To avoid a reduction in your civil service annuity at age 62, you must 
make a deposit to the retirement system.

An impact on your CSRS retirement annuity at age 62…

If you are a CSRS employee first hired before 10/1//82 with military service after 12/31/56 who will be eligible for your own earned Social Security benefit at age 62 -- your civil service annuity will be reduced at age 62 regardless of whether or not you apply for or receive a Social Security benefit - if you do not make a deposit for your military service.

How much is your military deposit?

As a CSRS employee, you owe a deposit equivalent to 7% of your total basic pay earned while on active military duty plus accrued interest ranging from 3 to 13% (click here for the table) for each year of your civil service in which you have an unpaid deposit due - after your initial 2 years of civil service. (Note: Your first two years are interest free.) A $3,000 deposit that you owed in 1987 could become $6,952 15 years from now.

How do you make a military deposit?

First step - contact your benefits counselor. Your benefits counselor will assist you in requesting a statement of your earnings from the Defense Finance and Accounting Service. Upon receipt, this statement will be posted in your official personnel folder. If you wish to make a deposit your payroll office will then compute your total deposit. You may choose to pay this amount in a lump sum or through biweekly deductions from your pay.

If you plan to delay making a deposit…

Although you may make a deposit up until the day you retire, the longer you delay in making a deposit - the more your deposit will be…perhaps thousands of dollars more! If you wait until just before you intend to retire to make a deposit-you may not be able to afford to make the deposit and you may be unable to retire as planned.

Finally…

We understand that making a deposit is not something that you will look forward to. However, our experience with potential retirees is that they are very happy that they “took the plunge” early-on and made the military deposit.

Please contact your benefits counselor-- if you have any questions or need assistance.