MIL DEPOSIT /SERVICE COMP DATE

Military Buyback Post-56 Deposit (FERS)

What Is Military Service?  Military service for the Federal Employees Retirement System (FERS) purposes is any honorable active service in the following uniformed services: Army, Navy, Air Force, Marine Corps, and Coast Guard and after 06-30-1960, in the Commissioned Corps of the Public Health Service, and after 06-30-1961, service in the Commissioned Corps of the National Oceanic and Atmospheric Administration and its predecessor agency.

Can I Receive Credit For Service In The Military Reserves?  Active duty in the various reserve components of the branches listed above is creditable for FERS. That is, service in any reserve component is creditable when you are called for an active duty period only. Such periods include annual active duty training periods. (NOTE: when you perform annual active duty training service during which you are on military leave with pay from a civilian position, the period is credited as civilian, not military, service.)

When Is A Period Of Military Service Creditable For Retirement Purposes?  A period of military service may be credited for retirement and death benefits purposes, subject to the following conditions:

  1. The military service was performed before the date of separation upon which title to an annuity is based;
  2. It was active duty;
  3. It was not included in the computation of military retired pay, or if it was included in retired pay, the retired pay was awarded based on disability incurred in combat with an enemy of the United States or caused by an instrumentality of war and incurred in the line of duty during a period of war; or granted under the provisions of Chapter 67, Title 10, of the U.S. Code (Reserve or National Guard retirement).
  4. It was honorable service;
  5. A deposit is made for Post-56 military service.

How Much Does The Military Deposit Cost?  For periods of active duty service prior to 1999, your deposit will equal 3% of your base pay earned during the Post-56 military service. For active duty service performed in 1999, the deposit will be 3.25% of your military base pay earnings. (NOTE: Base pay does not include allowances.)  If the military service falls under the provisions of the Uniformed Services Employment and Reemployment Rights Act (USERRA), the deposit is the lesser of the applicable percentages of military base pay, or the amount of the FERS contributions you would have paid if you had worked instead of being on active military duty.

FERS Employees With A CSRS Component:  If you transferred to FERS and have a CSRS component (at least 5 years of CSRS service), you continue to be under the CSRS military deposit rules for service performed before the transfer.  Under the CSRS rules, the deposit equals 7% of base pay for periods of service prior to 1999.  The deposit equals 7.25% of base pay for periods of service performed during 1999.  For military service performed during 2000, the deposit equals 7.4% of base pay.  After 2000, the deposit is 7% of military base pay.

If you are not eligible for Social Security at age 62, no deposit is required for the military service performed on or after 01-01-1957. If you are first hired on or after 10-01-1982, a deposit is required regardless if eligible for Social Security. Note: OPM will only check with Social Security for eligibility the year that you turn age 62 or at retirement, if later.

Is Interest Due On The Military Deposit?  The earliest interest begins to accrue is 01-01-1989 or your second anniversary of entry into a FERS position.  Variable rates of interest are assessed.  No interest is charged if you pay the deposit in full before the first interest accrual date (IAD).

If you transferred to FERS and have a CSRS component, the earliest interest begins to accrue is 10-01-1986 or your third anniversary of entry into a CSRS position.  If you transferred to FERS and do not have a CSRS component, interest begins to accrue two years from the date of transfer to FERS, posted on the third year.

How Long Do I Have To Pay The Military Deposit?  The sooner you pay the deposit the less interest you will have to pay, so the sooner you pay the deposit the better.  The deposit must be paid in full before final adjudication of your retirement application by OPM.

How Do I Pay The Military Deposit?

