service — Deferred, Postponed or Refund? Checklist — a printable guide with checklists, scripts, and action plans you can start using today.