If you have military service or certain older civilian service that isn’t currently counted toward your FERS retirement, you may need to make a FERS service credit deposit. But you can’t simply send OPM a payment and assume the service will be credited. There is a specific process, and one important limitation to understand first.
Deposit vs. Redeposit: What’s the Difference?
A deposit generally pays for eligible service during which retirement deductions were never withheld, such as certain military service.
A redeposit is different. It repays retirement contributions that were previously withheld from your pay and later refunded, often after you left federal service.
Both can potentially restore retirement credit, but the rules depend on the type and date of service.
You Don’t Just Send OPM the Money
This is where the Pay.gov process can be confusing.
First, you need to establish what service is eligible and how much you owe. For FERS employees, that generally starts with your agency’s benefits or personnel office. You submit the appropriate request for a deposit or redeposit, and OPM determines the amount due.
Once OPM provides the billing information, current employees can use the active employee service credit deposit form on Pay.gov. That form requires the seven-digit CSD number found on the OPM billing statement, Form RI 36-23.
Retirees use a separate Pay.gov form that requires their CSA or CSF claim number.
Not All Service Can Be Bought Back
A FERS service credit deposit isn’t a way to make every period of uncovered federal service count toward retirement.
One important limitation applies to civilian service performed on or after January 1, 1989, when FERS retirement deductions were not withheld. That service generally cannot be made creditable simply by paying a deposit.
Military service follows different rules. Certain active-duty military service can qualify for retirement credit if the applicable deposit is paid, subject to the rules governing the service and the employee’s circumstances.
That’s why it’s important to have your agency benefits office determine whether the service actually qualifies before you make a payment.
What You Should Do
If you think you have military or prior civilian service that isn’t being counted, don’t wait until you’re filling out your retirement application.
Ask your agency benefits office to review the service and determine whether a deposit or redeposit is required. If payment is required, wait for the official OPM billing information before going to Pay.gov.
Then use the Pay.gov form that matches your situation and the account information OPM provided.
A correctly completed FERS service credit deposit can turn otherwise uncredited service into additional retirement credit. But paying the wrong amount, using the wrong form, or assuming a period of service is eligible can create a problem that is much harder to fix later. Have questions? Schedule an appointment with a Federal Retirement Consultant (FRC®) who can help you with the process.
