The Golden Opportunity: Buy Back Your Military Time

Imagine leveraging your military service to unlock enhanced retirement benefits. The process of buying back your military time stands as a golden opportunity to transform your service into a key ingredient for a more prosperous retirement. Let’s explore how you can make this a reality.

Eligibility: Your First Step Towards a Rewarding Retirement

Understanding your eligibility is crucial. By buying back your military time, you add valuable years to your service record, potentially enabling you to retire earlier than anticipated. For Federal Employees Retirement System (FERS) participants, the magic numbers are 57 years of age and 30 years of service. Imagine having 10 years of active duty and 20 years of federal civilian service; you’d be set to retire at 57, penalty-free.

Initiating the Buyback Process

To start, you’ll need to download and complete the SF 3108 form, an application for military buyback. This process involves coordinating with your HR department and the Defense Finance and Accounting Service (DFAS) to obtain an estimate of the cost. You have the flexibility to make payments directly to DFAS or through payroll deductions, making the process both convenient and manageable.

A Common Misunderstanding

Many believe their military service automatically counts towards their retirement eligibility. However, for your years of military service to be factored into your retirement benefits, you must officially buy them back. It’s a critical step that cannot be overlooked if you aim to fully capitalize on your military time. Many co-workers have heard that it does not pay to buy back military time, or that it is expensive, but that is just not true. It pays to buy it back, so get after it. Special note is that if you have not completed 5 years of civilian federal service, make sure you do before you buy it back, as it will not count until your vested, which will be at 5 years of service.

Keeping Track of Your Progress

Your Leave and Earnings Statement (LES) will become a valuable tool in tracking your buyback progress for most employees. Look out for box 20, which outlines your owed balance and its progression to zero upon completion of payments. Keeping diligent records once you’ve received notice of completion of the buyback ensures you’ll get credit for those years of service.

The Result: A More Lucrative Retirement

Once you’ve successfully bought back your military time, envision the impact on your FERS pension and the possibility of retiring earlier and more comfortably than ever imagined. It’s about transforming your active duty military service into tangible benefits that secure a more lucrative and enjoyable retirement.

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