Is It Worth It To Buy Back Military Time

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Dallen Haws at Haws Financial Planning
Sierra Vista, AZ
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It is very common for federal employees to have served at least a portion of their career in the military. If someone is not receiving military retirement pay, they are most likely eligible to buy back their military time to be included in their federal service. This is how it works.
Your retirement pension under civilian service is calculated by the following formula:
High 3 x Creditable Service x Multiplier
For example, if you are under the FERS system, have 24 years of service, and a high-3 of $110,000, then your pension calculation would look like this (assuming you were under age 62 at retirement time or else your multiplier would be 1.1%) :
$110,000 x 24 x 1% = $26,400 or $2,200 Per Month
When you buy back military time, that time is added back into your years of creditable service and thereby increasing your monthly pension. Using the same example as above, let’s say you decided to buy back your 6 years of military service which would then be added into your years of service. Your new pension calculation would look like this:
$110,000 x 30 x 1% = $33,000 or $2,750 Per Month
That is an extra $550/month or $6,600 per year, but the true difference is apparent when we look at the change over an entire retirement. Assuming you are retired for 30 years, that one decision to buy back your military time will put an extra $198,000 in your pocket.
Not only can buying back military time add to your pension, it can also allow you to retire earlier. You probably already know that there are certain requirements of creditable service to be eligible for an immediate annuity/pension. For FERS, this is 30 years at your MRA (Minimum Retirement Age), 20 years at age 60, or 5 years at age 62. Bought back military time can put you over those limits in some cases.
For example, let’s say you had 18 years of service at age 60 and decided to buy back 3 years of military service. That would give you a total of 21 years which would make you eligible for an immediate annuity right now without working another 2 years. It doesn’t always make sense to retire as soon as you possibly can but this will at least give you more options.
The Cost
Sounds great so far, right? Now, let’s talk about what it costs.
You must make a deposit to your agency to get civilian credit for your military service. The amount of this deposit is calculated with the following formula:
Total Military Base Pay x Multiplier (about 7% for CSRS and 3% for FERS) = Deposit
For example, let’s say you had 5 years of military service and your base pay for all 5 years was $30,000. Your calculation would look like this if you were under FERS:
$150,000 x 3% = $4,500
Wait, there’s More
This next part is why it pays (literally) to buy back your military time as soon as you decide it is a good idea for your plan. Once you are hired for civilian service, you have 3 years to pay the deposit before any interest starts to accrue. Every year after this 3-year grace period it will take a little more to buy back your military time. The amount of interest varies each year but it is not uncommon for feds to pay 2-3 times more in interest than their original deposit. The moral of the story is to buy back your military time as soon as possible.
Even when someone does wait a very long time to buy back their military it often still makes sense to do so. As we saw in the example at the beginning of this article, buying back time made a difference of almost $200,000 over a retirement. There are very few cases where it doesn’t make sense, but you will want to run the numbers for you to see how long it will take to earn back everything you paid for your deposit.
Conclusion
This topic is another great example of how knowing the rules can make such a difference in your retirement outcomes. Creating an incredible retirement is 100% our own responsibility and good news is that the government has some incredible benefits to make that happen. It comes down to you educating yourself to make sure that you can get the most out of your career as you transition into retirement.

[@YAGO-lm4xb]

Thank you. Just started today, n trainer said to look into this. Your video made it clear and I will jump right on it. Again thank you.

[@PlanYourFederalBenefits]

Glad it was helpful!

[@WarringHostMakinSatanToast]

I have 8 years U.S. Navy and 27 years under FERS, but didn't buy my military years back. Smart on you for knocking it out. It makes sense for me to buy back my military time for sure, so thanks for this vid!!!

[@nakho3550]

@@WarringHostMakinSatanToast you will be hit with interest

[@Nitramen]

I recently fell into the procrastination crowd of ill get to buying my military time. I had three years to buy back. If I would have bought my time back during the grace period I would have paid 1000 dollars. But because of procrastination I had to pay 2000 dollars. Double after 19 years of being in the federal service. The interest rates are very low. For that three years I bought back it will add another 4500 dollars per year to my retirement. Very much worth it.

