Okay, it’s time for Mr. Questions. That’s me. And you, dear readers, are Mr. Mrs. or Ms Answers. Are you ready for the test? Then let’s go.
1. Have you served on active duty in the armed forces after December 31, 1956?
2. Were first employed by the federal government before October 1, 1982?
3. Will you get credit for that active duty service in your annuity calculation when you retire?
4. Will you be eligible for a Social Security benefit at age 62?
5. Have you made a deposit to the retirement system for your active duty military service?
Now let’s score the test and see who wins and who loses.
If you answered yes to questions 1 through 4 and no to question 5, you’ll find out what Catch-62 really means. If you are retired, become eligible for a Social Security benefit at age 62, and didn’t make a deposit, those years of active duty service will be deducted from your total years of service used in the computation of your annuity and your annuity will be recomputed downward. If you retire after reaching age 62, the reduction will take place when you retire.
If you answered no to question 4 and won’t be eligible for a Social Security benefit at age 62 (or when you retire if later than 62), Catch-62 won’t apply. Therefore, you won’t have to make a deposit.
If you answered no to question 2 and were first employed by the federal government on or after October 1, 1982, the only way you can get credit for any post-1956 active duty military service is to make a deposit to the civilian retirement system. So, if you answered yes to question 3, you have either made a deposit or you made a mistake when you answered the question. If you haven’t made a deposit, the correct answer for you is no, you won’t get credit for that active duty service.
If you are thinking about making a deposit, you’ll need to find out how much you owe. To do that, fill out Form RI 20-97, Estimated Earnings During Military Service, and mail it to the finance center for your branch of service along with a copy of your DD-214, Report of Transfer and Discharge (or its equivalent). When the response comes back, attach a copy of your DD-214 and a completed Application to Make Deposit or Redeposit (Standard Form 2803 (CSRS) or 3108 (FERS)), and take it to your local payroll office. They will figure out how much you owe and tell you how to go about making the deposit, if you decide to do that. The RI and Standard From are available online. Go to www.opm.gov and click on Forms.
One final note. If you are receiving retired military pay and have made a deposit to get credit for that time, in most cases you’ll have to waive the receipt of that pay when you retire. The only exception is if you were awarded that pay because of a service-connected disability either incurred in combat with an enemy of the United States or caused by an instrumentality of war and incurred in the line of duty during a period of war.