Military Buyback Calculator

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A Note from Our Founders:

As veterans and career federal employees, we created MyFedPlan to continue our lifetime of service. This tool is our gift to the veteran community—an acknowledgement of your dedication. It will always be free and free from ads. It's simply vets helping vets.

This detailed tool helps you decide if buying back your military time for FERS credit is the right financial move for you.

🔒 Your Privacy Protected: For your security, we do not store any of your financial information. All calculations are performed in your browser and cleared when you close it.

Understanding the Military Service Buyback

Buying back your military service allows you to make a deposit to your civilian retirement fund to get credit for your military time under the FERS system. This can increase your FERS pension, but it's a complex decision with significant financial implications.

How it Works: The 3-Step Process

  1. Request Your Records: Obtain your estimated military earnings from your branch of service (e.g., via DFAS).
  2. Calculate & Pay the Deposit: Your agency HR will calculate the exact deposit amount. For FERS, it's typically 3% of your total military base pay. You have a 2-year interest-free grace period from your FERS entry date to pay this. After that, interest accrues annually.
  3. Waive Military Retired Pay: Upon retirement from your civilian job, you must notify both DFAS and OPM to waive your military retired pay. You cannot receive credit for both.

Who Should Consider This?

  • Veterans Not Receiving Retired Pay: If you served but didn't reach 20 years for retirement, buying back your time is almost always beneficial.
  • High-Earning Feds: The higher your FERS High-3 salary, the more valuable each year of service becomes, potentially outweighing your military pension.
  • Those Concerned About Survivor Benefits: A FERS survivor annuity may be more generous or suitable for your family's needs than the military's Survivor Benefit Plan (SBP).
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Important Notes

  • This calculator provides estimates based on current FERS rules and regulations
  • Always consult with your agency's HR department for official calculations
  • The deposit amount shown is an estimate - actual costs may vary based on interest accrual
  • Consider non-financial factors such as survivor benefits and healthcare coverage
  • Consult with a financial professional for personalized advice