Military Service Deposits & Applications
Defense Finance and Accounting Service
INDIANAPOLIS PAYROLL OFFICE
October 27, 2014
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Military Service Deposit Topics
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Military Deposit Applications
Required Forms
Submitting Forms
After the Military Service Deposit is set up in
DCPS
 Payment Options
 MSD Transfers
 Paid in Full Letters
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Military Service Deposit (MSD)
 Military Service Deposits are for currently employed
employees who have served in the Military and want to
buy back their Military time towards Civilian service.
 Separated employees - DFAS requires an Agency Error
Letter from employee’s HR director for MSD
applications/payments submitted after employee’s date of
separation. New OPM directive.
 Military Service Deposits are Voluntary.
 Military Service Deposits are NOT debts.
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Military Service Deposit (MSD)
 CSR/HR is responsible for ensuring that
 Employee is currently employed
 Required information is provided
• Appropriate MSD Application
• Estimated Earnings During Military Service RI 20-97
 All forms are complete and appropriately signed by employee and
the CSR/HR
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Required Forms for MSD Application - FERS
 FERS employees – Federal Employees Retirement System
 SF3108 - Application to Make Service Credit Payment
• FERS employee completes SF3108 (Part A)
• Agency completes SF3108 (Part B) - Items 1, 2 and Signature Blocks
 SF3108A – Application to Pay Military Deposit For Military Service
Performed After December 31, 1956
• Employee completes Information about Military Service
• Employee adds signature, Email Address, Date Signed
• Agency Identifies/Adds
o Retirement System that applies to employee
o If USERRA applies to Period of Service
o Interest Accrual Date
o Agency Official Signature/Date
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Required Forms for MSD Application - FERS
SF-3108
PART B
FERS
Items 1 and 2 need
to be completed.
Part B is completed by Agency
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1. Must be signed by
CSR If not,
document will be
returned for
correction
Required Forms for MSD Application - FERS
Must match SF-3108
SF-3108A
FERS
Blocks Must Be Completed by FERS Employee & Agency
Employee also signs, dates & adds email/phone information
MUST HAVE CSR
SIGNATURE
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Required Forms for MSD Application - CSRS
 CSRS employees – Civil Service Retirement Service
 SF2803 – Application to Make Deposit or Redeposit
• CSRS employee completes SF2803 (Part A)
• Agency completes SF2803 (Part B) - Items 1, 2 and Signature Blocks
 SF3108A – Application to Pay Military Deposit For Military Service
Performed After December 31, 1956
• Employee completes Information about Military Service
• Employee adds signature, Email Address, Date Signed
• Agency Identifies/Adds
o
o
o
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Retirement System that applies to employee
If USERRA applies to Period of Service
Interest Accrual Date
Agency Official Signature/Date
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Required Forms for MSD Application - CSRS
SF-2803
CSRS
VERIFY NAME AND SSN
•Does it match the other documents?
•Does it match DCPS?
Part A is completed by CSRS employee
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Required Forms for MSD Application - CSRS
SF-2803
Part B
CSRS
Item 1 and 2 need to
Be completed.
Part B is completed by Agency
1. Must be signed by
CSR If not,
document will be
returned for
correction
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Required Forms for MSD Application - CSRS
SF-2803A
Must match SF-2803
CSRS
Blocks Must Be Completed by CSRS Employee & Agency
Employee also signs, dates & adds email/phone information
MUST HAVE CSR
SIGNATURE
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Required Forms for MSD Application - USERRA
 If USERRA rules apply, one of the following is required
 Completed USERRA Military Service Deposit Report (MSDR), OR
 Completed Federal Retirements Benefits computing deposits and redeposits report.
 Instructions for computing a USERRA are provided in the
Office of Personnel Management Benefits and
Administration Letter BAL 03-105.
Uniformed Services Employment and Reemployment Rights Act of 1994
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Required Forms for MSD Application – RI 20-97
 Completed Request for Estimated Earnings During Military
Service RI 20-97 must accompany all MSD Applications
 Request for estimated earnings should be sent to employee’s branch
of service Military Pay Office.
