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Waiving Military Retirement
As a general rule, military service in the Armed Forces of the United States is creditable for Federal retirement purposes if it was active service terminated under honorable conditions, and performed prior to separation from civilian service for retirement. However, most military retirees are barred from receiving credit toward a civilian annuity unless they waive their military retired pay. The military retired pay need not be waived if it is based on disability involving certain injuries incurred in wartime or if it is Chapter 67 (reservists') retired pay.
Creditable Military Service Buy-Back for FERS
Veteran Federal employees can receive retirement credit for military service once they make a deposit into a civilian annuity covering their military service. The deposit will be processed through your agency’s Personnel or Human Resources Office. The military buy-back rules vary based on the year the Veteran became employed by the Federal Government. Detailed information regarding creditable military service for retirement purposes can be located within the Federal Employees Retirement System Transfer Handbook [1.2 KB], which is located on the Office of Personnel Management's website.