Reserve Ch61 retired - FERS retirement question

TortolliniShell

Well-Known Member
PEB Forum Veteran
Registered Member
I’m looking for confirmation that I’m interpreting the statutes correctly.

I was a dual-status federal technician covered under FERS. While employed, I made a military service deposit (“bought back”) one year of active-duty deployment time.

After resigning from my technician position, I was medically retired from the Army Reserve under 10 U.S.C. Chapter 61, § 1204. My disability retirement was not combat-related and was not based on an instrumentality of war.

Based on my reading of 5 U.S.C. § 8411(c)(2), if a person is awarded military retired pay, military service generally may not be credited toward a FERS annuity unless one of two exceptions applies:
  1. The retired pay is based on a service-connected disability incurred in combat or caused by an instrumentality of war during a period of war; or
  2. The retired pay is awarded under 10 U.S.C. Chapter 1223 (non-regular/Reserve retirement).

In my case:
  • My retirement orders state the disability was not incurred in combat and not caused by an instrumentality of war; and
  • I was retired under 10 U.S.C. § 1204 (Chapter 61), not Chapter 1223.

My understanding is that, as a result, the year of military service I bought back cannot be credited toward my FERS retirement, and the appropriate outcome would be removal of that year from FERS credit with a refund of the military deposit.

Does this interpretation align with how OPM applies these statutes in practice?


Any insight from those who have dealt with a similar Chapter 61 Reserve retirement and FERS buyback situation would be appreciated.
 
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