Step 1.

a. You must complete the RI 20-97, Estimated Earnings During Military Service, and mail it to the appropriate military finance center with a copy of all DD Forms 214 (or other supporting documentation). If you already have your estimated earnings, go to Step 2.

b. If your military service is USERRA, you will need to specify periods of military service when you were on paid leave from your civilian position (military leave, annual leave, credit hour or compensatory time). Attach supporting SF-50’s if applicable.

c. U.S. Air Force Reservists with USERRA service will need to take the RI 20-97 to their Reserve unit to get the estimated military earnings if they had periods of paid leave during the military service, or if they are documenting the military service with certified military orders (AF Form 938 or equivalent) instead of DD form 214.

d. If you have service with more than one branch of the military, you will need to complete a separate RI 20-97 for each and mail to the appropriate military finance office.

Step 2.  Upon receipt of the estimated military earnings, complete the SF-3108, Application to Make Service Credit Payment (FERS).  Mail the application with the RI 20-97 and DD form 214 to the Human Resources Office for processing.

Step 3.  Human Resources will receive the application, review for accuracy, calculate an estimate of the amount of military deposit, and return to the employee for required signatures.

Step 4.  When you have reviewed the package please make a copy for your personal records and return to the original to the Human Resources office for submission to DFAS for processing.

Payment Options

Lump Sum Payment.  Make your check payable to DFAS Cleveland.  The check must have "Catch-62 Military Deposit" and your Social Security Number written on it.  Mail to: DFAS Cleveland, PO Box 99555, ATTN: DFAS-GAG/CL, Cleveland, OH 44199.

Partial Payments.  This is any amount you choose but must be a minimum of $25.00 per pay period.  Follow the instructions in the paragraph above (Lump Sum Payment).  Partial payments can be made along with payroll deductions.

Payroll Deductions.  This is any amount you choose but must be a minimum of $25.00 per pay period.  There must be a request in writing (no particular form) submitted to your payroll office which includes the following: (1) Social Security Number; (2) name; (3) amount of deduction per pay period; (4) date to start the deduction; (5) signature.

Step 5.  Once your military deposit has been paid in full, you will need to request the electronic OPM 1514 as proof of payment.  Contact your local Customer Service Representative (CSR) or Human Resources Representative and have a Remedy sent to DFAS requesting the electronic OPM 1514.  When the electronic OPM 1514 is received, provide a copy to your local Human Resources representative, to be placed in your Official Personnel Folder (OPF).

 

 

Creditable Service for Annual Leave Accrual for Non-Federal Work Experience and Experience in the Uniformed Service

Description

The head of an agency, or his or her designee, may at his or her sole discretion provide service credit that otherwise would not be creditable under 5 U.S.C. 6303(a) for the purpose of determining the annual leave accrual rate to --

*       a newly-appointed or reappointed employee with a break of at least 90 calendar days after his or her last period of civilian employment; or

*       a retired member of the active duty uniformed service as defined by 38 U.S.C. 4303.

This is a discretionary flexibility agencies can use to meet their strategic human capital needs - an employee has no entitlement to this credit.

Agency Determination

The head of an agency must determine that the skills and experience the employee possesses are --

*       essential to the new position and were acquired through performance in a non-Federal or active duty uniformed service position having duties which directly relate to the duties of the position to which he or she is being appointed; and

*       necessary to achieve an important agency mission or performance goal.

The head of an agency must make the determination to approve an employee’s qualifying prior work experience before the employee enters on duty - the determination cannot be made retroactively.

Amount of Service Credited

The amount of service credit that may be granted to an employee is determined at the sole and exclusive discretion of the head of the agency.

*       The amount of service credited to an employee may not exceed the actual amount of service during which he or she performed duties directly related to the position to which he or she is being appointed.

*       Once an employee is permanently credited with a period of non-Federal service or active duty uniformed service (after completion of 1 full continuous year with the appointing agency), that period of service may not be considered for further credit if the employee has a future break in service.

Documentation

An employee must submit written documentation acceptable to the agency of the employee’s qualifying non-Federal service; or   written documentation from the military services of the employee’s uniformed service.

Granting of Service Credit

Credit for prior work experience or experience in a uniformed service is granted to the employee upon the effective date of his or her initial appointment to the agency or reappointment after a 90-day break in service.