[@PlanYourFederalBenefits]

Good to hear!

[@dianneray1291]

This sound like me! I started the process twice and didn't complete it and now here I am 20 years later starting again. But, this time I will complete it!

[@ahhotep8]

@@dianneray1291 How did that go for you? Curious as to how much more you had to pay. Thanks

[@kawasabi1]

Thanks for the info, I am going to do this now. I think most people plan to do it and never get around to it, like leaving the investment in the TSP at G and not changing it.

[@los1775]

So just want to point somethings out, 1. The grace period is two years from start date. 2. You can pay as little as $25 per check. Definitely worth exploring if you have the ability.

[@PlanYourFederalBenefits]

Thanks for the input!

[@trinitynguyen7663]

Thank you so much!!!

[@PlanYourFederalBenefits]

You are very welcome!

[@dnewman308]

The best explanation I ever received. However could you include if your medically retired. Does this apply the same way. I was told you can do both.

[@pedrobrando4606]

Pppppppppp p. L.

[@zacharytbarber]

I follow your chanel religiously, thank you for awesome content. I have a question about this topic. I am about to retire from 20 yrs of active duty military. Can you do a video of the differences of military vs federal pension video?

[@PlanYourFederalBenefits]

I'll put it on my list. Have a great day!

[@dennispeternicomedes4652]

I was medically retired in the navy. I did 15 years and I work as a WG-8 here at the base. I am employed about past one year already. How much would I pay in my case? Is it good for me? I am 52 years old.

[@gkprivate433]

I point out a lesser known stipulation. You MUST have 5 years of actual physical Civilian time in the GSA in order for your military time to be vested and to be able for Military time to used for pension purposes. So if you had 8 years Air Force active duty time, then joined the GSA and worked 1 year, then bought back your 8 years, you would not have anything yet as far as pension. You could get time credit for Annual leave. Case in point is me. I have 8 years Air Force time from the 80s and 90s. I am now 64. If I join the GSA, I would have to work 5 years as a civilian. Then at that point, my 8 years Air Force time would be added on to my 5 years civilian time (13 total years) for pension calculations. Now since pension is based on last highest 3 years, if I was making 100,000 for the last 3 years, my pension would be: 100,000 x.01x13 = 13,000 per year. But the important thing is I would have to work 5 years as a civilian for those 8 Air Force years to count. If I only worked 4 years, well, my pension would be: 100,000 x .01x4 = 4,000. Not much.

[@jbabs10]

Question/advice: I’ve been in army reserves for majority of my time in army. I’ve done some active duty tours and 3 yrs AD w a new MOS. About to go fed job. I need 5 good years to retire. Do I do the buy back option? Or wait to finish the 5 years for the mil pension? Thx

[@PlanYourFederalBenefits]

Great question, You will have to see how much the buy back would increase your pension and compare that to your mil pension. It can often make sense to buy time back but you'll want to run your numbers just to be sure.

[@chaddupre9270]

Thanks for the quick reply!! one last question?? If they give you a 3 years grace period and I say I wait 10 years to buy back my military time. Will I be responsible for the whole 10years of interest or would they subtract the 3 years and only charge me 3 years of interest> I guess I am asking will I still get the 3 years grace period counted and I would only pay the 7 years of interest. Sounds to good???? LOL Hey you are very sharp and knowledgeable!! GREAT INFO! Gonna have to subscribe!

[@PlanYourFederalBenefits]

That is correct, the interest doesn't start until after the grace period. Thanks for subscribing and welcome to the community!

[@shotkrav]

Q) is it worth it to buy back 2 years at $50,000,? I can retire at 58 instead of 60. State pension system. Will make about 80,000 a year

[@beverlybreiser6126]

Great info as I was wondering how the "interest" part came into play. I have VA disability. Know you said you can't have a military pension AND a civilian pension for the dreaded double dip. But will having VA disability affect my being able to draw a FERS pension???

