Military buyback


Q. I am retired Army with 22 years and nine months being paid my monthly retirement check. I retired in May 2011. I started as a GS FERS employee in February 2013. I am in a target GS 12 position, which basically means that I will be a GS 12 in February 2017. I did the DFAS Payback estimator for military time and it stated that I would owe about $18,000. My monthly retirement check right now is about $2,200 a month. I know that I will have to waive that once I retire from civilian service in order to combine the civil service time and the military time. How much more in retirement would I get as a GS FERS employee, and is it worth the $18,000? I have heard that retirees don’t buy back their time because it is not worth it. I heard that this program is designed for the person who did any number of years but did not retire. Is that true? Do you know of retirees that buy back their time?
A. Yes, military retirees do make a deposit to get credit for their active-duty service. It’s a good choice when the additional years of service they get accelerates the date on which they can retire from their civilian job and the additional annuity they’ll receive based on that combination of actual and deposit service makes it worth the investment. You could get a quick estimate of its value to you to retire from your civilian job at your MRA (which ranges from 55 to 57 depending on your year of birth). Then, using the standard annuity formula, see what your annuity would be using two different scenarios. In the first, your annuity is based solely on your civilian service. In the second, it’s based on your combined service. Here’s the formula: .01 x your high-3 x your years and full months of service, including unused sick leave.


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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


  1. Planning when I am 67. Retire military lost half because of divorce. Will have 20 yrs and a few months Federal service. Combined I will have just under 41 yrs. Because of the divorce loosing half my question is. I would have to wave my military retirement (ok) does anything change for the x-wife or will she continue on receiving her half as usual. Wanting to make sure that I will be able to do the buy back without any effect on her.

    • We aren’t able to answer questions about divorce of court ordered benefits. You’ll have to consult an attorney.

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