Posted on Sunday, 15th November 2009 by Linda Sherman
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(Reviewed and Updated 2/17/2023) If you are a current federal employee with prior military service, you should consider making a deposit for your military service. There are two reasons why making a military deposit may be beneficial:
- You could retire sooner, or
- Your can increase your retirement annuity.
By making this deposit, your years of military service are included in your civilian retirement computation, just as if you performed that service under your current retirement system. Unless you are receiving a military retirement, making a military deposit is usually a great deal, often paying for itself within a year or two of retirement.
Retire Sooner
A military deposit may allow you to retire from your civilian position earlier than with your civilian service alone. If you reach your Minimum Retirement Age (MRA) before you attain the required years of service, this may be your ticket to retire earlier than anticipated. For example, if you began your federal civilian career at age 28 as a FERS employee and, you were born in 1955, your MRA is 56, but you will not attain 30 years of federal civilian service until you reach age 58.
If you made a deposit for your four years of active-duty military service, you could retire at the MRA of 56 – two years earlier than if you did not make the deposit. (Note: If you are covered under the Special Retirement provisions for Law Enforcement Officers, Firefighters, Air Traffic Controllers, and Military Reserve Technicians the military service cannot be credited towards the 20 years of special retirement coverage for retirement eligibility but will be used in computing your annuity.)
Increased Annuity
Making a military deposit will increase your federal retirement annuity. By making the deposit, you are purchasing a guaranteed monthly annuity payable when you retire. The annuity is paid directly to you in the form of monthly payments for the rest of your life (and your spouse’s life if you elect a spousal annuity). The military deposit is fully refundable if you change your mind and want a refund of the deposit.
To determine if this deposit is advantageous to you, simply compare the total military deposit amount to the increase in retirement income. Then determine how long before the increase in your retirement annuity will pay for the military deposit amount.
For example, let’s say you have four years of military service and five years of federal service as a FERS employee.
- High-three Salary: You don’t know what your high-three salary will be when you retire, but you decide to use your current salary of $60,000 as your high-three salary.
- Military Deposit Amount: Your payroll or HR office determines your military deposit amount will be $2,600 for four years of military service.
- Computation: If you are a FERS employee, your retirement annuity is increased 1% for each additional year of service. So the computation is:
4 years of additional service x 1% per year x $60,000 = $2400 yearly increase in retirement income attributable directly to the one-time military deposit. That is a $200 per month increase in your annuity payable for your entire life.
Conclusion: In this example, it took just one year and one month of retirement income attributable to the military service to equal the entire military deposit amount. This is the break even point. The higher annuity income continues for as long as you live, and will be also used to compute a spousal annuity if applicable. If you plan to spend more than 13 months receiving this annuity, the deposit is beneficial.
If you are a CSRS employee the military deposit amount is higher, but the return is also higher:
X years of military service x 2% per year x high 3 salary = annual annuity increase.
This calculation does not include the time value of money considerations. For those analytical types, TVM calculations would be appropriate, for everyone else, let’s keep it simple since this is normally such a short period of time.
Retired Military
Making the military deposit is not for everyone. If you are retired military and are receiving full military retirement pay, it is usually not advantageous to make a military deposit, because you must waive your military retired pay for the service period to be included in the civilian retirement annuity. Usually the full military retirement is of greater value than the civilian retirement annuity. Use the computation method above to determine if making the deposit would be beneficial or consult with your HR/Benefit Specialist.
Military Disability Retirement & Reserve Retirement
You must waive your military retired pay in order to receive credit for military service in a civilian annuity, unless your military retirement is based on:
- A service-connected disability incurred in combat with an enemy of the US;
- On account of a service-connected disability caused by an instrumentality of war and incurred in the line of duty during a period of war; or
- Under provisions of 10 U.S.C. 12731-12739 (retired members of the reserves).
A deposit is still required for the active duty military service to be credited in your civilian retirement annuity.
Creditable Military Service: As a general rule, military service in the Armed Forces of the United States is creditable for retirement purposes if it was active service terminated under honorable conditions, and performed prior to your separation from civilian service for retirement. If you are in the FERS retirement system or your civilian service began after October 1, 1982 a deposit is required to receive credit for the service.