 This should be the first action initiated by the employee/agency as it could
take up to 180 days to obtain information from the military payroll office. (See
attached Military Pay Office listing)
 Civilian Payroll Office cannot provide estimated earnings.
 An Estimate of Earnings Tool is available at:
http://www.dfas.mil/civilianemployees/militaryservice/militaryservicedeposits.
html.
 Estimator results provide approximate amounts to help an employee who is
deciding to pursue buying back military time.
 Estimator results are unofficial and cannot be used to buy back military time.
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Submitting MSD Applications
 Submit MSD Applications via Remedy. Please do not
mail the application to the Payroll Office (PRO).
 Remedy tracks when a ticket is originated, who answers
the ticket and the amount of time to respond. Remedy
allows the CSR to reply if the answer needs clarification
or if additional information is needed
 Submit all information at one time to ensure timeliness
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Submitting MSD Applications
 If submitting multiple military service periods with different
Interest Accrual Dates (IAD), only one IAD can be
entered into DCPS at a time. If there is more than one
Interest Accrual Date, a separate Remedy ticket must be
submitted when it is time to start the next MSD period of
service.
 Exception to this rule is if employee wants to pay one lump sum
for all deposit amounts regardless of IAD
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Submitting MSD Applications
 Encourage employees who want to buy back Military
service time to make requests as soon as possible
 30 business day customer expectation for MSD Applications
 PRO does not expedite these due to an employee’s approaching
retirement date
 Recommend CSR/HR submit MSD for employee AT LEAST six
months prior to separation
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After the MSD is Established in DCPS
 PRO starts MSD collections in the pay period they are
worked.
 MSD collections cannot be ‘post dated’ in a current pay period to
start in a future pay period.
 Employees requesting to start MSD collections in a future pay
period must provide the pay period ending date, not the pay date.
 PRO will send employee a letter when MSD is
established to include
 periods of service,
 total amount due, and
 payment options
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MSD Payment Options
 Payroll Deductions can be any amount employee
chooses but must be a minimum of $25.00 per pay
period. There must be a written request (no particular
form) submitted to PRO that includes:
 Social Security Number,
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Name,
Amount of deduction per pay period,
Date to start the deduction (future only), and
Signature.
Request must be Faxed to 1-866-401-5849 or submitted via
Remedy using the ‘Military Deposit Payment’ title.
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MSD Payment Options
 Lump Sum Payment checks must be made payable to
‘DFAS-Cleveland’

Write on the check
• 'Catch-62 Military Deposit' and
• Employee’s Social Security Number
 Include a copy of the MSD letter
 Mail to the address provided on the information letter.
 The payment posting date will be the date DFAS
Cleveland processes the payment not the date the
employee dated the check or mailed the check.
 Any interest that accrues between the time the check is
mailed and the processing date of the check is the
responsibility of the employee.
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MSD Payment Options
 Partial Payments must be a minimum of $25.00.
Partial payments can be made along with regular Payroll
deductions. Follow the same instructions for Lump Sum
Payments.
 Agent Cashier Payments
 Send copy of Field Service Receipt, IPAC processing form or
FASPAC processing form.
 Payment date is the date funds reach DFAS Cleveland Treasury
account.
 Payment date is NOT the date of the Field Service Receipt or the
IPAC processing date.
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MSD Payment Options
 Military Service Deposit MUST be paid in full prior to
retirement
 Affects retirement benefit
 New Payment Option through ‘Pay.Gov’
 Fast, convenient way to make an MSD payment
 Deposited into DFAS Cleveland’s disbursing account within 24
hours.
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Transfer of MSD Information
 When an employee transfers from one DCPS database to
another DCPS database, DCPS does NOT automatically
transfer the MSD record.
 CSR/HR must submit a Remedy Ticket for this to occur.
 PRO will only transfer MSD records with balances
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Transfer Of MSD Information (Cont’d)
 Following is the procedure if neither the Indianapolis PRO
nor the Cleveland PRO have access to the prior database
(i.e. Homeland Security, Postal Workers, CIA, IRS, and
probably others)
 CSR/HR will need to contact employee’s prior PRO
 Request MSD Information to be accompanied by OPM 1514 Military
Deposit Worksheet
 Appropriate supporting documentation should be attached such as
• Application
• Estimated Earnings
• Post 56 Forms
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Paid in Full Letters
 The Payroll Office (PRO) no longer issues forms OPM
1514 (except to OPM). Employees now receive a Paid
in Full Letter.
