How many months early you could start your pension. Any number of combinations that add to 90 days would count. I entered the Delayed Entry Program 01 Feb 1979 and went to basic training in July 1979. For example, if someone was forced out of active duty with 17 years in (after perhaps being passed over for promotion) and then switched over to the reserves and accumulated 3 years worth of active points (1095 points). My total points is 6522 but only 6214 for retirement. DoD requires that your pension be deposited directly in your financial account, so you’ll also need to check that they enter your account numbers correctly. Any thoughts on how to get my officer retirement? The problem with this calculation is that Reserve/Guard members who “retired awaiting pay” have to wait until they turn age 60 to know exactly what amounts are on that pay table. Retirees can get both Social Security benefits and their military pension. Filed Under: Guard & Reserve Retirement, Military Retirement, Retirement Calculators. While Soldiers who meet the criteria can receive retirement pay before age 60, they will still need to wait until their 60th birthday before they are eligible for Tricare, Dorsey said. (A few Reserve/Guard veterans may be eligible to begin receiving their pension earlier than age 60. Because the actual number of days served on summer training can vary, it is necessary that training be properly documented as a prerequisite to awarding retirement point credit. It’s possible that future pay tables (when you’ll be 60 years old) would change the longevity years for the maximum pay. That should earn you the 15 participation points for a good year, but of course it’d be even better if you earned 50 points on your own before December 2020. The definition of active federal service starts in Title 10 of the U.S. Code, parts 101(d)(6) and (7). You’ll have to earn a total of at least 20 good years in order to be eligible to retire from the Reserves or National Guard. So just to make sure I’m clear I am RET 2 awaiting RET 1 beginning Dec 01 2016. My question: I have approximately 26 good years for reserve retirement, with 13 good years as an officer, 9 years as an O3. Those designated areas have changed significantly over the last few years so your mobilization may no longer be eligible to qualify for an earlier retirement. There are also special circumstances (mainly medical) when you may be eligible to retire before reaching 20 good years. In your case they should also pay you for the months you’ve already missed back to your 60th birthday. Do I need to add a day? Your point total would be 4231 and your pension would be 4231 / 360 * 2.5% = 29.38% of the High-Three average of the base pay for your rank and your longevity of the pay tables in effect when your pension starts. Since you were mobilized in 2012, your combat zone deployment’s 90-day periods would have to be within a fiscal year to count for an earlier pension start. If they’re struggling to calculate your pension then you’d direct their attention to the DoD Financial Management Regulation (DoD 7400.14-R, volume 7B, That’s a tough question, Arthur! The "high-3" system takes the highest average basic pay an employee earns during any three consecutive years of service. Thank you so much. And will I be eligible if I have less than 30 years? Between 28 Jan 2008 and 30 Sep 2014, you had to mobilize and deploy to a combat zone for at least 90 days during the fiscal year. Each service has their own procedures on their Reserve/National Guard websites, and they’re all just different enough (and changing frequently enough) to be extremely confusing. FERS disability benefits are computed in different ways depending on the annuitant’s age and amount of service at retirement. If I start my pay Jan 1, 2018 would I receive a higher amount? This post links to all of the military’s sanctuary instructions that are on public sites: But again they may have been updated in the last year. IRR may now be a very difficult place to get a good year. I had a break in service between active duty and Reserve and PEBD date is incorrect. This was extremely helpful as I feel my time is getting close that I’ll decide to retire. When you retire awaiting pay (and then start your pension early) your health insurance will shift from Tricare Reserve Select to Tricare Reserve Retired. That option is no longer available as of spring of this year (2016) – the only way to get a ‘good year’ of 50 RPs or more this year and beyond is to become an active USAR member via acceptance of a TPU position or find an IMA/DIMA slot & affiliate with some organization and make the Unit Training Assemblies [UTAs] and/or perform Annual Training [AT]/Additional Duty/’split train’, etc. Click Here. If you’re already close to age 60 (or starting your pension early) then you might be able to calculate your High Three average from the current pay tables and assume a 2% pay raise for next year. Back in the days of the Final Pay dinosaurs (I’m one of them), some Reserve/Guard retirees would delay the start of their pension until after the next pay raise. (The Financial Management Regulation requires DFAS to truncate the result to the lower dollar.) I have a few questions: First, where they correct in saying that my retirement pay would be based on my highest grade earned? I am three years deep into retirement on 01MAR15 and HRC still is unable to get my retirement correct. There is no assurance that any investment plan or strategy