But what would a federal regulation be without an exception? Here is information about additional rules and regulations that may be applicable to you and your service:
- Military service which interrupts your civilian service (called to active duty)
- Military service performed before 1957 is creditable without deposit
- CSRS retirement with civilian service performed before 10/1/82 (Catch 62)
- Military time buyback, forms and additional resources
What else you need to know:
- The deposit must be paid in full while you are a federal employee and cannot be paid after you separate from federal service. Otherwise it will not be creditable for retirement purposes.
- Retirement Eligibility for CSRS and FERS requires that you must have at least five years of creditable civilian service and be covered under the CSRS or FERS retirement system on the date of retirement. Therefore, you cannot be a civilian employee for just one year and pay back your four years of military service to equal five years for retirement eligibility. You must have at least five years of civilian service for civilian retirement eligibility.
- Your Service Computation Date (SCD) can be confusing. There are at least four different SCD dates used by HR. The SCD that appears on your Notification of Personnel Action, SF-52 is your Leave SCD. You do not have to make a deposit for your military service to be included for leave accrual purposes. This date is different than your Retirement SCD, which only includes the military service if there is proof the deposit was paid in full.
- Plan ahead because making the deposit requires several steps that take time. The steps include requesting information from your military payroll office and your civilian payroll office. Start the process well before your anticipated retirement date. For more information review How to make a military deposit.
- The amount of the deposit is determined by the amount of your military base pay, your civilian retirement system, and how long you have been a federal employee. The military income amount does not include housing allowances, combat pay or similar extra pay. The deposit amount is 3% of military base pay for FERS employees and 7% of military base pay for CSRS employees. You may make the deposit at any time you are a federal employee. The deposit can be made in one single payment, multiple payments, or through payroll deductions, normally for as little as $25-$50.
- The interest rate is variable computed and added to your deposit amount on a calendar basis. There is a two-year interest free period that begins on your date of hire. However, since the interest is added on an annual basis, if the deposit amount is paid in full prior to three years of your hire date the deposit is interest free. This calculator should help you in computing the interest due: Computing your military deposit amount.
- Keep all information about the military deposit until retirement. When the deposit is complete, you should receive a letter from your payroll office indicating the deposit is made in full. Payroll does not normally provide this document to your HR office. You should give a copy of the letter to your HR office to be included in your Official Personnel Folder and keep a copy for yourself to provide with your retirement documents when you retire.
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The advice and strategies contained herein may not be suitable for your situation and this service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.
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Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE | Comments (127)
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December 11th, 2010 at 7:29 am
Darlene, From what you told me it sounds like it would be beneficial to make the military deposit. Find out want the amount of the deposit will be from your HR or Payroll office and make the calculation for the change in the annuity. Remember the deposit is a one time deposit, but the annuity will change for every year you recieve the annuity.
Linda
December 11th, 2010 at 7:49 am
Bryan – You always need to double check with the organization paying your retirement to verify the affect on that retirement. However, in the CSRS and FERS Handbook it states that a disability retirement will not be affected (the amount received from the VA). Military retirements from the Air Force (or other department) must be waived in order for the military service to be creditable for the civilian retirement. So you could continue the payment attributable to the VA.
Linda
December 11th, 2010 at 7:52 am
Tom B. – It sounds like it would be beneficaial to make the deposit, or at least see how much the deposit will be. There is a step by step process on the website, or you can contact your HR office to begin the steps to determine the amoount of the military deposit.
Linda
December 11th, 2010 at 7:56 am
Roddy – I think you should at least determine the amount of the military deposit and the amount of change that will occur in your retirement by making the deposit. Most military deposits pay for themselves in 1-2 years of retirement.
Linda
December 11th, 2010 at 7:57 am
Phil – The deposits are made after tax.
Linda
December 11th, 2010 at 8:01 am
AC – To begin making your military deposit, you can contact your HR office or follow the directions on our website: http://www.federalretirement.net/military_deposit.htm#Steps_to_making_a_Military_Deposit.
Linda
December 11th, 2010 at 8:03 am
Ana, You cannot fill out the forms until the active duty period ends because you need exact dates of service and the amount of your earnings for the entire active duty period. Here is the link to the steps you can follow when you return: http://www.federalretirement.net/military_deposit.htm#Steps_to_making_a_Military_Deposit.
Linda
December 11th, 2010 at 8:10 am
Bill S – Military deposits are usually beneficial for those that did not retire from the active duty military. You can make a deposit for all active duty periods. The sooner the deposit is made the less interest you will have to pay. If you are a FERS employee, making a military deposit for 11 years of service will mean your annuity will increase by 11% of your high three salary.
