Crediting Military Service for FERS When You Are Receiving Military Retired Pay
Article Excerpt: "You cannot receive credit for any military service in your FERS retirement computation, if you are receiving military retired pay, unless you were awarded the retired pay:
Due to a service-connected disability either incurred in combat with an enemy of the United States or caused by an instrumentality of war and incurred in the line of duty during a period of war, or
Under the provisions of Chapter 1223, Title 10, U.S.C. (pertaining to retirement from a reserve component of the Armed Forces).
However, you can elect to waive the retired pay and have the military service added to your civilian service in computing your FERS annuity. In addition to waiving your military retired pay you MUST pay a deposit for your post 1956 military deposit prior to separating from your agency in order for it to be creditable in your FERS retirement case. ..."
Resource: www.opm.gov