Military Time Buyback Overview
The Military Buyback Program allows federal employees who previously served in the military to apply their military service time toward their federal civilian retirement benefits. This can potentially increase their total years of service, which impacts their Federal Employees Retirement System (FERS) or Civil Service Retirement System (CSRS) annuity calculations.
For official information, visit the Office of Personnel Management (OPM) or consult a qualified financial advisor to determine if the Military Buyback Program is right for you.
How the Military Buyback Program Works
Potential Benefits
Example Scenario
A federal employee with 4 years of military service who works 30 years in a civilian federal position would retire with:
Considerations Before Buying Back Military Time
While the program can provide substantial retirement benefits, it may not be advantageous for everyone. Factors such as interest accrued on deposits and future retirement plans should be considered. Consulting a financial advisor or federal retirement specialist is highly recommended before making a decision.
For more information, refer to:
Disclaimer:
This page is for informational purposes only and does not provide financial, legal, or retirement planning advice. HonorFirst.com is an independent educational website and is not affiliated with the U.S. government, U.S. Border Patrol, or any federal agency. Individuals should consult official sources and professional financial advisors before making decisions regarding retirement benefits.
For official information, visit the Office of Personnel Management (OPM) or consult a qualified financial advisor to determine if the Military Buyback Program is right for you.
How the Military Buyback Program Works
- Eligible federal employees can make a deposit into their retirement system based on their military base pay plus interest.
- The deposit rate for FERS employees is 3% of military base pay, while CSRS employees pay 7% of military base pay.
- Once processed, the military service time is credited toward retirement calculations.
Potential Benefits
- Increased Retirement Annuity – Buying back military time increases the total years of service used for annuity calculations.
- No Impact on Other Military Benefits – This does not affect VA benefits, medical benefits, commissary privileges, or base access.
- Not Available for Military Retirees – Individuals receiving military retired pay cannot receive two separate retirements for the same period of service.
Example Scenario
A federal employee with 4 years of military service who works 30 years in a civilian federal position would retire with:
- 30 years of service (without military buyback).
- 34 years of service (with military buyback), increasing their annuity percentage.
Considerations Before Buying Back Military Time
While the program can provide substantial retirement benefits, it may not be advantageous for everyone. Factors such as interest accrued on deposits and future retirement plans should be considered. Consulting a financial advisor or federal retirement specialist is highly recommended before making a decision.
For more information, refer to:
Disclaimer:
This page is for informational purposes only and does not provide financial, legal, or retirement planning advice. HonorFirst.com is an independent educational website and is not affiliated with the U.S. government, U.S. Border Patrol, or any federal agency. Individuals should consult official sources and professional financial advisors before making decisions regarding retirement benefits.