[@PlanYourFederalBenefits]

Great question. Fortunately, VA disability does not affect your FERS pension.

[@LadyBNatural]

@@PlanYourFederalBenefits thank you. I had that same question

[@frankofva8803]

Excellent presentation. Thank you! Does anyone know what an average interest rate per year would be on the initial amount owed? 4% a year? 5? Does it change every year?

[@PlanYourFederalBenefits]

The interest rate changes every based on actual interest rates.

[@frankofva8803]

@@PlanYourFederalBenefits I really appreciate your replying to my question. Great channel.

[@michaeldew7904]

@@PlanYourFederalBenefits What actual interest rate? What banks pay, the fed rate, credit card interest rates? Probably not the credit card one because that would be quite ridiculous.

[@vanessahunsberger9978]

@@michaeldew7904 opm.gov has the historical and current interest rates

[@michaeldew7904]

Just have to figure out which of the 2 (probably are more on the site somewhere) that I found is the right amount.

[@rickcoleman8903]

So can I buy back active time and retire air national guard at 60 eligibility and use active for both retirement calculations?

[@generitaldato794]

Yes, in this case your mil time will count for both FERS and your guard pensions if you paid it back

[@geraldpeterson4090]

Hello Dallen, I'm a relatively new subscriber and I am trying to follow along with the great info you provide. I'm confused by "not being able to draw a military retirement and a FERS retirement." I retired from the AF Reserves in 2015 with 32 years of service. I have been a civilian employee since 2011. I bought back the little active duty time I had and I am scheduled to draw my military retirement in 04/2023. I plan on retiring from my civilian job in 01/2031 which will be 67 years of age and 19 yrs and 9 mths of civilian employment. Am I able to keep drawing my military retirement and receive my civilian pension in 2031? Thanks for any info you can provide.

[@PlanYourFederalBenefits]

You can draw both a reserve retirement and a civilian retirement at the same time.

[@geraldpeterson4090]

@@PlanYourFederalBenefits Thank you for your response.

[@ddigwell]

First off, thank you for the info. I've been looking for a plain English explanation of this. 00:53 "if you're already drawing a military retirement you cannot continue to draw your military retirement and also have that time contribute into your FERS system you can't double-dip basically right one or the other you gotta pick" FACTS: • I just recently got picked up for a position. • I receive a military pension for 24 years, 8 months 22 days military for retirement purposes. • I receive 80% disability. Q: Since I can't double dip does this imply I can never be eligible for a federal retirement? 04:04 "so you basically take your total military base pay" Q: Are you saying my total base pay from the time I was a Private (E1) until I retired as a Master Sergeant (E8) over those 24 years? Again, thanks for the info. Best I've seen on this matter so far online.

[@PlanYourFederalBenefits]

Thanks M AD, I sent you an email on this. Let me know if you don't get it.

[@ddigwell]

@@PlanYourFederalBenefits Got it. Understood it and truly appreciated it. Thank you very much.

[@frankmercado526]

@@PlanYourFederalBenefits I have the same question, can you provide me with that information. Thank you

[@attackfive8659]

M AD asked a great question. Might the rest of us see the answer? Thank you.

[@CanesFan65]

Please address the situation of Someone who Retires from military service after say 22 years and needs to decide between taking the Military Retirement Right Away versus adding that time to their Federal Employment time. This is a VERY COMMON situation. I just ran my numbers and looks like I would have made $300,000 MORE by opting to Add that time to my FERS retirement based on MY numbers assuming that was an option - which I believe it was. I chose NOT to because after waiting to finally reach that milestone , there was no guarantee that I would even live another 10 years or more. I was determined to get "SOMETHING" for the time I served. Point is - I DON'T regret my decision but if this was an option - it was costly!

[@PlanYourFederalBenefits]

This is a good point and your are right that many feds are in this situation. I'll put it on my list of future video topics. Thanks!

