Calculator

Military Buy-Back Calculator

Estimate the cost and long-term benefit of buying back active-duty time for FERS retirement.

Free, no sign-in, and built on the current VA rate tables. The calculator runs in your browser on this page.

How the military deposit works

A federal civilian employee under FERS can have active-duty military service count toward the FERS pension by paying a deposit (5 U.S.C. 8411 and 8422). The deposit is 3 percent of the basic military pay earned during the service, not of today's salary.

The deposit is interest-free if it is paid in full within the grace period that ends three years after the date you were first hired into a FERS-covered position. After that, interest is added each year at the variable rate the Treasury sets for the year.

Once paid, the years count both toward retirement eligibility and in the pension formula, which is what makes the deposit worth far more than it costs for most people.

A worked example

Four years of service at $30,000 average basic pay

1. Basic pay over four years is $120,000. The deposit is 3 percent of that: $3,600.
2. Paid within three years of the first FERS appointment, there is no interest.
3. With a High-3 of $90,000, four more years in the formula at 1 percent adds $3,600 to the pension every year, so the deposit pays for itself in the first year of retirement.

What this estimate leaves out

• This estimator applies a flat 3 percent a year of interest after the grace period as a simplification. The actual rate is set annually by the Treasury and has been between roughly 1 and 4.5 percent in recent years.
• Service that already earns a military retirement generally cannot be credited unless you waive that retired pay at civilian retirement. Retired pay for a service-connected disability or a reserve retirement at 60 is the exception and can be kept.
• The estimator does not calculate the FERS eligibility date or the annuity supplement.

Questions veterans ask

How do I find my basic military pay by year?

Ask the Defense Finance and Accounting Service for an Estimated Earnings During Military Service statement (RI 20-97) with your DD-214. Your agency's HR office uses it to compute the deposit.

Do I have to give up my military retirement?

To credit the service toward a FERS pension, yes, unless the retirement is for a service-connected disability or is a reserve retirement. Many people with a full military retirement come out ahead keeping it.

Can I pay in installments?

Yes. Agencies accept payroll deduction or lump sums, but interest keeps accruing on the unpaid balance after the grace period.

Does the deposit have to be complete before I retire?

Yes. Service is not credited until the deposit is paid in full, and it must be paid before final retirement processing.

Read next

• See what the extra years add to the pension
• Unused sick leave as service credit

Sources

• Creditable service, military service, U.S. Office of Personnel Management
• 5 U.S.C. 8411, creditable service
• 5 U.S.C. 8422, deductions from pay and deposits

Other calculators

• VA Combined Rating: How several ratings combine and round.
• Monthly Compensation: Tax-free monthly pay by rating and dependents.
• Back Pay: Retroactive pay from your Intent to File date.
• Hearing Loss Rating: Your audiogram through VA's Tables VI and VII.
• FERS Pension: Pension from High-3, years, and multiplier.
• TSP Growth: Thrift Savings Plan balance over time.
• COLA Growth: How cost-of-living adjustments change retired pay.
• GI Bill: Post-9/11 tuition and housing allowance.
• Sick Leave Credit: Unused sick leave as FERS service credit.

YourVABenefits is software you run on your own records. It is not part of the U.S. Department of Veterans Affairs and does not file claims. You file on VA.gov, or an accredited representative files for you at no charge.