 For Lump Sum Payments, a Paid in Full letter is sent
immediately upon a zero balance (Note: This does not
include payroll deductions).
 CSR\HR must request a Paid in Full letter via Remedy
using the Paid in Full Letter ticket title.
 Employee will be mailed the Paid in Full letter upon request
 CSR/HR should obtain a copy of the letter from the employee,
not the PRO
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Paid in Full Letters
 PRO is working towards no longer providing Paid in Full
Letters.
 NOT Required by OPM
 OPM utilizes the employee SF3100 Individual Retirement
Record (IRR card) for verification of MSD history
 Paid In Full letters are for Information purposes only. There is no
value added for employee or HR.
 CSR/HR can submit a remedy ticket requesting periods paid, if
necessary, for retirement estimate OR can contact the OPM
retirements office and request a copy of the employee's IRR
card listing any Military Service Deposits the employee paid.
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Estimated Earnings Requests
 Army and Air Force
DFAS-Indianapolis Center
Army Military Pay Operations
ATTN: Verification Section (Estimated Earnings)
8899 East 56th Street
Indianapolis, IN 46249-0875
Phone (317) 212-2813/0157
Fax: (317) 275-0123
 Coast Guard Pay and Personnel
Center
444 Southeast Quincy Street
Topeka, KS 66683-3591
Phone: (785) 339-2200
Fax: (785) 339-3784
 Public Health Service
 Navy and Marine Corps
Division of Commissioned Personnel
Compensation Branch
Park lawn Building Rm. 4-50
5600 Fisher’s Lane
Rockville, MD 20857
Phone: (301) 594-2963
Fax: (301) 443-0064
DFAS-Cleveland Center
ATTN: DFAS-CL/JFLA
1240 East 9th Street
Cleveland, OH 44199-2005
Phone: 1-888-332-7411
Fax: (216) 367-3587
Email: CCL-CATCH-62@DFAS.MIL
 National Oceanic and
Atmospheric Administration
(NOAA)
For more information visit
http://www.dfas.mil/dfas/civilianemployees/mili
taryservice/militaryservicedeposits.html
NOAA Commissioned Personnel Center
1315 East-West Highway Rm. 12100
Silver Spring, MD 20910-3282
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USERRA
UNIFORMED SERVICES EMPLOYMENT AND
REEMPLOYMENT RIGHTS ACT
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USERRA Topics
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USERRA Defined
Process Overview
Agency Responsibilities
Documents Needed
Documents Not Needed
PRO Responsibilities
Missed Contributions
USERRA Letter
Miscellaneous
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USERRA - Defined
 The Uniformed Services Employment and Reemployment
Rights Act of 1994 (USERRA) allows eligible employees
who separate from civilian service to perform military
service
 To make up missed Thrift Savings Plan (TSP) contributions if they
return to civilian service under the provisions of USERRA
 To receive agency contributions that could have been made or
received if they had remained in civilian service or pay status
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USERRA - Defined
 Employees are eligible if:
 They were separated from civilian service or were placed in non
pay status to perform military service;
 Their release from military service, discharge from a hospital, or
other similar event occurred on or after August 2, 1990; and
 They were reemployed in, or restored to, a position covered by
FERS or CSRS pursuant to 38 U.S.C. Chapter 43
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USERRA - Process Overview
 First POC on return to civilian pay status should explain
employee’s TSP rights under USERRA
 Employee has 60 days to determine if he or she wants to
make up TSP contributions missed during the period of
military service
 Employee has 60 days to make a TSP Contribution
election
 Agency submits required documentation to PRO via
REMEDY
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USERRA - Process Overview
 PRO calculates makeup contributions, agency matching,
agency automatic 1% and sends letter notifying employee
of calculation results
 Employee has 60 days to respond to the missed
contribution letter authorizing the missed contributions to
be deducted from payroll
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Agency Actions
 Give employee opportunity to make up missed
contributions on return to civilian pay status and explain
employee’s TSP rights under USERRA
 Provide employee copy of TSP Fact Sheet OC95-5 (5/2012)
TSP Benefits That Apply to Members of the Military Who Return to
Federal Civilian Service
