Q. Will VSIP income, upon retirement, count toward credits earned for Social Security eligibility? I served in the military for four years in the early 1970s. I never bought that service time back. I have earned only 30 Social Security credits and thus won’t be eligible for Social Security benefits at age 62. I am 60 and federally employed with 42 years under CSRS. If I accept a VSIP ($25,000 gross) upon retirement before age 62, will that money count toward Social Security credits earned? If so, how many? And will the credits reduce my annuities at age 62, having not paid for my military time?
A. Because you are covered by CSRS, no Social Security deductions will be taken from your buyout payment.