Linda
December 11th, 2010 at 9:02 am
Will – This is always a confusing issue. Service Computation Dates (SCD) for retirement and leave are often different. The SF-50 only shows the SCD for leave. The leave SCD is computed using the rules from the Guide to Processing Personnel Actions (GPPA – Chapter 6) and the retirement SCD is computed from the CSRS & FERS Handbook (Chapter on creditable service). It sounds like your service would be creditable under both since you are not receiving an active duty retirement. I would ask them to show you why it is not creditiable and what guidance they are using. If you disagree, ask for an appointment with the supervisor or someone to review the documents.
Linda
December 11th, 2010 at 9:03 am
Military Man – Thanks for your input and I am glad to hear this is beneficial to you!
Linda
December 11th, 2010 at 9:14 am
Nick J – The answer dependd on if you were first employed under a CSRS position before or after October 1, 1982. You must make the deposit for the service to be creditable if you were first covered under CSRS after October 1, 1982. For more information see: http://www.federalretirement.net/militarybuyback.htm#Military_Time_Buy_Back_Options.
Linda
December 11th, 2010 at 9:21 am
Kiona, Because you will not be receiving an active duty military retirement, you will not have to waive military retired pay. You did find the correct exception in your case. Linda
December 11th, 2010 at 9:37 am
JG – The computation to determine if it is worth it to make a military deposit is relatively simple. Take the cost of the deposit (in your case 21k) and compare that with the benefit (12 years x 1% x high 3 salary). Remember the deposit is a one time deposit, but the annuity will last y our entire retirement. Lets say the increase in the annuity is $12k per year. Then it would take almost 2 years of increased retirement income to reach the break even point. If you plan to be retired for more than 2 years it would likely be worth it, in this example.
December 11th, 2010 at 9:58 am
Colton – You can receive both a reserve retirement under provisions of 10 U.S.C. 12731-12739 (retired members of the reserve components) and a civilian retirement, without there being an affect on the civilian retirement. The national guard retirement – since it is based on 20 years of active duty service and payable before age 60 – is likely considered an active duty military retirement. In this situation, it is likley you cannot receive both retirements. Verify your situation with your National Guard unit and your HR office who have your records.
Linda
December 14th, 2010 at 2:57 pm
Ms. Linda:
Very helpful and I will engage this issue as you stated and let everyone know the outcome.
Have a Merry Christmas and a Happy New Year. Respectfully,
Will
December 31st, 2010 at 11:43 am
Ron, You can make your military deposit at any time you are employed under a covered retirement system (like FERS). So you can make the deposit for the active duty service when you are re-employed, however, the interest continues to accumulate from 2 years after the being covered under FERS. Deposits for military service usually pay for themselves in 1-2 years of retirement income, but do the calculation to make sure it is worth it to you.
Linda
December 31st, 2010 at 12:20 pm
JPaul,
You need at least 5 years of civilian service to be eligible for a civilian retirement. After that point, the military service is creditable for the retirement eligiblity. So you will be eligible for retirement at age at age 60 with the military service. If you wait until you are 62 your retirement calculation is a little higher (1.1% rather than 1%), but at age 62 you will not receive the FERS annuity supplement.
Linda
December 31st, 2010 at 12:33 pm
JR, Previously, service performed in the militia or National Guard was not considered military service unless the individual was called or drafted into the actual service of the United States. However, USERRA modified this requirement and the best I can say is – It depends on the specifics of your situation. Here is the information on the USERRA changes for National Guard service: http://www.opm.gov/retire/pubs/bals/1995/95-101.pdf
Linda
January 27th, 2011 at 8:06 pm
Good evening Linda, long time since my last post. Well my disability retirement was approved and I am currently on interm payments still but I know OPM is backlogged. I have a new question. I am not sure what this means for me if anything. But,apparently, OPM has an enhanced computation formula that they just implemented for those who retired, on disability,from most law enforcement positions. Not every agency qualifies but most do. The agency I retired from is one that does qualify for the enhanced disability computation. My problem is I don’t exactly know what that means. I was instructed by OPM to inform them that I retired from one of the covered agencies. I did so via email to OPM containing my name and CSA number. I have been doing the math based on what I think I know. Law Enforcement contribute 1.7 percent. I multiplied that by 20 for my first 20 and added 1% for each year over 20 and came up with 39%. I don’t see how that enhances my annuity but equally I don’t see how it enhances anyones annuity who retired under FERS. The only way I see, other than a law change, where I could get an increased annuity is if some provision was added to the disability retirement that compensated for not receiving the social security supplement. As you know disability annuitants are not eligible for the social security supplement that comes with regular law enforcment retirement. Why this is the case is beyond me but it is what it is. Can you explain this enhanced law enforcement computation to me and explain what it means for me. I know the change is for the good regardless of weather it increases my annuity or not. Any thing that recognizes disability law enforcement annuitants is a good thing. But when OPM says enhanced computation formula everyones ears peak because they equate enhanced with a larger annuity. In closing I’m sorry this was so long. Any information is greatly appreciated,
Sincerely,
Matt.
