If you were on active duty in the military and received an honorable discharge, your military service is potentially creditable under FERS (Federal Employee Retirement System) or CSRS (Civil Service Retirement System).
For employees covered by the Federal Employee Retirement System (FERS), which includes most new applicants for a BPA position, active-duty military service performed AFTER 1956, known as Post-56 military service, is creditable only if a deposit is made. The deposit required is three percent of your military earnings plus accrued interest. The amount of the buyback depends on how soon you begin repayment. Interest does not start to accrue until three years after your retirement coverage begins. Payment can be made in lump sum or over a period of time; minimum individual payment is $25. The full deposit must be made while you are an employee (before you retire). If you are retired military and you become an employee, you may wish to consult a retirement counselor to see if beneficial to combine your military retirement pay with your Federal Retirement pay rather than retaining the separate pensions. Those covered by the Civil Service Retirement System (CSRS) PRIOR to October 1, 1982 may receive credit for military service WITHOUT making a deposit. However, if you will be eligible for Social Security at age 62, or retirement, whichever is later, your retirement annuity will be reduced by eliminating all credit for post-1956 active duty military service UNLESS you make a deposit. Those who became subject to Civil Service Retirement System deductions AFTER October 1, 1982 will ONLY receive credit for active-duty military service IF Post-56 deposit is made.
For additional information on whether your military service is creditable towards federal retirement, how much you will have to pay back and procedures to make a military deposit, please visit the following websites.