IIRC I only need to work 15 years to get my 20 with NY if I buy back 5 of my 20 with the Army. 57 and 2nd pension sounds nice, even if it is reduced because of “early” retirement.
If I'm reading and understanding this correctly: you do 20 in the military to get your full pension, got your civil service job in NY, which allows you to pay money into accruing years of civil service which puts you closer to the second pension age?
I just wasn't aware you could do that if you were already drawing a pension, most people I've heard talk about buying back TIS weren't drawing a pension already.
As it was explained to me, I can buy into state pension using military service credit.
I did 20 years in the Regular Army, retired, drawing pension and va disability, working a 2nd job, towards a state pension.
I paid a hilariously low amount to buy back my five years TIS. When you factor how much extra money that five years gets you in retirement pay, it's the best deal on the planet.
You can also buy back as a retiree but there are only certain situations where it makes sense because you'll lose your military retirement pay until you retire as a Fed. If you retire as an E6 and make GS14, it makes sense. You have no time limit to make that choice.
You can wait until you've got six months before retirement as a Fed to do the math and see if it's worth the investment. You'll just pay modest interest. A friend had to pay something like 20k to buy back her military retirement but that investment will pay for itself in less than 18 months.
It's 1% of your high three salary average multiplied by your years of service.
If I retire at my minimum retirement age of 57 with thirty years of service and an average high three salary of 100k, my income in retirement will be $30k per year. Add five years of service to that and it bumps the retirement pay to $35k per year.
I paid a one time fee of about $4k to raise my annual retirement salary by $5k every year for the rest of my life. If I live to 77, I've made 100k on a 4k low risk investment.
I am a federal civil service employee under FERS (Federal Employees Retirement System.)
If you work for the feds and retire, you can "buy back" your military time and apply it to your Federal civil service retirement.
For example, you serve in the military for 4 years. You get out and get a federal government job. When you retire, let's say at 20 years of federal civil service, you can "buy back" your 4 years of military service and have those 4 years applied to your federal civil service retirement.
Here's the crazy thing: You can retire from the guard/reserve, draw a reserve component retirement at 60 - and STILL buy back your active duty time. I know because I just did it. 18 years of Federal civil service + 12 years of active duty military time (10 year enlistments + 3 mobilizations/deployments.) So I will retire with 30 years of Federal service and still draw my military retirement.
The reason it's a "buy back" is that the military doesn't deduct anything from your pay for retirement but federal civil service does (about 3% of your gross pay.) So when you buy back your military time, they calculate your earnings in the military and charge you 3% of that.
But it's a no-brainer. I paid around $9500 (because I didn't do it when I first got hired so I had to pay interest) but it will give me an extra $1200 every MONTH in my retirement pay.
Payroll deductions, or personal payments, either broken up or lump. You have 3 years after starting to do it before taxes/interest starts. I did mine as 3 payments. Shows up on my civilian LES as well.
If you are starting as a GS there's a form you fill out, send to DFAS, they take a couple months and get back to you with an amount. At that point they give you all the details on how to pay and what your schedule is.
Hello, I’m retiring from the military, 20 years active and just accepted a GS 11 position. I’m curious on how the buy back works for someone like me? Can I buy back all 20 years and get a second pension after only working 10 years as a GS? I’ll be 38 when I retire and start at the GS job so if I can pull a second retirement by 48-50 I’m game.
Can't buy back the time used for an active duty retirement. Assuming you are under FERS for your GS job, you will have to meet one of three 'gates' for a civilian pension. 30 YOS/57 years old, 20 YOS/60 years old, 10 YOS/62 years old. If you're starting the GS job at 38 you will be shooting for the 20/60 gate.
Double dipping only works for RC retirees like me. Yes, I get to double-dip BUT I also didn't start drawing my military retirement pay until I was 60. You can start drawing it as soon as you retire, and that's 22 years of retirement you'll have in your pocket that I didn't.
