Can I Count Military Service Toward FERS Retirement?

Yes, military service can be counted towards your Federal Employees Retirement System (FERS) retirement, for a fee. If you have performed honorable active duty military service, you may be eligible to make a deposit to your FERS retirement account to receive credit that will be used to calculate your total years of service (YOS).

Remember to gather all necessary documentation of your military service, such as your DD-214 form, to provide as evidence when processing the military service credit deposit.

The FERS and Military Service

YOU MAY BE ELIGIBLE FOR CREDIT

Generally Understanding

To count your military service towards your FERS retirement, you will need to make a deposit into your FERS retirement account. The deposit for military service credit in the Federal Employees Retirement System (FERS) is actual money that you need to pay to receive credit for your military service towards your federal civilian retirement.

What is the Deposit For?: The deposit represents the contributions you would have made to your FERS retirement account if you had been employed by the federal government during the time you served in the military. This deposit is typically a percentage of your military pay during the time of your service. The specific percentage varies depending on when you performed your military service. (See chart below)

MILITARY SERVICE CREDIT DEPOSIT

Click on the "Military Deposit Information" chart to enlarge

Eligibility: In order to be eligible to make a deposit for your military service, you must have been honorably discharged from the military and have a civilian federal service appointment.

Impact on Retirement Benefits: Once you make the deposit and the military service is credited, it will factor into your total years of service used to calculate your FERS retirement benefits. This could potentially increase your length of service and, consequently, the amount of your retirement benefit.

Effecting Pension Calculation: The way your military service affects your FERS pension calculation depends on various factors, including the length of your military service and the timing of your deposit. Military service credit can affect both your length of service calculation and your High-3 Average Salary calculation, which are important components of your FERS annuity.

Eligibility, Impact & Pension Calculation

GETTING THE DETAILS

Step One - Find Estimated Earnings: You can obtain your Estimated Earnings by submitting RI 20-97 to your Military Finance Center, which will return a detailed breakdown of your basic pay for each year you served.

Step Two - Deposit Percentage: Check the chart earlier on this page—or the PDF provided HERE—to find your exact deposit percentage.

Step Three - Add Up Your Total: Your total military deposit is the sum of each year’s deposit, so calculate the percentage for every year you served separately and then combine the totals. Check the example for reference.

Calculating Your Military Deposit

IMPORTANT INFORMATION NEEDED TO CALCULATE YOUR DEPOSIT

Click to enlarge

Planning the right moment to retire under the Federal Employees Retirement System (FERS) is one of the most important decisions a federal employee will make—and it’s not always simple. Between Minimum Retirement Age (MRA) rules, service-year requirements, early-out options, and special provisions, understanding when you’re truly eligible to retire can feel overwhelming. FERS Consulting helps federal employees cut through the confusion by providing clear, accurate, and personalized guidance, so you can confidently map out your retirement timeline and make informed decisions about your benefits and financial future.

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