How is a standard FERS military service deposit principal calculated?

The principal is generally 3% of military basic pay, except 3.25% for basic pay earned in 1999 and 3.4% for basic pay earned in 2000, plus any applicable interest. USERRA and CSRS-component cases can use different rules.

What is the 2026 FERS military deposit interest rate?

Treasury announced a 4.25% calendar-year rate for 2026. The rate posted to an account depends on its Interest Accrual Date and the composite rates in OPM's table, so the official balance should come from the employing agency or payroll provider.

Do I have to waive military retired pay to use the service in FERS?

Regular military retired pay generally must be waived. OPM lists exceptions for retired pay under 10 U.S.C. chapter 1223 and for specific combat- or instrumentality-of-war disability retired pay. The military service deposit is still required.

When must a FERS military service deposit be paid?

The deposit must be paid in full to the employing agency or payroll provider no later than the separation date on which the retirement is based. DFAS recommends starting at least six months before retirement.

Military service deposit calculator

Compare a standard FERS annuity with and without creditable military service. An official deposit balance gives the best comparison. The principal-only mode applies the correct pay-year percentages but does not estimate interest.

About the 2026 rate: Treasury announced 4.25% for 2026, but the amount posted to your account depends on your Interest Accrual Date and prior-year rates. Ask your agency or payroll provider for the official balance.

Your figures

Deposit cost

Which amount do you have?

Official deposit balance ($)

Use the balance from your employing agency or payroll provider.

Standard FERS comparison

Which retirement computation applies?

The simplified comparison supports only a regular immediate FERS computation.

Civilian FERS service at retirement, without military credit

Years

Months

Creditable military service

Years

Months

High-3 at retirement ($)

Age at separation for retirement

Military retired pay

Compare cumulative change through age

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See the deposit amount used, the estimated change in gross annual FERS annuity, a simple gross break-even, and the cumulative change through your selected age.

How this comparison works

For standard FERS service, deposit principal is generally 3% of military basic pay, except 3.25% for pay earned in 1999 and 3.4% for pay earned in 2000. Applicable interest is added after the grace period. USERRA and CSRS-component cases can use different rules.

The interest-free period is tied to covered employment and an Interest Accrual Date, not simply the number of years since hire. Because rates change, this calculator does not apply 2026's rate to past years. Use the official current balance from your agency or payroll provider when possible.

The annuity comparison computes a regular immediate FERS annuity twice: once with your civilian service and once with the military credit added. Each side independently checks the age-62-and-20-years rule for the 1.1% multiplier. You still need at least five years of civilian service for a FERS annuity.

Military retired pay and the payment deadline

If you receive military retired pay, you generally must waive it to use the same service in FERS. OPM lists exceptions for retired pay awarded under 10 U.S.C. chapter 1223 and for disability retired pay tied to combat with an enemy or an instrumentality of war during a period of war. The deposit is still required. Ask your agency and military service to confirm the basis of your award.

The deposit must be paid in full to your employing agency or payroll provider no later than the separation date on which your retirement is based. DFAS recommends starting at least six months before retirement.

Official sources

OPM SF 3107 instructions — deposit percentages and retirement application guidance.
OPM BAL 26-301 — 2026 interest and composite-rate tables.
OPM FERS computation — 1% and 1.1% annuity formulas.
OPM military retired pay — waiver rules and exceptions.
DFAS military service deposits — payment process and official estimates.