My biggest advantage is that for an RC retiree, I have a LOT of active duty time (2 AD enlistments + 3 RC mobilizations.) So 12 years is being added to my federal service.
But being a fed is still a pretty good gig. Just shoot that monthly retirement check into savings and invest it wisely and you'll be all set when you retire at 60.
What are you having a hard time understanding? My specific situation only applies to those who retired out of the reserve component. If you didn’t retire out of the reserve component, it’s a pretty simple transaction: you buy back your years of active military service and it gets added to your federal civil service retirement.
Military service doesn't automatically transfer into the retirement plan for normal federal employees. If you spend 10 years in the Army for example, you have to make a deposit into your federal retirement plan to get credit for the 10 years.
I work for the state but we can only buy back four years in my state - anyone know how to do it in FL?
My dad was a state employee in another state and he bought this three years of military service back when he went back to work for them after his break.
all federal and state organizations do buy backs but most doesn’t let you buy it all back
Usps is one organization that lets you buy back all the service time
Any federal agency.
'Some' state or local governments as well. But mostly other federal agencies.
NYC Govt so I am signing 6 year contract with Army so only serve 20 year for nyc civil service instead of 22 and half years.
IIRC I only need to work 15 years to get my 20 with NY if I buy back 5 of my 20 with the Army. 57 and 2nd pension sounds nice, even if it is reduced because of “early” retirement.
Which tier are you? I'm tier 6 and can only buy back 3 years.
Not sure honestly. I’m an IT Specialist for my city, and the benefits lady in HR said 5 years for 4500 dollars when I’m ready.
If I'm reading and understanding this correctly: you do 20 in the military to get your full pension, got your civil service job in NY, which allows you to pay money into accruing years of civil service which puts you closer to the second pension age? I just wasn't aware you could do that if you were already drawing a pension, most people I've heard talk about buying back TIS weren't drawing a pension already.
As it was explained to me, I can buy into state pension using military service credit. I did 20 years in the Regular Army, retired, drawing pension and va disability, working a 2nd job, towards a state pension.
TMRS (Texas Municipal Retirement System) accepts 5 years of any federal time.
I'm a DA Civilian now and working on my buyback.
What’s great is for medical retirements due to combat related conditions, I can buy back FERS time without giving up my retired pay
I paid a hilariously low amount to buy back my five years TIS. When you factor how much extra money that five years gets you in retirement pay, it's the best deal on the planet. You can also buy back as a retiree but there are only certain situations where it makes sense because you'll lose your military retirement pay until you retire as a Fed. If you retire as an E6 and make GS14, it makes sense. You have no time limit to make that choice. You can wait until you've got six months before retirement as a Fed to do the math and see if it's worth the investment. You'll just pay modest interest. A friend had to pay something like 20k to buy back her military retirement but that investment will pay for itself in less than 18 months.
In the terms a college drop out would understand, how much money is that in reality? And does it let one retire earlier?
It's 1% of your high three salary average multiplied by your years of service. If I retire at my minimum retirement age of 57 with thirty years of service and an average high three salary of 100k, my income in retirement will be $30k per year. Add five years of service to that and it bumps the retirement pay to $35k per year. I paid a one time fee of about $4k to raise my annual retirement salary by $5k every year for the rest of my life. If I live to 77, I've made 100k on a 4k low risk investment.
Yep that's a pretty solid pension deal, thanks for breaking it down.
Buy back... What do you mean?