[@chris-zu6sf]

Thank you for the information. I am 58 years old and retired from the military after 23 years of service. Can I also receive FERS after serving 9 - 10 years of service as a government employee? If not, do I need to buy my military service back to add 23 years into my creditable service into my FERS? I currently receive $27,000 in military retirement, and my current salary as a GG-12 Step 8 is $81,000. (local not included)

[@PlanYourFederalBenefits]

If you are drawing a military retirement then it often doesn't make sense to buy that back.

[@chris-zu6sf]

@@PlanYourFederalBenefits Yes, I receive $28K in my military retirement and plan to leave federal into a civil private sector career before I have reached 10 years working for the government. Since it would not be advantageous for me to but that back, do I have another option to also receive my FERS? That you for your insight. Also, do you already have a video about this?

[@thethirdseashell]

I roughly calculated my gross military pay; at 12 years 1 month I came up with $307,606. It looks like I would be paying around 250-260 per month if I wanted it all paid off in 3 years before interest accrued. It would take approximately 16-18 years to pay off if I paid 50 per month and 8-9 years if I paid 100 per month. I think it'll be well worth it.

[@PlanYourFederalBenefits]

Great to hear!

[@RaphaelTMNT777]

Hello Dallen, I am very new to this FERS and military time buying back. I am medically retired (17 Yrs AD). I just recently got hired as a Fed Employee/GS. is it worth to buy my 17yrs of service for FERS?

[@PlanYourFederalBenefits]

Great question, it really depends on your individual numbers so it is hard for me to know

[@muzzlethumper]

What about benefits do we loose post privileges and if we purchase insurance like BC/BS do we loose our tricare?

[@PlanYourFederalBenefits]

I don't know about post privileges but you can have a FEHB plan and a Tricare plan at the same time.

[@jonathanrowe1827]

Did 9 years in the Marines. Currently buying back the time with the interest. Will be paid off next year February. Looking forward to my 9 years being added to my FERS and possibly retire at 60

[@PlanYourFederalBenefits]

Thanks for sharing Jonathan!

[@delpurslow1180]

Quick question, can I draw both military retirement and receive Fers retirement? I’m not going to see my military time. Sound right?

[@PlanYourFederalBenefits]

Yes, if you don't buy back your military time then you can draw both a military and civilian pension assuming you are eligible for both.

[@generitaldato794]

One caveat to drawing both a military and FERS retirement is that they will allow your active time count towards a Guard/Reserve pension while also having it count towards your FERS pension.

[@PlanYourFederalBenefits]

Thanks for sharing!

[@randyscrafts8575]

Yes it is in my opinion. Bought mine back immediately but the longer you wait the more expensive it is.

[@PlanYourFederalBenefits]

Thanks for sharing!

[@george5stars]

Thank you ofor the info..I also got picked up recently as a CIV and have: 24 years military service Recieve a pension. Curently Age 48 Does it make sense for me to buy back my time? I would hit minimum retierment age MRA (57) and would have over 30 years of combined service. This would mean no pension for the next 9 years because of the double dip? I think I shoudl run the numbers...

[@PlanYourFederalBenefits]

Your military pension would stop once you started drawing your FERS pension. See article: fedretire.net/military-credits-increase-retirement-pay-%E2%80%93-buying-back-time/ You are right that you should run the numbers. There is no perfect answer other than seeing your specific numbers come out to. Good luck!

[@CanesFan65]

​@@PlanYourFederalBenefits If I understand what you are saying, I believe you are incorrect. I took my 22+ year Military Retirement IMMEDIATELY then started a Federal job. I am eligible for a FERS pension (MRA+10) now - after 15 years of federal service. They are separate. I cannot Receive a Military Pension AND Include that time as part of my FERS pension. It's One or the other. I chose to take my Military Retirement Instead of adding the time to my Federal Retirement. I know many people in the same position as me and one just went to a retirement briefing last week. He is also receiving a Military Pension and will soon be receiving a FERS pension.

