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The Military Buyback Program is a benefit for all veterans with active duty military service time to receive credit for their military service time to be added to their years of civil service with the government and increases their retirement annuity.
The formula for how much the buyback will cost you would be the total amount of base pay received while in the military and not contributing to retirement, and multiplying this by 3% if in FERS, or 7% if in CSRS.
Buying back your military years can increase your creditable years of service, which can increase your retirement pension, providing you with more money for the rest of your life.
Your Federal Pension is determined by your High-3 Salary, your Years in Service and your CSRS or FERS Pension Multiplier. If you buy back your military time it will increase your Years in Service. And the more Years in Service you have, the larger your pension will be.
The Military Buyback Program is a benefit for all veterans with active duty military service time to receive credit for their military service time to be added to their years of civil service with the government and increases their retirement annuity.
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Payment can be made online via Pay.gov using checking and saving (ACH) account information, bank branded debit card, or PayPal (linked to checking and saving account only -ACH). Additional instruction on how to process payments is available through the DFAS Military Service Deposit (MSD) Payment eTutorial on YouTube.
Can I Buy Back Military Time After Retirement? No, you can not buy back military time after you retire. It has to be done while you are a federal employee.
The DFAS cannot provide estimated earnings without verification of your active duty service. Use a separate form RI 20-97 if you had military service in a different branch of service. The uniformed services must provide Federal employees estimated basic pay for military service they performed after December 31, 1956.

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