Q. If an employee is covered under the Federal Employees Retirement System (FERS) and is receiving military pay as a result of a service-connected disability, will/he she be entitled to receive credit for both retirement and leave purposes without waiving their military retired pay? What are the exceptions to the rule?
A. You would only be able to get credit for that period of service without having to waive your retired pay if you were awarded it on account of a service-connected disability either incurred in combat with an enemy of the U.S. or caused by an instrumentality of war and incurred during a period of war. Even then, you would need to make a deposit to the civilian retirement system to get credit for that time.