[@MrJpj2010]

@@PlanYourFederalBenefits This is similar to my situation. Because my military retirement is offset by VA disability

[@viperviper5]

Here is my situation I am about to retire from federal service 46 years (CSRS) I am also qualified for social security as well. I also have 4 years of military service. I have not at this time paid back my military deposits. My question is I am trying to figure out if it is beneficial to me to buy back my military deposits. Also if I don’t pay it back will this impact my social security Please advise.

[@dgreen659]

I have all my tsp savings in the G fund thats not making any money now. Should i diversify into different funds?.

[@PlanYourFederalBenefits]

The G fund is very safe but isn't growing more than inflation right now. I don't know your personal situation but it rarely make sense to be 100% G fund for a long period of time.

[@PawPaws_Place]

I don’t give investment advice and you should always do your own research but I heard from those that know that a 50/50 split between c and s is the best performing. Set it and forget it and don’t let market fluctuations or emotions make you jump out until the last couple years before retirement. At least that’s what I’ve been told and what I’ve been doing and I’ve done alright.

[@bigtime2413]

I have 31 yrs of federal service with the U.S. Postal Service. I'm just 5 months away from reaching my MRA. I never bought back my military time which is 2yrs and 9 months. Does it make sense to buy it back now even though I don't need that extra 2.9 years to retire?

[@PlanYourFederalBenefits]

Most of the time it does make sense to buy it back but I'd look at what it will cost you to buy it back compared to how much it will boost your pension.

[@bigtime2413]

@@PlanYourFederalBenefits Ok, thanks

[@thomashart5516]

What if you retired from the military, should you still buy back your time?

[@bethdavis7529]

Probably. You can calculate the difference or have HR provide you with estimates either way, buyback and without. Then decide.

[@chaddupre9270]

Maybe you know the answer to this I am a federal employee and was also in the ARMY reservists that was deployed to a combat zone @ 2 years. I was put on leave with out pay during my deployments from my federal job. Do you know if the years I was deployed count towards my good years at my federal job or do I need to buy back those 2 years?? Thanks for any info

[@PlanYourFederalBenefits]

That is a good question. I know that only 6 months of leave without pay can count for each year of leave without pay. But it may be a bit different because you were deployed. I am not sure. If I find any info on it I'll let you know. Good luck!

[@waynehattaway868]

You have to make deposits into fers for that time to count.

[@angelojames5554]

Hey, quick question. Can I still buy back if I joined the military after I joined the feds?

[@PlanYourFederalBenefits]

As long as it is active duty then you can!

[@nakho3550]

What's the minimum creditable service years required to qualify for a retirement pension?

[@PlanYourFederalBenefits]

5 yeas if the very minimum to qualify for pension but you'd need more if you'd like to get a pension before age 62.

[@nakho3550]

@@PlanYourFederalBenefits right. With 5 years do you literally have to be employed at age 62 to get the pension or could you retire at 55 after 5 years of service and still get the pension at age 62? Or simply put do you lose it if you are not employed there at official retirement age?

[@bigtime2413]

Is it true that if we do decide to buy back our military time that it will take 6 months to do that?

[@PlanYourFederalBenefits]

It certainly can take some time. It will depend on how fast your HR is and how you decide to pay it off.

[@vanessahunsberger9978]

Just a clarification on the "no double dipping". If you are going to collect a National Guard military retirement, you MIGHT be able to double dip the deposit, but it would be up to HR Specialist to verify one way or the other. Also, if you receive a military retirement based on certain factors such as medical due to instrumentality of war, then it is also possible you MIGHT be able to double dip the deposit. Always check with your HR Specialist as they will be able to tell you.

[@jeffreyomps7587]

You can do the buy back and receive both the NG retirement and also have the FERS. I confirmed when I worked at the VA.

[@PlanYourFederalBenefits]

You are right, the rules are a little different for National Guard and reservists. Great point!

