Federal employees who are veterans can participate in the “Military Buy Back” program, which allows them to receive credit for their time in uniform toward a federal retirement. The program has an upfront cost and requires most military retirees to waive any military retirement pay.

So, is it right for you?

Veterans should take quite a few factors into account before making that decision, said Amy King, a MOAA member, Certified Financial Planner, Military Qualified Financial Planner, and Chartered Federal Employee Benefits Consultant.     

“Since you can’t ‘double dip,’ those who are collecting a longevity, active duty military retirement (meaning they served 20 or more years) will have to surrender their military retirement upon retiring as a federal employee if they buy back their time,” King noted.

However, King said, there are times when buying back time may make sense. Benefits of doing so include the ability to retire earlier than expected or to qualify for a higher pension.

[RELATED: Military Buy Back Estimator]

Reservists can buy back all periods of active service without impacting their reserve retirement, King noted, adding that time spent at a service academy can be bought back without impacting an active duty pension.

If you decide to buy back your time, consider doing so early in your federal career – those who apply to buy back the time within three years of beginning federal civilian work can do so without interest. Waiting longer could lead to interest charges.

The payments must be made before your federal retirement, and they are not refundable. Learn more about the process, including agency-specific details, on the Defense Finance and Accounting Service website.​