What is Military Buyback?
Military buyback allows federal civilian employees who have served in the military to “buy back” that service time for retirement purposes. This means you can count your military service towards your civilian federal retirement which can substantially increase your pension in retirement.
Important Factors to Know:
Apply Early
It may take up to 6 months to process, and you need to complete it before separating from federal service. If you are applying to buy back your military service time within three years of civilian service, no interest will be assessed. For federal employees with more than three years of civilian employment prior to applying to military buy back, there may be interest charges.
Online Military Buy-Back Estimator Tool
You can use our Military Buy-back Calculator to project your estimated earnings and the cost of buying back your military service time. This tool is for informational purposes only and provides you with an unofficial estimate of what may be owed when buying back your military time.
Waving Military Retirement
Most military retirees cannot receive credit for federal civil service purposes unless they waive their military retired pay. Exceptions include:
Due to a service-connected disability either incurred in combat with an enemy of the United States or caused by an instrumentality of war and incurred in the line of duty during a period of war, or under the provisions of Chapter 1223, Title 10, U.S.C. (pertaining to retirement from a reserve component of the Armed Forces).
Eligibility
You must be a current federal civilian employee under the FERS retirement system. The military service must not have been already credited for retirement under another federal retirement system.
Process
- Request for Military Records:
Obtain your DD Form 214 (Certificate of Release or Discharge from Active Duty) for each period of service you want to buy back. - Submit Your Application:
Fill out the RI-20-97 form (Estimated Earnings During Military Service) from the Office of Personnel Management (OPM) or through your agency’s HR department and submit it along with your DD 214. https://www.dfas.mil/CivilianEmployees/militaryservice/militaryservicedeposits/ - Submit an Application to Make Your Deposit
After you receive your estimated military earnings computation from the military finance center via U.S. mail, complete “Application to Make Service Credit Payment” SF 3108 - Options for Payment:
- Payroll Deductions – You may elect to buy back via bi-weekly payroll deduction. Your total deposit amount and remaining amount due will be reflected in block 20 of your Leave and Earnings Statement (LES). Each payment and a year-to-date total will be reflected in the deductions box of your LES.
- Check or Money Order – You can submit payment via check or money order as directed in the military service deposit payment request letter. Your deposit may be made in a single lump sum or installments.
- Pay.gov – This option is only available to employees of agencies with DFAS serviced payroll.
- Military Service Deposit Paid in Full:
Once paid, the HR office or OPM processes the deposit, and your military service time is credited towards your FERS retirement. In most instances, your payroll office will send you a Paid-in-Full letter after you have paid your Military Service Deposit in full. However, on some occasions, you may need to request this letter.
This summary provides an overview, but specifics can vary based on individual circumstances or changes in policy. It’s advisable to consult with your HR office or a retirement counselor for precise details tailored to your situation.