 Allow employee 60 days to determine if he or she wants to
make up TSP contributions missed during the period of
military service
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Agency Actions
 If employee elects to make up missed contributions,
employee has 60 days to make a TSP contribution election
for the LWOP period
 Agency pays Lost Earnings (Breakage) on all Agency contributions
for USERRA makeup contributions
 Submit a Remedy ticket notifying PRO that employee has
elected to enact his USERRA rights, ensuring all
documentation needed is attached
 Remedy Ticket Title: USERRA – TSP
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Agency Actions - Documentation Needed
 Memo request form to include
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LWOP-US dates
Updated address
HRO/CSR contact information
Payroll Office
 All SF-50’s for the time period while on LWOP-US
 NOAC 473 Military LWOP – start date of military service
 NOAC 292 Return to Duty (RTD)
 Any Wage Changes
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Agency Actions - Documentation Needed
 Detailed Military Earnings Information to include ONE of the
following:
 Military Leave and Earnings Statements for full LWOP time frame,
OR
 Copy of Master Military Pay Account (MMPA) screens detailing the
TSP breakdown , for each pay period included in LWOP time frame,
OR
 Copy of all HISTORY LES Display pages from DJMS detailing the
TSP breakdown/basic pay for each pay period included in LWOP
time frame
 Employee signed statement if did NOT contribute to Military
TSP
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Agency Actions - Documentation Not Needed
Please do not attach the following documentation to the
Remedy ticket as the PRO cannot use them to process
USERRA
 Military Orders
• Cannot be used in place of SF-50 NOAC 473
 DD214’s
• Cannot be used in place of SF-50 NOAC 292
 W2’s
• Cannot be used in place of Leave and Earning Statements, MMPA
Screens or DJMS History display pages
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PRO Actions
Employee did not contribute to Military TSP
1.
Calculate Base Pay during LWOP time frame using SF50’s
2.
Calculate Agency Automatic 1%* based on Base Pay (Step 1)
3.
Calculate Civilian TSP missed contributions during LWOP time frame
using TSP-1 Election Form for LWOP period and Base Pay (Step 1)

If TSP-1 Election Form is not submitted for LWOP time frame, use
contribution currently showing in DCPS
4.
Immediately deposit Agency Automatic 1%* (Step 2)
 The TSP will calculate and charge Breakage to the Agency
5.
Send USERRA letter to employee
6.
Employee has 60 days to reply to USERRA letter
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Letter must be signed by employee to authorize missed contributions
Agency Matching contributions* are deposited to employee’s TSP account
when the employee begins to deposit make up contributions
*FERS employees only
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PRO Actions
Employee contributed to Military TSP
7. Determine TSP contributions based on Military Base Pay using Military payroll
documentation
8. Reduce Civilian TSP missed contributions (Step 3) by actual TSP Military TSP
contributions based on Military Base Pay (Step 7)
9. Calculate Agency Matching contribution* on Military TSP contributions based
on Military Base Pay (Step 7)
10. Deposit Agency Automatic 1%* (Step 2)
11. Deposit Agency Matching contribution* on Military TSP contributions based on
Military Base Pay (Step 9)
11. Send USERRA letter to employee
13. Employee has 60 days to reply to USERRA letter
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Letter must be signed by employee to authorize missed contributions
Agency Matching contributions are deposited to employee’s TSP account when the
employee begins to deposit make up contributions
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USERRA – Missed Contributions
 Maximum payback time is 2x the number of missed pay
periods
 PRO processes manually each pay period
 TSP applies missed contributions to applicable deferral year
 Will show on Current Year W2 for tax benefit
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USERRA – Missed Contributions
 If Employee decides to STOP making these contributions
 Decision is irrevocable
 Monies cannot be refunded
 If Employee decided initially to NOT make up contributions
 Decision is irrevocable
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USERRA Letter
