A military deposit is a payment made to the civilian retirement fund to allow creditable military service to be used towards retirement eligibility and annuity computations. A deposit can be made for service performed after the year 1956 in the Army, Marines Corps, Navy, Air Force, Coast Guard and certain types of service with the National Oceanic and Atmospheric Administration and the Public Health Service.
Military service is creditable towards civilian retirement if:
- The military service was performed before the date of separation upon which title to an annuity is based;
- It was active duty;
- It was not included in the computation of military retired pay, or if it was included in retired pay, the retired pay was awarded based on disability incurred in combat with an enemy of the United States or caused by an instrumentality of war and incurred in the line of duty during a period of war; or granted under the provisions of Chapter 67, Title 10, of the U.S. Code (Reserve or National Guard retirement).
- It was honorable service;
- A deposit is made for Post-56 military service.
CSRS Employees
CSRS employees hired prior to 10/01/1982, will not need to make a military deposit if they will not be eligible to receive Social Security benefits. Any creditable military service will be used towards retirement eligibility and in the computation of their annuity.
CSRS Employees hired prior to 10/01/1982, who are not eligible for Social Security at retirement, but become eligible at age 62, may use their military service for retirement eligibility and annuity computation until age 62. At age 62, credit for the military service is eliminated and the annuity is recalculated to reflect only creditable civilian service. If a military deposit was made prior to retirement, the military service will continue to be used in the annuity computation.
Regardless of Social Security eligibility, CSRS employees first hired on or after 10/01/1982, must make a military deposit to receive credit for retirement eligibility and annuity computation.
The amount of the deposit is equal to 7% of military base pay earned, plus interest. The rate increases for military service performed in 1999 and 2000 to 7.25% and 7.4% of base pay respectively.
FERS Employees
FERS employees must make a military deposit to receive credit for retirement eligibility and annuity computations.
The amount of the deposit is 3% of the military base pay earned, plus interest. The rate increases for military service performed in 1999 and 2000 to 3.25% and 3.4% of the base pay and respectively.
FERS employees with a CSRS component are subject to CSRS military deposit rules.
Making a Military Deposit
Employees have 3 years from their first retirement covered position to make a deposit interest free. On the anniversary of the date of the third year, interest begins to accrue on the unpaid balance.
- Military deposits may potentially increase the amount of employees’ civilian annuity.
- Active duty retirees must waive their military retire pay once they receive their civilian annuity.
- A deposit for Academy service can be made without waiving military retire pay.
- Reservists do NOT have to waive their military retire pay once they receive their civilian annuity.
- Employees should complete the top portion of the RI20-97 and submit the form to the appropriate Branch.
- Employees should submit their completed RI20-97 to the Retirement and Benefits Service Center at Benefits@uscg.mil.
- Employees should also submit copies of their DD214’s and a signed SF3108 if they plan to make the deposit.
- Pages one and five of the SF3108 should be signed.
- Deposits can be paid by payroll deduction ($25.00 minimum/pp) or in a lump sum.
- Checks should be made out to the United States Coast Guard