**Important Information Concerning the**

**Computation of Military Service Deposits**

**FLYER**

# **HRM Offices: Please provide a copy of this Flyer to your Payroll Office**

> Benefits 05-9
>
> March 14, 2005

**TO: Chief, HRMS**

**SUBJ: Computation of Post-56 Military Service** **Deposits**

This is a reminder to Human Resources (HR) offices that the computation
of Post-56 military service deposits is the responsibility of the local
payroll offices.

The VA Payroll Policy Division at VA Central Office issued 047GA2 Notice
04.002 on October 2, 2003 outlining payroll's responsibility in the
computation of Post-56 military service deposits. The following pages
provide a copy of the notice and the updated military service deposit
rates for 2004 and 2005 as contained in OF Bulletin 05GA2.002, dated
December 29, 2004.

Instructions for manually computing military service deposits are
contained in

MP 6, Part V, Supplement 2.3, Chapter 5, Section 5.12.

Payroll questions concerning this flyer should be directed to the
contacts listed at the bottom of the payroll notice.

Questions from HR staff regarding this flyer should be directed to
Elizabeth A. White at (202) 273-9801, Therese M. Kilgore at (202)
273-8258, Donna Taylor at (202) 273-7668, or Deborah Brodbeck via
Outlook.

**Office of Human Resources Management and Labor Relations**

**Worklife and Benefits Service (058)**

# **VA Headquarters -- Washington, DC**

**OCTOBER 2, 2003 047GA2 Notice 04.002**

**ATTENTION: PAYROLL OFFICES**

**COMPUTATION OF MILITARY SERVICE DEPOSITS**

**[REMINDER]{.underline}**

This is a reminder that payroll offices are responsible for the
computation of Post-56 military service deposits. At some facilities, a
cooperative relationship has evolved and local human resources offices
have computed military deposits using commercial software on behalf of
the payroll office. If such an arrangement is in effect, this practice
may continue. However, to reiterate, payroll offices, not human
resources, are responsible for the computation of military deposit
amounts.

Instructions to manually compute military service deposits are contained
in MP 6 Part V Supplement 2.3, Chapter 5, section 5.12.

### [DEPOSITS FOR MILITARY SERVICE PERFORMED DURING 1999 AND 2000]{.underline}

Payroll offices are advised to apply the same temporary increase that
applied to employee retirement deductions for military service performed
during 1999 and 2000. Employees need to request that the military pay
center provide year-by-year earnings for these years so that deposits
can be computed correctly. Use rates below to compute military deposits
for service during these years.

> [1999]{.underline} [2000]{.underline} [OTHER YEARS]{.underline}
>
> CSRS 7.25% 7.40% 7%
>
> FERS 3.25% 3.40% 3%

#### [INTEREST RATES]{.underline}\*

The following **calendar year** interest rates are provided. To
determine the **composite rate for a particular interest accrual date**,
refer to MP 6 Part V, Supplement 2.3, Section 5.12c (2) (b) (3).

> 1985 13.000% 1994 6.25%
>
> 1986 11.125% 1995 7.000%
>
> 1987 9.000% 1996 6.875%
>
> 1988 8.375% 1997 6.875%
>
> 1989 9.125% 1998 6.750%
>
> 1990 8.750% 1999 5.750%
>
> 1991 8.625% 2000 5.875%
>
> 1992 8.125% 2001 6.375%
>
> 1993 7.125% 2002 5.500%
>
> 2003 5.000%

# 

# 

# **[QUESTIONS]{.underline}**

Questions concerning this notice should be directed as shown below:

VHA Facilities (Odd VISN) VHA Payroll Helpline I (Outlook)

VHA Facilities (Even VISN) VHA Payroll Helpline II (Outlook)

VBA Facilities (202) 273-6720

All Others Payroll Policy (Outlook)

**\*[Rates for 2004 and 2005 have been added since issuance of this
notice]{.underline}. [These rates are]{.underline}:**

2004. **[3.875%]{.underline}**

2005. **[4.375%]{.underline}**