Military Buyback for Federal Employees
How the military service credit deposit ("buyback") works for FERS employees: what the deposit costs (generally 3% of military basic pay plus interest after the grace period), how bought-back years raise your FERS annuity, and how to start the process with DFAS and your HR office.
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Verified 2026-07-30 against OPM — FERS computation, eligibility, creditable service & annuitant pamphlet (effective 2026-01-01)
Estimate only — not legal, financial, or benefits advice. Only DFAS can determine your actual benefit.
Official source: DFAS — military service deposits (buyback) ↗
🎓 Understand this tool
What it is
An educational walkthrough of the military service credit deposit — how post-1956 military service can be added to your FERS service through a deposit, and what that changes in your retirement math.
How it works
The deposit is generally 3% of your military basic pay for the period, plus interest that begins after an initial grace period. Once paid and the service is credited, those years count in the FERS formula like any other service. The process runs through DFAS (estimated earnings) and your HR office.
Getting the most from it
- Request your estimated earnings from DFAS using the linked form.
- Ask your HR office for the deposit computation and the interest cutoff dates that apply to you.
- Compare the one-time deposit to the annuity increase using the FERS calculator with and without the years.
- If you receive military retired pay, read the waiver rules carefully before deciding.
Reading your result
Treat the comparison as arithmetic, not advice: deposit cost on one side, the per-year annuity increase over your expected retirement on the other. The break-even is usually short, but your numbers are the ones that matter.
What it can't tell you
This page explains the mechanics only. It cannot compute your official deposit (interest accrual is date-specific), and it does not cover CSRS, reserve-retirement interactions, or Guard technician service — DFAS and OPM determine those.
Frequently asked questions
Generally 3% of your military basic pay during the service being credited, plus interest that begins accruing after an initial interest-free grace period. DFAS computes the exact amount from your estimated earnings record.
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