FERS Redeposit: Avoid Losing Costly Service Credit in 2026

The short answer: A FERS redeposit is a payment that returns previously refunded retirement contributions, plus interest. That earlier period of federal service can count again toward your annuity. Making a FERS redeposit may restore service credit that a refund erased, which can raise your eventual pension.

Federal employees who once left government service and cashed out their retirement contributions often assume that time is gone for good. In many cases a FERS redeposit can bring that service back onto the books. The difference in a lifetime annuity can be meaningful.

What Are the Key Takeaways?

• A refund of FERS contributions generally removes that service from your annuity calculation, according to OPM.
• A FERS redeposit repays the refunded amount plus interest to recapture the credit.
• Redeposit for refunded FERS service became available after a 2009 statutory change (OPM).
• Recaptured service can affect both your eligibility date and your high-3 based annuity.
• Interest accrues over time, so the cost of waiting can grow.

How Does a FERS Redeposit Work?

A FERS redeposit repays contributions you previously withdrew, along with the interest that has accrued since the refund. Once the payment is complete, the associated service can again count toward your retirement.

The mechanics matter because a refund does two things at once. It returns your own contributions, and it removes that period from the service total that drives your annuity, which is why recapturing it can change the math.

Federal employees often pair this review with a look at their FERS high-3 salary and pension basics. Both service years and salary feed the same formula.

Why Does Refunded Service Reduce Your Pension?

Refunded service reduces your pension because the FERS annuity formula multiplies your years of creditable service by your high-3 average salary and a percentage factor. Fewer creditable years means a smaller result.

When you took a refund, the government returned the contributions tied to that time. In exchange that service stopped counting. A FERS redeposit reverses that trade by putting the money back with interest.

The lost years can also push back the date you first become eligible to retire, which connects to the FERS deferred retirement rules that hinge on total service.

When Is a FERS Redeposit Allowed?

A FERS redeposit for refunded FERS service generally became possible after a statutory change that took effect in 2009. Before that change, refunded FERS service typically could not be repaid the way refunded CSRS service could.

Eligibility and the exact calculation depend on your service history, so the Office of Personnel Management reviews these cases individually. The agency explains the current framework on its FERS information pages.

How Do You Estimate Whether a FERS Redeposit Is Worth It?

Weighing a FERS redeposit usually comes down to comparing the payment plus interest against the added annuity it could produce over your lifetime. A larger block of recaptured service, or service that also restores earlier retirement eligibility, tends to strengthen the case.

Because interest keeps accruing, the same block of service generally costs more the longer a decision waits. The rate that interest is charged at is set by the Treasury Department each calendar year; the 2027 deposit interest rate is 4.5 percent, up from 4.25 percent in 2026. Many federal employees request a formal estimate before deciding. Some review the OPM retirement application process at the same time so the deposit is settled before they file.

How Does a FERS Redeposit Differ From a Deposit?

A FERS redeposit and a FERS deposit solve different problems, even though the words sound similar. A redeposit repays contributions that were refunded to you. A deposit covers a period when contributions were never withheld in the first place.

The distinction matters because the two follow separate rules and separate interest calculations. Non-deduction service, such as certain temporary appointments, is addressed through a deposit, whereas refunded service is addressed through a redeposit.

Some federal employees discover they need both, having worked temporary time early in a career and then taken a refund after a later separation. Reviewing your full service history helps identify which payment applies to each block of time.

These service-credit questions also connect to buying back uniformed-service time, which our overview of the FERS military deposit buy-back explains in more detail.

What Steps Are Involved in Making a FERS Redeposit?

The process usually starts with a request for the amount owed. The figure includes both the original refund and accrued interest. The Office of Personnel Management or your agency can generally provide that calculation based on your record.

After confirming the balance, you decide whether to pay it in full or over time. The payment is then documented in your retirement file. Completing the FERS redeposit before you file for retirement helps ensure the recaptured service is reflected in your first annuity calculation.

Because interest continues to build, the total can shift between the day you request an estimate and the day you pay. Requesting an updated figure near the time of payment keeps the numbers accurate and avoids a small shortfall.

Frequently Asked Questions

Is a FERS redeposit the same as a military deposit? No. A redeposit repays refunded civilian FERS contributions, while a military deposit buys credit for active-duty service.

Does interest ever stop growing? Interest generally continues to accrue until the redeposit is paid. The total owed tends to rise over time.

Can I make a FERS redeposit after I retire? The timing rules are specific. OPM reviews when a deposit can still be completed based on your situation.

Will recaptured service change my retirement date? It can. Added creditable service may move up the date you first qualify to retire.

Where can I confirm the rules? The primary source is OPM.gov Retirement Services.

Where Can Federal Employees Learn More?

A FERS redeposit can quietly reshape both your eligibility and your annuity. The decision depends on numbers that are specific to your record. Fed Pilot hosts free workshops that help federal employees understand how service credit and deposits fit into the larger retirement picture.

Register for a free Fed Pilot workshop to review your service history with retirement-focused educators.