What does this mean to my retirement?
If deposit is made: You will be credited for the number of years of military service (i.e. 12 years) toward the computation of your retirement annuity. This does not mean that you can deduct the number of years of military service from the 20 year retirement requirement and only work 8 years to retire. Therefore, for retirement annuity purposes, it will be treated as if you worked 32 years (20 years federal service (BOP) plus 12 years of military). The additional years of military service will in turn increase your retirement annuity.
For example: If you would normally retire after 20 years of federal service you would draw 34% of your three (3) highest yearly earnings. Lets say you had 12 years of military service. You would then add 1% for each year of military service to the 34% which would now make your retirement 46% of your highest 3 years earnings. Sounds good, huh? In other words if you were to buy back your military time you would draw an additional 12% towards your retirement.
If deposit is not made: You are credited for the years of federal service only, and your years of military service are not taken into account for your retirement annuity computation purposes. This may or may not apply to those employees who are in the CSRS retirement system. Contact your personnel office for more information on the CSRS retirement plan. If you elect not to buy back your military time you would only be entitled to 34% annuity upon completion of 20 years of federal service.
What types of Military Service can a deposit be made?
Deposit may be made for active, honorable military service performance after December 31, 1956. A reservist ordered to active duty, active duty training, or annual active duty for training may be allowed credit for the duty period.
How are the payments made for the deposit?
Payments can be made as a lump sum or through bi-weekly payroll deductions. The minimum bi-weekly amount is $25. You can increase the bi-weekly amount or make a lump sum payment at any time.
How do I find out how much it will cost to buy back my military time?
Contact your personnel office and let them know you would like to buy back your military time. They will be able to tell you how much it will cost and set up a payment plan for you.
What if I have some more questions about this?
You can contact Chuck Bishop or your personnel office for any other questions you may have about the military buy back program. Chuck can be reached at FCI El Reno at (405) 262-4875.