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Federal employees who have served in the military could see an increase in their civilian retirement annuity if they “buy” their military service time back from the government.
For those government employees who are military veterans, there is the option to “buy back” military service time and apply it toward civilian retirement. There are several scenarios that may be considered beneficial for veterans, for example: those who served just a few years active duty before joining federal civil service, those who retired from active duty and are receiving a military retirement paycheck, and those who are concurrently serving in the National Guard or Reserves and are employed by the federal government.
It is essential that newly hired veterans consider the buy-back option early. New government civilian employees with active-duty service have two years to buy back their time. After that, the government charges interest on the money that needs to be paid back to buy retirement time.
“It’s beneficial for new civilian employees with prior military service to explore military buy-back options to increase their civilian retirement,” said Jared Welsh, of the Fort Leavenworth Civilian Personnel Advisory Center.
Welsh said buying back military time can also reduce the number of years needed to reach retirement eligibility. Federal employees who buy back their time in service add it toward their government time to increase their civilian retirement as well as reduce the number of years it takes to reach retirement. For the buy-back option to take effect, the civil servant must complete five years of federal civil service.
As an example, a new civilian employee, age 55, with 10 years of prior military service buys back his or her military time and applies it toward civil service retirement. That person then works 10 consecutive years as a civil servant. At age 65, he or she could retire with 20 years of credit toward his or her civilian annuity.
Some Reserve and National Guard personnel may benefit with dual-credit options with the buy-back. Only service computed from active duty or Title 10 orders can be applied. Members of the Reserve component can use their active duty and Title 10 service toward both military and civil service retirement. The buy-back option allows veterans to apply those active-duty periods toward civil service retirement at the same time the reserve component allows those active-duty periods to be computed for military retirement. Military retirees, National Guard and Reservists are eligible to have two federal retirements.
Military retirees need to weigh their options. If a retiree buys back his or her service, and counts it toward federal civilian time, the veteran may forfeit military retirement benefits already earned. Some situations may reveal the veteran may benefit more from the buy-back; however, each individual may see different results. For example, the program allows military retirees who attended a military academy to buy back their academy service (pre-commissioning) time toward their retirement, which is not factored into military retirement benefits.
Federal employees who buy service time back but do not retire from federal civil service can apply to get their invested money refunded.
Each employee’s circumstances will be different and each individual should research his or her options. For more information, visit https://www.abc.army.mil/retirements/FERSPost56.htm or contact the Fort Leavenworth CPAC at 684-2151.
Federal employees who have served in the military could see an increase in their civilian retirement annuity if they “buy” their military service time back from the government.
For those government employees who are military veterans, there is the option to “buy back” military service time and apply it toward civilian retirement. There are several scenarios that may be considered beneficial for veterans, for example: those who served just a few years active duty before joining federal civil service, those who retired from active duty and are receiving a military retirement paycheck, and those who are concurrently serving in the National Guard or Reserves and are employed by the federal government.
It is essential that newly hired veterans consider the buy-back option early. New government civilian employees with active-duty service have two years to buy back their time. After that, the government charges interest on the money that needs to be paid back to buy retirement time.
“It’s beneficial for new civilian employees with prior military service to explore military buy-back options to increase their civilian retirement,” said Jared Welsh, of the Fort Leavenworth Civilian Personnel Advisory Center.
Welsh said buying back military time can also reduce the number of years needed to reach retirement eligibility. Federal employees who buy back their time in service add it toward their government time to increase their civilian retirement as well as reduce the number of years it takes to reach retirement. For the buy-back option to take effect, the civil servant must complete five years of federal civil service.
As an example, a new civilian employee, age 55, with 10 years of prior military service buys back his or her military time and applies it toward civil service retirement. That person then works 10 consecutive years as a civil servant. At age 65, he or she could retire with 20 years of credit toward his or her civilian annuity.
Some Reserve and National Guard personnel may benefit with dual-credit options with the buy-back. Only service computed from active duty or Title 10 orders can be applied. Members of the Reserve component can use their active duty and Title 10 service toward both military and civil service retirement. The buy-back option allows veterans to apply those active-duty periods toward civil service retirement at the same time the reserve component allows those active-duty periods to be computed for military retirement. Military retirees, National Guard and Reservists are eligible to have two federal retirements.
Military retirees need to weigh their options. If a retiree buys back his or her service, and counts it toward federal civilian time, the veteran may forfeit military retirement benefits already earned. Some situations may reveal the veteran may benefit more from the buy-back; however, each individual may see different results. For example, the program allows military retirees who attended a military academy to buy back their academy service (pre-commissioning) time toward their retirement, which is not factored into military retirement benefits.
Federal employees who buy service time back but do not retire from federal civil service can apply to get their invested money refunded.
Each employee’s circumstances will be different and each individual should research his or her options. For more information, visit https://www.abc.army.mil/retirements/FERSPost56.htm or contact the Fort Leavenworth CPAC at 684-2151.
