How to Buy Back Military Time for Federal Retirement
As a current or former military service member, you may be wondering how to buy back your military time to enhance your federal retirement benefits. Buying back military time, also known as Military Purchase of Retirement Credits (MPR), allows you to purchase additional retirement credits, increasing your pension and potentially adding to your overall retirement package.
What is the Purpose of Buying Back Military Time?
Buying back military time is a popular strategy for federal employees, including military personnel, who have already served in the military but want to gain additional retirement credits. The process allows you to add to your total years of service, which can result in a higher pension upon retirement. This is especially important for those who served for shorter periods or missed opportunities to earn additional time.
Eligibility for Buying Back Military Time
To be eligible to buy back military time, you must meet the following conditions:
- Be a current or former Federal civilian employee or military member with a Qualifying Length of Service (QLS).
- Have served in the military for at least 1 year and less than 6 years (includes Reserve and National Guard time).
- Have been separated from the military due to expiration of service (e.g., retirement, discharge, or discharge for medical reasons).
How to Buy Back Military Time
To purchase retirement credits, follow these steps:
- Contact your agency’s human resources office: Reach out to your agency’s HR representative to determine if you’re eligible to buy back your military time.
- Submit a request for consideration: Complete the DD Form 149, also known as the "Freeman-Benson Act Claim for Reconsideration," to formally request the purchase of military time.
- Provide supporting documentation: Include documentation, such as military service records and DD Forms 214 (or other discharge documents), to support your claim.
- Wait for the processing: Your agency’s HR office will review and process your request. Approval or disapproval will be determined based on the information provided.
- Recompute your retirement benefits: If approved, your retirement benefits will be recalculated to reflect the additional purchased retirement credits.
The Buying Back Military Time Process
Here’s a table summarizing the process:
| Step | Description | Supporting Documents |
|---|---|---|
| 1 | Request for consideration | DD Form 149 |
| 2 | Provide supporting documentation | Military service records, DD Forms 214 (or other discharge documents) |
| 3 | Review and processing | |
| 4 | Approval or disapproval | Notification letter |
| 5 | Recompute retirement benefits | Updated retirement benefit statement |
Military Purchase of Retirement Credits (MPR) Rates
MPR rates vary based on the type of retirement system you’re eligible for and your years of creditable service. Here are the current MPR rates for federal employees:
- Federal Employees Retirement System (FERS):
- 1-2 years of service: 2.5% per year
- 2-5 years of service: 4% per year
- 5-10 years of service: 5% per year
- 10-20 years of service: 6% per year
- 20+ years of service: 7% per year
- Civil Service Retirement System (CSRS):
- 1-2 years of service: 2% per year
- 2-5 years of service: 3.5% per year
- 5-10 years of service: 5% per year
- 10-20 years of service: 6% per year
- 20+ years of service: 7% per year
Important Considerations
Before buying back your military time, keep the following points in mind:
- Cost: You’ll need to pay a fee for each year of purchased retirement credits.
- Impact on future annuity: Purchasing additional retirement credits may increase your pension, but it might also impact your future annuity.
- Limited-time opportunity: You only have a limited window (typically 1-3 years) to purchase back military time after separating from the military.
- Documentation requirements: Ensure you provide complete and accurate documentation to support your claim.
Conclusion
Buying back military time is a valuable strategy for federal employees and military personnel seeking to enhance their retirement benefits. By following the steps outlined in this article, you can understand the eligibility requirements, process, and rates involved. Keep in mind the potential costs and implications on future annuity when considering purchasing additional retirement credits. By making an informed decision, you can maximize your federal retirement package and enjoy a more comfortable retirement.
