Military Time
We've been asked about whether an individual should buy back the military time when they start with the Postal Service. This is a personal choice; however, here is the information we received at training at the state convention on the topic.
- CSRS & FERS employees may "purchase/buy back" their military time by making a deposit
- Deposits must be made before retirement
- CSRS deposit is 7% plus interest
- FERS deposit is 3% plus interest
Should you buy your military time? CSRS employees
- Service prior to 12/31/56 will count toward your service time and your annuity
- Service beginning 1/1/57 is treated according to your civilian hire date
- Hired after 10/1/82 you must make a deposit to receive credit
- Hired before 10/1/82, service is automatically credited for retirement eligibility but not necessarily for annuity
Catch "62"
- Will you be eligible for Social Security at age 62?
- If so, you must make a deposit or you will lose those years when you reach 62 (or when you retire if after 62)
- Served in the military after 1956
- Hired by USPS before 10/1/82
- OPM checks once - at age 62 or when you retire
If you decide to buy back your military time (CSRS & FERS), contact Shared Services 1-877-477-3273. The forms necessary are CSRS (SF 2803A / DD214), FERS (SF 3108A / DD214)
Military Retired Pay
- You must decide whether to waive your military retired pay when you retire
- You cannot receive credit for the years in both your military and civilian reitrement
- There are exceptions - Waiving military retirement is NOT NECESSARY if --
- Awarded based on a service connected disability incurred in combat with an enemy
- Disability caused by an instrumentality of war
- Based on reserve service (10 USC 12731-12739)
Waiving Military retirement considerations
- Compare value of combining the years with the value of keeping the separate
- Consider the cost to buy back the years
Cost to Credit Non-Career Federal Service
- CSRS - Generally 7% of basic pay of the non-career service plus interest
- FERS - Generally 3% of basic pay of the non-career service plus interest
To make a deposit for non-career Federal Service
- Call USPS Shared Services, 1-877-477-3273, option 5
- Complete SF 2803A (CSRS) or SF 3108 (FERS)