
Following his retirement from the Army in 1989, he served Grace Lutheran Church in Bandera, Texas and subsequently did interim ministries in Yorktown, Yoakum and Seguin in Texas, as well as parishes in southwestern Minnesota. In addition he pursued doctoral studies after his retirement from the Army.
Pastor Peterson's first wife died shortly before his retirement from the Army. He married again to Paula, a friend from high school days.
Pastor Peterson concluded his interim period at Zion Lutheran Church of Helotes on July 31, 2001, with his last Sunday service on July 29th.