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FEDERAL EMPLOYEE'S
CIVIL SERVICE
RETIREMENT BENEFITS
CSRS / FERS
Military Time Buyback
Feds have the option of making military
service credit payments for creditable military service to prevent their annuity
from decreasing at age 62. I bought back my active military time when I
discovered that my retirement annuity would decease at age 62 if I didn't. If
you have, or anticipate having at least 40 quarters, 10 years, in social
security payments at age 62 you too should consider paying back your military
time. Otherwise your annuity will decrease. In my case my total payback was
about $650 and I was able to pay it back at $25 a pay. Military pay wasn't very
high when I was drafted, my pay started at $97 a month in the late 1960s.
MILITARY TIME BUY BACK OPTIONS -
CSRS
If you served on active duty
and will be eligible at age 62 to collect Social Security, your CSRS annuity
will be reduced by the number of years that you served unless you buy back that
time. For example, if you serviced in the armed services for 4 years, when you
reach age 62 your CSRS annuity will be reduced by 8%. You can buy back your
military time to avoid this reduction and collect your entire annuity and
whatever Social Security benefits that you are entitled to.
If you were first employed by the Federal Government
under retirement coverage before October 1, 1982, you have two options:
(1)
you can make the 7 percent deposit for any post- 1956 military service, or a
comparison amount for qualifying military service performed after August 1,
1990, to avoid a reduction in your annuity at age 62 (and a reduction in any
survivor annuity payable to your spouse after your death), or
(2) you can
decide not to pay the deposit and have your annuity reduced at age 62 if you
are then eligible for Social Security benefits. If you are eligible, your
annuity will be recomputed to eliminate all credit for post-1956 military
service. (Any survivor annuity payable to your spouse after your death would
also be recomputed to eliminate all credit for post-1956 military service when
he/she attains age 60 and becomes eligible for Social Security benefits.) You
had until October 1, 1986, or 3 years from the date you were rehired, if that
is later, to make the 7 percent deposit without having to pay interest;
otherwise, you can make the 7 percent deposit any time before retirement, but
you will have to pay interest. Additional information,
forms, and resources are listed below.
Deposits for military service must be
made to your employing agency
BEFORE YOU SEPARATE FOR RETIREMENT.
Contact your agency Human Resource department and arrange
to pay back your military time. Complete form
SF-2803. You can make payments through payroll
deduction or pay a lump sum if you desire.
MILITARY TIME BUY
BACK OPTIONS - FERS
It is beneficial for FERS workers to
buy back their post 1957 military service time. FERS retirees with Post 1/1/57
military service will not get credit or annuity computation without making a
deposit using SF Form 3108. If a deposit is made, the employee will
receive credit towards his/her annuity computation.
Employee's with military service BEFORE 1/1/57 will receive credit for their
military time for annuity computations and no deposit is required. The FERS
deposit is 3% of basic pay plus variable market rate interest may be charged
where applicable. Military deposits must be made BEFORE you retire. Click
on forms to download copies of the SF-3108 form
and contact your agency's personnel specialist for additional guidance.
Deposits for military service must be
made to your employing agency
BEFORE YOU SEPARATE FOR RETIREMENT.
MILITARY BUYBACK RESOURCES
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