Permanence of Service Credit after 1 Full Year of Continuous Service

Once an employee completes 1 full year of continuous service with the appointing agency, the period of service for which the employee was granted service credit for non-Federal or active duty uniformed service work experience is permanently creditable for the purpose of determining the employee’s annual leave accrual rate for the duration of the employee’s career.

Effects of Leave Without Pay on Service Credit

If an employee is placed in a leave without pay status during the required 1-year period of continuous service, the 1-year period of continuous service must be extended by the amount of time in a leave without pay status unless --

*       the employee separates or is placed in a leave without pay status to perform service in the uniformed services (as defined in 38 U.S.C. 4303 and 5 CFR 353.102) and later returns to civilian service through the exercise of a reemployment right provided by law, Executive order, or regulation; or

*       the employee separates or is placed in a leave without pay status because of an on-the-job injury with entitlement to injury compensation under 5 U.S.C. Chapter 81 and later recovers sufficiently to return to work.

Failure to Complete 1 Full Year of Continuous Service with Appointing Agency

If an employee separates from Federal service or transfers to another Federal agency prior to completing 1 full year of continuous service with his or her appointing agency --

*       the employee is not entitled to retain service credit for prior non-Federal service or active duty uniformed service;

*       the appointing agency must subtract the additional service credit from the employee’s total creditable service, and a new service computation date for leave must be established;

*       any annual leave accured or accumulated by the employee remains to the employee’s credit; and

*       the agency must transfer the annual leave balance to the new employing agency if the employee is transferring to a position to which annual leave may be transferred, or provide a lump-sum payment for unused annual leave if the employee is separating from Federal service or moving to a new position to which annual leave cannot be transferred. 

Questions and Answers on Providing Credit for Determining an Employee’s Leave Service Computation Date/ Annual Leave Accrual Rate

Q1.  Under what conditions may an employee receive credit for non-Federal service or active duty uniformed service for determining his or her annual leave accrual rate?

A.  Under 5 U.S.C. 6303(e), a newly appointed or reappointed employee may receive service credit for prior non-Federal service or active duty uniformed service that otherwise would not be creditable for the purpose of determining his or her annual leave accrual rate. The head of the agency or designee must determine that the skills and experience the employee possesses were acquired through performance in a non-Federal or active duty uniformed service position having duties which directly relate to the duties of the position to which he or she is being appointed and are necessary to achieve an important agency mission or performance goal.

Q2.  When may an agency provide extra credit for non-Federal service or active duty uniformed service for the purpose of determining an employee’s annual leave accrual rate?

A.  An agency may provide credit toward an employee’s annual leave accrual rate for non-Federal service or active duty uniformed service that otherwise would not be creditable if the individual has prior work experience directly related to the duties of the position to which he or she is being appointed and the prior experience is necessary to achieve an important agency mission or performance goal. This is a discretionary authority, not an employee entitlement.

Q3.  Who is covered by this provision?

A.  This provision applies only to a newly-appointed employee or an employee who is reappointed following a break in service of at least 90 calendar days from the date of his or her last period of Federal civilian employment.

Q4.  How much service credit may be granted for prior non-Federal or active duty uniformed service work experience?

A.  The amount of service credit that may be granted to an employee is determined at the sole and exclusive discretion of the head of the agency or designee.  However, the amount of service credited to an employee may not exceed the actual amount of service during which he or she performed duties directly related to the position to which he or she is being appointed.  This is a discretionary flexibility agencies can use to meet their strategic human capital needs-an employee has no entitlement to this credit.

Q5.  When must the determination to approve an employee’s qualifying prior work experience be made?

A.  The head of an agency or designee must make the determination to approve an employee’s qualifying prior work experience before the effective date of the employee’s entry on duty-the determination cannot be made retroactively.

Q6.  What documentation is required from an employee to receive credit for prior non-Federal service or active duty uniformed service?