January 28th, 2011 at 1:33 am
Mrs. Duncan I look forward to learning what you know about the previous question I posted on the enhanced disability and survivior annuity for law enforcement retirees but I think I have found some of my answers and I think it’s just like I thought it was. For most people, on FERS, it won’t increase your annuity at all. Thats what I take from it. Most people fall short of the 40% that disability annuity is currently based on therefore most will keep their current 40%. For those rare individuals, and they are extremely rare, whose actual time computations put them at more than 40% they will receive an increased annuity. I can’t think of a particular situation right now where that might actually apply but I suppose one does exist otherwise why change it. But I await a more detailed explanation from you,
Sincerely,
Matt.
February 21st, 2011 at 9:24 am
Hi Doug,
There is no tax write off for the military deposit and it is paid with after tax dollars. When you begin receiving the retirement annuity OPM will identify a portion of the annuity which is non-taxable because taxes were previously paid on the amount you paid in.
Linda
February 21st, 2011 at 9:36 am
Barbara,
If you resign before completing the 5 years as a civilian the amount you paid for your military deposit (with interest) and FERS annuity deductions can be refunded to you. The years of military service is included in the eligibility requirements other than the initial 5 years of civilian service necessary to receive a retirement annuity.
Linda
February 21st, 2011 at 9:55 am
Yulinda,
You should contact your civilian personnel processing unit for correction of your Service Computation Date for Leave as it appears on your SF-50. The rules for receiving credit for military service for leave are in the Guide to Processing Personnel Actions (GPPA) chapter 6. The rules for crediting the time for retirement are different. You must make the deposit and be otherwise eligible for an annuity to receive the 17 years, and 11 months of credit for the service. Contact your HR benefits office to determine the amount of the deposit.
Linda
February 21st, 2011 at 9:59 am
Randy,
The process can take awhile. I suggest talking with your local HR liaison to ensure they received the paperwork and are processing it. Four months is a longer than I would anticipate, except if this was a civilian deposit with OPM.
Linda
February 21st, 2011 at 10:13 am
Austin,
If you worked 7 years as a civilian (or even just 5) you would meet eligibility requirements for a civilian annuity (Either MRA+10 or a deferred retirement at age 60 or 62).
Stay safe,
Linda
February 21st, 2011 at 10:25 am
Michael,
The military deposit is paid to your civilian payroll office. Unfortunately with all the centralization and regionalization of payroll offices, this deposit information may have moved several times. In 1992 the information was likely stored on microfiche… in an office that no longer has a microfiche reader. But don’t panic yet! Contact your HR benefits office. Perhaps there was a copy of the letter confirming your deposit was complete in the OPF. The HR office may contact your payroll office for you to see if the deposit was complete. $45.68 is likely an accounting error that should have been written off and had been allowed to accumulate with compound interest since 1992.
Linda
February 21st, 2011 at 10:34 am
JD,
An employee can make a deposit for their active duty military service so that the service may be creditable for a civilian retirement. All of your reserve time will not likely not be creditable for retirement. You can receive both a civilian retirement and a reserve retirement at the same time. You must of course meet all the eligiblity requirements for a civilian retirement for the military time to be creditable.
Linda
February 21st, 2011 at 10:50 am
Becky,
It sounds like the the civilian HR office may have been confused. Ask them to correct your SCD for leave and credit your past leave accrual, based on the Guide to Processing Personnel Actions, Chapter 6. You do not have to make a military deposit. However, your SCD for retirement is only adjusted to include the military service if you make the military deposit. If you plan to be in a Federal position for at least 5 years you may want to consider making the deposit so that your 15 years of military service is included in your civilian retirement.
