Peace Corps and VISTA service credit
A small deposit. A pension increase for life.
Under FERS, no deposit means no credit. Pay it while you are still employed — don’t count on being able to after you separate.
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1. What counts
Full-time service as a Peace Corps volunteer or volunteer leader, or as a VISTA volunteer, is creditable toward your FERS or CSRS pension once you pay a service credit deposit. The rules are in 5 CFR part 842, subparts K and L.
| Service | Creditable with a deposit? |
|---|---|
| Peace Corps volunteer or volunteer leader | Yes |
| AmeriCorps VISTA | Yes |
| Other AmeriCorps programs | No |
| Training before enrollment | No |
| Service performed after you retire | No |
One detail sets this apart from other deposits. Most FERS deposits for non-deduction civilian service only cover work performed before 1989. Peace Corps and VISTA service counts regardless of when it was performed, as long as it was before you separate. The broader deposit rules are in service credit and buybacks.
2. The cost and the payoff
Under FERS the deposit is 3% of the stipend or readjustment allowance you received, plus any interest. Under CSRS it is 7%. Volunteer stipends were modest, so the deposit usually is too.
The value is set by the pension formula: high-3 × 1% × years of service (1.1% if you retire at 62 or later with 20 years).
| Example | Amount |
|---|---|
| Stipend received over two years | $10,000 |
| FERS deposit at 3%, within the grace period | $300 |
| Added pension at a $100,000 high-3 (2 × 1%) | $2,000 a year |
| Over 25 years of retirement, before COLAs | ~$50,000 |
The two years also count toward eligibility, which can move your retirement date. Two extra years might be what gets you to 20 years at 60, or 30 at your minimum retirement age.
3. Interest, and why to pay early
After you become a federal employee, you get a two-year interest-free grace period. After that, interest accrues and compounds annually at a variable rate. It can't begin earlier than October 1, 1995.
So the cheapest time to pay is inside those first two years. Even later, the deposit is usually a bargain — but the longer you wait, the more the interest grows.
Under FERS this service is creditable only if the deposit is paid. Pay it while you're still employed, through your agency. Waiting until retirement risks losing the credit entirely. For other deposits and their deadlines, see why your HR estimate can be wrong.
4. How to apply
- Complete the form — SF-3108 under FERS, SF-2803 under CSRS.
- Get a certification of service from the Peace Corps through its returned-volunteer portal, or from AmeriCorps for VISTA service.
- Submit both to your agency's HR office. The agency finalizes and sends them to OPM.
- OPM bills you directly. You pay OPM. The bill doesn't obligate you to pay, but the credit only counts once you do.
- Keep the paid-in-full receipt. It's the proof OPM needs when it computes your annuity.
The military equivalent, which works in a similar way, is covered in the military service buyback.
5. Frequently asked questions
Does Peace Corps service count toward my federal pension?
Yes, if you pay a deposit. Full-time Peace Corps volunteer or volunteer leader service performed any time before you separate from federal service is creditable under FERS and CSRS once the service credit deposit is paid. Under FERS it counts only if the deposit has been made. Training time before enrollment is excluded, and only satisfactory service qualifies.
How much is the deposit?
Under FERS, 3 percent of the stipend or readjustment allowance you received for the volunteer service, plus any interest. Under CSRS it is 7 percent. Because volunteer stipends were modest, the deposit is usually small relative to the lifetime value of the added service credit.
Is there interest on the deposit?
After you become a federal employee there is a two-year interest-free grace period. After that, interest accrues and compounds annually at a variable rate. Interest on these deposits cannot begin earlier than October 1, 1995. Paying early, ideally within the grace period, keeps the cost at its minimum.
Does AmeriCorps count too?
Only AmeriCorps VISTA service is covered by this deposit provision. Other AmeriCorps programs are not creditable for federal retirement under it, so check which program you served in before applying.
How do I apply?
Complete Standard Form 3108 under FERS, or SF-2803 under CSRS. Request a certification of service letter from the Peace Corps, or from AmeriCorps for VISTA service, then submit both to your agency’s human resources office. Your agency sends the application to OPM, which calculates the amount and bills you directly. Receiving a bill does not obligate you to pay.