If you have military service or certain prior federal service that isn’t currently counting toward your FERS retirement, you may be able to receive retirement credit by making a service credit deposit or redeposit.
The payment process, however, isn’t as simple as sending money to OPM. You first need to establish that the service qualifies, determine what you owe, and obtain the billing information needed to make the payment through Pay.gov.
Start by Determining What Kind of Payment You Need
The terms deposit and redeposit refer to different situations.
A deposit generally applies when retirement deductions were not taken from pay for otherwise eligible service. Military service is one common example.
A redeposit generally involves retirement contributions that were previously deducted from your pay and later refunded to you, often after you left federal employment.
The rules can vary based on the type and dates of the service, so determining which category applies is an important first step.
Don’t Go Straight to Pay.gov
Pay.gov is where the payment is made, but it isn’t where you determine whether your service qualifies or how much you owe.
For a current FERS employee, the process generally begins with your agency’s benefits or personnel office. You submit the appropriate request for a deposit or redeposit, and OPM determines the amount due.
Once OPM provides the billing information, you can make the payment through the appropriate Pay.gov form.
Current employees use the Active Employee Service Credit Deposit form and need the seven-digit CSD number listed on the OPM billing statement, Form RI 36-23. Retirees use a separate Pay.gov form and generally need their CSA or CSF claim number.
Some Service Cannot Be Bought Back
A FERS deposit isn’t a way to make any period of uncovered federal service count toward retirement.
One important restriction involves certain civilian service performed on or after January 1, 1989, when FERS retirement deductions were not withheld. That service generally cannot become creditable simply by making a deposit.
Military service is subject to different rules. Certain periods of active-duty military service may qualify for FERS retirement credit if the required deposit is paid and the applicable eligibility requirements are met.
That’s why it’s important to have your agency benefits office review the service before making a payment.
The Process in Four Steps
If you believe you have service that could increase your FERS retirement credit:
- Ask your agency benefits office to review the service.
- Determine whether a deposit or redeposit is required.
- Wait for OPM’s official billing information and payment instructions.
- Use the appropriate Pay.gov form and enter the account information from OPM.
Starting the process before you retire can also give you more time to understand the cost and potential retirement benefit.
Why the Details Matter
A correctly completed service credit deposit can turn otherwise uncredited eligible service into additional FERS retirement credit. But eligibility, payment amounts, and documentation all matter.
Using the wrong Pay.gov form, entering incorrect billing information or assuming that a particular period of service qualifies could delay the process or create additional work later.
If you’re unsure whether your military or prior federal service qualifies, a Federal Retirement Consultant (FRC®) can help you understand the questions to ask and the steps involved before you make a payment.
