Buying Back Military Time - The Pros And Cons of Buying Back

Welcome to the next video in our series on Buying Back Military Time!
We've covered a lot of content so far, and now it's time to discuss the pros and cons of buying back military time.
Now we are providing you with two real-life scenarios, one with a military pension and the other without a military pension.
Till next week, stay tuned!

[@ilpostinomotociclista270]

Great video with an easy to understand explanation. Thank you. As a 6 year military veteran and current 29 year USPS employee, in my case there was absolutely zero downside to “buying back” my military years of service. It cost me only about $2,000 when I was first hired by the USPS, and at 9 years in I had 15 years total service, immediately bumping me up to 208 hours of annual leave a year. That alone was worth the $2,000. And of course, the 6 years bump in my pension calculation will be worth many times that over the course of my retirement. YMMV

[@user-dz1ii1yz4e]

I would highly encourage you use Enlisted 20 years as an example, only officers and senior Enlisted (E-9s) get a 5k retirement or more. the typical 20 year retirement is around 2500 or less for E7 and below with 20 years. e.g. E-6 with 20 years is approximately $2100 per month. Using that scenario with your example, you actually end up getting more if you buy back. The issue will be the deposit, if you waited longer than 3 years after joining federal service you have to pay a penalty (tax). That's what most folks are confused about, is the deposit worth the gain and how long do you have to live in order to make that deposit up, if you can do that at all?

[@dstanley7085]

You nailed it! The video is misleading and inaccurate. Glad there are people like you (@user-dz1iilyz4e) who knows the facts

[@kalanifaye]

Working until your 62 is wild to me

[@dstanley7085]

The $5000 is not just wiped away, it’s combined with your FERs retirement. Not sure the video is of good use!

[@johnfields2952]

No one discusses the state tax ramifications of a military pension vs fers pension. For most states, a military pension is tax exempt whereas a fers pension is not

[@dstanley7085]

I learned this to be true; it could make a difference in the long run. Folks should really look at this if they are in a state that does not tax military retirement.

[@Baby1Bone]

Can you buy back time if you have 8-10 years of reserve time and 20 years active, receiving a military pension while serving in the federal sector?

[@user-js2qo1pr2i]

Hello, I served 6 years active duty then enlisted in the national guard. My full time i work as a federal employee. I would like to get a retirement from my guard time and my federal time, but if i sell back my active duty years to retire early federally, does that take away 6 years towards my military retirement?

[@toddmaek5436]

I have a question. Does being a service connected 100 percent disbled veteran who is TDIU in their 40s enable one to get their fers benefits early, or do they still have to wait until the retirement age(s)? I ask because being totally disabled and individually unemployable is effectively being retired. Thanks

[@user-dz1ii1yz4e]

Your VA disability is separate from your federal retirement. You can retire on disability early from Federal Service, if you can prove your disability occurred during and due to your federal service, not military. I hope that helps.

[@kalanifaye]

Working until your 62 is wild to me