Military retired pay, FERS, VA disability


Q. I retired from the military with a 40-percent VA disability. I am now a government employee under FERS. If I buy back my military time and then retire under FERS, will I still receive my VA disability payments and, if so, will the VA payments be deducted from my FERS retirement in the same way as they are deducted from my military retirement today?

A. While you would have to waive your military retired pay when you retire from your civilian position, you wouldn’t have to waive your VA disability payments. They would have no affect on your FERS annuity.


About Author

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


  1. I too fall into this category, with the 40% disability and military retirement deduction. Is is beneficial to just cash in military time. Its got to be more than what I’m getting from my military retirement. I’m a government employee with 9 years and 21 years active duty.

    • You are asking for an opinion which we cannot give. You’ll have to consult a financial adviser, one who doesn’t have a stake in you decision.

  2. I recently (2 months ago) retired from the VA. I paid for a “military buyback” of 14 years. I spent slightly over 6 years in the VA (FERS) system. I completed my “out processing” for retirement and they set me up for an annuity (small but there) and told me my MHP insurance would be continued into retirement. Yesterday I got a letter from OPM saying I only had insurance continuity since JAN 1 2014. thus I didn’t meet the requirement for 5 yrs continuity. I was shocked that they declined my coverage. I have one question: Does my 14 years active military insurance weigh in on this. I thought I’d give this a shot out there.

  3. I have a 60% disability compensation rating and have almost 4 years of military service. I am now a FERS employee and considering buying back my military time. I was told by someone that if I did so, my VA disability would be affected when I start receiving a FERS annuity. Based on your comments above, I would like to confirm that this would not be true in my case. Thanks for any insight you can provide.

  4. Hello, I was rated 90% and 100% p&t unemployable in December 2017. Are my chances good that I will receive Opm retirement based on my unemployable rating? I have a total of 27 yrs total federal service. I have been off work two years.

    • What do you mean when you say that you’ve “been off work”? Have you been on annual leave, sick leave, leave without pay?

  5. Hello Sir,

    I am medically retired and receive VA Disability check. I am currently 80% (50% combat related). I have 14 years TIS. If i do a buy back and retire will my VA disability be affected?

    • First, are you medically retired from the armed services? If so, are you receiving military retire pay? Second, what does TIS mean?

  6. Good afternoon, I am drawing military retired pay for 21 years and 90% VA disability. I started under FERS last year. Will I be able to draw Military Retired Pay, VA Disability, FERS Retirement and Social Security benefits when I retire at age 62 in 17 years?

  7. Hello Reg,

    Have 16 years AGR/Tile 32 and was medically retired by the Air Force and have a 100 percent VA disability rating, which all is paid via VA, not the Air Force. I now have 11 years civil service, can I buy back any of my military service for civil service retirement?

    • Check with your local personnel office. If they aren’t certain, they can get an opinion from OPM about the creditability of that time.

  8. Mr. Jones,
    Retired from the Navy in 1994 and receive a monthly retirement. Then worked for DOD, but before I retired under FERS in OCT 2018, I bought back my military service time. I’ve already received my first annuity deposit which reflects the buy back. I am also receiving VA disability pay (70%). I see DFAS is still making deposits for my military retirement. Is this correct, I was told one stops receiving Mil retirement when buying back that time?

  9. I retired from the Air Force in 2000, and have been rated by the V.A. with 30% disability only, meaning the disability compensation that I am receiving from the V.A. is offset against my military retired pay. So, in reality, I am not getting an extra dollar (only lower taxes on my retired pay). The $503 monthly V.A. disability pay is deducted against my military retired pay.

    I’ve been a federal employee since 2005 and plan to retire at age 62 (in 3 years), so I can receive my full annuity. Since I bought back my active duty time (20 years, 5 months), how will the 30% disability compensation affect my civil service annuity when I retire from the federal service?

  10. Good evening, my question is, i served active 7 years, medical discharge and now get 80%. i am a fers employee with 22 years and i did buy back my time. when i retire with 30 years, will my FERS retirement be replaced with VA disability check? or will i still get my normal FERS and Va disability?

    Th ak you for your time

  11. I was medically retired from Army in Aug 2017 and started receiving retired pay Nov 2017. At that time I was a National Guard technician. I subsequently applied for Disability retirement from OPM (FERS) under public law 97-253 around Nov 2017 and was approved in June 2018. I recieved a lump sum from OPM in Aug 2018 and monthly interim payments from Sep 2018 to present. I also recieve 100% VA payments.

