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Vikkturr
05-16-2010, 08:33 PM
I have been hearing that if military personnel stick with government jobs, their time serverd in the military would count towards their retirement. Does this stick true with local police agencies? Or only federal? For example, if I did 6 years in the Navy, then I would only need another 24 in the Police Force to aquire a 30 year pension.

Any insights would be great!

kc12
05-17-2010, 07:33 AM
Some state and local agencies allow you to purchase your military time. I am not going to spend too much time on this because the cost and requirement vary from retirement system to retirement system. I know in the Florida retirement system it was very expensive to purchase military time. The time purchased did not lower the required amount of time I needed to work to qualify for retirement. All it did was provide additional retirement income.

With the Feds you pay 3% of your military base pay to buy your time. The time purchased only counts as basic federal retirement. If you get a job as an FBI agent you still have to serve the 20 or 25 years to qualify for the LEO retirement. If you get a job that does not have the enhanced retirement the written regulations and laws I've read treat the time purchased the same as if you had served the time in a civilian capacity. I have been told that no agency will take the time purchased off the required time to retire. So if you need to serve 30 years and you buy 10 from the military you would not be able to lower the amount of time required to work as a civilian to 20 years.

mac266
05-17-2010, 07:57 AM
Federal service, whether military or civilian, counts as federal service. In other words, under the federal retirement program you have earned a pension once you serve for 20 years. For example, if you serve 4 years active duty in the military, then get out and become a postal carrier, you only need to deliver mail for 16 years before earning a pension. Of course, you can work longer and increase your pension.

KC12 may know something I don't, but I've never seen a city, county, or state government honor your federal service in that way.

Iowa #1603
05-17-2010, 08:22 AM
Iowa government retirement (IPERS) allows you to purchase prior service. This includes military service. Yes it is expensive. If you try to purchase it at age 55 you will pay a big premium. If you buy it at age 29 it will cost you less.

The formula is based on actuary tables, your age, and the length of time your purchase will collect interest in the system. You must buy the time in quarterly increments and as far as I remember there is no maximum amount you can buy.


It works out nice for someone who turns 55 before they will have 30 yrs in the system............they can buy the time and still retire at minimum age.

You can not retire and get a check in Iowa until you are 55.....................the retirement is a sliding schedule between 22 yrs (60% of your top salary) to 30 yrs (72% of your top salary) with an increase of 1.5% each year in between. Buying time can not only let increase your percentage but shorten your time.....IF you are 55.

PhilipCal
05-17-2010, 08:28 AM
The Retirement Systems of Alabama(RSA) allow a Merit System employee to purchase a maximum of four years of Military Service time, to count towards retirement. In common with my colleagues, I won't discuss cost, as it varies from state to state. I will say that Alabama's purchase of Military Service time is quite expensive.

Iowa #1603
05-17-2010, 08:33 AM
The Retirement Systems of Alabama(RSA) allow a Merit System employee to purchase a maximum of four years of Military Service time, to count towards retirement. In common with my colleagues, I won't discuss cost, as it varies from state to state. I will say that Alabama's purchase of Military Service time is quite expensive.

A friend was looking at buying two years in order to qualify for our recent retirement buy out. Needless to say the person was already age eligible for retirement (at least 55). It was going to cost right at $17,000 per quarter.

He didn't take the buyout.

Vikkturr
05-17-2010, 08:45 AM
Thanks for the info guys. And I am looking into (mainly) Virginia and Pennsylvania. Ill see if i can get some specifics, but the info you guys supplied to me so far is excellent!

just joe
05-17-2010, 08:54 AM
Some states let you buy your military time--you don't get it for free.

kc12
05-17-2010, 09:37 AM
KC12 may know something I don't, but I've never seen a city, county, or state government honor your federal service in that way.

The reason Florida did it that way is the time purchased was credited as regular class employment, not LEO time. Since it wasn't LEO time it did not work to lower the time required to work for that retirement. It does lower the time requirement in the regular class. Sorry I left the regular class out of the state explanation.

https://www.rol.frs.state.fl.us/forms/inout.pdf

PhilipCal
05-17-2010, 11:06 AM
A friend was looking at buying two years in order to qualify for our recent retirement buy out. Needless to say the person was already age eligible for retirement (at least 55). It was going to cost right at $17,000 per quarter.

