Buying back sub time pre-1989

[Postaltexan]

Since we may have early outs coming for rural carriers soon, I thought I would post this info on buying back sub time.  If a carrier worked as an RCA prior to 1989, you can buy back that time to add to your retirement.  It could give some enough time to take the early out that otherwise would not be able to.  Anyway, just an FYI if anyone is interested..  This is an excellent article on buying back sub time...




Buying Back Sub-Time For Retirement

Written by Mark Larman (GARLCA)

I was prompted by a phone call I received to write about buying back Sub time for retirement.

If you worked as a sub in the1980’s (up to 12/31/1988), you may be able to buy some of it to add to your retirement.

 

For every day you worked those years you can add it to your retirement by paying what your retirement contribution would’ve cost plus interest.

Let’s say you worked prior to January 1, 1989 as a sub. During those years the days you actually worked equaled two years.

 

You can buy back those two years and be able to retire two years earlier. The days worked aren’t limited to rural route work either.

Any day you were in a pay status, no matter the number of hours, count as a day.

 

This may not seem much to you now, but when you're 60 with 18 years of service, those two years could put you into retirement when you want it most.

 The amount you owe is calculated on the amount you earned during the creditable time.

 

The formula is amount earned times 1.3% plus variable interest rates. The best time to buy those years back are when you first go regular,

because usually it hasn’t added up to much money at that point. If you wait until later, you’ll have to pay interest on it, and it will cost you a little more.

 

My suggestion would be, when you find out how much it is, to pay it off all at one time. If you haven’t got the money saved, then borrow it from the credit union

 and pay them back in-stead of making payments to Office of Personnel Management (OPM).

 

Buying back your time is at least a three step process.

 First contact Personnel or www.opm.gov , and request a form SF3108 to get the process started.

Complete your portion(page 1) and return the form to Personnel. They will complete the form and forward it to OPM.

 

OPM will send a bill and instructions to you for payment directly to them. This is a one-time statement, so don’t misplace it.

Once you receive this, you can send them the money.

 

 When you receive the paperwork showing you’ve paid the amount in full, get in touch with Personnel

 at your District Headquarters and provide them with copies so they can get your retirement date changed.

 Be sure to keep copies of all paperwork in a safe,

secure location, because more than likely you will have to refer back to these at your retirement time.

In Your Service,

Mark Larman (GARLCA)

[LAU]

I have been told early outs are not going to be offered to Rurals, but if they are who do you go to buy back your sub time?

[DisGruntled]

If early outs are not going to be offered to rural carriers, they shouldn't have teased us by talking about it.    Oh well, what's a couple more years   :'(

To buy back sub time you must contact OPM to find out exactly how much of your time you can buy back and get the estimate of the cost w/yearly interest for doing so.  Adding all the interest after all these years you may find it to be quite expensive (I bought my sub time soon after becoming reg.)  Not all pre-1989 sub time can be be bought back though, and none of any RCR time.  

[mustardtruck]

I started carrying my route fulltime Sept 1,2000...route was not officially posted until July 24,2004. I had been a sub on this route since May of '89...what, if any, options do I have in regards to buying back time, particularly the nearly 4 years of fulltime work? Thanks...MUSTARDTRUCK

[DisGruntled]

mustardtruck, not certain how it works with FERS, but you can research that and every other aspect of the FERS system online.  You may be able to buy back at least some of the days worked.  Try doing a search for FERS buyback time.

[Postaltexan]

Mustard, I hate to say it, but you will probably not be able to buy back any time.  Sub time can only be bought back prior to 12/31/1988..  Any time worked after that does not count whether you ran the route full time or not.  

It sucks that you ran the route the same as a regular carrier, but you will not get credit for it.  It only counts if you were officially designated as a career regular carrier and awarded the route officially.

[mustardtruck]

Yes indeed, it does suck...hence, the name Mustardtruck, (rhymes w/ clust......) anyways, I've got maybe 15 years of work in front of me, so maybe down the line something will be done for this situation... I won't hold my breath...thanks to you for your efforts here...great site
 Mustardtruck

[1978]

can you buy back sub time from 2001-2007

[Postaltexan]

No, the only leave that can be bought back is pre 1989..