    I recently inquired to OPM as to when my OPM packet would be finalized and was told that I was missing form SF 3100 I then called DFAS to inquire about the form which I was told they generate. DFAS told me they have no record of civilian retirement processing only military retired pay. She then proceeded to tell me I cannot recieve both I have to send a letter requesting to waive my military retired pay. I did make partial payment on military deposit for FERS retirement but during my disability application process I submitted form 3106 requesting refund.
    Can I not receive both military retired pay and FERS disability if I dont make a deposit for buyback of military time served?
    Also what would be the difference if say I retired from the Army never working for the Federal govt in a civilian capacity before that and I take a job say with the FBI and i work 25 years for them or whatever it takes minimally to earn a retirement not making any buy back for military service, would I not be entitled to both?

    • Unless your military retired pay was awarded on account of a service-connected disability either incurred in combat with an enemy of the United States or caused by an instrumentality of war and incurred in the line of duty during a period of war, you would have to waive your military retired pay and make a deposit to the civilian retirement system to get credit for that time. If you don’t want to do that, you can retain your military retired pay and continue to work in your civilian position until you have the age and service needed to retire from it.

  12. I currently work in a FERS law enforcement positition. I medically retired from the Navy after 15 years. I’m currently 100% VA service connected disabled. I made a deposit for my miltary time and since I’m 100% VA disabled I no longer receive my Navy pension, DFAS stopped it when I became 100%, up from 40%. I have 8 more years until I retire from the Federal Bureau of Prisons with 20 years. I was told that to have my military time go toward FERS I have to waive my Navy retirement check about a year from my BOP retirement. I currently don’t receive a check so I’m not sure if I’m getting the right info. Do I still need to send a letter to the Navy requesting to wave my retirement pay for FERS anyway? Can I do it now instead of waiting 8 years? Thanks

    • I’ve never encountered a situation like yours. However, it makes sense for you to write Navy and explain the situation. They should be able to provide you with a letter that you could send to OPM. Then you’d have to wait for OPM’s response

  13. Separated from the VA in Jan 2013 to go back on active duty. Medically retired in April 2017 – some disabilities were a result of my deployment and some were not. I was rated 90% DoD and 100% VA. I collect SSA disability. I am 57 and have over 18 years FERS. I did not return to my VA job or any other work after my medical retirement due to my disabilities. I had paid a partial military deposit years ago. If I apply for my FERS retirement now, understanding that I will take a hit because it is before I’m 62 (and I can’t get a FERS disability retirement because I never went back to work after the military) – will it affect my military retirement pay?

    • We are only qualified to answer questions about federal civilian matters. You’ll have to check with your branch of service.

  14. Currently FERS full time employee with 16 years of service.
    Retired from USMC in 2000 with 20 years of active duty.
    Currently 60% VA disabled CRDP(non-combat related)
    Recently paid $17,000 to buy back(military deposit) my 20 years of active duty.
    Will continue to receive my military retirement until I decide to combine my retirements, or I can decide not to combine and get my deposit $17,000 back
    60 days before retiring from FERS I have to notify DFAS that I want to combine my FERS and military retirement, at that time I will no longer get a DFAS DoD retirement I will get a FERS retirement for 36 years of service.
    I have verified that I will keep all military retirement benefits.
    A couple of reasons for doing this:
    1. Am eligible for FERS Social Security Supplement approx. $700 a month until I turn 62 and start drawing social security retirement.
    2. Did not elect Survivor benefit when I retired from USMC, can now elect Survivor Benefit and spouse would receive 50% of my combined retirement.
    Pay is about the same if I elect not to combine vs combining them except if I combine I am eligible for the FERS Social Security Supplement and have the option for the Survivor Benefit.

    Question: How does it affect my CRDP if I combine them? I read I would not be eligible for CRDP, does that mean I would lose my monthly 60% VA disability?

  15. I retired from the Navy Reserve with 39 years (9 were AD) and received a regular retirement check (over 60 years). I have a 60% service connected disability and receive VA disability pay. I am in FERs and will soon retire with 20 years service (bought back 9 years of AD). Will I be allowed to keep my military retirement pay, disability pay and FERS retirement pay? Also, will there be any impact to my full SSN annuity when I turn 66 and 10 months?

    • Yes, you’ll be able to receive reserve retired pay and your FERS annuity. Your Social Security benefit will be based on what you earned, a formula, and the age at which you apply for that benefit. While I have no direct knowledge about how your disability pay will be treated, others in a similar situation have told me that they continued to receive it.

      • Mr. Jones,

        Sorry if this has been already covered, but my situation is similar, without the disability pay…

        Are you saying that you can collect retired reserve/guard pay at age 60, FERS at MRA with 30+ years and Social Security as well?

        If so, is my retired pay from reserve/guard retirement and FERS considered earnings for Social Security offset/reduction? Or, am I confusing the terms and impact? Will I still receive full Social Security payments based on age and earnings when I apply?

  16. Reg,
    If I receive a small Service Connected Disability payment for combat duty but did not retire from Army, do I have to even fill out the Schedule B of the FERS Retirement Application? Or do I have to report it, but show that it will not be forefeited?
    Also – do you have any link to the law/handbook that addresses this?
    Thanks for all your help!

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