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Taking a federal job? You can “buy back” your military years toward a FERS pension. See what the deposit costs, what it adds to your pension for life, and how fast it pays for itself.
Sources: OPM CSRS/FERS Handbook, Ch. 23 (military deposits), OPM: creditable military service (FERS)
Not your retired pay — your total basic pay while serving. Get the exact figure free from your branch with OPM Form RI 20-97 (estimated earnings) + your DD-214.
Average of your 3 highest-paid consecutive federal years.
The catch worth knowing. Under FERS you get no retirement credit for your military time unless you pay this deposit — so for most veterans in federal service, it is one of the best deals available (it typically repays itself in about a year of retirement).
Interest. There is a 2-year interest-free grace period after you enter federal service (effectively ~3 years). Pay the deposit in that window and the 3% is the whole cost. After that, interest accrues and compounds annually at a variable Treasury rate — so pay early. This tool shows the base deposit, not accrued interest.
Nominal dollars; your pension also rises with COLA, so the real lifetime figure is higher. Planning estimate, not financial advice — confirm with your agency HR and OPM. See a free VSO and GS pay.
Headed into federal service? See the GS pay calculator, veterans' preference, and federal jobs for veterans.
If you leave the military and take a federal civilian job under FERS, you can pay a deposit to have your military time counted toward your FERS retirement annuity. The deposit is 3% of the military basic pay you earned during your service. Without paying it, you get no FERS credit for that military time, so for most veterans it is a very good deal.
The deposit is 3% of your total military basic pay. Each year of bought-back service adds 1% of your high-3 salary to your annual pension (1.1% if you retire at 62 or older with 20+ years of service) — for life. Because the pension increase is annual and the deposit is one-time, it typically pays for itself in about a year of retirement.
There is a 2-year interest-free grace period after you enter federal service (in effect about 3 years). Pay the deposit within that window and the 3% is the whole cost. After that, interest accrues and compounds annually at a variable Treasury rate, so pay early. Get your exact military earnings free from your branch using OPM Form RI 20-97 and your DD-214.