Make Military Deposits to Increase Spousal Benefits
Military deposits can increase spousal benefits if a federal employee passes away before or after retirement.
Military deposits can increase spousal benefits if a federal employee passes away before or after retirement.
Federal employees may be able to receive retirement credit for their military service.
How does a military deposit affect your retirement, and should you buy back your military time?
The author describes the retirement planning process for federal employees under both FERS and CSRS.
A bill in Congress would allow a buyback for time working as a temporary employee to count toward federal retirement payments.
A new law would authorize agencies to pay interest to federal employees on mistakes made in calculating military service deposits.
CBO offered an analysis of what it would cost the government to pay for computational errors affecting veterans’ military service deposits and pensions.
Recently introduced legislation would protect veterans from having to pay back interest resulting from agency mistakes in the calculation of certain benefits.
OPM calls temporary time and other time for which retirement deductions were not taken “deposit service”. Under FERS, deposit service will not count for either your eligibility to retire or in the computation of your annuity unless you make a deposit. The author provides examples of both deposit and re-deposit service to illustrate the impact they have on your pension.
This article looks at your retirement annuity when you left federal service, withdrew your contributions and did not re-deposit the money when you returned to work for Uncle Sam. What should you do?