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Federal Employees: Buy Back Your Service Years!

Can I really do that?

Here is one scenario I'm asked about quite a bit: An individual was a federal employee, left her employment, and consequently withdrew her contributions. But now she's employed by the federal government once again and wants to count those earlier years of service. 

Is this you? If yes, you’re in luck! You are able to redeposit all of those contributions back (plus interest) to receive credit for those lost years as if you had never left. This also means you can help increase your annuity amount when you retire. Pretty nice!

But what happens if you don’t redeposit?  There’s no requirement that a federal employee must make a redeposit. But if you choose not to, those prior years of service are not completely useless. You will still receive credit in regards to age eligibility requirements, but they will not be counted when calculating your annuity, so your monthly pension will be less.

Here’s the big question I get…is it worth it? Every case is different, but it certainly can be beneficial to redeposit your years!

Have more questions? Give Marc a call at (215) 672-7676. He's here to help, so call today for your free consultation!