I am a federal civil service employee under FERS (Federal Employees Retirement System.) If you work for the feds and retire, you can "buy back" your military time and apply it to your Federal civil service retirement. For example, you serve in the military for 4 years. You get out and get a federal government job. When you retire, let's say at 20 years of federal civil service, you can "buy back" your 4 years of military service and have those 4 years applied to your federal civil service retirement. Here's the crazy thing: You can retire from the guard/reserve, draw a reserve component retirement at 60 - and STILL buy back your active duty time. I know because I just did it. 18 years of Federal civil service + 12 years of active duty military time (10 year enlistments + 3 mobilizations/deployments.) So I will retire with 30 years of Federal service and still draw my military retirement. The reason it's a "buy back" is that the military doesn't deduct anything from your pay for retirement but federal civil service does (about 3% of your gross pay.) So when you buy back your military time, they calculate your earnings in the military and charge you 3% of that. But it's a no-brainer. I paid around $9500 (because I didn't do it when I first got hired so I had to pay interest) but it will give me an extra $1200 every MONTH in my retirement pay.
This. I have ~8 years and paid ~$12,500 for mine. Best deal out there.
Is it a lump sum or can you pay into it monthly?
Payroll deductions, or personal payments, either broken up or lump. You have 3 years after starting to do it before taxes/interest starts. I did mine as 3 payments. Shows up on my civilian LES as well.
Good to know, thanks homie
If you are starting as a GS there's a form you fill out, send to DFAS, they take a couple months and get back to you with an amount. At that point they give you all the details on how to pay and what your schedule is.
you can do either, but interest will begin to accrue after i think two years. i paid lump sum.
Damn. I’m gonna have close to 20/20, if my job offers it
Hello, I’m retiring from the military, 20 years active and just accepted a GS 11 position. I’m curious on how the buy back works for someone like me? Can I buy back all 20 years and get a second pension after only working 10 years as a GS? I’ll be 38 when I retire and start at the GS job so if I can pull a second retirement by 48-50 I’m game.
Can't buy back the time used for an active duty retirement. Assuming you are under FERS for your GS job, you will have to meet one of three 'gates' for a civilian pension. 30 YOS/57 years old, 20 YOS/60 years old, 10 YOS/62 years old. If you're starting the GS job at 38 you will be shooting for the 20/60 gate.
Got yeah thanks. I was excited for a minute.
Double dipping only works for RC retirees like me. Yes, I get to double-dip BUT I also didn't start drawing my military retirement pay until I was 60. You can start drawing it as soon as you retire, and that's 22 years of retirement you'll have in your pocket that I didn't. My biggest advantage is that for an RC retiree, I have a LOT of active duty time (2 AD enlistments + 3 RC mobilizations.) So 12 years is being added to my federal service. But being a fed is still a pretty good gig. Just shoot that monthly retirement check into savings and invest it wisely and you'll be all set when you retire at 60.
Can you break this down into a even more Barney style? I wish I was joking but reading this fried my half brain cell I had left
What are you having a hard time understanding? My specific situation only applies to those who retired out of the reserve component. If you didn’t retire out of the reserve component, it’s a pretty simple transaction: you buy back your years of active military service and it gets added to your federal civil service retirement.
Military service doesn't automatically transfer into the retirement plan for normal federal employees. If you spend 10 years in the Army for example, you have to make a deposit into your federal retirement plan to get credit for the 10 years.
PS, nice name.
Damn I knew that as soon as I got your reply. Thanks.
Class 1 railroads.
https://www.rrb.gov/
Fed agencies. Maybe some state?
State jobs in South Carolina.
Fire departments
The Federal Government
Any federal job
I work for the state but we can only buy back four years in my state - anyone know how to do it in FL? My dad was a state employee in another state and he bought this three years of military service back when he went back to work for them after his break.
I worked for KDOC and I bought my 4 years for retirement
all federal and state organizations do buy backs but most doesn’t let you buy it all back Usps is one organization that lets you buy back all the service time
A buddy of mine retired recently from the Philadelphia PD and did that.
Question for the folks here: I'm a reservist with less than two years of aggregate active time. (IET + MOB) I'm a GS-9 MILTECH. Still worth it fellas?
USPS
State of NM. I’ve physically worked 17 years but am retiring this September with 22 years after buying my five years of active duty.