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?
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.
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?
Will federal “deposit service” impact your federal retirement annuity? It may impact CSRS and FERS employees in different ways. Here is an explanation of how this could impact your future retirement income.