Retirement and Benefits 

Quality Benefits for the Federal Family

United States 

Office of 

Personnel Management 

The Federal Government’s Human Resources Agency

Benefits Administration Letter

Number 13 - 103 Date: June 18, 2013 

Subject: Discontinuing the practice of allowing employees to complete payment of their 

Post-1956 Military Service Deposits after separation except in the case of an 

administrative error that prevented the employee from completing their deposit prior to 

separation 

Background: The CSRS and FERS Handbook, Chapter 23, section 23A3.1-1 presently 

advises agencies that if an employee intends to make a Post-1956 Military Service 

Deposit at separation, the employee must promptly obtain basic pay information and 

complete the deposit to the agency before OPM completes adjudication of the retirement 

claim. Notification to OPM is done via the OPM form 1515.

Purpose: The CSRS and FERS Handbook guidance concerning payment of the Post1956 Military Service Deposit is out of date. The guidance will be revised to specify that 

payment of the Military Service Deposit must be completed prior to separation except in 

the case of an administrative error that prevented the employee from completing the 

deposit prior to separation. 

Guidance: The retirement applications for CSRS and FERS, SF 2801 and SF 3107 

respectively have since been revised and the OPM form1515 has been discontinued. Both 

applications now clearly state the deposit must be completed before separation. 

5 USC 8334(j)(1)(A) and 5 USC 8422(e)(1)(A) provide that Post-1956 Military 

Service Deposits are paid to the agency in accordance with regulations from 

OPM. 

5 CFR 842.307(a)(3) provides that payments must be completed prior to 

separation from service, except when OPM determines an administrative error 

prevented the employee from completing payment prior to separation. 

5 CFR 831.2107 also provides for payment by a separated employee who did not 

complete the deposit prior to separation due to administrative error. 

Because the applications clearly state the fact that deposits must be completed before 

separation, there will be no exception granted for employees who were already counseled 

but have not yet been separated. These employees must be informed of the correct 

procedures regarding the payment of military deposits. 
 Retirement and Benefits 

Quality Benefits for the Federal Family

If, after separation, a retiree requests to make a Post-1956 Military Service Deposit, and, 

OPM determines that an agency error occurred, a letter will be sent to the agency. This 

letter will explain the administrative error in detail and advise the agency to compute and 

accept the Post-1956 Military Service Deposit. Attachments A and B (for CSRS and 

FERS respectively) are examples of letters that agencies should expect to receive in the 

event that OPM identifies an administrative error. 

 Kenneth J. Zawodny, Jr. 

 Associate Director 

 Retirement Services 
 Retirement and Benefits 

Quality Benefits for the Federal Family

Attachment A 

Agency letter on Administrative Error for Post-1956 Military Deposit- CSRS 

Agency name 

Address 

RE: CSA: 

SSN: 

The purpose of this letter is to advise your agency that a post-1956 military service 

deposit must be computed for (name of annuitant). Generally, military deposits must be 

paid before separation as per title 5, Code of Federal Regulations, Section 831.2104. 

However, subpart (a) of this section also makes it clear that if there is an administrative 

error on the part of the agency, the individual has the opportunity to make the election 

after separation. Examples of administrative error include: 

Material misinformation (i.e., where the employee actually relied on the 

misinformation in electing not to make the deposit); 

Application errors or inconsistencies (i.e., if an application contains obvious 

errors or inconsistencies, the employing agency has an “obligation to investigate 

and resolve the problem before processing the application” – for instance, not 

checking any box or checking “Not applicable” in Schedule A when there is 

evidence an employee had post-1956 military service); 

Failure on the part of the agency to ensure a deposit was made “when all required 

forms are in order and the employee elected to make the deposit.” 

OPM has determined that administrative error was the cause for (Mr./Ms.......) not 

completing (his/her) military deposit. (Explain here why we think it is administrative 

error – example: Mr. Doe’s retirement package showed that his retirement estimate 

included post-1956 military service, yet there is no indication that he was given an 

estimate of his benefit without the military service. In addition, his application SF 2801 

shows he indicated “not applicable” to the question on Schedule A as to whether a 

deposit was paid for post-1956 military service. Since he performed military service 

after 1956, the response should have been “yes” or “no”. This response suggests he did 

not understand the question or the consequences of not paying the post- 56 military 

deposit.) 

As such, you must process the post-1956 military deposit for (name of annuitant) and 

send us the required Military Deposit SF 2806 as soon as possible. 

(Enter contact name and number) 
 Retirement and Benefits 

Quality Benefits for the Federal Family

Attachment B 

Agency letter on Administrative Error for Post-1956 Military Deposit- FERS 

Agency name 

Address 

RE: CSA: 

SSN: 

The purpose of this letter is to advise your agency that a post 1956 military service 

deposit must be computed for (name of annuitant). Generally, military deposits must be 

paid before separation as per title 5, Code of Federal Regulations, Section 842.307 (a) 

(3). However, this subpart also makes it clear that if there is an administrative error on the 

part of the agency, the individual has the opportunity to make the election after 

separation. Examples of administrative error include: 

Material misinformation (i.e., where the employee actually relied on the 

misinformation in electing not to make the deposit); 

Application errors or inconsistencies (i.e., if an application contains obvious 

errors or inconsistencies, the employing agency has an “obligation to investigate 

and resolve the problem before processing the application” – for instance, not 

checking any box or checking “Not applicable” in Schedule A when there is 

evidence an employee had post-1956 military service); 

Failure on the part of the agency to ensure a deposit was made “when all required 

forms are in order and the employee elected to make the deposit.” 

OPM has determined that administrative error was the cause for (Mr./Ms.......) not 

completing (his/her) military deposit. (Explain here why we think it is administrative 

error – example: Mr. Doe’s retirement application SF 3107 shows he indicated “not 

applicable” to the question as to whether a deposit was paid for post-1956 military 

service. Since he performed military service after 1956, the response should have been 

“yes” or “no”. This suggests he did not understand the question or the consequences of 

not paying the post- 1956 military deposit.) 

As such, you must process the post 1956 military deposit for (name of annuitant) and 

send us the required Military Deposit SF 3100 as soon as possible. 

(Enter contact name and number)