Retirement Credit Buyback for Family Members

September 29, 2005

The State Department announced a new benefit for family members who worked temporary appointments at U.S. missions abroad from Jan. 1, 1989, to May 23, 1998.

On Sept. 7 the State Department announced that the Office of Personnel Management (OPM) published regulations for PIT Service Buyback. (PIT stands for part-time, intermittent or temporary appointment.) The new regulations, implementing a law that was passed in 2002, will allow the State Department to credit retirement service to family members who had PIT appointments.

Previously, these individuals could not receive retirement credit under the Federal Employees Retirement System (FERS) for service as a PIT for the period of Jan. 1, 1989, to May 23, 1998.

Now, both current and former employees can purchase retirement credit under FERS for service performed on temporary appointments.

To qualify for the buyback program and receive credit toward retirement, applicants have to have:

1. served at a U.S. mission abroad;
2. met eligibility requirements for family member, limited, noncareer appointments;
3. served a temporary appointment i.e. appointments may not exceed one year although they may have been extended for subsequent periods of one year or less;
4. served for at least 90 days; and
5. performed service that would have been creditable under FERS if it had been performed before 1989 and if the appropriate deposit had been paid.

Interested applicants (employees or annuitants) have to make a deposit in one lump sum (within 180 days of being notified of the deposit), accompanied by the Department of State’s contribution to receive retirement credit.

Under the PIT Buyback, the employee contribution to be paid in a lump sum is the same as if the employee had been eligible to contribute to FERS—plus accrued interest. The employee deduction under FERS was less than 1 percent throughout the relevant period, according to the State Department.

The agency also said most employees will benefit from a higher annuity for life if they purchase additional credit toward retirement. The enhanced annuity creates a higher base for calculating cost of living allowances as well. Further, in some cases, the additional service under the PIT Buyback will mean that an employee can qualify to retire at an earlier age. Interested individuals should complete SF 3108, “Application to Make Service Credit Payment.”

For more information, go to www.state.gov/m/dghr/flo/23064.htm or e-mail FLOAskEmployment@state.gov.