Is it worth it to buy back your military time after gaining federal civilian employment? What are the benefits?

LT R B — Wed, 10 Apr 2019 14:11:12 -0400

Has anyone "bought back" their military time after gaining federal civilian employment? What are the benefits? Does it make sense to buy back 4 years if I don't plan on staying employed by the feds for more than a couple years?

Response by CAPT Kevin B. made Apr 10 at 2019 2:17 PM

CAPT Kevin B. — Wed, 10 Apr 2019 14:17:07 -0400

You already answered your question. If you are not going to obtain a CS retirement (FERS), why pay for it? However, I took the long road buying 10 years of credit in '86 and working for 32 years after. The $10K I paid back then is paying out $13K each year like clockwork. If you are doing TSP, when you leave it'll still grow and you can move it at 59 1/2 or tap it at 60.

BTW if you later go back into CS for the long haul, you can still buy it, but there will be a nominal interest charge (Treasury Rate).

Response by SFC Private RallyPoint Member made Apr 10 at 2019 2:17 PM

SFC Private RallyPoint Member — Wed, 10 Apr 2019 14:17:22 -0400

I have friends that did it, but it was only to apply it to their federal retirement. I don't know of any other reason to do it.

Response by SPC Jacqueline Brunson-Scott made Apr 10 at 2019 3:31 PM

SPC Jacqueline Brunson-Scott — Wed, 10 Apr 2019 15:31:30 -0400

Yes I bought back my military time. I worked 7 years for the federal government and winded up medically retiring from the federal government so buying back my military time helped as far as retired pay and also leave accrual before retiring.

Response by SP5 Peter Keane made Apr 10 at 2019 4:46 PM

SP5 Peter Keane — Wed, 10 Apr 2019 16:46:40 -0400

First of all, at this point with FERS being the ONLY retirement system available to federal workers, it makes absolutely no sense. Second, if you don't plan on retiring, why would you even think about it, as your military time is already used as a basis for leave accrual.

Response by PO3 Ron D made Apr 10 at 2019 9:03 PM

PO3 Ron D — Wed, 10 Apr 2019 21:03:18 -0400

Yes I did and so very glad I did. My four years of active duty were added on to my 30 years of civil service. The more time you have in civil service the higher the retirement calculation will be. You do need to decide ASAP if you want to retire from civil service because the longer you delay in buying back your time the more it will cost you. For example in the 80`s interest rates were very high in calculating buyback amouns.. If interest rates become high in the future your buyback will cost more.

Response by SMSgt Kent Brown made Apr 11 at 2019 1:53 AM

SMSgt Kent Brown — Thu, 11 Apr 2019 01:53:10 -0400

Why would you not want to stay with the Federal Gov? It's a great way to retire, when the time comes. I bought back my military time and am collecting retirement pay twice for the same time.
After AD I joined the AF Reserve and did 33 years plus my civil service time so retirement is great for me.
You never know what the future holds so you are better off planning for a time you can't see.
Good luck

Response by PO1 Barbara Wagner made Apr 11 at 2019 7:42 AM

PO1 Barbara Wagner — Thu, 11 Apr 2019 07:42:37 -0400

Unless you are planning on staying with the feds and going to retire, then no, it isn't worth it to you. I bought 14 years active duty back and for me it was beneficial as I retired with 30+ years from the VA last May.

Response by LTC John Griscom made Apr 11 at 2019 9:31 AM

LTC John Griscom — Thu, 11 Apr 2019 09:31:19 -0400

It was beneficial for me and boosted me to 37 years for retirement credit.

Response by LTC Ken Connolly made Apr 11 at 2019 1:07 PM

LTC Ken Connolly — Thu, 11 Apr 2019 13:07:55 -0400

Like any other investment. Have to weigh the risk vs. the benefits. I find that very few people quit their government jobs before retirement. Also check with your CPO on FERS retirement. It maybe shorter than the old CS retirement plan. You may find some eligibility after 5 yrs of Fed service. Also your age could figure into the equation.

Response by MSgt Michael Smith made Apr 12 at 2019 2:38 PM

MSgt Michael Smith — Fri, 12 Apr 2019 14:38:57 -0400

It is absolutely worthwhile. Those are years that you can apply toward your civilian retirement! So if you did 4 years in the military, buy them back and you are 4 years closer to a full pension! However...if you are ALREADY RETIRED from the military, and working now in civil service, then you are better off keeping the military pension and earning a government pension as well. That's called double-dipping because at the end, you get two federal pensions.

Response by MAJ Raúl Rovira made Apr 13 at 2019 9:25 PM

MAJ Raúl Rovira — Sat, 13 Apr 2019 21:25:05 -0400

If you are not retired from the military, it makes sense to buy back your military retirement.

You will get seniority because of longevity (being considered at 4 years of federal service) and accrue more leave. Just to point out a few benefits.

Response by CW4 William Kessinger made Jun 21 at 2019 3:40 PM

CW4 William Kessinger — Fri, 21 Jun 2019 15:40:22 -0400

The benefits are huge. I had 13 years active duty, some at enlisted grades (7 years) and 5 as an officer. I was required to pay back the computed earnings while on active duty at 2% into the federal retirement system.

When I reached age 55, I now had 13 years credit and an additional 17 years with the FAA for my total on 30 years credit needed for retirement.

Was able to go on the another career with almost 20 more years invested for a 3rd retirement.

I would say that was a huge advantage for retirement an very little cost.

I recommend you do it.

Response by CW4 William Kessinger made Jun 21 at 2019 3:42 PM

CW4 William Kessinger — Fri, 21 Jun 2019 15:42:45 -0400

By the way you never know what your going to do several years down the road.

Response by CMSgt James Nolan made Jun 21 at 2019 4:11 PM

CMSgt James Nolan — Fri, 21 Jun 2019 16:11:10 -0400

I will say this.
21 years as a federal employee, 6 yrs prior active duty that I bought back.
It costs you 3% of what your “base pay” was.
Each year that you buy back adds 1% to your Federal Pension on the back end.
So for $2k I added 6% to my pension for life.
Pretty sure that was a good investment.

Response by CPT Private RallyPoint Member made Sep 19 at 2022 5:06 PM

CPT Private RallyPoint Member — Mon, 19 Sep 2022 17:06:45 -0400

Yes buy it back, it gives you time credit in the federal system and then you can retire in the federal system earlier than if you never bought it back! Why not stay in the fed system? Seems silly....just a thought.....

Response by LTC Private RallyPoint Member made Sep 19 at 2022 7:41 PM

LTC Private RallyPoint Member — Mon, 19 Sep 2022 19:41:08 -0400

You any need 5 years as a civilian to be vested for retirement. I would buy it back