How Does Buying Back Military Time Work?
The US Military offers a unique benefit called the Military Service Recognition Order (MSRO) to its veterans, which allows them to purchase back military time they spent on active duty. This benefit is an excellent way for veterans to increase their retirement pay or gain more time off. In this article, we will explore how buying back military time works and answer some frequently asked questions.
What is the Military Service Recognition Order (MSRO)?
The Military Service Recognition Order (MSRO) is a special program that allows veterans to purchase back military time and increase their retirement pay or gain more time off. The program is administered by the Department of Defense and is available to veterans who have served on active duty for at least 6 years.
How Does the MSRO Work?
The MSRO works by allowing veterans to purchase back military time at a discounted rate. The discounted rate is based on the current pay grade and time spent on active duty. The following are the steps to buy back military time:
• Step 1: Application: The veteran submits an application to the Department of Defense, requesting to buy back military time.
• Step 2: Verification: The Department of Defense verifies the veteran’s military service and confirms their eligibility for the program.
• Step 3: Calculation: The Department of Defense calculates the amount of military time that can be purchased back.
• Step 4: Payment: The veteran pays the discounted rate for the purchased military time.
How Much Can be Purchased Back?
The amount of military time that can be purchased back varies depending on the following factors:
• Years of Service: Veterans with more years of service are eligible to purchase back more military time.
• Pay Grade: Veterans at higher pay grades are eligible to purchase back more military time.
• Discharge Date: Veterans who have been discharged for less than 10 years may have limited options for purchasing back military time.
Here is a table outlining the amount of military time that can be purchased back:
| Years of Service | Low Pay Grade | Mid Pay Grade | High Pay Grade |
|---|---|---|---|
| 6-9 | 2 years | 3 years | 4 years |
| 10-14 | 3 years | 5 years | 6 years |
| 15+ | 4 years | 6 years | 8 years |
Cost of Purchasing Back Military Time
The cost of purchasing back military time is determined by the current pay grade and time spent on active duty. The following is a table outlining the cost of purchasing back military time:
| Pay Grade | Cost per Year |
|---|---|
| E-1 to E-4 | $22,000 per year |
| E-5 to E-6 | $25,000 per year |
| E-7 to E-8 | $30,000 per year |
| E-9 to O-5 | $35,000 per year |
| O-6 and above | $40,000 per year |
Benefits of Buying Back Military Time
Buying back military time offers several benefits, including:
• Increased Retirement Pay: Purchasing back military time can increase retirement pay, providing a more substantial income in retirement.
• More Time Off: Buying back military time allows veterans to gain more time off, which can be used for vacations, rest, or other activities.
• Increased Separation Pay: Purchasing back military time can also increase separation pay, providing an additional financial benefit.
Frequently Asked Questions
Here are some frequently asked questions about buying back military time:
- Do I need to be honorably discharged to buy back military time? No, you do not need to be honorably discharged to buy back military time. However, your discharge must be in good standing.
- Can I buy back military time at any time? No, you can only buy back military time within a certain timeframe after your discharge.
- Is buying back military time taxable? Yes, the amount purchased back is considered taxable income.
- Can I use my VA benefits to pay for buying back military time? No, VA benefits cannot be used to pay for buying back military time.
Conclusion
Buying back military time is a valuable benefit that can increase retirement pay or gain more time off for veterans. The Military Service Recognition Order (MSRO) is a program that allows veterans to purchase back military time at a discounted rate. The amount of military time that can be purchased back varies depending on years of service, pay grade, and discharge date. The cost of purchasing back military time is based on the current pay grade and time spent on active duty. Buying back military time offers several benefits, including increased retirement pay, more time off, and increased separation pay. By understanding how buying back military time works, veterans can make informed decisions about this benefit and maximize their benefits from military service.
