If you were on activeduty in the military and received an honorable discharge, your military service is potentially creditable under CSRS.
In 1957, military service became covered by Social Security. Because of this, you may need to make a deposit covering active duty military service after 1956. The deposit is called the post-56 Military Deposit. Making the post-56 Military Deposit allows you to get credit for your post-1956 active-duty military service under both Social Security and CSRS. Active-duty military service performed before 1957 is creditable under CSRS without making a deposit.
If you were first covered by CSRS before October 1, 1982, you may receive credit for your post-1956 active-duty military service without making a deposit. But if you become eligible for Social Security benefits at age 62, or retirement, whichever is later, your retirement annuity will be reduced by eliminating all credit for your post-1956 active-duty military service. If you think you'll be eligible for Social Security at or before age 62, or retirement, it is wise to make the deposit. The deposit is 7 percent of your military earnings, plus interest. Interest begins accruing October 1, 1985, or three years after your retirement coverage begins, whichever is later.
If you were first covered by CSRS after September 30, 1982, you will only receive credit for your active-duty military service if you make the post-56 deposit. The deposit is 7 percent of your military earnings, plus interest. Interest begins accruing October 1, 1985, or three years after your retirement coverage begins, whichever is later.
If you choose not to make the post-56 military deposit when it would otherwise be required, you must submit Form 1515 with your retirement application.
What is Military Deposit?
A military deposit is a payment made to the retirement fund to have the honorable, active military service you performed after December 31, 1956, credited in the computation of your annuity.
Why make a Deposit?
A CBP employee first employed in a position subject to CSRS on or after October 1, 1982, receives credit for title and annuity computation purposes for post-1956 military service only if he or she makes a deposit with U.S. Customs and Border Protection (CBP).
Employees who were first employed under CSRS before October 1, 1982, may receive credit for post-1956 military service without making the deposit. A potential annuity reduction for the post-1956 military service at age 62 may be avoided by making the deposit.
Who can make a Deposit?
As a CSRS/CSRS Offset employee, you may make a deposit for any full period of military service prior to separation from CBP.
If you delay making the military deposit until you separate for retirement, the deposit must be made in full to CBP before the Office of Personnel Management (OPM) completes adjudication of the annuity. The final adjudication of your annuity may be delayed.
How much will it cost?
The amount of the deposit is seven percent of the basic pay earned during the period(s) of service, plus interest.
Interest begins to accrue on deposits for post-1956 military service on October 1, 1985, or two years after the date you are first employed (or reemployed after a period of military service) in a position subject to CSRS.
The interest on deposits for post-1956 military service accrues and compounds annually on your "Interest Accrual Date" (IAD). Because the interest accrual period will not generally coincide with the calendar year, two interest rates may apply. Interest rates are set on a calendar year basis. Visit OPM to see the interest rates. Interest must be computed on the unpaid balance and posted each year on your IAD until the deposit is paid in full. The subsequent interest charges are computed on the deposit balance as of the day before the IAD.
Note: Interest is not charged on deposits for the year they are paid in full as long as it is prior to the IAD.
How to make a Military Service Credit Deposit
- You should obtain a copy of the "Application to Make Deposit or Redeposit," SF-2803, from the CBP Payroll Branch or download the form from the OPMwebsite.
- Complete only the front of the SF-2803. Return it to the CBP Payroll Branch at the address listed below, along with a copy of your DD-214, "Certificate of Release or Discharge from Active Duty," or equivalent record to verify your service. If a copy of your DD-214 is not available, you must obtain a copy from the military records center by submitting SF-180, "Request Pertaining to Military Records," to the appropriate address. The address is listed below.
- You must also provide documentation of military basic pay to the CBP Payroll Branch. To obtain this information you must complete RI20-97, "Estimated Earnings During Military Service," and send to the appropriate address. The address is listed below.
- Once your SF-2803 and RI 20-97 have been received, the CBP Payroll Branch will complete OPM Form 1514, "Military Deposit Worksheet," or an equivalent if using an automated process.
- CBP Payroll Branch will notify you of the amount owed, procedures for paying the deposit, and options for making payments.
- All payments must be paid directly to CBP.
- You must make payment(s) as instructed by the CBP Payroll Branch (e.g., personal check, money order, etc.). Payments may be made in a lump sum or installments.
Note: Generally the installment payments must be at least $50.00.
Mailing Address:
National Finance Center
Attn: Payroll Branch
U.S. Customs and Border Protection
8899 E. 56th St.
Indianapolis, IN 46249
For more information, contact the CBP Payroll Branch at 317-298-1305 or by fax at 317-298-1015.
