Q. I retired in 2008 serving 30 years in the Air Force. I am now a five-year GS employee and have heard about buying back my military service. What are the advantages or disadvantages? I plan on retiring with 10 years under FERS.
A. The advantage of making a deposit is that you would have all those years of active-duty service treated as if they were civilian years and included in the computation of your annuity. The disadvantage is that you would have to make a deposit of a percentage of your active-duty pay, plus accrued interest, and when you retire from your civilian job, waive your military retired pay. You’ll have to do the math to determine which is the better approach, financially speaking.