will be successful. Another issue is “combat zone”. It’s not “just” your retired pay. Thanks for the info, and the quick response! Seems like a lot of work to shave 2.5% off your pension, but “high three” is commonly used in today’s defined-benefit pension systems to avoid the employee syndrome of “pension spiking”, a final year of work with exceptionally high pay. When you retire awaiting pay you’re not required to perform any duties or maintain any readiness in the “gray area” between the time you retire and the start of your retired pay, but the risk of this option is that you could still be recalled to duty for a full mobilization. That comes from the DoD Financial Management Regulation (the FMR) which has detailed procedures for calculating the Reserve/Guard pension. It takes a certain amount of discipline (and free time) to keep up with the pace of correspondence courses to reach a good years’ worth of points, and if you can only access the website from a distant Reserve Center then you’re not going to be happy. Please point me in the right direction. By the way you’re also eligible to apply for Tricare health insurance, either Tricare Select or Tricare Prime: Multiple your percent multiplier by your final average compensation and then multiple that number by total number of service years. This includes times spent as a drilling participant or while serving in the Inactive Ready Reserve (IRR). Since you’ve been at USPS for so long, you may have some interest to pay on your deposit. That base pay number is multiplied by the service multiple to get the monthly pension amount. For example, if you had a public school teacher who earned a final salary of $40,000 per year and worked 25 years and had a 2 percent multiplier, than that teacher would earn a $20,000 per year pension benefit, the equivalent of half of their final salary. Content provided herein is for informational purposes only and should not be used or construed as investment advice or recommendation regarding the purchase or sale of any security. You accumulate points for drill weekends, active duty periods, and under some special circumstances: Each day of active duty counts as one point. However, when the services consolidated their pay systems in the 1990s, some members of the service academy classes of 1981-1984 were not properly credited with the correct DIEMS/DIEUS date. Please let me know if you have more questions. Paragraphs (B) through (F) cover some exceptions to that three years which apply to very few people.’s.aspx ). The services track servicemembers who have at least 16 years of points and aggressively restrict them from reaching sanctuary status. However, everyone has told me that it is very difficult to change it requiring enormous load of paperwork and it is not worth the effort. You can find your *Estimated* RSCD on your Personal Statement of Benefits. Do your best to complete good years for your time in grade, and avoid the IRR if possible (because it’s so hard to get a good year in the IRR). In other words, a Reservist volunteering to deploy to the desert for a fiscal year would be eligible to start their Reserve pension at age 59. Whata PITA to calculate. You’re simply continued in your “retired awaiting pay” status until you reach age 60. I have 10 years of just Reserve time. I’m going to assume that you did not deploy to a combat zone after 28 January 2008 for at least 90 days during a fiscal year. I currently have 5324 points and ran the numbers in your article. Doug, I have a friend who is trying to straighten out his Active Federal Service (AFS) time as an Army Reserve AGR officer. If I make O-5 this year I plan on retiring in three years. Your active-duty time also accrues a point for each day, so you probably received over 1800 points for those five years. Unless I sign a wavier for my right to apply for sanctuary seems like the only way to deploy again for my farewell tour. FERS (Federal Employees Retirement System) has three main components: Basic FERS... Special Benefit for Some FERS Who Retire Before Age 62 Have you heard about the FERS Supplement? The Army retired me under 3914 and 3964 of title 10. Read more about active duty retirement on the OSD website. Is there an advantage to trying to get promoted to E-8 and then go to age 60? Keep an eye on your service’s Reserve personnel website or ask them about it. It can also help you earn a higher rate on your leave. However (depending on the nature of your disability) you may also qualify for a medical disability retirement. Thank you, I look forward to hearing from you. Should I retire using the NDAA service or wait until age 60? Please e-mail me more details if it would help refine the answer. I’m now commissioned and currently an O4, but expect to go to the DA Select Res AMEDD Officer board March 2019 and will probably pin O5 on late 2019. There is no mention of 10 US Code 1370 in this regulation. (I am 45). Am I right for being concerned or is there a system in place that provides for soldiers who are as close to retirement as I am? The average time credited was approximately 30 days each summer. If you’re eligible to start your pension at $2900/month in August 2019, then the only reason you’d delay it would be to continue serving (until your MRD) for at least $2900/month of pay & allowances. The federal retirement system is known as FERS, the Federal Employees Retirement System. However High Three averages the final 36 months of pay tables before you start your