Military buyback


Q. I am 53 with 18 years of federal service under FERS. I am retired Army Reserve (four years ago) with 24 years, two in active duty. I have paid into Social Security and FERS.

1. If I buy back the two years of active duty, I will have 20 years of federal service. Would I stay at 24 years military or drop down to 22 years?

2. How would I calculate potential retirement amounts to determine if it is a financial benefit to buy back the two years of active-duty time?

3. Are my Social Security, military, FERS or federal retirement reduced secondary to having four retirement funds?

A. 1. Making a deposit to get credit for your active-duty service wouldn’t reduce your years of military service.

2. Your annuity would be increased by 1 percent of your high-3 for each additional year of creditable service unless you retired at age 62 or later with at least 20 years of service; then the increase would be 1.1 percent per year.

3. You only have three “retirement funds,” unless you are including your Thrift Savings Plan as a source of additional annuity. In any case, you’d be entitled to receive all of them with no reduction in any of them.


About Author

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

Comments are closed.