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Buy back sub time or not?

mwellis32

Well-known member
My question is: If you have your 30 years in and able to buy back your sub time ( 2 years worth June 1986 to July 1988 ) which I should have done 30 years ago, will it increase my retirement pay at all or just add more years of service time? I don't think it would be buying this time back for myself. Right?
 
With it being over 30 years ago I believe that interest will have to be added to the buy back amount. So what you need to do is calculate that amount and the amount of time it will take you to reimburse yourself with that adjusted retirement pay. If you are retiring young I would think it would be worth buying back because you will have more time to recoup the cost of buying back. For example when I bought back my military time, I didn't have interest just the buy back amount. I determine it would take me just over seven months to pay myself back so in my case it was a no brain-or.

In your case the interest could be as much as the buy back? You also have other factors to think about, length of service, retirement age (if you are over 62 you get 1.1% of your high 3) so the additional 2 years are worth more and expected years in retirement (life expectancy).

I would think buying it back would be worth it. It can be done through payroll deduction but must be paid off before retirement! To answer your original question yes it would raise both your retirement pay and service time!
 
With it being over 30 years ago I believe that interest will have to be added to the buy back amount. So what you need to do is calculate that amount and the amount of time it will take you to reimburse yourself with that adjusted retirement pay. If you are retiring young I would think it would be worth buying back because you will have more time to recoup the cost of buying back. For example when I bought back my military time, I didn't have interest just the buy back amount. I determine it would take me just over seven months to pay myself back so in my case it was a no brain-or.

In your case the interest could be as much as the buy back? You also have other factors to think about, length of service, retirement age (if you are over 62 you get 1.1% of your high 3) so the additional 2 years are worth more and expected years in retirement (life expectancy).

I would think buying it back would be worth it. It can be done through payroll deduction but must be paid off before retirement! To answer your original question yes it would raise both your retirement pay and service time!
Thanks for helping!
 
The answer to your question is both. It will increase your service time and thus increase your annuity Log in to your liteblue account and go to eretire and generate an estimated annuity and it will show you an estimate if you buy back the time and if you don't. Also, you will need to contact OPM to get a balance on how much you will owe. Then you determine if it is worth it.
 
So the figures are the same for RCD and ACD dates, so does this mean it's not worth it because it does not show an increase?

Salary History From To Yrs Mns Days Annual Rate Gross Pay 09/01/2020 09/01/2023 3 0 0 75,250 225,750 Total-3 Average Salary Total: 75,250 Annuity Based On RCD Date Above Left Gross Annual Annuity Gross Monthly Annuity With Survivor Benefits 26,508 per year /2,209 per month Without Survivor Benefits 29,454 per year 2,454 per month Survivors (spouse) gross monthly annuity 1,227

Annuity Based On ACD Date Above Left Gross Annual Annuity Gross Monthly Annuity With Survivor Benefits 26,508 per year 2,209 per month Without Survivor Benefits 29,454 per year 2,454 per month FERS Special Supplement Survivors (spouse) gross monthly annuity 1,227

Federal Agency/ Military Branch Start Date End Date Funded* United States Postal Service 07/19/1986 07/03/1987 NO
United States Postal Service 07/04/1987 07/29/1988 NO
United States Postal Service 09/26/1987 12/31/1987 NO

United States Postal Service 07/30/1988 YES "Funded" means retirement contributions made and not withdrawn, or if withdrawn, a redeposit was completed. Retirement Computation Date (RCD): 07/19/1986 (Service Creditable for Retirement Eligibility)
Start Date End Date Years Months Days 07/19/1986 07/29/1988 0 0 0 Total 00 00 00 Annuity Computation Date (ACD): (Service Creditable for Annuity Computation) Start Date End Date Years Months Days Total 00 00 00
 
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So the figures are the same for RCD and ACD dates, so does this mean it's not worth it because it does not show an increase?

Salary History From To Yrs Mns Days Annual Rate Gross Pay 09/01/2020 09/01/2023 3 0 0 75,250 225,750 Total-3 Average Salary Total: 75,250 Annuity Based On RCD Date Above Left Gross Annual Annuity Gross Monthly Annuity With Survivor Benefits 26,508 per year /2,209 per month Without Survivor Benefits 29,454 per year 2,454 per month Survivors (spouse) gross monthly annuity 1,227

Annuity Based On ACD Date Above Left Gross Annual Annuity Gross Monthly Annuity With Survivor Benefits 26,508 per year 2,209 per month Without Survivor Benefits 29,454 per year 2,454 per month FERS Special Supplement Survivors (spouse) gross monthly annuity 1,227

Federal Agency/ Military Branch Start Date End Date Funded* United States Postal Service 07/19/1986 07/03/1987 NO
United States Postal Service 07/04/1987 07/29/1988 NO
United States Postal Service 09/26/1987 12/31/1987 NO

United States Postal Service 07/30/1988 YES "Funded" means retirement contributions made and not withdrawn, or if withdrawn, a redeposit was completed. Retirement Computation Date (RCD): 07/19/1986 (Service Creditable for Retirement Eligibility)
Start Date End Date Years Months Days 07/19/1986 07/29/1988 0 0 0 Total 00 00 00 Annuity Computation Date (ACD): (Service Creditable for Annuity Computation) Start Date End Date Years Months Days Total 00 00 00

Sorry I'm not familiar with what you are looking at so I can't give you an answer. But the way I'm reading it no increase means that you don't have a buy back in the works which is why your Annuity Computation Date (ACD) is the same as your Retirement Computation Date (RCD). Somebody on this board that has already retired will most likely answer your question when they see it!
 
Does this also make time as a rca which I am now count towards retirement?

No RCA's lost that benefit back in 1989 when congress voted that part time work wouldn't count towards total time for pension.


This bill was up for a vote but I believe it has been stalled and may be dead!

 
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With it being over 30 years ago I believe that interest will have to be added to the buy back amount. So what you need to do is calculate that amount and the amount of time it will take you to reimburse yourself with that adjusted retirement pay. If you are retiring young I would think it would be worth buying back because you will have more time to recoup the cost of buying back. For example when I bought back my military time, I didn't have interest just the buy back amount. I determine it would take me just over seven months to pay myself back so in my case it was a no brain-or.

In your case the interest could be as much as the buy back? You also have other factors to think about, length of service, retirement age (if you are over 62 you get 1.1% of your high 3) so the additional 2 years are worth more and expected years in retirement (life expectancy).

I would think buying it back would be worth it. It can be done through payroll deduction but must be paid off before retirement! To answer your original question yes it would raise both your retirement pay and service time!
I thought they have made buying back time from RCA time BUT this must apply to years ago when you could ??
 
Correct me if I'm wrong but those 2ish years you said you were a sub aren't going to add 2 more years to your retirement, unless you were working 5 days a week. Isn't it, prorated, for lack of a better term? Only the days you actually worked in those years count.
 
You typing to me? I started 1999, In 2000 I was awarded a 35 Aux run. Worked that and my primary 45K/L. So 6 days a week for 6 years.

Another question here is... Will my time covering other runs count or only time serving an Aux run?
 
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