Military buyback and severance pay

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Q. I am a new civil employee. I received an early-out due to force reduction. I am a 50 percent disability veteran I paid the severance pay to the Veterans Affairs Department before I could receive compensation. Now I want buy back my military time toward federal retirement. Is the severance pay included in my total earnings during my active duty? If so, is severance pay deducted from the amount to buy back time, since it was paid to the VA?

A. While I don’t know anything about the interaction of your severance pay and VA compensation, if you want to make a deposit for your active-duty service, the amount you need to pay is a small percentage of your basic military pay, not including allowances or differentials.

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Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.

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