 USERRA Letter includes
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Employee Name and Address
LWOP Period
Total Missed TSP deductions
Total Uniformed Service TSP contributions made during LWOP
Period
 Total Missed TSP deductions eligible to make up
 Automatic Agency 1% (FERS only) applied & pay period processed
 Agency Matching contributions (FERS only)
• Applied to Uniformed Service TSP contributions & pay period processed
• To be applied to future eligible Missed TSP deductions
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USERRA Letter
 Instructions to Employee
 Select option to decline deduction of missed TSP contributions
 Select option to make up missed TSP contributions
• Indicate number of pay periods needed to make up missed TSP
contributions
 Sign, date and return by fax within 60 days
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USERRA Letter
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USERRA Letter
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Suspending TSP Loan due to Military Service
 Agency completes TSP-41 to notify TSP (the Record
Keeper) that Employee is on leave due to military service
 Must include beginning date of Non Pay Status
 Must be certified by an Agency Official
 Must be mailed or FAXED to TSP
 When TSP receives completed TSP-41
 Loan payments will be suspended for the period of military service
 Interest will continue to accrue during the period of military service
 The time period for repaying the loan is extended by the period of
military service
 Employee will receive a confirmation notice from TSP that
loan has been suspended
[FACT SHEET OC 95-4]
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Resuming TSP Loan on Return to Civilian Service
 Agency completes TSP-41 to notify TSP (the Record
Keeper) that Employee has returned to civilian service
 Must include ending date of Non Pay Status
 Must be certified by an Agency Official
 Must be mailed or FAXED to TSP
 When TSP receives completed TSP-41
 Loan will be reamortized to include interest for the period of military
service
 Loan payments may be increased
 The time period for repaying the loan is extended by the period of
military service
 Agency and Employee will receive notification from TSP
that loan has been reamortized
[FACT SHEET OC 95-5]
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TSP Loan Closed as Taxable Distribution
 Reversing a taxable distribution
 Employees who had TSP loans that were closed as taxable
distributions because they separated to perform military service
may be eligible to have the taxable distributions reversed after they
return to civilian service.
 TSP Fact Sheet (Page 4) explains eligibility and describes the
actions employees must take to have taxable distributions
reversed.
[FACT SHEET OC 95-5]
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USERRA Quick Tips
DOCUMENTS NEEDED by PRO to
Calculate Missed TSP Contributions
 Memo request form
 TSP-1 for LWOP timeframe
 SF50’s for LWOP timeframe
NOAC 473 Military LWOP
NOAC 292 Return to Duty (RTD)
Any Wage Changes
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LWOP Leave & Earnings Statements or
Copy of Master Military Pay Screens or
LES History Display Pages from DJMS
Employee signed statement if did NOT
contribute to Military TSP
DOCUMENTATION NOT NEEDED by PRO
 Military Orders
 DD214
 W2C’s
NOTIFY TSP TO SUSPEND LOAN
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Complete TSP-41 & send to TSP
Include start date of LWOP
NOTIFY TSP TO RESUME LOAN
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Complete TSP-41 & send to TSP
Include start and stop dates of LWOP
MISSED EMPLOYEE TSP CONTRIBUTIONS

Are not processed without signed and
completed form letter from employee
AGENCY CONTRIBUTIONS
 FERS Agency1% is deposited immediately
 FERS Agency Matching
Deposited immediately for Military TSP
contributions
Deposited at time of make up contributions
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Information
 www.tsp.gov
 Thriftline 1-TSP-YOU-FIRST (1-877-968-3778)
 https://www.tsp.gov/lifeevents/military/returningToService.shtml
Fact Sheet OC95-5 (5/2012)
TSP Benefits That Apply to Members of the Military Who Return to Federal
Civilian Service
 https://www.tsp.gov/PDF/formspubs/oc95-4.pdf
Fact Sheet OC95-4 (2/2013)
Effect of NonPay Status on Your TSP Account
 Bulletin 12-11
Revision of Form TSP-19, Transfer of Information Between Agencies
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