As you may know, many federal employees are thinking ahead and planning for retirement, especially during times of life-changing events. You may find that your active-duty military service performed after December 31, 1956, is creditable toward the Civil Service Retirement System (CSRS), CSRS Offset and Federal Employees Retirement System (FERS). Please take the opportunity to read the information below to determine whether your federal retirement benefits are affected by your military service.
Applying for Military Service Deposit
If you decide that you want to make a military service deposit, you will need to do the following:
- Request your military earnings statement using the RI 20-97 (Estimated Earnings During Military Service) form from the Defense Finance and Accounting Service (DFAS) or the Coast Guard Retiree and Annuitant Services (RAS) for prior Coast Guard individuals.
- Upon receipt of your military earnings statement, submit that statement with your Application to Make Deposit or Redeposit form (CSRS SF-2803) or Application to Make Service Credit Payment form (FERS SF-3108) and your DD 214 to CBP Payroll via email at firstname.lastname@example.org.
- The payroll office will then contact you with the invoice of what is due to make your military deposit and the payment options to make the deposit.
Once you have received your military earnings estimate from the Military Finance Center, you must fill out and submit the appropriate form.
- If you are covered under CSRS/CSRS-Offset, complete SF-2803 (Application to make Deposit or Redeposit).
- If you are covered under FERS, complete SF-3108 (Application to make Service Credit Deposit).
Send the completed form along with your estimated earnings statement and all DD214s (or equivalent) to the U.S. Customs and Border Protection, Payroll Branch, at the following address:
U.S. Customs and Border Protection
National Finance Center
P.O. Box 68903
Indianapolis, IN 46268
The U.S. Customs and Border Protection, Accounting Services Division, will provide you with the amount of the required deposit and will explain the options for payment. If you have any questions concerning the deposit amount or payment of the deposit, contact the National Finance Center, Payroll Branch at 317-298-1305.
Once the payments are completed or you have made the lump sum deposit, U. S. Customs and Border Protection Payroll Branch-Military Deposits, will forward you a copy of your "Paid in Full" proof of your completed payment directly to you. You will want to maintain your copy in a safe and secure place. CBP Payroll and the Processing Servicing Center (PSC) will work together to update your Service Computation Date (SCD) and ensure your records are filed in your e-OPF for future use and reference. Upon retirement, attach a copy of that document to your retirement application to help speed up the processing of your retirement.
Note: If you are a CSRS employee and are not going to make a military deposit, you will be required to complete OPM Form 1515 (Military Service Deposit Election) to be included with your retirement application.
Waiver of Military Retired Pay
If you are receiving military retirement pay based on active-duty service, you may be eligible to combine your military service with your CSRS or FERS service to form one annuity. To combine your military service with your civilian service, you must waive your military retired pay. You will also have to pay the post-56 military deposit. In some cases, this may result in a higher total benefit than continuing to receive a separate military pension and a CSRS or FERS annuity.
A retirement counselor can create annuity estimates for you that will show you whether you would benefit from combining your military retirement pay with your federal retirement pay rather than leaving the two pensions separate. You can select the formula which gives you the most money.
Waiver requests should be submitted at least 90 days before your retirement.
For estimates and procedures on waiving military retirement pay, call 202-325-6180.