pension. Regarding my situation it looks like for me to go on active duty orders will take an act of Congress (literally). By 2018 you’re an E-7>32 years whose base pay is $5291.40. This means that you have to serve three years’ time in grade to retire at the rank of O-5 (waiverable down to two years) but you do not have to worry about MRD. This is the amount that the retirement pay is based on, not the pay rates at 32 years, is that correct? Last deployment was in 05, so I missed the ‘early pay’ too. When adding military time (that you bought back) to your civilian time, you don’t drop the days until you’ve added everything up. What should be reflected on your LES right now is your Pay Entry Base Date (and Date of Initial Entry on Military Service) of July 1992. You’re wise to consider this question before you apply for retirement. I’d just like my reduced pension rate now please, instead of at 60. There could be a big difference in your gross vs. net pension. Is there any truth to this? For most FERS, their pension multiplier is 1%. For a spreadsheet or a calculator, you could assume that military pay grows with the rate of inflation. Otherwise, you’re “High Three”. You already have your Notice Of Eligibility and your approval for retired awaiting pay, but you should verify with Army HRC that they also have your record of satisfactory service as an E-7. To qualify for this eligibility, your mobilization orders have to cite federal law– either Title 10 or Title 32 sections 12301(a), 12301(d), 12301(h), 12302, 12304, 12305 or 12306. It tops out at 30. So, what does a retired E-7 over 26 years (final Pay) option with 3837 points supposed to receive (gross) 3837~360=10.6583333333×2.5%=0.2664583333×5291.47=1409.9562770833 if I am supposed to use the current 2018 pay scale for E-7 over 26 if I can get corrected on this or I’m on the right path please let me know, Thanks. I can not find any references. I held my commission for 10 years and 08 months in the Navy. Is a remarried ex-spouse entitled to any of my USNR retired pay. Note that it’s 97.5% of the Final Pay amount– only a 2.5% reduction. I’m going to write up the full response as a separate blog post., which I’ll link to from here. i have 4 full active army and 10 reserve. There is no REDUX retirement plan under non-regular (reserve) retirement. A full mobilization requires the President and Congress to declare a war that’s bad enough to require the entire armed forces, and it’s more severe than the Presidential mobilization that was declared after 9/11. I am currently working with the Department of Justice for the last 8 years. Author: Doug Nordman Last Updated: November 6, 2020 162 Comments Advertiser Disclosure: Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any other entity. Per DoD Instruction 1215.07, members will only be allowed one point per day. Then you’ll add them all together and divide by 36. Outstanding article and feedback. That’s the most points I’ve ever seen. In 2009, after a legal review by both Navy Personnel Command and Defense Finance and Accounting Services (DFAS), it was determined that Title 10 U.S.C. Does reverting to an inactive ready reserve status continue to accrue this time if this does apply to me? Our FERS Federal Fact Check for Federal Employees who work with the Department of, “I am retiring on 12/31 at the age of 56 – will my FERS Supplement calculation include 2019 earnings – after they get reported to Social Security. Joe, here’s a summary from DFAS: You’re always eligible to collect a pension that you earn through service (or qualify for through disability), but when you receive a pension then you have to pay back the gross amount (pretax) of the VSI. It sounds like for those few that are in my situation (involuntarily separated at 17.5 and prior enlisted) the best chance at an active duty retirement is to take the revert back to enlisted option and finish off my time as a chief. The Military Guide To Financial Independence. I have been living here for the passed three years. If you did not meet those time-in-grade requirements (or at least get a waiver to two years) then you’d be retired as an O-4. The accumulative effect can continue for a number of years in 90-day blocks, with the only stipulation being that a Soldier cannot retire before age 50. Just oficially hit “Retired awaiting pay” this 1Apr. If you have not already seen a military lawyer at a local military base then that still seems to be your best option. 2. Third, you have more than 10 years of commissioned service so you’re eligible for an O-3 pension. For more information, please see our Advertising Policy. If that happens then you’ll get less than $1975/month. Some Reserve/Guard members may actually be eligible for a retirement earlier than age 60. That includes Tricare at age 60, Tricare For Life at age 65, and Social Security somewhere between ages 62-70. By enlisting before 6 Sep 1980, your retirement comes under legacy rules that today’s personnel staffs may not see very often. My discharge DD-214 shows E-7 as my discharge grade, my discharge was R-1 Honorable. First, your Date of Initial Entry on Military Service is after 8 September 1980 so your pension is High Three. Is there any truth to that? It authorizes the Guard to waive that three-year requirement to two years: “(A) The Secretary of Defense may authorize the Secretary of a military department to reduce the 3-year period required by paragraph (3)(A) to a period not less than two years.” You