Military Service Credit Payments

[PessOptimist]

Many of us in federal service have "bought back" our military time for years of service credit toward retirement. Some of us have not because we receive a military annuity for 20+ years service.

When I in processed to my federal civilian job I was asked if I wanted to buy back my military time. I was advised that if I did my military annuity would stop.

At the time the buy back would have cost me between 10 and 11 $k.

Someone on the MB posted a link to a column on govexec about another subject. I can't find that post but thanks, whoever you are. I started looking around on that site and found this:
http://www.govexec.com/story_page.cfm?filepath=/dailyfed/0710/073010rp.htm

According to the author, I could have and still could pay my military service credit payment and keep receiving my military annuity until I started receiving my FERS annuity.

Perhaps I did not ask my questions correctly but over the past 13 years I have believed that if I bought back the military time my military annuity would stop immediately. This belief is widely held by everyone I have talked to.

All of my military time is active duty, so please, no explanations about reserve retired pay etc.

At this point with interest my "buy back" would be around $19k. Crunching the numbers using my current salary as my high five (yeah I think that's coming along with no raises) it still might be worth doing. IF my military annuity doesn't stop until I start drawing the FERS annuity.

To sum this all up, when I began my federal civilian job, I was told that if I paid the military service credit payment my military annuity would stop. Nothing about "if/when I began receiving a FERS annuity". Others I have spoken to since, both military annuitants and HR types, have believed that the military annuity will stop if I "buy my time" back. Based on that fact, the decision was a no brainer.

Someone, either the HR people I have spoken to or Ms Flanagan at govexec, is wrong. Or maybe I am just incredibly dense.
Is there anyone who has bought back their 20+ years active military time who can answer this?

Thanks

 

[Zebra]

Well for me I was advised the annuity would stop, but I have not seen that on paper. I was also advised the numbers would be in my favor to keep my military retainer and not buy back. Twenty two years would had been a lot and I didn't have that kind of money.

 

[PessOptimist]

That's pretty much the advice I got Z. Plus, I didn't have the money either. Most enlisted people don't have an extra $10k lying around when they move on to another career.

If you get to the point where you are making 2.5 times what you made when you got out of the military it is worth looking at, especially if you are going to work at the fed job until 62 or older. I just want to find out what the rule actually is.

I e-mailed the question to my HR section this evening. Maybe I will get an answer in writing. I will post that here.

I'm not saying I would do it. It would take years to amortize the dollar amount. Another thought is that the pols may not mess with the military annuity as eagerly as they try to change the FERS annuity. It might be better to keep it seperate.

PO

 

[Zebra]

Here here! BTW life is much better (if you have employment) after the military! Good look to you in the future and thank you very much for your service and sacrifice!

Z

That's pretty much the advice I got Z. Plus, I didn't have the money either. Most enlisted people don't have an extra $10k lying around when they move on to another career.

If you get to the point where you are making 2.5 times what you made when you got out of the military it is worth looking at, especially if you are going to work at the fed job until 62 or older. I just want to find out what the rule actually is.

I e-mailed the question to my HR section this evening. Maybe I will get an answer in writing. I will post that here.

I'm not saying I would do it. It would take years to amortize the dollar amount. Another thought is that the pols may not mess with the military annuity as eagerly as they try to change the FERS annuity. It might be better to keep it seperate.

PO

 

[PessOptimist]

The same to you Zebra.

I got a reply from HR today. The person I e-mailed sent the question on to HQ. The person who answered has a reputation for knowing the answers. Even if he types bad.

"I (sic) you made a deposit for your retired military service your military annuity would not stop until you retired from the Federal civilian service, i.e., start receiving your FERS annuity.If you make the deposit but decide not to waive your military retired pay, you would be able to get a refund of your deposit."

So I have been wrong all these years. It's nice to know, in case I somehow get a 50% raise soon. Who knows, but my deposit, originally 3% of all base pay earned, has nearly doubled over the years due to interest.

It's good information to pass along. Problem is, it is hard to predict future pay amounts when starting out as a fed civvie. After the two year "grace period", the interest makes the deposit amount ever higher.

regards