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War Eagle  
#1 Posted : Tuesday, March 13, 2012 8:47:54 PM(UTC)
War Eagle

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Howdy forum, I've read the thread about military buy back for retirees but wonder about those of us that separated with a few years service. IT-Fed and a few others provided a lot of information and I'm hoping they'll contribute here as well.
 
My case for example:
Served 6 years and have received my "estimated Earnings During Military Service" document or RI 20-97 form for submission to HR. Adding the time up gives a $ estimate of roughly $180,000 for that time served.
 
I came straight into the civil sector (GS) while on terminal leave without a break in service and have been employed for almost 4 years.
 
My question for the gurus:
- Is it worth it to buy back this time? $ wise overall.
 
- How in the world do you plug those 'guesstimates' into the retirement calculator to see what you could potientially be making at retirement?
 
- How will this affect my overall retirment from civil service? Does it just mean that I can retire 6 years earlier.... ie, I've got 6 years credited to government retirement right?
 
They gave me credit for my Service Computation Date.
 
Thanks in advance & Trolls, please be respectful. If you have something to contribute please do so. If not, don't bother posting.
War Eagle2012-03-14 04:55:55
Knight  
#2 Posted : Tuesday, March 13, 2012 9:38:03 PM(UTC)
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If you can afford it do it. It adds the 6 years to your GS time and yes you can retire 6 years earlier.
rabbitdog99  
#3 Posted : Tuesday, March 13, 2012 11:49:19 PM(UTC)
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I could be wrong,
but I don't think you can count military time toward the service time you need to qualify for retirement.  Only civilian service time is used to calculate when you can retire.  Military time only counts when calculating your retirement pay.  It's usually worth it to buy it back.  I think the only time
you might come out better not doing it is if you were a very high rank in the military and a very low rank in civilian service.


 


You might want to post this down in the Retirement Planning forum.


War Eagle  
#4 Posted : Wednesday, March 14, 2012 12:00:38 AM(UTC)
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Good point from both of you and perhaps a moderator would consider moving it there.
 
Thanks for the info Knight. I'll have to pull the trigger and just do the buy back.
Rocky Run  
#5 Posted : Wednesday, March 14, 2012 6:40:38 AM(UTC)
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Of course you can.  The only purpose for those with active duty military time but who didn't retire is to get that time carried over for the civil service retirement.  It's based on a percentage of your total earnings in the military, and you have 3 years from the start of your civil service career to pay it interest free.  After 3 years there is interest.  I'm currently paying off my 11 years active duty time by allotment every pay period, timed to be paid off when I reach my MRA.
Ken  
#6 Posted : Thursday, March 15, 2012 11:26:04 AM(UTC)
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How much did they say you have to pay to buy back?
War Eagle wrote:
Howdy forum, I've read the thread about military buy back for retirees but wonder about those of us that separated with a few years service. IT-Fed and a few others provided a lot of information and I'm hoping they'll contribute here as well.
 
My case for example:
Served 6 years and have received my "estimated Earnings During Military Service" document or RI 20-97 form for submission to HR. Adding the time up gives a $ estimate of roughly $180,000 for that time served.
 
I came straight into the civil sector (GS) while on terminal leave without a break in service and have been employed for almost 4 years.
 
My question for the gurus:
- Is it worth it to buy back this time? $ wise overall.
 
- How in the world do you plug those 'guesstimates' into the retirement calculator to see what you could potientially be making at retirement?
 
- How will this affect my overall retirment from civil service? Does it just mean that I can retire 6 years earlier.... ie, I've got 6 years credited to government retirement right?
 
They gave me credit for my Service Computation Date.
 
Thanks in advance & Trolls, please be respectful. If you have something to contribute please do so. If not, don't bother posting.

War Eagle  
#7 Posted : Thursday, March 15, 2012 7:12:58 PM(UTC)
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Ken, I'm not sure yet as I haven't sent the document to HR.
Philly19803  
#8 Posted : Tuesday, May 01, 2012 8:08:50 PM(UTC)
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Unless you retire from the military, I would recommend buying back your military time in almost all circumstances when you get a federal job.  This will result in a bigger check whey you retire.  Keep in mind I am a big believer in sacrificing today for a bigger benefit tomorrow.
 
 
MathDoctor  
#9 Posted : Tuesday, May 01, 2012 8:35:26 PM(UTC)
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You would have to pay 3% of your earnings. According to the estimate you provided, that means you would have to pay approximately $5,400.  For the credit of six years of service, you would get this back in additional retirement pay in under 2 years, as long as your high-3 average was at least $41,000 per year.

This seems like a very good deal.
daddygo1  
#10 Posted : Monday, May 07, 2012 2:41:20 PM(UTC)
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My circumstance may not apply to fers. but when   i retired as CSRS I did not pay back my military time and at age 62 they reduced my retirement by $200 dollars per mont. "catch 62" In return I started receiving $250 SS.
bozo  
#11 Posted : Friday, May 11, 2012 2:22:09 AM(UTC)
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ALWAYS buy your time back...Forget about the money, you get to retire that much earlier...Thumbs Up
Fed1969  
#12 Posted : Friday, May 25, 2012 9:17:15 PM(UTC)
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daddygo1 wrote:


My circumstance may not apply to fers. but when   i retired as CSRS I did not pay back my military time and at age 62 they reduced my retirement by $200 dollars per mont. "catch 62" In return I started receiving $250 SS.
 You would have received the $250 Social Security even if you had paid back your military time.
daddygo1  
#13 Posted : Saturday, May 26, 2012 12:23:27 AM(UTC)
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I knew I would have gotten the 250 ss.  my point was it cost me $200 per month for not making the deposit.Dead

Fed1969  
#14 Posted : Wednesday, May 30, 2012 5:51:24 AM(UTC)
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daddygo1 wrote:

I knew I would have gotten the 250 ss.  my point was it cost me $200 per month for not making the deposit.Dead

 For 20 years this is $48,000 in lost benefits.  How much id they want you to pay back?
martyb  
#15 Posted : Wednesday, May 30, 2012 9:29:02 AM(UTC)
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daddygo1 wrote:

I knew I would have gotten the 250 ss.  my point was it cost me $200 per month for not making the deposit.Dead



Hey daddygo1, how's it going? :)  Honestly, the biggest thing it cost you by not buying back your time under CSRS is the additional 2% per each year of time you'd have bought back.  In other words, and I know you know this but I'm saying it for the benefit of others, if you had 4 years active duty, and bought that time back, you would have increased your pension by an additional 8% FOR LIFE.  That's the biggest reason, by far, to buy back your time.  In my case, I will be increasing my CSRS pension by 9% since I have 4 1/2 yrs active duty.  My biggest regret was not buying it back early in my career when it would have cost me around $1500.  Instead, I had to write a check for $8236.  Even then, it was WELL worth it.  I'll make that money back in less than 2 years after retiring.  For FERS folks, you will ad 1% for each year of active duty time you "buy back".  It is WELL worth it.  Do it before the interest starts acrruing for best results, but either way, just do it...it's mucho money in your pocket!!!!  There is NO downside.
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