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Paying back military time for federal retirement time worth it?
#7624281
10/05/19 02:28 AM
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Joined: Apr 2013
Posts: 2,418
tenyearsgone
OP
Veteran Tracker
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OP
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Posts: 2,418 |
Long story short. I got my CBP officer package accepted, and pending my location request am going to take the job.
I have the option of paying 3% of my total pay from my 4 years in the USMC to make those years count, or starting over on the retirement scale.
Is there one that comes out ahead of the other?
Last edited by tenyearsgone; 10/05/19 02:28 AM.
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Re: Paying back military time for federal retirement time worth it?
[Re: tenyearsgone]
#7624283
10/05/19 02:33 AM
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Joined: Jun 2015
Posts: 18,672
Roll-Tide
THF Celebrity
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THF Celebrity
Joined: Jun 2015
Posts: 18,672 |
Do it. 4 years will make a difference in the end.
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Re: Paying back military time for federal retirement time worth it?
[Re: tenyearsgone]
#7624292
10/05/19 02:46 AM
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Joined: Jul 2008
Posts: 21,617
pegasaurus
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I am guessing it is something like 40-50K? How old are you? What percentage os that of your new base pay? How many years are you paying that out? Don’t answer these questions here. Just some things to consider.
I say it is worth it.
Funny thing about getting older: Your eyesight starts getting weaker but your ability to see through people's BS gets much better.
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Re: Paying back military time for federal retirement time worth it?
[Re: tenyearsgone]
#7624300
10/05/19 02:55 AM
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Joined: Jun 2015
Posts: 18,672
Roll-Tide
THF Celebrity
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THF Celebrity
Joined: Jun 2015
Posts: 18,672 |
Long story short. I got my CBP officer package accepted, and pending my location request am going to take the job.
I have the option of paying 3% of my total pay from my 4 years in the USMC to make those years count, or starting over on the retirement scale.
Is there one that comes out ahead of the other? If I’m reading this right. If you made (high end) 50k a year for 4 years for 200k. You could pay 6 grand for 4 years of service credit. No brainer.
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Re: Paying back military time for federal retirement time worth it?
[Re: tenyearsgone]
#7624325
10/05/19 03:28 AM
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Joined: Jul 2006
Posts: 110,795
dogcatcher
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Pay it in, but wait until after you have passed the probationary status as a new hire.
Combat Infantryman, the ultimate hunter where the prey shoots back. _____________"Illegitimus non carborundum est"_______________
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Re: Paying back military time for federal retirement time worth it?
[Re: tenyearsgone]
#7624327
10/05/19 03:36 AM
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Joined: May 2007
Posts: 1,221
papa45
Pro Tracker
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Pro Tracker
Joined: May 2007
Posts: 1,221 |
I did something similar at retirement ( I think it was more than 3%) and it was definitely worth it. Go for it.
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Re: Paying back military time for federal retirement time worth it?
[Re: Roll-Tide]
#7624358
10/05/19 05:37 AM
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Joined: Apr 2013
Posts: 2,418
tenyearsgone
OP
Veteran Tracker
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OP
Veteran Tracker
Joined: Apr 2013
Posts: 2,418 |
Long story short. I got my CBP officer package accepted, and pending my location request am going to take the job.
I have the option of paying 3% of my total pay from my 4 years in the USMC to make those years count, or starting over on the retirement scale.
Is there one that comes out ahead of the other? If I’m reading this right. If you made (high end) 50k a year for 4 years for 200k. You could pay 6 grand for 4 years of service credit. No brainer. I did the math based on my final rank pay for 2004. I didn’t include combat pay, etc. I got a number of $2,485.44. It’s obviously lower because I didn’t go in at the same rank. I just didn’t know if there was a benefit to buying back or taking the same money and investing. I’m 38, so 20 years still has me retiring ahead of most people. Speaking of retirement; if I’d stayed in I could be on terminal leave in a few months.
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Re: Paying back military time for federal retirement time worth it?
[Re: dogcatcher]
#7624359
10/05/19 05:41 AM
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Joined: Apr 2013
Posts: 2,418
tenyearsgone
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Pay it in, but wait until after you have passed the probationary status as a new hire. Thanks that advice. Still not sure if I’m crazy to leave a cush corporate job, but I’m not cut out for it.