[@kurtlepinski6626]

You can’t double dip if you retire from active duty and start drawing military retirement pay right away. NG and reservists don’t get military retirement pay until age 60 and it is considered non-regular retired pay.

[@Bobrob51]

I didn't buy mine back (2.5 years of reserve activation between 2003 and 2005). Money was way to tight at the time and I forgot all about it until now. I have 35 years of civil service time so I figure it's water under the bridge.

[@PlanYourFederalBenefits]

It is probably still worth doing or at least getting more details on

[@JuneHarriseco]

Having trouble following. Wish you could write it out

[@PlanYourFederalBenefits]

Thanks for the suggestion, I'll have to right it out in a future video.

[@Twizzledoc187]

I paid for my military time back last week in cash. Can’t wait to retire. Worked for the federal government since 2009. Only had four years in the military.

[@yourmanzach2307]

i am 29 with 9 years of federal service. i am eligible to retire at 57 with 37 years of service. whats that look like if im making 100k at retirement?

[@PlanYourFederalBenefits]

That is a great question! This would depend on many factors such as: TSP amount, pension, health benefits, life style etc. If you make a great plan and stick with it, you could have a great retirement. If you would like personal help planning your retirement, you can make an appointment here: hawsfederaladvisors.com/work-with-us/

[@wilbowling1]

This is kind of misleading, you can be a military retiree and buy back your military time. If retired from the military when you retire from federal service you will lose your military pay and receive Fed Gov pay with number of years you served in the military added to your federal time. (This does not affect your military status other than pay comes from Federal pay) I retired from the Marine Corps with 20 years added to my 20 years of FERS time giving me 40 years of federal service for pay. My buy back was 18k but well worth it for 40 years of federal service pay. It is a common mistake that people believe if your retired you can't buy your time back.

[@PlanYourFederalBenefits]

Good point, I'll have to make it clearer in my next video on this.

[@danieljustdaniel9550]

@@PlanYourFederalBenefits Also some people get there retirement off set with VA disibilty. if you buy the military at retirement time than you can still get your VA disibility. correct.

[@charlesbarrett9532]

How can I locate the receipt showing my buy back was paid in full? I need this for fers retirement application but cannot find it. I have DD214s but lost the buy back receipt. Thanks in advance.

[@wiliam7570]

I bought back military time and retired about 18-months ago. The receipt I needed to show the buy back was paid in full came from DFAS. The people working in the Command finance office requested it from DFAS for me.

[@nakho3550]

@@wiliam7570 do you know if I can buy Delayed Entry Time also? I read that it count towards retirement.

[@wiliam7570]

@@nakho3550 I don't know. That was not an issue for me as I did not have Delayed Entry Time and my active duty time of 7.5 years was continuous. My buy back was very straightforward.

[@bobf.2896]

Sir, thank you for your content. With regard to buying back military time you may want to mention that OPM changed the rules a few years back to now include ALL government employees with a break in service. This change has helped thousands to come back into GOV service and get credit for their previous service.

[@resilientlife7680]

Yeah but no one tells you about buying back your time, so you have no idea about it until years later. Human Resources never mentions it to New Hires.

[@PlanYourFederalBenefits]

This is very true. I am sure all of us have things that we wish we new earlier. Have a great weekend!

[@michellehurt4107]

Are you a Department of Air Force employee? I ask because I started my Federal civilian career with DAF and their enter on duty process was abysmal. After 4 years (ironically a year after the 3 year no accrued interest limit) I transferred into a new agency at DOD level and their enter on duty process was phenomenal. Some agencies excel at educating their employees and some are terrible. Try to keep your eye on channels like this one to learn more and maybe minimize the damage. Good luck!

[@bigtime2413]

Agree👍

[@gkprivate433]

yes and more importantly, they never tell you the fine print that for your military time to count in pension calculatons, you still must first have 5 years of actual civilian military time. S

[@michaelmoment3342]

what if you retired military and trying to leverage it for an MRA+ 10?

