FERS · CSRS
Military Buyback Calculator
Is military service buyback worth it? Calculate cost, pension boost & lifetime ROI for FERS & CSRS
Retirement System
FERS: 1% per year (1.1% if retiring at 62+ with 20+ years)
Military Service Details
Your average base pay during military service (base pay only, not BAH/BAS). Deposit = 3% of this amount.
Payment Options
⚠ Past 3-year grace period — interest accrues at 4.25% (2026 OPM rate)
Note: Interest calculated at 4.25% (2026 OPM rate, per BAL 26-101). Rate changes annually — contact your HR for the current rate.
Retirement Planning
Average of your highest 3 consecutive years
Enter your information and click Calculate to see your results
How Military Service Buyback Works
What is Military Service Credit?
If you served in the military before becoming a federal civilian employee, you can "buy back" that time by making a deposit to your retirement system. This allows you to count your military service years toward your federal civilian retirement, increasing your pension benefit.
Who is Eligible?
- Served on active duty in the Armed Forces
- Received an honorable discharge
- Currently a federal civilian employee under FERS or CSRS
- If receiving military retired pay: must waive it to use the credit (exceptions: combat disability & reserve retirement)
How Much Does It Cost?
The deposit is 3% (FERS) or 7% (CSRS) of your total military base pay (base pay only, not BAH/BAS). FERS: no interest if deposited within 3 years of starting federal employment. CSRS: interest accrues from date of employment (no grace period).
FERS (Post-1984)
- ✓1% per year of service
- ✓1.1% if retiring at 62+ with 20+ years
- ✓Must make deposit to receive credit
CSRS (Pre-1984)
- ✓1.5% for first 5 years
- ✓1.75% for next 5 years
- ✓2% for years after 10
Is It Worth It?
For most federal employees, buying back military time is an excellent investment. The increased pension benefit typically far exceeds the deposit cost, especially within the 3-year interest-free window.
Key Facts
- ·Must make deposit to receive credit for military service
- ·FERS: 3% of military base pay; CSRS: 7%
- ·FERS: no interest within 3 years of federal employment
- ·CSRS: interest accrues from date of employment (no grace period)
- ·2026 OPM interest rate: 4.25%
- ·Must be paid in full before you retire
- ·Most federal employees find this a worthwhile investment
Required Documents
- ·DD-214: Certificate of Release or Discharge
- ·SF-2803: Application to Make Deposit (CSRS)
- ·SF-3108: Application for Service Credit Payment (FERS)
- ·Military Pay Records (if DD-214 doesn't show base pay)
- ·Contact your agency's HR office for assistance
Is Military Buyback Worth It?
The short answer: almost always yes. Here's why.
10×–25×
Typical ROI
Lifetime pension gain vs deposit cost
3–7 yrs
Break-Even
After retirement to recover deposit
3 Years
Best Window
FERS: interest-free if within 3 yrs of hire
Example: 4-Year Military Veteran
When It May Not Be Worth It
- ·You receive military retired pay and waiving it would cost more than the FERS/CSRS pension gain
- ·You paid well after 3 years and accrued significant interest, reducing ROI
- ·You have serious health conditions that shorten expected retirement years
FERS vs. CSRS Military Buyback
The cost and rules for buying back military service differ significantly between FERS and CSRS. FERS employees pay 3% of military base pay with a 3-year interest-free window. CSRS employees pay 7% with no grace period — interest accrues from the first day of federal employment. Use the calculator above with your correct retirement system selected.
| Factor | FERS (Post-1984) | CSRS (Pre-1984) |
|---|---|---|
| Deposit rate | 3% of military base pay | 7% of military base pay |
| Interest-free grace period | 3 years from date of employment | None — interest from day one |
| 2026 interest rate | 4.25% (after grace period) | 4.25% (from date of employment) |
| Pension multiplier | 1% per year (1.1% at 62+ with 20+ yrs) | 1.5% / 1.75% / 2% tiered |
| Applies to | Employees hired after 1984 | Employees hired before 1984 |
| Form required | SF-3108 | SF-2803 |
How to Buy Back Military Service — Step by Step
Gather Documents
Obtain your DD-214 for each period of active duty. If your DD-214 doesn't show base pay, request your military pay records from the National Personnel Records Center.
Contact HR
Submit SF-3108 (FERS) or SF-2803 (CSRS) to your agency HR benefits office. They'll calculate your exact deposit based on your military pay records.
Pay the Deposit
Pay via lump sum or payroll deductions. FERS: pay within 3 years to avoid interest. CSRS: interest accrues from employment date regardless.
Verify Credit
Confirm the service credit appears in your Official Personnel Folder (OPF) before retirement. Keep all receipts and confirmation letters.
Common Military Buyback Scenarios
Active Duty Veteran (4 Years)
A 4-year active duty veteran with $30,000 average base pay pays a $3,600 FERS deposit (within 3 years). At a $90,000 High-3, this adds $3,600/year to their pension — a 1-year break-even and $72,000+ lifetime gain over a 20-year retirement.
National Guard / Reserve
Only active duty periods count (annual training, mobilizations, active duty for training). Drill weekends (inactive duty training) do not qualify. Reserve retirees can keep their reserve retired pay and use the military service credit — no waiver required.
Military Retiree (20+ Years)
You can make the deposit, but must waive your military retired pay to use the credit for FERS/CSRS. Exception: combat disability retirees and reserve retirees can keep both. Calculate whether the FERS/CSRS pension increase exceeds your military retired pay before deciding.
Late Buyback (Past 3 Years)
If you're past the FERS 3-year grace period, interest accrues at 4.25% (2026 OPM rate). The deposit grows each year, but the pension benefit also increases with your High-3 salary. Even with interest, most late buybacks still produce a strong ROI — use the calculator to verify.
Important Considerations
- • The deposit must be paid in full before your retirement date — no exceptions
- • FERS 1.1% enhanced multiplier applies only if retiring at 62+ with 20+ years of total service
- • Military service credit counts toward FERS Supplement (SRS) eligibility and calculation
- • Post-1956 military service (after Jan 1, 1957) requires a deposit; pre-1957 service may be creditable without a deposit
- • Interest compounds annually on the unpaid balance — paying earlier saves more
- • You can pay via lump sum or payroll deductions; both methods count the same service credit
Disclaimer: This calculator provides estimates only. Actual costs may vary based on your specific military pay records and federal service dates. Interest calculations are simplified — actual interest rates and compounding methods used by OPM may differ. The 2026 OPM variable interest rate is 4.25% (per BAL 26-101); this rate changes annually. Consult with your agency's HR department or OPM for official calculations and to initiate the buyback process. This tool is for educational purposes only and does not constitute financial advice.