Many veterans who become federal employees ask the same question:
Can I receive both military retirement and a FERS pension?
The answer is: sometimes yes, sometimes no—it depends on your situation.
Understanding how these systems interact is critical before making decisions like military buyback or retirement timing.
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The Short Answer
There are two main scenarios:
- You keep your military retirement and earn a separate FERS pension
- You give up military retirement in order to combine your service into FERS
The right choice depends on your goals and your numbers.
Scenario 1: Keep Military Retirement and Earn FERS
In many cases, you can:
- Receive your military pension
- Earn a separate FERS pension
- Withdraw from TSP
- Collect Social Security
This creates multiple income streams in retirement.
Example
- Military retirement: $2,500/month
- FERS pension: $3,000/month
- TSP: $1,500/month
Total: $7,000/month
Scenario 2: Military Buyback (Combining Service)
Military buyback allows you to:
- Add military service to your FERS pension
- Increase your total years of service
However, there is a major tradeoff.
The Big Rule
If you are receiving military retired pay, you generally must:
Waive (give up) that military pension
to use that same time toward your FERS pension
When You Do NOT Have to Waive Military Pay
You can usually keep your military retirement if:
- It is Reserve or National Guard retirement
- It is based on non-regular service
- Certain disability retirements apply (case-specific)
These cases allow you to double-dip legally.
When You MUST Waive It
You typically must waive military retired pay if:
- You are an active-duty 20-year retiree
- You want to use those same years for FERS calculation
This is a major decision.
Example Comparison
Option A: Keep Military Retirement
- Military pension: $2,500/month
- FERS (20 years): $2,500/month
- Total: $5,000/month
Option B: Buy Back Military Time
- Combined service: 24 years
- FERS pension increases
But:
- You lose the $2,500/month military pension
Which Option Is Better?
It depends on:
- Your military pension size
- Your high-3 salary
- Years of service
- Retirement age
- Long-term income goals
In many cases, keeping both separate pensions is better for full military retirees.
Why Buyback Still Matters
Even if you keep military retirement, buyback may still:
- Help with eligibility timing
- Increase pension if no military pension exists
- Benefit those who did not retire from the military
5 Common Mistakes
- Assuming you can always combine both
- Not understanding waiver requirements
- Ignoring reserve vs active-duty differences
- Not comparing both scenarios
- Making the decision without calculations
Key Takeaway
- You can combine military and FERS income, but
- You cannot usually count the same years twice
The decision is not automatic—it requires analysis.
What to Do Next
Compare:
- Keep military retirement vs buyback
- Pension differences
- Total retirement income
Disclaimer
This article is for educational purposes only. Rules around military retirement and FERS can be complex. Always verify your situation with HR, DFAS, and official sources before making decisions.