A.  Each agency is responsible for determining what constitutes acceptable written documentation of an employee’s qualifying non-Federal service. An employee must submit such written documentation consistent with the agency’s procedures. An employee must provide written documentation from the military services to receive credit for active duty honorable uniformed service. All written documentation must be approved by the head of the agency or designee prior to the effective date of the employee’s entry on duty.

Q7.  When does the employee receive credit for non-Federal service or active duty uniformed service?

A.  Credit for non-Federal service or active duty uniformed service is granted to the employee upon the effective date of his or her initial appointment or reappointment to Federal service.

Q8.  How long does service credit granted to an employee remain creditable for annual leave accrual purposes?

A.  Credit granted to an employee for non-Federal service or active duty uniformed service remains to the credit of the employee unless he or she fails to complete 1 full year of continuous service with the appointing agency. If an employee separates from Federal service or transfers to another Federal agency prior to completing 1 full year of continuous service with his or her appointing agency, the employee is not entitled to retain service credit for prior non-Federal service or active duty uniformed service. The appointing agency must subtract the additional service credit from the employee’s total creditable service, and a new service computation date for leave must be established before the employee separates or transfers to the new agency.

Q9.  What happens to an employee’s annual leave balance if he or she fails to complete 1 full year of continuous service with the appointing agency?

A.  Any annual leave accrued or accumulated by an employee remains to the credit of the employee, even if he or she fails to complete 1 full year of continuous service with the appointing agency. The agency must transfer the annual leave balance to the new employing agency if the employee is transferring to a position to which annual leave may be transferred, or provide a lump-sum payment for unused annual leave if the employee is separating from Federal service or moving to a new position to which annual leave cannot be transferred.

Q10.  Under 5 U.S.C. 6303(e), can non-Federal work experience be creditable for purposes other than determining an employee’s annual leave accrual rate?

A.  No.  Under 5 U.S.C. 6303(e), non-Federal service or active duty uniformed service is creditable only for the purpose of determining an employee’s annual leave accrual rate.  (Non-Federal service or active duty uniform service may be creditable for other purposes under applicable statutes.  Rights to service credit for such service for other purposes must be determined under the applicable statutes.  Employees should consult with their agency benefits specialists for more information.)

Q11.  May an employee receive credit for the same period of non-Federal service or active duty uniformed service on more than one occasion?

A.  No.  An employee may not receive dual credit for service.  Once an employee is permanently credited with a period of non-Federal service or active duty uniformed service (after completion of 1 full continuous year with the appointing agency), that period of service may not be considered for further credit if the employee has a future break in service.

However, if an employee loses service credit for non-Federal service or active duty uniformed service because he or she fails to complete 1 full continuous year of service with the appointing agency, an agency may choose to provide credit for that period of time to the employee in the future if and when he or she is reappointed to a Federal position. An agency may provide credit for the same period of non-Federal service or active duty uniformed service if the employee has had a break in service of at least 90 calendar days and meets all of the conditions for receiving credit for such service.

Q12.  What happens to service credit granted to an employee if he or she separates from Federal service or transfers to another Federal agency after completing 1 full year of continuous service?

A.  Once an employee completes 1 full year of continuous service with the appointing agency, the period of service for which he or she was granted service credit for his or her non-Federal or active duty uniformed service work experience is permanently creditable for the purpose of determining his or her annual leave accrual rate for the duration of the employee’s career.

FORM: http://www.opm.gov/forms/pdf_fill/RI20-97.pdf

           http://www.dfas.mil/about/Locations.html

Note: If proper documentation or notification is not provided at time of hire the leave service computation date will not be retroactive to start of appointment.

 

 

 

 

© NYS DMNA: Technician Resources - MIL DEPOSIT /SERVICE COMP DATE
URL: http://dmna.ny.gov/hro/tech/?page=1276788082
Page Last Modified: 18 Apr 14