Linda
February 21st, 2011 at 10:54 am
John,
The military deposit does not affect your Social Security entitlements.
Linda
February 21st, 2011 at 11:23 am
Scott,
You must have at least 5 years of civilian service to be eligible for a civilian retirement annuity. Therefore, the military deposit will not be beneficial unless you have that 5 years of civilian service. If you have one year of civilian service under a career conditional appointment, you are eligible to apply for other civilian positions as a “Status” employee for 3 years after your departure, which may make it easier for you to find a new position in the new area.
Good Luck, Linda
February 21st, 2011 at 11:39 am
Hi George F,
You must work 5 years as a civilian employee to be eligible for a FERS annuity. With a your military deposit for 12years of military service, that would equal 17 years eligible for the annuity. If you do not work the 5 years as a civilian, your military deposit can be refunded. There is still a 3 year vesting requirement (that’s 3 years of civilian service) for the 1% automatic contributions… but not for the matching contributions. I am not sure which annuity calculation you are asking about (FERS or TSP options). If it is the FERS annuity you are asking about, check out this link for more info: http://federalretirement.net/fers_annuity.htm
Linda
February 21st, 2011 at 11:42 am
Dear Operator 4,
When you are eligible to retire, your military service (deposit paid) is included in the FERS annuity, but not in the supplemental annuity.
Linda
February 21st, 2011 at 11:43 am
Ron – Interest on deposits accrues from the original hire date.
Linda
February 21st, 2011 at 11:50 am
Bama,
Thanks to USERRA laws, your retirement is calculated as if you never left your civilian position for the military duty. For that service to be creditable, you will need to make a deposit for the 2 years of active duty service when you return. The deposit will equal the amount of a military deposit or the amount you would have paid as a civilian (whichever is less).
Linda
April 10th, 2011 at 9:31 pm
George – It is very likely that your military service can be credited toward your civilian retirement, if the military service was active duty and you were discharged was under honorable conditions as stated on the member 4 copy of your DD-214.
Linda
April 10th, 2011 at 10:13 pm
Sid – You will be eligible to retire between the ages of 55-62, depending your age, year of birth, and years of service at the time. The eligibility rules are available at: http://www.federalretirement.net/eligibility.htm. You must have at least 5 years of civilian service to retire. My advice to any FERS employee is save as much as you can in TSP or other retirement funds and stay out of debt. A couple years before retirement learn to live on your retirement income and save the surplus. Finally have hobbies and interests to enjoy your retirement.
Thanks for the question, Linda
April 10th, 2011 at 10:23 pm
Tony, If you are retired from the active-duty military, you will have to waive your entire retired military pay to receive credit for that same time in a civilian retirement. Your military retirement benefits are likely higher than what you would receive under a FERS retirement, if you made the military deposit. For example 21 years of military service means you would receive 21% of your high three civilian salary for that same period. So you are correct, in many cases it is not worth it to waive a military retirement for a FERS retirement. There are exceptions for those who may be receiving a large portion of their military benefits from the VA for disability, because you do not have to waive disability benefits. I always recommend getting retirement estimates to make sure the deposit is worth making in your individual case.
Thanks for the question, Linda
April 10th, 2011 at 10:36 pm
Jim,
You are correct. Generally the active duty military service is creditable in your reserve retirement and your civilian retirement – if you make the deposit. This is not the case with active duty military retirements – you cannot receive retirement pay for the same period of an active duty retirement. I guess those making the rules decided since you can work as a civilian and work in the reserves concurrently, a reserve retirement was acceptable to recieve for the same period as a civilian retirement.
Linda
April 10th, 2011 at 10:41 pm
Maurice,
1. A military deposit has no affect on your VA compensation for disability. you will have to waive your remaining military retirement pay and make the full military deposit.
2. There is no affect on Tricare medical and dental
3. You have the calculation correct if you retire at age 62. If you retire under age 62, use 1%.
Good questions – Thanks,
Linda
April 10th, 2011 at 10:47 pm
Rodney, This is true. However the military retirement is usually higher that the FERS retirement. 20 years additional service will add 20% x your average high three civilian salary to the civilian retirement. Plus making the deposit for the 20 years of service can be costly. It occasionally makes sense to do this, but you will have to analyze if this will increase your total take home pay in retirement.
