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Only current employees may make a deposit for honorable active duty military service performed after 1956 in the following branches: Army, Navy, Marine Corps, Air Force, or Coast Guard of the United States, or, after June 30, 1960, in the Regular Corps or Reserved Corps of the Public Health Service, or, after June 30, 1961, as a commissioned officer of the National Oceanic and Atmospheric Services Administration (formerly Coast and Geodetic Survey and Environmental Science Services Administration). Military service performed before 1957 is fully creditable for retirement purposes without a deposit.
If you were first employed in a position under the Civil Service Retirement System (CSRS) before October 1, 1982, you have the option of either: (1) making the deposit for the Post-1956 military service, and receiving credit for the military service even when you become eligible for Social Security benefits, or (2) not making the deposit and having your annuity recomputed to eliminate Post-1956 military service when you become eligible for Social Security benefits.
If you were first employed in a position under the Civil Service Retirement System on or after October 1, 1982, or the Offset Civil Service Retirement System (Offset CSRS) on or after January 1, 1984, or the Federal Employees Retirement System (FERS) on or after January 1, 1987, you will receive credit for your Post-1956 military service at the time of retirement ONLY if you have made a deposit for the service, whether or not you become eligible for Social Security benefits.
The amount of the deposit for CSRS or Offset CSRS employees is 7% of basic military pay received. FERS employees’ military deposit amount is 3% of basic military pay received. Interest began to accrue on October 1, 1985, OR will begin to accrue two (2) years after you were first employed, whichever is later. The interest rate is 3% from October 1 through December 31, 1985. Thereafter, interest accrues at a variable rate. This rate is determined annually by the Secretary of the Treasury, based on the average yield of new investments purchased by the Civil Service Retirement and Disability Fund during the previous fiscal year. The rate of interest is normally published in the “Federal Register” sometime in December. Interest rates for 1986 and later are:
You must make your Post-1956 military deposit, including interest, with your agency while still employed prior to retirement.
Please contact the HRD Call Center on 301-763-HR4U or on 1-800-871-5816 for more information.
Source: U.S. Census Bureau | Human Resources Division | (301) 763-4748
| Last Revised:April 08, 2013