Q. I have two questions about how buying back creditable military service affects the percentage multiplier toward a FERS pension (while it is my intention to work 20 years civil service, plus buying back creditable military service, how the multiplier normally should be implemented is important to me because I am unsure if I will be able to achieve 20 years of civil service alone due to health issues; thus, a general understanding through your column can inform my retirement planning).
First, does total service including a military creditable service buyback, meaning I will qualify for the 1.1 percent pension multiplier vs. normal 1 percent (example: 20 years civil service + eight years creditable military service = 28 years under FERS, and equating to a .231 multiplier)? Or do I need to ensure I have worked 20 years in the civil service to qualify for the 1.1 percent, regardless of what creditable military service buyback contributes (example: 13 years civil service + eight years creditable military service = 21 years under FERS, equating to a .21 multiplier)?
Also, under the first scenario but using different numbers, is a 1.1 percent multiplier applied only to the civil service portion of total service, or the total creditable service?
A. The .011 multiplier would be applied if you retire at age 62 or later and have at least 20 years of FERS service (actual and active-duty military service for which you’ve made a deposit).