The Military Buyback Program (Military Service Deposit) is a benefit for all veterans with active duty military service time who wish to receive credit for their military service time and have it added to their years of civil service with the government and increases their retirement annuity.
The first step in a military buyback is to find out how much you were paid each year of your military service.
If you have your military pay records, great. If you no longer have a copy of your pay records, you can submit a copy of your DD-214 and send a request to your branch of service’s military’s pay center.
Take the amount of military base pay you received during your years of service and multiply that amount by a percentage: CSRS use 7% but FERS use 3%. The rate increases for military service performed in 1999 to 3.25% and for 2000 to 3.4% of the base pay
Did You Know?
There is an interest free ‘grace period’ of two years. If your military service was before your federal career, the grace period generally starts the day you were hired under FERS
The interest is accrued once a year so the earlier you apply the less you will pay
Quick example: at 60 years old 3 credited years of military service at a $50,000 High-Three would equal an additional $1,500 annually in your retirement check.