He didn't take the buyout.

That's pretty close on this end too. Yeah, it's expensive.

TheKansan
05-17-2010, 12:04 PM
Federal service, whether military or civilian, counts as federal service. In other words, under the federal retirement program you have earned a pension once you serve for 20 years. For example, if you serve 4 years active duty in the military, then get out and become a postal carrier, you only need to deliver mail for 16 years before earning a pension. Of course, you can work longer and increase your pension.

KC12 may know something I don't, but I've never seen a city, county, or state government honor your federal service in that way.

The way it was explained to me was that even if you had military time, that didn't mean you could retire any earlier. You could just buy that time back and retire with a much larger pension benefit.

For example one of the other officers I was hired with had 14 years active duty navy service. She still has to work the 20 years minimum to retire, but when she does retire, she will get a much higher pension than would be possible without the military service.

School Cop
05-17-2010, 02:38 PM
Here, most agencies use a state retirement system. Your benefits are calculated based on the money you and the department put in, and your department sets the minimum years for retirement. SO you don't really have to "buy back" your military time. It just speeds up your retirement.

One guy on my squad did 20 in the military and was eligible to retire as soon as he was sworn. He just would have gotten about $1 a month is the only problem!

Vikkturr
05-17-2010, 07:47 PM
So basically I kinda wasted 6 years of my life being in the Navy. Lovely.

District B 13
05-17-2010, 08:03 PM
Military service is never a waste. If you think that, you need to look at another job series. You seem like you just want a cop job so you can retire as quick as you can. BK is hiring. Go there.

stormz5192
05-17-2010, 08:42 PM
NJ allows you to buy back up to 8 years. Based on your salary and age at the time. I bought 27 months of federal time and it cost me $14000. A LT recently looking into buying 4 years of military time. He has 23 years in and makes roughly $100,000 per year in base. His buyout was roughly $80,000 for the time.

L-1
05-17-2010, 09:57 PM
California allows you to purchase up to five years of service credit for military. The cost is based on your salary at the time of purchase, so it is cheaper to buy it early in your career when your salary is at its lowest and if needed, the state will allow you to spread your payments out over 15 years, interest free.

However, there is a unique catch to all of this.

California has a disproportionately high number of officers who get injured on the job and go out on disability retirement before the minimum retirement age of 50. When this occurs, your disability retirement is set at a flat rate of 50%, irrespective of whether you had one year on the job or 29 years. This means any money you paid towards buying extra years of service credit has just gone down the drain. As a result, many officers no not purchase extra years of service credit until they hit age 50 and can benefit from it, even though doing so means they will spend considerable more money to do so.

Before you purchase any service credit, double check to see if the same conditions apply to you.

Vikkturr
05-18-2010, 07:44 AM
Military service is never a waste. If you think that, you need to look at another job series. You seem like you just want a cop job so you can retire as quick as you can. BK is hiring. Go there.

Uhh no. I want to be a cop because I am good at it from what I have done so far in the Spec-War community. Not to mention I enjoy it a lot more than being a technician. Also, I figured being a cop would have great job security.

kc12
05-18-2010, 08:17 AM
So basically I kinda wasted 6 years of my life being in the Navy. Lovely.

On the federal side no you didn't waste your time. Several things come into play. If you have vet preference you no longer have a max entry age for jobs covered under 12(d) retirement.

Even if you serve longer than 20 years in a job covered by 12(d) you only make 1% per year more in retirement for any time over 20 years, which happens to be the credit you receive for time purchased for military service. 20 years is the minimum time you can serve in a 12(d) position and still receive full retirement. You are eligible for retirement after 20 years service only if you are over 50 years old, otherwise you must serve 25 years. An accurate short hand is, "at least 20 years sevice and 50 years old or 25 years service and out."

What would you have done if you didn't enlist in the military and would it be able to transfer to retirement for whatever government job you get? If it would not transfer then the time you spent in the Navy is not wasted as far as retirement goes. Working at Burger King would have been wasted time.

Rblake
05-20-2010, 01:44 AM
My plan (WI) will accept up to 4 years of military service. For every 5yrs of service, it accepts one yr of military service. So, after 20 yrs w/my dept, I will have 24 yrs toward retirement.