SF 3106 Instructions
What SF 3106 Does
Standard Form 3106 — Application for Refund of Retirement Deductions — is the form you use to request a lump-sum payout of the employee contributions you paid into the Civil Service Retirement and Disability Fund. An accepted refund removes the service from the amount calculation for your 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.
The form itself is two pages, plus the companion SF 3106A for spousal notification. Here's what goes in each section and where the mistakes happen.
Form Walkthrough
Items 1–5 (Personal information): Your full legal name, date of birth, Social Security number, current mailing address, and phone number. Use the name on your personnel records — a legal name change after separation requires supporting documentation.
Use the correct refund form: SF 3106 is for FERS refunds. If you were covered by CSRS or CSRS-Offset, use the CSRS refund application, SF 2802.
Item 6 (Federal service history): List every period of federal employment covered by retirement deductions. Include agency name, dates of service, and your retirement plan for each period. If you had breaks in service or transferred between agencies, list each stint separately. Gaps or discrepancies here cause processing delays while OPM verifies against your Official Personnel Folder.
Item 13 (Payment election): This is where you choose how to receive the refund. For refunds of $200 or more, your options include:
- Direct payment to you — OPM withholds 20% federal income tax from the taxable interest portion. If you're under 59½, you may also owe a 10% early distribution penalty when you file your tax return. For refunds under $200, OPM is not required to withhold 20% from interest.
- Direct rollover to a traditional IRA or eligible employer plan — no withholding is taken from the taxable amount rolled over; tax is generally deferred until you later withdraw it. Specify the receiving institution's name, address, and account number.
- Direct rollover to your TSP — use Form TSP-60 in addition to SF 3106. The taxable interest transfers into your Thrift Savings Plan tax-free.
The principal portion (your original after-tax payroll deductions) is always non-taxable regardless of which option you choose.
If your refund is under $200, OPM cannot roll it over and pays it directly to you.
SF 3106A: Spousal Notification
If you are currently married, your spouse must be notified using SF 3106A. The spouse's signature acknowledges notice of the refund application; it is not consent to the refund. Two witnesses must witness the signature.
If a spouse refuses or cannot be located, OPM's instructions allow alternatives such as affidavits from two witnesses of an attempted personal notice or providing an address for OPM to send certified notice. OPM may waive notice when the spouse's location is unknown if you provide the required documentation.
If you have a living former spouse who was married to you for at least 9 months during your creditable federal service (and you completed at least 18 months of civilian service), that former spouse must be notified of the refund application. You don't need their consent — just documented notification.
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.
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Where to Submit
- Within 30 days of separation: Submit through your former agency's HR office. They certify your service history and forward the package to OPM.
- After 31+ days: Send directly to OPM Retirement Operations Center, P.O. Box 45, Boyers, PA 16017-0045.
Keep a complete copy of everything you submit. If you filed through your agency, first confirm that it forwarded the application and records to OPM; otherwise, contact OPM Retirement Operations about your application status.
Common Mistakes That Delay Processing
Missing or unsigned SF 3106A. Listing incorrect retirement plan codes. Omitting service periods (especially temporary or intermittent appointments). Failing to specify the rollover election. Submitting SF 3107 (immediate retirement application) instead of SF 3106.
The Leaving Federal Service Early toolkit includes a pre-submission audit checklist and the full break-even analysis for deciding between a refund and a deferred annuity.
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Download the Leaving Federal Service — Deferred, Postponed or Refund? Checklist — a printable guide with checklists, scripts, and action plans you can start using today.