Linda
April 17th, 2011 at 2:34 pm
Cody, I think the HR rep you spoke with is in error. The TSP contributions, the Flexible Spending Account and your FEHB health insurance are all pretax. However, contributions to CSRS and FERS are post tax. This is why when you begin receiving the FERS or CSRS annuity in retirement, a portion (which you have already paid taxes on) are excluded from taxable income. The military deposit is also paid with after tax dollars. Try contacting your payroll office rather than HR on the deduction.
Linda
April 17th, 2011 at 2:39 pm
Heidi,
You will begin receiving the credit for the military service toward your “Service Computation Date” (SCD) for leave immediately. There is no deposit required for the leave accrual. The deposit is required for the militray service to be creditable toward your retirement. If you complete the deposit early in your career, you will reduce or eliminate the amount of interest you pay.
Linda
April 17th, 2011 at 2:44 pm
Maurice,
The two years from the date you are hired as a civilian is called the interest accrual date. In your example, the interest accrual date is November 2011.
Linda
April 17th, 2011 at 3:59 pm
Robin,
Generally AGR service under Title 32 is not creditable. If you were called to service was under Title 10 it is likely creditable, if you make the deposit.
Linda
April 17th, 2011 at 4:13 pm
Jeffery,
If you received civilian pay (on military leave) while you were on LWOP-US, you only need to make a deposit for the service while you did not receive civilian pay. You may need to submit your leave and earning statements with the deposit request. I think you will find this information helpful: http://www.opm.gov/retire/pubs/bals/2003/03-105.pdf
April 17th, 2011 at 4:27 pm
Hi Shannon,
1. Service in the following academies is considered military service for civilian retirement purposes: ! Midshipman at the U.S. Naval Academy; ! Cadet at the U.S. Military Academy; ! Cadet at the U.S. Air Force Academy; and ! Cadet at the U.S. Coast Guard Academy. Reference: http://www.opm.gov/retire/pubs/handbook/C022.pdf
2. You can acheive the 1.1% multiplication factor with a deferred retirement. For more information see: http://www.opm.gov/retire/pubs/pamphlets/forms/RI90-11.pdf
Linda
April 17th, 2011 at 4:38 pm
RC,
I cannot tell from what you have stated exactly what is occurring in your situation. I am going to guess that you are FERS from the dates and the 40% disability annuity. If so, your disability annuity is recomputed at age 62. Your annuity will be recomputed using an amount that essentially represents the annuity you would have received if you had continued working until the day before your sixty-second birthday and then retired under FERS non-disability provisions. The total service used in the computation will be increased by the amount of time you have received a disability annuity. Therefore the more service you have the higher your annuity will be at age 62. For more information see: http://www.opm.gov/retire/pubs/pamphlets/forms/sf3112-2.pdf
Linda
May 6th, 2011 at 11:59 pm
Andrew,
Service in any of the reserve corps of the armed forces is creditable when an individual is called to active duty, and for the active duty period only. I am not aware of any affect on the reserve retirement. Since you can work a full civilian career and similtaneously be in the reserves, this is usually not an issue. If you are called to additional active duty service that would require you to go on LWOP from your civilian career, you can make a deposit for that military service under USERRA so it is creditable. If you are on military leave or other paid absence from the civilian position, where FERS (or CSRS) retirement deductions are coming from your pay, that time is creditable automatically.
May 7th, 2011 at 12:12 am
Hi Gary C –
Title 10 military service and Title 32 military service are very different in their eligibility to be creditable in the civilian retirement. Retirements under the provisions of 10 U.S.C. 12731-12739 (Chapter 1223) which grants retired pay to members of reserve components of the armed forces on the basis of age and service (active and reserve), do not have to waiver their reserve retirement pay. Reference: http://www.opm.gov/retire/pubs/handbook/C022.pdf
Only your active duty military service may be creditable in the civilian deposit, and only if you make the required military deposit.
Linda
May 9th, 2011 at 6:49 am
I am retired military who has just bestarted receiving 10 percent VA disability pay with the possibility of an increase pending. I have been working for the government since 1974 and am now 86 years old and thinking of retiring. I was under the CSRS and transferred to FERS under the last option period. Would it make sense to pay the military deposit? What would the effect be if I would not pay the deposit and not waive my military pay? Suggested avenues would be helpful.
One of the things that has kept me around the workforce so long is the Life insurance benefits for my wife.