Service Credit

The rules in this section also apply to volunteer Peace Corps/VISTA service.

Service before 10/01/1982 counts towards retirement without a deposit, but your annuity is reduced by 10% of the owed deposit (with interest) if you don't complete the deposit.

Service on/after 10/01/1982 only counts if you make a deposit. If not, it only counts for retirement eligibility, not your annuity. OPM won't remind you to pay but will process your deposit during retirement application if followed by a qualifying job.

NOTES: 

• For service that expands over 10/01/1982, rules are split by period.
• Phased Retirement entrants must complete deposits first.
• OPM will NOT notify you about deposit service as they process the retirement application. If you do not initiate or complete the deposit before separating, an application to make the deposit can be included in your retirement package.

Service before 01/01/1989 doesn’t count toward retirement unless you pay a deposit. OPM will process FERS deposits as they handle the retirement package.

Service on/after 01/01/1989 doesn’t count for retirement at all and no deposit can be completed.

NOTES: 

• For service that expands over 01/01/1989, the service is split into two separate periods with applicable rules applied to each.
• Phased Retirement entrants must complete deposits first.
• Volunteer Peace Corps/VISTA service can complete a deposit for retirement credit even if service occurred after 01/01/1989.

Your prior federal service records will be used to prepare the deposit application and estimate, but additional documentation is needed for Peace Corps/VISTA service. 

Peace Corps: Service documentation can be requested through the RPCV Portal. Additional information can be found on the Peace Corps website.

AmeriCorps VISTA Employees must register and obtain proof of service directly from the My AmeriCorps Portal. If login details are unknown, call the hotline at 1-800-942-2677.

Service ending before 03/01/1991 counts for eligibility and annuity without a redeposit, but annuity is reduced based on what you owe (including interest) when your annuity starts. OPM helps with redeposits as you retire.

NOTES: 

• Redeposits don’t affect the amount of survivor benefits except if the employee dies while working.
• Disability retirements will have all refunded service handled as if it ended on/after 03/01/1991. See next statement.

Service after 03/01/1991 counts for eligibility without redeposit but doesn't count towards annuity unless paid. This rule also applies to all disability retirements. 

NOTES: 

• Employees entering Phased Retirement who wish to make a redeposit for pre 03/01/1991 service must make the payment in full before their Phased Retirement case is finalized by OPM. There will not be an opportunity to pay the deposit after the phased retirement annuity is finalized. The following exception(s) apply:
• Refunded service before 03/01/1991 – There will be no later opportunity to complete the deposit once the case is finalized by OPM.
• Refunded service on/after 03/01/1991 – If Phased Retirement ends and you return to a regular employee status, you will have the opportunity to make a redeposit at a later time.

As of 10/28/2009, refunded FERS service counts towards eligibility without deposit, but not for the annuity unless a redeposit is fully paid. OPM will offer the opportunity to make/complete FERS redeposit(s) as they process retirement applications. 

NOTE: 

• Phased retirement requires complete deposit payments in full prior to OPM finalizing the case. However, if you leave Phased Retirement and return to a regular employee status, eligible employees will have the opportunity to make a deposit at a later time.