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Re: Paying back military time for federal retirement time worth it?
[Re: tenyearsgone]
#7624627
10/05/19 05:50 PM
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Joined: Apr 2009
Posts: 5,560
Slow Drifter
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Posts: 5,560 |
Pay it! It will add 4 years to your multiplier at retirement. I bought back 8 years of Marine Corps time when I hired on with the feds and it was less than $1k. Paid it through 10% a payday auto-direct. I had the gig pre-arranged, though, and was only out of the Corps 2 weeks when I started so there was no interest. This was about 30 years ago, so it may have changed since then.
"I have no idea what WW-III will be fought with, but WW-IV will be fought with sticks and stones." A. Einstein
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Re: Paying back military time for federal retirement time worth it?
[Re: tenyearsgone]
#7624880
10/05/19 10:57 PM
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Joined: Sep 2012
Posts: 15,959
Jimbo1
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Do it. After going through a recent pre-retirement seminar, the instructor showed me if I buy back my 16 1/2 years, I'll make about $500 more per month at retirement. I retired USAF in 93 so I didn't make much back then. I'm in the process of finding out exactly how much it will cost me to do it. plus if I do it, I could retire anytime now.
FJB - Lets Go Brandon BBB - Bring Back Better Awake - Not Woke!
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Re: Paying back military time for federal retirement time worth it?
[Re: tenyearsgone]
#7625015
10/06/19 02:44 AM
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Joined: Sep 2016
Posts: 329
Rounder
Bird Dog
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Bird Dog
Joined: Sep 2016
Posts: 329 |
Listen to dogcatcher on this.
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Re: Paying back military time for federal retirement time worth it?
[Re: Slow Drifter]
#7625040
10/06/19 03:05 AM
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Joined: Apr 2013
Posts: 2,418
tenyearsgone
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Posts: 2,418 |
Pay it! It will add 4 years to your multiplier at retirement. I bought back 8 years of Marine Corps time when I hired on with the feds and it was less than $1k. Paid it through 10% a payday auto-direct. I had the gig pre-arranged, though, and was only out of the Corps 2 weeks when I started so there was no interest. This was about 30 years ago, so it may have changed since then. I forgot about the interest. I’ve been out for 15 years. Still, I can’t imagine it being too big a price.
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Re: Paying back military time for federal retirement time worth it?
[Re: tenyearsgone]
#7626938
10/08/19 03:06 AM
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Joined: Apr 2009
Posts: 5,560
Slow Drifter
THF Trophy Hunter
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Joined: Apr 2009
Posts: 5,560 |
"I have no idea what WW-III will be fought with, but WW-IV will be fought with sticks and stones." A. Einstein
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Re: Paying back military time for federal retirement time worth it?
[Re: tenyearsgone]
#7626946
10/08/19 03:17 AM
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Joined: Apr 2009
Posts: 5,560
Slow Drifter
THF Trophy Hunter
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THF Trophy Hunter
Joined: Apr 2009
Posts: 5,560 |
Pay it! It will add 4 years to your multiplier at retirement. I bought back 8 years of Marine Corps time when I hired on with the feds and it was less than $1k. Paid it through 10% a payday auto-direct. I had the gig pre-arranged, though, and was only out of the Corps 2 weeks when I started so there was no interest. This was about 30 years ago, so it may have changed since then. I forgot about the interest. I’ve been out for 15 years. Still, I can’t imagine it being too big a price. You can buy it back whenever you want, up to and including at retirement. The interest rate is the minimum you would pay into the G-Fund. About 1%.
"I have no idea what WW-III will be fought with, but WW-IV will be fought with sticks and stones." A. Einstein
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Re: Paying back military time for federal retirement time worth it?
[Re: tenyearsgone]
#7627696
10/09/19 12:16 AM
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Joined: Sep 2012
Posts: 15,959
Jimbo1
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Wait time is around 30 business days to get the form back with the exact pay amount. I called this morning and should have it by next week. Faxed it in on 8/30.
FJB - Lets Go Brandon BBB - Bring Back Better Awake - Not Woke!
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