have to request the waiver, they have to approve it, and two years is a hard minimum. (For every 90 days that you deploy to a combat zone during a fiscal year then your retirement age will be reduced by 90 days.) Good morning. Last question. So, maybe you can assist me with a couple problems. After reading some of the other questions on here, I don’t feel like I’m the only one with a very unusual situation. The JAG can help you verify that you’re getting due process from the MEB and that you’ll receive all the benefits to which you’re entitled. The annuity of a federal employee is calculated based on the employee's length of service, pension multiplier, and “high-3” average salary. Your best option is to contact your service’s personnel branch to determine their policy and to request TERA. Philip, you’ll need a couple more details when you do your calculation. If you are younger than age 62, your pension multiplier would be 1%. How soon will I be eligible for active retirement? I was told that upon reaching retirement age (60) my pay would be based on E-7 as this was my highest rank attained. You already seem familiar with the DoD Financial Management Regulation so the lawyer might be willing to offer a free hour to review your FMR references and your service record. I wouldn’t delay the start of a High-Three pension because it takes so long for the (very slightly) higher payments to make up for the skipped deposits. Thanks for the question, Andrew! Is there any problem you see with my O3 retirement pay being calculated at the same time I am still serving as an enlisted soldier in the Army National Guard? I intend to apply for reserve retirement instead of active based on the following: I will have approximately 11,313 retirement points when I retire based 40 good years, 29 of which are active duty in the Army Reserve AGR program. You’d be able to continue to do drill weekends and ATs but the only way to get orders of more than 29 days (let alone mobilization) would be with a three-star general’s approval from AF personnel HQ (the active-duty HQ, not the Reserve HQ). For a Reserve pension you’d retire as an O-5 if you met the Title 10 U.S. Code section 1370 requirements, and then the High Three calculation would determine the pay factor in your pension. The content on this website is for informational and entertainment purposes only and should not be considered professional financial advice. How to use the High-3 military retirement calculator. Over my 12 years of retirement, the COLA has raised my pension by a total of 27%. I am over 18 for seniority and pay. Once you determine which retired pay base system you’re under, you’re ready to calculate your service percent multiplier. I returned to service in the North Carolina Army National Guard at the rank of E-6. d. A letter from the ROTC Unit CO certifying the actual dates of summer training. Here’s a summary: the services discourage sanctuary because they have to pay big bucks for it. However, prior to my 8 years of service in the National Guard I had attained the rank of 0 – 3 while serving on active duty in the Navy, electing to resign my commission, receiving an Honorable Discharge after holding that rank for @ 2 years. Both are very senior reservists. ... the federal agency that insures private pensions, but at a fraction of their value. My retirement is the story of Everybody, Somebody, Anybody, and Nobody. Learn more about Military Buyback and Creditable Service for Federal Retirement. Proper documentation consists of one or more of the following and should be submitted to NAVPERSCOM (PERS-911): a. Reserve and Guard members may not always earn enough points (50 points per year) to qualify for a good year in any given year. I was told that my retirement would be based on highest grade held and current pay table. Another category is for those in warrior transition units who were hurt while mobilized for such responses, Gray said. Hey Doug — I know this was posted a couple years ago –but here is a addition for you regarding this question — IF a member declares sanctuary — they will complete the reserve order they are on (typically a deployment order) then be placed on Active Duty to complete their time until their 20th year of active service (think 7300 active points) — at that time, they MAY elect to go back to the reserves and continue to serve OR they can elect to take an active duty retirement — the retirement would ALSO add the value of Inactive Points the member earned as reservist, convert them to find a total value of days (points) served and add that to the 20 years of Active points — so if they had 360 Inactive points — then 21 years .. and so on. I know the. The Reserve/Guard retirement system calculates the multiplier from your total points. ... has less than 30 years of creditable service, and is under the age of 62 at the time of retirement Who can I talk to? I thought my pay was just suppose to be my total points times point value for rank and years. For each one, you’ll take the max pay at that rank (max longevity) and the number of months of that year. The next question is whether you’re retiring under the pay base system of “Final Pay, “High Three”, or the Blended Retirement System. September 2017 update: Here’s the link where the Navy has canceled credit for midshipman summer training:'s.aspx. After a legal review of legislation, DFAS is actually recalculating pensions and planning to recoup overpayments. When you apply for “retired awaiting