Military Service – You May Pay a Military Deposit to Buy Credit for Civilian Retirement Purposes

Employees who performed active-duty military service after December 31, 1956 (after June 30, 1960, in the PHS Commissioned Corps), may need to pay a military deposit (including interest) to the Defense Finance and Accounting Service (DFAS) prior to retirement in order to receive retirement credit for their military service. The requirements are different for different retirement systems.

  •  If you are covered by the Civil Service Retirement System (CSRS) or CSRS-Offset and were employed on a CSRS-covered Federal appointment prior to October 1, 1982, active-duty service is creditable without a deposit. However, if you are eligible for a Social Security benefit at age 62 (or at retirement if you retire after age 62), the active-duty credit will be removed or not used in calculating your retirement benefit unless you pay a deposit.
  •  If you were employed on a CSRS-covered Federal appointment on or after October 1, 1982, active-duty service is creditable only if a deposit is paid.
  •  If you are covered by the Federal Employees Retirement System (FERS, FERS-RAE, or FERS-FRAE), active-duty military service is creditable only if a deposit is paid.

To view additional information, go here.  

Questions regarding paying your military deposit may be directed to your  Benefits Contact or AskBenefits@nih.gov.