Phild, I would like to add, from the retirement side, making a CSRS redeposit is something you should consider based on when the service of the refund occurred. If you have refunded service prior to March 1, 1990, the redeposit is not necessary as this time counts for both eligibility and computation. Since there is no money in the retirement fund to represent that service, OPM calculates an actuarial reduction in your annuity, meaning they spread out what is owed based on the life expectancy tables. To compute the monthly reduction you would divide the refunded amount plus applicable interest by the present value factor for the your attained age in full years at the time of retirement. For example, if you owe $25,000 (principle + applicable interest) and you are age 66, they would reduce your monthly retirement check by $133.05. In this example, you will be 81+ when this money is paid back. Yes, the reduction is for life, but instead of coming up with $25,000, you take the $133.05 per month reduction. And, this does not reduce any survivor benefit entitlement you might elect for an eligible spouse. Now, if your refunded service ended on or after March 1, 1990, that is a different matter because the time will only count to make you eligible to retire however it will NOT be used in calculating your retirement. In your case, you need to have the math run paying and not paying the redeposit to decide which is best for you.