Military Deposit
A military deposit is a payment made to the civilian retirement fund to
allow creditable military service to be used towards retirement eligibility
and annuity computations. A deposit can be made for service performed after
the year 1956 in the Army, Marines Corps, Navy, Air Force, Coast Guard and
certain types of service with the National Oceanic and Atmospheric
Administration and the Public Health Service.
Military service is creditable towards civilian retirement if:
- The military service was performed before the date of separation
upon which title to an annuity is based;
- It was active duty;
- It was not included in the computation of military retired pay, or
if it was included in retired pay, the retired pay was awarded based on
disability incurred in combat with an enemy of the United States or
caused by an instrumentality of war and incurred in the line of duty
during a period of war; or granted under the provisions of Chapter 67,
Title 10, of the U.S. Code (Reserve or National Guard retirement).
- It was honorable service;
- A deposit is made for Post-56 military service.
CSRS Employees
CSRS employees hired prior to 10/01/1982, will not need to make a military
deposit if they will not be eligible to receive Social Security benefits.
Any creditable military service will be used towards retirement eligibility
and in the computation of their annuity.
CSRS Employees hired prior to 10/01/1982, who are not eligible for Social
Security at retirement, but become eligible at age 62, may use their
military service for retirement eligibility and annuity computation until
age 62. At age 62, credit for the military service is eliminated and the
annuity is recalculated to reflect only creditable civilian service. If a
military deposit was made prior to retirement, the military service will
continue to be used in the annuity computation.
Regardless of Social Security eligibility, CSRS employees first hired on or
after 10/01/1982, must make a military deposit to receive credit for
retirement eligibility and annuity computation.
The amount of the deposit is equal to 7% of military base pay earned, plus
interest. The rate increases for military service performed in 1999 and 2000
to 7.25% and 7.4% of base pay respectively.
FERS Employees
FERS employees must make a military deposit to receive credit for retirement
eligibility and annuity computations.
The amount of the deposit is 3% of the military base pay earned, plus
interest. The rate increases for military service performed in 1999 and 2000
to 3.25% and 3.4% of the base pay and respectively.
FERS employees with a CSRS component are subject to CSRS military deposit
rules.
Making a Military Deposit
Employees have 3 years from their first retirement covered position to make
a deposit interest free. On the anniversary of the date of the third year,
interest begins to accrue on the unpaid balance.
- Military deposits may potentially increase the amount of employees’
civilian annuity.
- Active duty retirees must waive their military retire pay once they
receive their civilian annuity.
- A deposit for Academy service can be made without waiving
military retire pay.
- Reservists do NOT have to waive their military retire pay once they
receive their civilian annuity.
- Employees should complete the top portion of the
RI20-97 and submit the
form to the
appropriate Branch.
- Employees should submit their completed RI20-97 to the Retirement
and Benefits Service Center at
Benefits@uscg.mil.
- Employees should also submit copies of their DD214’s and a signed
SF3108 if they plan to
make the deposit.
- Pages one and five of the SF3108 should be signed.
- Deposits can be paid by payroll deduction ($25.00 minimum/pp) or in
a lump sum.
- Checks should be made out to the United States Coast Guard
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References
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