Buy back?

JFT

Member
Can someone explain what buying back years of RCA time means. I tried Google but am not understanding exactly what it entails.
 

stillfirstclass

Well-known member
Can someone explain what buying back years of RCA time means. I tried Google but am not understanding exactly what it entails.
short answer: prior to 1989, you could/can buy back actual hours worked for retirement. that is when you retire, you could, maybe have those years added on, you get one percent for every year worked.. there is legislation, every few years lol, to change the law so all fed. part time after 1989 can be purchased.. plus interest of course..
 

Jmdw52

Member
Curious about those veterans who can buy back their time... how much per year of buyback does it cost? Is it worth it? I’d be curious just for an example if someday we all are able to do buybacks.
 
  • Like
Reactions: JFT

Windindaface

Well-known member
My State rag claims federal legislation is in the works for RCA buy back time. We are to be alert of this legislation and contact our legislator to be a sponsor of this bill.

What the cost will be to you the carrier I do not know. As a former AUX runner of 6 years on a 35 AUX with the 5/1 option I hope so. The sooner I can leave and have at least 20 in merits my attention.
 

nickiegirl62

New member
Curious about those veterans who can buy back their time... how much per year of buyback does it cost? Is it worth it? I’d be curious just for an example if someday we all are able to do buybacks.
I bought back 4 years Military after I had been working at Po for about 12 years and it cost me around $900 would have been less if I had done it right away
 

btdtret

Well-known member
Toolology et al "This bill DOA in Congress and I was rca 10 years.

-- Last session of congress, it was H.R.5389 that was proposed so temporary employees might buy back time worked after 31 DEC 1988.

-- But it died a quiet death. Not to be negative, but this new bill will ( sadly ) most likely follow H.R.5389.
 

Oi veh.

Moderator
Staff member
PRIOR MILITARY SERVICE

If you have prior military service, you can use your years of service to increase your leave category. All you need is a copy of your DD-214.
And you can also buy back your military time (called a deposit) to add to your total postal service time. You have 3 years to do that before interest is added, and it can be done on an allotment basis.
Read more about Prior Military service at this link

From The Ruralinfo.net guide for Rural Carriers

I would like to add that if you worked anywhere in federal civil service, you may also buy back time.

Moving this thread to retirement and benefits. Also look in that section for more information as there have been many posts on this topic. :)
 

Voglio-il mio

Well-known member
I bought back 4 years Military after I had been working at Po for about 12 years and it cost me around $900 would have been less if I had done it right away
I also bought back Military Time, the calculations also involves how much was made during the time period that is being bought back. I was at a higher pay grade for the time period I bought back (2 Yrs) & it cost me $1775!
 
Last edited:

gerl2

Well-known member
Imagine the number of retirees if we were able to buy back time, I am dreaming. I so desire to get out of this job, still dreamin. Probably will happen the day I retire. :cautious:
 

Voglio-il mio

Well-known member
Imagine the number of retirees if we were able to buy back time, I am dreaming. I so desire to get out of this job, still dreamin. Probably will happen the day I retire. :cautious:
Its a win - win for both USPS & the retiring employee. There would be a spike in Table One retirees and huge savings for the USPS due to the increase in new Table Two Carriers.
 
Last edited:

12345

Active member
Curious about those veterans who can buy back their time... how much per year of buyback does it cost? Is it worth it? I’d be curious just for an example if someday we all are able to do buybacks.
I did a buyback of my 3 years in the army. My military pay for that time was about $14,000. To receive the credit I paid $450 immediately upon going regular as they charge interest if you wait. That $450 investment added roughly $2040 a year to my retirement check.
 

eomr

Well-known member
I bought four years of military time back for $1900. $600 deposit and $1300 interest. If you buy your time back right away you can save on the interest cost.
 

uselesshasbeen

Active member
12345 illustrates how USPS fails to win with allowing buybacks, he gets his money back in a matter of months. I bought back time from up to 40 years before. Think I didn't get a too generous deal? I got over 6% of high three for earnings probably below that. If the time frame is narrower, naturally the loss for USPS would be less, but they would need to consider years as being something other than consecutive months, like only counting months that you exceeded say 120 hours, or more likely dividing your total paid hours by 2080. Given the fact that prepaying the future costs of retirement are such a drag on USPS I can't see them adding to it. Think they'll let retirees buy back their RCA time too? Maybe I'd need to live another 7 months afterwards before I was getting their money only. Great deal, sign me up!
A very reasonable demand is for all postal employees be included in TSP, not just career, not sure how that can be twisted in to an unfair giveaway.
 

Voglio-il mio

Well-known member
12345 illustrates how USPS fails to win with allowing buybacks, he gets his money back in a matter of months. I bought back time from up to 40 years before. Think I didn't get a too generous deal? I got over 6% of high three for earnings probably below that. If the time frame is narrower, naturally the loss for USPS would be less, but they would need to consider years as being something other than consecutive months, like only counting months that you exceeded say 120 hours, or more likely dividing your total paid hours by 2080. Given the fact that prepaying the future costs of retirement are such a drag on USPS I can't see them adding to it. Think they'll let retirees buy back their RCA time too? Maybe I'd need to live another 7 months afterwards before I was getting their money only. Great deal, sign me up!
A very reasonable demand is for all postal employees be included in TSP, not just career, not sure how that can be twisted in to an unfair giveaway.
Based on your formula of taking your total RCA hours and dividing by 2080 and to be able to buy back time I would gain almost 8 years towards my retirement, that would be excellent!
 

PastOThirty

Well-known member
8 years !! They'd have to cap the annual hours at 2080 per. Otherwise, I'd get 6 instead of 4.5 due to all the OT. I'll be pragmatic and gladly accept the 4.5 years.
The fact that some or many hours come from overtime should almost be irreverent, because if you are working as a part time relief carrier whom gets frequent and substantial overtime on a reoccurring basis, they should have long ago created a full time position even if it does not fit current job descriptions.
 
Top