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U.S. TRADE AND DEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
September 30, 2020 and 2019
(m) Retirement Plan
USTDA’s employees participate in either the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS). Employees participating in CSRS contribute 7.0 percent of their gross pay to the plan, and USTDA contributes 8.51 percent. The Office of Personnel Management (OPM) has calculated that the cost of providing a CSRS benefit is 38.5 percent of an employee’s basic pay. This exceeds the amounts contributed to the plan by USTDA and its employees. In accordance with Statement of Federal Financial Accounting Standard (SFFAS) No. 5, Accounting for Liabilities of the Federal Government, USTDA reports the full cost of providing pension benefits to employees in the CSRS.
On January 1, 1987, FERS went into effect pursuant to Public Law 99-335. Most employees hired after December 31, 1983 are automatically covered by FERS and the Social Security Act. Employees hired prior to January 1, 1984 could elect either to join FERS and the Social Security Act or remain in CSRS. A primary feature of FERS is that it offers a savings plan in which USTDA automatically contributes 1 percent of employees’ pay and matches any employee contribution up to an additional 4 percent of basic pay. For most employees hired since December 31, 1983, USTDA also contributes the employer’s matching share under the Social Security Act. Public Law 112-96, Section 5001, the Middle-Class Tax Relief and Job Creation Act of 2012, divided FERS participants into two categories, FERS employees and FERS-Revised Annuity Employees (FERS-RAE). Employees hired on or after January 1, 2013, with some exceptions, are required to contribute 2.3% more to FERS than FERS employees hired prior to January 1, 2013. Section 401 of the Bipartisan Budget Act of 2013, made another change to FERS: beginning January 1, 2014, new employees (as designated in the statute) pay higher employee contributions, an increase of 1.3 percent of salary above the percentage set for FERS-Revised Annuity Employees. Section 8401 of Title 5, United States Codes, was amended to add a new definition of a FERS-FRAE employee.
The following chart highlights contribution rates for FERS employees:
  FERS Retirement System
FERS — Regular FERS — RAE FERS — FRAE
Agency Contribution Rate
14.2%
Employee Contribution Rate
0.8% 3.1% 4.4%
    16%
 14.2%
       The total amount of imputed financing for retirement and other post-retirement benefits paid by OPM for FY 2020 amounted to $373,482, which includes a reduction of overall expense of $10,725 for pension costs for CSRS and FERS; $383,890 for the Federal Employees Health Benefits (FEHB) program; and $317 for Federal Employees Group Life Insurance (FEGLI). In FY 2019, OPM funded $438,290 for pension, health, and life insurance benefits on behalf of USTDA’s employees. These amounts are included in USTDA’s FY 2020 and FY 2019 financial statements, respectively.
 46 U.S. TRADE AND DEVELOPMENT AGENCY  ANNUAL REPORT 2020


















































































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