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Missed the Military Buyback Deadline? Here’s What You Can Still Do

Site Admin
May 27, 2025

Key Takeaways

If you missed the military buyback deadline, you still have possible options depending on your status and timing.
Failing to act can reduce your federal retirement annuity significantly—exploring alternative strategies now is critical.

Why the Military Buyback Matters for Public Sector Retirement

If you served in the military before entering civilian government service, the Military Service Buyback program allows you to credit that time toward your civilian retirement

. But there’s a catch—it isn’t automatic, and it isn’t free. And if you missed the deadline, your annuity might not reflect your full years of federal service.

This matters because your Federal Employees Retirement System (FERS) or Civil Service Retirement System (csrs) annuity is based on your years of creditable service. Military time can add years to that total, boosting your monthly benefit and possibly allowing you to retire earlier. Missing out on buyback means leaving valuable service time on the table.

Understanding the Buyback Deadline

The standard rule is simple: you must complete the military buyback process before you retire from civilian government service. Specifically:

For FERS employees, the military deposit must be paid in full before separation from service.
For CSRS employees, you can still pay after retirement, but you’ll face a permanent reduction in benefits if you don’t.

If you’re still working, even if you’re only months away from retirement, you may still have time. But once you’re officially retired, your window may be closed—especially under FERS.

What Happens If You Retire Without Buying Back Time

Failing to complete the deposit before retiring under FERS means your military service will not count toward your annuity calculation. That could mean:

A smaller monthly annuity than expected
Later eligibility for full retirement
No eligibility for the FERS Special Retirement Supplement (if applicable)

This can result in a reduction of thousands of dollars per year for life.

If You’re Still Working: What You Can Do

You may be closer to the deadline than you think, but if you haven’t retired yet, there’s hope:

1. Request an Estimate Now

Submit a request to your human resources or payroll office for a military deposit estimate.
You’ll need your DD-214 and possibly your military earnings records.

2. Make the Deposit ASAP

You must pay the full deposit (plus interest if more than three years have passed since you joined civilian service) before separation.
Payments can often be made via payroll deduction, lump sum, or multiple payments—check with your agency.

3. Confirm Completion in Writing

Don’t assume the buyback is complete. Confirm you have a paid-in-full receipt or letter from your HR/payroll office before your retirement date.

If You’ve Already Retired Under FERS

If you’re already retired and didn’t buy back your time, the window is closed under FERS. Unfortunately, current rules do not allow retroactive deposits once you’re officially separated. Here’s what you can still do:

1. Review Your Retirement Record

Confirm that the military time was not already credited (such as for campaigns where credit may be automatic under special provisions).
Verify your Retirement Service Computation Date (RSCD) and compare it with your expectations.

2. Explore Post-Retirement Employment Options

If you return to government work in a re-employed annuitant status (or return to a full FERS appointment), you may have a new buyback window.
This would allow you to complete the deposit for your prior military time, which can then count toward your future annuity recalculation.

3. Evaluate Survivor Benefit Options

If you have a spouse or survivor, understand how the missed buyback could affect their benefit.
Survivor annuities are based on your creditable service. Shorter service due to missed buyback can mean reduced benefits for your survivors.

What About CSRS Retirees?

CSRS operates under different rules. If you retired under CSRS without buying back your military time, you may still be able to:

Pay the deposit post-retirement
Trigger an adjustment to your monthly annuity

However, there are conditions:

You must have retired after age 62 and are eligible for Social Security.
Any adjustments are generally not retroactive—you won’t get back pay for missed years, only an increase moving forward.

If this applies to you, contact OPM and request a military deposit bill. If accepted and paid, your annuity will be recalculated.

How Much Can Military Buyback Add to Your Annuity?

In general, each year of creditable military service increases your annuity:

Under FERS, by 1% of your High-3 average salary per year
Under CSRS, by 1.5% to 2% per year, depending on your total service

That means 3 years of buyback could increase a FERS annuity by 3%—potentially thousands of dollars each year for life.

Avoiding Common Misunderstandings

Many government employees assume they have more time or don’t fully understand the rules. Here are some clarifications:

Interest starts accruing after 3 years from your civilian service start date—not military discharge.
You cannot extend the deadline past separation from service under FERS.
You must complete both payment and agency processing before retirement.

Re-Employment Could Reopen the Window

Returning to federal employment after retirement—especially in a full-time position—can reopen the opportunity to buy back your military time.

Here’s how:

You would enter a new period of covered service.
If you didn’t buy back previously, you can now do so during this new period.
When you retire again, the full creditable service (including bought-back time) would count in your recalculated annuity.

This only applies if you return to a retirement-covered position—not a term-limited or temporary role.

Should You Still Bother With a Small Amount of Service?

Yes. Even if your military service was only 6 months or 1 year, it still impacts your annuity and eligibility.

Eligibility thresholds (like the 20-year mark for law enforcement or 30 years under FERS) may depend on every month.
Special Retirement Supplement eligibility also hinges on total years of service.

Missing the buyback means you might fall short of these thresholds.

How to Avoid This in the Future

If you’re still working or advising others, this is what you can do now:

Start the buyback process immediately after civilian employment begins
Track the status regularly, especially if your agency changes or merges
Keep paper or digital records of deposit payments and agency confirmations

Some agencies have delays or lose documentation. Don’t rely on assumptions—always request written proof.

If You’re Confused, You’re Not Alone

Military buyback rules are often misunderstood even by HR offices. That’s why it’s worth having a benefits review conducted by someone who knows the federal retirement system inside and out.

Connect With Someone Who Can Help

A licensed professional can:

Explain what options still exist for you
Confirm if you qualify for a second chance through re-employment
Estimate the value of your missed service

Don’t Let a Missed Deadline Define Your Retirement

Missing the military buyback deadline doesn’t mean you’re out of options—but it does mean time is of the essence. Whether you’re still working or already retired, your next steps can make a difference in your financial future.

Talk to a licensed professional listed on this website who can help you understand your standing, weigh your choices, and protect your long-term retirement benefits.