Q. If I have repaid my military service deposit but then resign from federal service, can I request a refund of the military service deposit? Also, if my agency is offering Voluntary Separation Incentive Pay, does the military service deposit count toward the VSIP buyout?
A. If you leave federal service, you can’t request a return of just your military service deposit. You’d have to request a return of all of your contributions to the retirement fund. Of course, doing so would void any future entitlement to a retirement benefit.
If you are offered a buyout, you can accept it. That’s because your years of service are irrelevant. VSIPs aren’t like VERAs, where you can only have one offered to you if you meet the age and service requirements.
2 Comments
My Military Service Deposit was paid on 2/27/17. After only about 6 months on the job, I decided to resign my position and go into early retirement, due to personal reasons.
I have a letter from DFAS dated 4/26/17 which acknowledges the payment and the date paid. However, when I log into my TSP account, the payment I made is not reflected in my TSP balance. Does this amount show somewhere else? I am considering withdrawing the entire amount, or at least would like to know my options in case at some future time I would like to take the withdrawal.
Thank you.
Military deposit are made to the Civil Service Retirement and Disability Fund, not the TSP. If you want to withdraw that money, you’ll need to go to the following site – https://www.opm.gov/forms/pdf_fill/sf3106.pdf – fill out the form and send it to OPM.