Military deposit and interest


Q. I am a 20-year federal employee with 16 years of active-duty service. I made a huge error in not making the deposit within the first two interest-free years of federal service. I doubt I can afford the now very large sum which will be due (just received my Estimated Earnings from Defense Finance and Accounting Services) and will need to enact payroll deduction.

1. Will interest continue to accrue during the period I am making payments?

2. What impact will there be (if any) on my ability to draw Social Security if I make a military deposit?

A. 1. Interest will continue to accrue on the unpaid balance.

2. Making a deposit will have no effect on your entitlement to a Social Security benefit.


About Author

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

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