Should I Complete a Service Credit Deposit for Post-1956 Military Service?
A deposit for qualifying military service is optional and may benefit your retirement; however, YOU must take the first step! Interest on the deposit begins to accrue after two years of initial career Federal service, so it is to your advantage to begin the process now rather than later in your career.
If you were first employed under CSRS before October 1, 1982, credit for your Post-1956 Honorable active duty military service will be applied as follows:
n If you are not eligible and will not be eligible for Social Security at age 62, you receive full credit for your Post-1956 military service;
n If you are eligible for Social Security (or will be eligible at age 62), and you do not pay a deposit to USPS® prior to your retirement, you will receive full credit for your Post-1956 military service until you reach age 62. At that time, your credit for military service will be removed causing your civil service annuity to be reduced 2% for each year of military service;
n If you are eligible for Social Security (or will be eligible at age 62), and you do pay a deposit, plus any incurred interest, to USPS prior to your retirement, you will receive lifetime credit for Post-1956 military service.
If you were first employed under CSRS after October 1, 1982, you will receive full credit for your Honorable active duty military service (if you are not retired military) only if you pay a deposit, plus any incurred interest, to USPS before you retire.
If you were first employed under FERS, credit for your Honorable active duty military service will be applied as follows:
n If you do not make a deposit, plus any incurred interest, for all Honorable active duty military service that occurred after 1957, you will not receive credit toward eligibility to retire or in the computation of your FERS annuity.
n If you are military retired, you will receive credit in the computation of your FERS annuity for all Honorable active duty military service that occurred before 1957 without making a deposit.
If you are in receipt of military retired pay, military service is not creditable unless:
n It was awarded due to a service-connected disability incurred in combat;
n Caused by an instrumentality of war and incurred in the line of duty during a period of war; or
n Awarded under reserve retiree provisions under Chapter 67, Title 10, USC; or
n You “waive” your military retired pay.
All Service Credit Deposits for Military Service Must be Paid in Full Prior to Your Separation/Retirement Date.
Information concerning Military Service Credit toward Retirement under CSRS and FERS can be found at the following websites:
n https://liteblue.usps.gov/humanresources/home.shtml by selecting My HR, On Military Duty, Performing Military Duty, Leave Information and/or Military Service Credit.
n https://liteblue.usps.gov/wps/myportal/workforceconnection by selecting Planning for Retirement, Roles, Military Employee
— Compensation, Labor Relations, 10-17-13