pay” then your High Three pension is calculated from the pay tables in effect at the time you start your pension. Would that be in the Financial Management Regulation or somewhere else? If you review your point count summary online, you’ll probably see a good year for every year of active duty plus another good year for your Army Reserve time. WHAT I DO: I help you reach financial independence. The next morning BUPERS overrode the flag officer and canceled the orders, then told PACOM to submit a sanctuary request. If you let me know your date of birth (to figure out ages 56 and 60) and your estimated point counts at those ages then we can refine the estimate. I’m also wondering about how my High 3 will be calculated. “… I recently went over the max earnings on my supplement and when I filled the form out in early June it is expected I was appx 2,500 over. After reading all the questions above, I don’t feel as bad. It’s absolutely essential that you resolve these questions now, before you apply for retirement, in order to avoid having to resolve them through a corrections board after retirement. I have received estimated monthly retirement amounts from $300 to $4,000.00. Check out our main page on FERS retirement rules, then each set of rules has an additional page where you can find examples of pension calculations for those FERS Retirement rules. You should also review the MEB and the TERA questions with a military lawyer. As a pre-1980 servicemember with greater than 10 years of commissioned service, you’re still eligible for a “Final Pay” pension at the highest rank achieved. I hope this helps you figure out the best approach for your other considerations! The earlier retirement only applies to the Reserve pension and not to Tricare. Awesome article! The answer is “Yes”– you can get either one. Article 2600.3 (Chapter 20, page 20-8), says: 3. You’ll get the same payment each month for the calendar year. (The recruiter later apologized and admitted he really fouled up and simply did not care about his job back then). Let’s say you turn age 60 in June 2012. You may have to “prove” it to HRC one more time when they contact you (around age 59.5) to do the final paperwork for your pension. My pay base date is 6/87 so at that point I will have 29.5 years for pay purposes which at my current pay grade of O3E has me maxed out at $6880. Also, I need to get a copy of my DD214 for my Active time (2001-2002) but only have a Member’s copy and my Federal job won’t accept this for credit. I don’t know the answer to the ID card, but it depends on whether that decision is made by the DEERS staff (who furnish the info for the ID card) or the DFAS pay system (which decides what rank is used for your retired pay). If I have 4 years of active duty time and 16 years of reserve time all with “good years,” does that mean that the age to begin receiving retirement pay will still be at age 60 or at 56 due to the years of active time? Thanks. But since I won’t have completed the entire year until April, can that final year be counted as soon as I accumulate the 50 points required for a good year? Even if HRC agrees that you’re retiring as an O-3, you still should ensure that they can quote the applicable regulation– and avoid a later unpleasant surprise. Great article and I really enjoyed reading the comments and questions of others. Stephen, you’d have to spreadsheet the math to decide whether finishing 20 for an enlisted active-duty pension is better than going to the Reserves for an officer’s pension. I remained an E-6 throughout my 10 (1997 – 2007) years in the NCANG and retired at this grade. Good retirement calculators are hard to create. Even though you could apply for retirement when you’re around 23 years of service, your pension would be calculated from the maximum longevity column of the future pay tables in effect when you start drawing your pension, Greetings Doug, I read several comments in your blog about calculating final basic pay. For example, 2134 points / … (Please correct me if I’m wrong on that.) Well – once you know the number it’s straight-forward… but it’s finding that number that can take time. If your orders were written correctly then you’ll be eligible to start your pension at age 59. However, I have no idea what my retirement pay will add up to. AUSN’s website doesn’t even have a calculator for the High Three Reserve retirement. Short- and long-term disability income protection and business travel insurance are provided to you at no cost. Doug you are extremely kind to take so much time to assist with these questions. To a Navy guy that took great pride, had perfect Evals, and even won Sailor of the Quarter before getting out. Letter from Chair Powell to Secretary Mnuchin regarding emergency lending facilities Recent Posting - 11/20/2020 . I’m 51 years old. Your federal retirement pension will not keep pace with your increased costs of living. I left active duty, had one bad year in the reserve, and have since had all good years. Divide your grand total career point count by 360 (because your pay is based on 30-day months) and multiply by 2.5% to come up with your service multiplier. The multiplier is fixed and is only applied to your total points. Figure out how many years of service you’d technically have at age 60, check the numbers in the pay table for your retirement rank, and see whether that incorrect PEBD date gives you a different pay amount.
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