The Voluntary Contribution Program

June 25, 2012 — This week on For Your Benefit hosts Bob Leins and Tammy Flanagan discuss the Voluntary Contribution Program and what it can do for federal employees as they plan their financial futures.

Listeners to the podcast can follow along, using a study guide, which can be found at

The Voluntary Contribution Program is an option available only to CSRS and CSRS-offset employees.

The VCP allows such employees to contribute funds that equal up to 10 percent of the total basic pay they have earned in federal service toward their own retirement.


CSRS employees who want to participate in this program must fill out an application before they retire.

The VCP is a way to bolster your retirement income. In its brochure “Retirement Facts 10,” the Civil Service Retirement System offers this explanation: “At retirement, each $100 in your voluntary contributions account (including interest earned) will provide an annual annuity of $7 a year, plus 20 cents for each full year you are over age 55 at the time you retire.”

However, it is also possible to withdraw all voluntary contributions at any time before receiving this annuity. In the broadcast Leins and Flanagan talk listeners through the steps of putting the monies into other retirement investment vehicles, such as traditional and Roth IRAs.