[@PlanYourFederalBenefits]

Good question, you can learn more about MRA+10 retirement here: hawsfederaladvisors.com/mra10-retirement-the-ultimate-guide/

[@citizenm9590]

If you have short life span does it make sense buying back pension at all?

[@PlanYourFederalBenefits]

Most of the time it make sense to buy it back but life expectancy is certainly something to consider.

[@melissascheller7458]

I have been waiting for over 10 weeks to get my amount I need to pay to buy back my military time. I know my earnings were $180k for 7 years time. Everything takes so long with this Government system

[@PlanYourFederalBenefits]

Sure does, thanks for sharing!

[@harmonty1000]

How many years of federal service do you need until you can retire? 20 years at least?

[@PlanYourFederalBenefits]

20 years is not required to retire. Someone could retire with 5 years at age 62 but your years of service does change at what age you can start getting a retirement check.

[@gkprivate433]

note that you MUST have 5 years of actual physical time as a GSA civilian, whether you buy back Military time or not. Military time is only added on after you have 5 years or more of civilian time for pension calculations

[@hasinai]

In a word, YES.

[@PlanYourFederalBenefits]

Good advice :)

[@attackfive8659]

Is there a limit on how much military time one can buy back?

[@PlanYourFederalBenefits]

Nope :)

[@thomassherode6730]

Oaf I am hearing this right. If I buyback my military time to the post office. I can't receive retirement from the military ever

[@aschmedstuart9572]

I wanted to know can I do it the other way?

[@aschmedstuart9572]

How do I buy my fed service and add it military time?

[@lillianvazquez6672]

Where were you 5 years ago when I needed you. Lol. I left now. But great information.

[@PlanYourFederalBenefits]

Glad it is helpful!

[@ronniec8370]

how about if you are retired and receiving a military retired pay? thanks.

[@PlanYourFederalBenefits]

In that case, it doesn't often make sense to buy back the time.

[@ronniec8370]

@@PlanYourFederalBenefits im going 2 dis agree on u on this one. should be a case by case. receiving military retired pay under REDUX (40% of base pay as an E6) of 50K base pay a year on a high 3. around $1600. if u buy your military time, that will be plus 20% (20yrs mil service). At the moment, making $122k a year base pay @ 13yrs fed service plus the 20yrs, that will be 33yrs. 33% of 122k n divide by 12 = $3355 a month without penalty if retiring @ age 57. if u dont buy it, retiring @ age 57, that will be minus 5% every year under 62yo, that is 25% of your retirement pay on FERS. doing the math, 122k x .13 = 15,860 per year minus 25% that will be 3965 for a total retirement pay of 11895 per year or $991 per month. adding military pay of $1600 + Fers retirement of $991 = $2591. am i correct on this Sir? thanks.

[@ashtonshaw282]

Am I able to receive federal retirement AND VA disability?

[@PlanYourFederalBenefits]

Yes, I have seen many people have both.

[@donaldmichael9800]

Do you have to buy back your time as a lump sum?

[@PlanYourFederalBenefits]

You can also buy it back over time with a deduction from your paycheck.

[@m.a.8425]

Something is not right. 6 months into my fed civil service I requested my military buy back and started paying it back to the sum of $6,300.

[@jackdeyoung2576]

I am a Mil retiree. You can buy back your time and collect your Mil pension until it is time to collect your Civ Service pension. Example: I retired 1 Oct 2015 and started Civ Service 31 May 2016. I bought my 20 years back and I collect my Mil pension every month. I will not receive that mil pension the day I receive the Civ Service pension. It combines. I plan on retiring from civ service in 2036. I will collect by Mil Pension every month until then.

[@yourmanzach2307]

and i only paid $4700 for my 6 years of buy back.

[@poorlivesmatter6882]

No I didn't. I had 7 years medical chapter 61 100% and 4 special pays with 2 ph pays and I get bah and bas, e8. Twice what my 26 years in usps as officer

[@Cello69.]

