For many veterans in federal service, military buyback is one of the most powerful retirement decisions available.
Done correctly, it can permanently increase your FERS pension for life.
If you want to compare your pension with and without buyback:
https://fersfree.com
What Is Military Buyback?
Military buyback allows you to:
Convert active-duty service into creditable civilian service for your FERS pension
Example:
- 20 years civilian
- 4 years military
- = 24 years total service
How It Increases Your Pension
FERS Formula:
High-3 × Years of Service × Multiplier
Buyback increases your years of service → increases your pension.
Example
- High-3: $110,000
- 20 years service
- 4 years military
Without buyback:
= $22,000/year
With buyback:
= $26,400/year
Increase = $4,400/year
Break-Even Example
If buyback costs $8,000:
$8,000 ÷ $4,400 ≈ 1.8 years
After that, it’s profit for life.
When It’s Worth It
- Multiple years of service
- Long federal career ahead
- Strong high-3 salary
- Low or moderate deposit cost
When to Think Carefully
- Short federal career
- High interest on deposit
- Near retirement with limited cash
VA Disability Impact
VA disability usually does NOT reduce your FERS pension.
You can often stack:
- FERS
- VA disability
- TSP
- Social Security
5 Common Mistakes
- Waiting too long (interest grows)
- Focusing only on cost
- Ignoring lifetime value
- Missing service records
- Not modeling scenarios
What to Do Next
Compare:
- With vs without buyback
- Break-even timing
- Retirement eligibility changes
Disclaimer
Educational only. Confirm with HR/OPM before making decisions.