Military Deposits,
step by step.
Military service may count toward your federal civilian retirement annuity — but the deposit process is lengthy and must be completed before you retire. This guide walks you through eligibility, the retired military exception, Reserve and ANG rules, and every step of the application process.
What military service
qualifies for credit?
Not all military service is automatically creditable toward a federal civilian retirement. Understanding which service qualifies — and the specific rules for retired military versus Reserve and ANG members — is the first step before starting the deposit process.
As a general rule, military service in the Armed Forces of the United States is creditable for federal retirement purposes if it was active service terminated under honorable conditions and performed prior to your separation from civilian service.
There are real benefits to obtaining credit for military service — primarily an increased federal annuity when you retire. However, federal employees with military service must take action early in their careers. Penalties apply if you delay, and the process can take several months to complete.
Start the military deposit process early — long before you intend to retire. OPM discontinued military deposits after separation under BAL #13-103.
Active Duty Service
Standard creditability rules
Retired Military
Waiver of military retired pay required
Reserve & ANG Service
Can be collected concurrently
Special rules for
retired military members.
If you are receiving military retired pay, buying back your military time requires you to waive that retired pay when you retire from federal civil service. This makes the decision more complex than for non-retired veterans.
The waiver rule — and when exceptions apply
Retired military must waive military retired pay to receive credit for that service in a civilian annuity, unless the military retirement is based on:
• A service-connected disability incurred in combat with an enemy of the United States
• A service-connected disability caused by an instrumentality of war, incurred in the line of duty during a period of war
• Retired pay granted under 10 U.S.C. §§ 12731–12739 (retired members of the reserves)
Should a retired military member make a deposit?
It is not usually advantageous to make a military deposit if you are already receiving full military retirement pay — because you must waive that pay for the covered period to be included in the civilian annuity. In most cases, full military retirement is worth more than the equivalent civilian annuity increase.
The simple test: Request two retirement estimates from your HR office — one with military service included and one without. Compare the annual difference against your current military retired pay. If the military pay is higher, do not combine the service.
Timing note: You continue collecting your military retirement until you actually begin your civil service retirement. Many retirees enter federal service in their early-to-mid 40s — they collect military retired pay for the duration of their civilian career, then make the decision at civil service retirement time.
Reserve & ANG service
Reserve and National Guard retirement is treated differently from active duty military retirement — and is far more favorable for federal employees.
Reserve retirement can be collected concurrently
National Guard and Reserve retirement based on points (collectible at age 60, requiring less than 7,300 active duty points) can be collected at the same time as a federal civil service retirement. No waiver is required and your Reserve or ANG annuity does not impact your CSRS or FERS payments.
Making a deposit for your years of active-duty service within a reserve career does not affect entitlement to reserve retired pay — as long as that retired pay is awarded under 10 U.S.C. §§ 12731–12739 (Chapter 1223). Only employees receiving military retired pay — not reserve retired pay — are required to waive to get credit in their civilian annuity.
The 4-step military deposit process
Follow these steps in order. The process is sequential — you cannot move to step 2 until you have the earnings estimate from step 1, and the deposit must be complete before you retire.
Request your military earnings estimate
Send Form RI 20-97 (Estimated Earnings During Military Service) and a copy of your DD-214 to the military pay center for your branch of service. If you served in more than one branch, submit a separate request for each.
If you do not have a DD-214, obtain SF 180 from your personnel office to verify your service first — the pay center cannot estimate earnings without service verification attached.
The pay center will send you a letter or form showing your total estimated earnings during military service. Expect this to take several months. Do not wait until close to retirement to start this step.
Contact your HR office with the earnings estimate and DD-214
Once you have the military earnings estimate, bring it — along with your DD-214 — to your agency Human Resources office. You will need to complete either SF-3108 (FERS) or SF-2803 (CSRS).
These forms require a specific statement about military deposits that is not included on the standard online versions. Obtain the correct edited form from your HR office — do not download a generic version.
HR will forward your completed package to your civilian payroll office for processing.
Make the deposit to your civilian payroll office
Your payroll office will bill you directly with the deposit amount due. You have three payment options:
Lump sum — pay the full amount at once. Series of payments — make multiple partial payments. Payroll deduction — minimum $50 per pay period, automatically deducted from your paycheck.
The deposit must be paid in full while you are actively employed. It cannot be made after you retire or separate from federal service.
Get written confirmation and keep it permanently
When the deposit is complete, your payroll office will send you a letter confirming the deposit is paid in full. This letter is critical — keep it with your permanent retirement records.
Payroll does not automatically notify HR when a deposit is complete. Send a copy of the confirmation letter to your HR office yourself. Without this documentation, your military credit may not appear in your retirement calculation.
Forms &
further reading.
Official forms, OPM policy letters, handbook chapters, and tools for researching and completing your military deposit.