OPM Benefits vs. Military Retirement: Key Differences

There are around 637,000 Veterans who work as federal civil service employees, making up 30% of the total workforce. The Office of Personnel Management (OPM) has the task of ensuring things like your federal employee retirement (FER) benefits are taken care of; however, for retired military personnel, there are some considerations to take note of with your benefits. Keep in mind any and all decisions about retirement benefits should be made after consulting HR and your licensed financial advisor. Below, we’re looking at an overview and some resources involving military retirement and OPM benefits.

Military Retirement vs. OPM Benefits: Differences Explained

Yes, military retirement is considered an OPM benefit in most cases. Serving in the US military can provide creditable for retirement, so long as you separate from service with an honorable discharge and your active duty is performed before leaving civilian service due to retirement.

Crediting Military Service in Federal Employee Retirement Benefits

You cannot receive credit for military service in your FERS retirement calculation if you are receiving military retired pay unless the retired compensation was awarded for one of two reasons:

• A service-connected disability from combat with an enemy of the U.S. or from an instrument of war during wartime, or
• Retirement under Chapter 1223, Title 10, U.S.C., for reserve service.

However, you can choose to waive your military retired pay and have your military service counted towards your FERS annuity.To do so, you must also pay a deposit for your post-1956 military service before leaving your federal agency for it to count in your FERS retirement.

Is Military Retirement Considered Federal Retirement?

If you have worked for the federal government, you have the ability to receive retirement benefits and pay related to your civil service. Generally, military retirement is also classified as federal retirement, as long as your active service in the military was terminated under honorable conditions. You must also keep in mind that your military retirement must have occurred before separation from civilian services.

Process for Waiving Military Retired Pay

To get credit for FERS or Civil Service Retirement (CSRS), you’ll need to wave your military retired pay.It’s important to write the Retired Pay Operations Center about receiving credit and you need to do so at least 60 days before your planned retirement to avoid delays and hassles involving your compensation.Keep in mind that the OPM also suggests notifying the Retired Pay Operations Center of your request at least 90 days before retirement. The sooner you can sort this out, the better.You have two options for sending your waiver:

• Mail it to the following address:

Defense Finance and Accounting Service U.S. Military Retirement Pay 8899 E 56th Street Indianapolis, IN 46249-1200

• Alternatively, you can fax the form to 1 (800) 469-6559