I can’t believe I’m the only asking this but what is the interest rate? Thanks

[@PlanYourFederalBenefits]

It is different for every year. I have a chart that shows recent years in my article: hawsfederaladvisors.com/buying-back-military-time-the-ultimate-guide/

[@Cello69.]

@@PlanYourFederalBenefits gotcha thanks. 2 more questions. I need the variable interest rates for 2009-2021 Also this interest rate is applied to the deposit only correct? Not your total military pay? Thanks.

[@kingsupreme25]

What is up with this interest thing? Why would they charge you interest for your own military time. It doesn't make sense. You served your time for this country. You should just get your time added on. Nothing extra, no interest added Also, there shouldn't be a grace period... This country is ridiculous

[@PlanYourFederalBenefits]

Thank you for your service!

[@kingsupreme25]

@@PlanYourFederalBenefits am I thinking about it the wrong way? I'm not understanding the paying interest on ur own time served in the military

[@pcspecialistpdx]

I bought back my military time and get nothing in return until I am 62 years old.

[@allaboutmyart5706]

I am 62 wth 28 years time now (AFTER my buyback, which I did for 2K cash, several years ago). I'm sure it will be worth it. However... do NOT wait until you're ready to retire to buy back your military time. Why? First, Cincinnati '"lost" all the paperwork I faxed so I got them hard copies of everything, thinking they couldn't possibly "lose" the second set if I mailed it. I got word via the mail that they processed everything but I wasn't done. Now I needed to send more paperwork to Cleveland. Cleveland. Okaaaay. So I sent THAT paperwork via certified mail. Tick tock... nothing. After not having gotten back the green card I called and was told they had "no record of having received anything." Jeebus. So I faxed everything and MONTHS later I eventually called Cleveland and was told my paperwork there was forwarded to Minneapolis. At about the six-month mark I got a call from a woman in Minneapolis. I can't even recall what she needed clarification on but I politely vented about the long strange trip and how I couldn't understand how, if I'd paid cash, a simple straight-forward military buyback had to take SIX MONTHS and how I could not understand how big reams of my paperwork kept vanishing. She was amazeballs. She told me she would personally walk-through my final paperwork and make sure everything was finalized That Day (This was all just before the pandemic). She did and two days later all my military time had been credited. Yay! Right....? Well, then... ... I sent for a blue book just to check it out, about 18 months ago. I wasn't making any concrete plans yet and still had a lot to learn. When I got the blue book it must have been printed when their copier was running out of toner. Totally unreadable. And the print was tiny. No matter, since I wasn't seriously planning yet. I could always get a legible one later. Then I went in for knee replacement#2, which was way tougher than kr#1. While recovering, I got a several letters, first, a woman was telling me I needed to submit a "Member 4 copy" of one of my two dd214's. I was recovering from the surgery and things were not going smoothly so I was otherwise focused. Then I got a second letter from the same woman telling me that SHE was removing the military service time crediit I bought and paid for until SHE received a member 4 copy of my older active duty service. After ten months passed, I faxed a copy of the dd214 Member 4 document requested, with a letter of explanation as to the delay, addressed to the woman who'd asked for it. MONTHS went by before I finally called and was blocked from reaching the woman by the receptionist/gatekeeper. She said she was not familiar with her name but would pass on my info to the appropriate unit. She was searching the computer and said she found the ten-months-old letters to me from the woman but (wait for the big surprise!) there was no record of my dd214 having ever been received. She told me they'd just switched to a new computer system but, regardless, they "don't typically get ino anything having to do with DD214s" until a person quits and submits their blue book. So why was anyone communicating with me at all, tipping me off to what will likely wind up being a serious hold up? I do not know. I'm going to try again to reach the woman who contacted me and see what I can do when I have half a day to wait on the phone. Failing that, I hope my new Congressional Representative is half as effective as the one I had before the state of Ohio was completely redistricted. Meanwhile, know this: You're going to need Member 4 copies for all your service hitches or your retirement package WILL be delayed . Often, Member 4's are not "on file." Forewarned is forearmed.