Military buyback counts as creditable service for FERS contribution amount?

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I am getting off of active duty after 14 years 2005-2018). If I enter federal service under FERS and buyback my active duty service with a deposit, is that time considered eligible service for a lower FERS contribution rate (ie .8% versus 4.4% for a civilian appt after 2014)?

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Asked on July 10, 2018 9:57 pm
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Unfortunately not because what determines whether you are FERS, FERS RAE or FERS FRAE is when you began your first federal civilian position, which in your case would be 2018, which means you would fall under the FERS FRAE rules. By making the military service deposit, you will be adding creditable service time for retirement eligibility and computation purposes.

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Answered on July 11, 2018 2:47 pm

Doesn’t this determination based on when the Veteran first began ‘civilian” service, contradict the intent of the Veterans’ Preference Act (VPA)? That special consideration will be given in their efforts to obtain Government employment. Routine verbiage associated with explaining VPA is that “The Act would help ensure that veterans obtain or regain an economic position they otherwise would have attained had they not served in the armed forces. Veterans having to pay a higher FERS contribution than another federal employee with the same total years of government service seems to ignore the intent of the VPA.

( at April 1, 2019 11:11 pm)
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Private answer

I can only quote you the regulation and it is very specific. The VPA is not being ignored as during that time you paid into Social Security and that will be increasing your overall Social Security benefit. Since you were not a civilian within federal service prior to 2013, the new FERS rates apply.

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Answered on April 1, 2019 11:24 pm