Retired pay is calculated based on a figure derived from the average of the last 36 months of basic pay for the approved retired grade (highest grade satisfactorily held), and from the length of service (longevity) prior to reaching age 60. Sorry about that comments glitch, Jim. You’re going to have to contact the Defense Finance and Accounting Service directly on this one: https://www.dfas.mil/retiredmilitary.html, You can apply from overseas, and you will need a bank account for electronic deposit of your pension. If the pension payment doesn’t start on the date you were promised then contact DFAS directly about your Retiree Account Statement at https://www.dfas.mil/retiredmilitary/manage/ras.html. How will they calculate the reserve points in the active system? 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. As an O5? I’m looking this up on website of the Association of the U.S. Navy (AUSN.org), which is an excellent advocacy group for Navy Reserve servicemembers. Of course I had over 4000 points (10+ years I was AD). I’m not sure how the Army arrived at their determination of your retirement rank, and you made good points in your 4 July message. If you want an active-duty retirement then you’ll have to stick around for 20 years of active duty or a Temporary Early Retirement Authorization at 15-20 years (these are generally only used during drawdowns). Thank you so much. My MRD is 20201231. For the vast majority of servicemembers, 10 “good years” of Reserve duty is halfway to a retirement. Regardless of the age that you’re eligible to retire or when you choose to start your pension, your Tricare benefits start at age 60. The DFAS number is different from your number because they’re using the proper formula. Would that be in the Financial Management Regulation or somewhere else? Another category is for those in warrior transition units who were hurt while mobilized for such responses, Gray said. The first option is to “retire awaiting pay”. My retirement is the story of Everybody, Somebody, Anybody, and Nobody. 50 points per good year is conservative as the minimum. (https://www.bol.navy.mil/) If that’s not accessible then you could try BUPERS’ Reserve help desk at 866-827-5672. Once you determine which retired pay base system you’re under, you’re ready to calculate your service percent multiplier. The cliché “It’s only money” certainly applies here. https://militarypay.defense.gov/Pay/Retirement/reserve/. Here’s the federal law: https://www.law.cornell.edu/uscode/text/10/3963 Keep in mind that the NC Army NG and Army HRC have to have your Navy records on file. Disclaimer: This is a privately owned website and is not affiliated with the U.S. government, Department of Defense, Department of Veterans Affairs, or any other government agency. You could hypothetically resign from active duty now, file for “retired awaiting pay” from the Reserves, and receive a pension at age 60. That too would meet the criteria. You can compare the various programs (and their co-pays and prescription expenses) here: https://www.tricare.mil/Costs/Compare We’ve been happy with Tricare Prime (especially raising an accident-prone teen) but Tricare Standard can work well if you’re not seeing a lot of doctors (and making a lot of copays). e. A letter from DFAS Cleveland, OH, certifying the actual dates of summer training. I retired in 2002 after 20 years in the Navy's submarine force. That comes from the DoD Financial Management Regulation (the FMR) which has detailed procedures for calculating the Reserve/Guard pension. For every year that you achieve 50 points (or your service’s requirements for that year) and meet all of the other readiness requirements, you’ll get another good year of Reserve credit. In addition, you may have been paid at the wrong longevity rates for the last 17 years. § 2107(g) actually prohibits the awarding of any credit for NROTC midshipman time, including summer training cruises for those officers who entered the NROTC Program after the enactment of the 1964 Reserve Officers Training Corps Vitalization Act (ROTCVA). You’d essentially use the pay table’s columns for the highest O-4 or O-5 pay. Nords, don’t forget the “APPROXIMATE Point Value For Retirement Benefits” charts (https://www.hrc.army.mil/Calculators/ValueOfAPoint.aspx). The Reserve/Guard retirement system calculates the multiplier from your total points. That seems so much more than I thought it would be. It reduces the retirement age by 90 days for every 90 days (in the same fiscal year) in that combat zone. The absence of USAF OPRs between 1992 to 2001 (inactive USAF reserves) hindered my chances for promotion to Major. Thanks, Trish– looks like all the services are cutting back on correspondence courses. It’s taken over three years and it may need to be re-accomplished again due to lapse in shelf-life of the paperwork. Those Soldiers with the eligible U.S. codes can accrue reduced-age retirement as follows: During any fiscal year, Soldiers can accrue 90 days of early retirement. At some point you’ll be asked to log in to your MyPay account and verify your contact information. I’m currently 52 as a E-7 have 30 years of service (13 active USMC & 17 USAF reserves) with 6405 points as of to date. The Army Human Resources Command website goes into more details of how to estimate your Reserve retired pay. Keep an eye on your service’s Reserve personnel website or ask them about it. https://www.dfas.mil/retiredmilitary/disability/comparison.html Until your pension starts, you’ll continue to receive your VA disability compensation. Thanks for the most informative retirement article I’ve ever read! You’ll have the BRS in the Reserves or Guard, just as you do on active duty. Fewer days will not count or be carried over to the next fiscal year and more days past 90 will not count and will not be carried over to the next fiscal year. I’ve heard those numbers being thrown about at drill weekends, but they’re a great way to project your benefits out 5-10 years…, Great article. But this law only applies for deployment time served after Jan. 28, 2008. The law which lets you do this is reflected in FMR 010801.D. Great article Sir. But it’s also important to consider how your other military retirement benefits will impact you, both financially, and in your quality of life. In order to qualify you have to be on active duty (mobilization or other orders >29 days) at the date you go over the 18-year point. i got out in 2000, can i get a civil service job to make up the remaining 6 years ? Paragraphs (B) through (F) cover some exceptions to that three years which apply to very few people. I hope this helps you figure out the best approach for your other considerations! The firm provides unbiased retirement plan and wealth management consulting services to clients throughout the U.S. We have been evaluating and advising retirement plans and participants since 1989. If it is no longer fun, then it might be time for a change is what I was told a long time ago and have seen it repeated in your comments. Federal law includes a section called “sanctuary”: any servicemember, active or Reserve/Guard, who reaches 18 years of active duty must be continued on active duty to 20 years (and an active-duty retirement). I think you’re asking whether you qualify for a Reserve pension. You’ll want to run three estimates, perhaps updated for your actual point counts: 1. The engineer in me needs to be given something definitive in writing. You can read the full discussion of the qualifying criteria at this post from my friend (and National Guard servicemember) Ryan Guina: https://themilitarywallet.com/national-guard-and-reserve-early-retirement-age/. You might do better with employer health insurance or from the ACA health exchange, although you can continue to seek treatment from the VA for conditions that are related to your disability rating. (If you’re only 37 years old when you retire, then you’d have to wait nearly 23 years to find out.) Can I still accumulate points in the IRR beside the annual 15 membership points through correspondence course and college courses and then retire from the IRR. Take a look at the FAQs that Navy Bureau of Personnel posted in Sept 2016: http://www.public.navy.mil/bupers-npc/career/retirement/OfficerRetirements/Pages/Mid-Shipman-FAQ's.aspx. When your Reserve pension starts, it’ll be reduced (“offset”) by your VA disability compensation. Your “point value for rank and years” number is simply a calculation used by the services to determine roughly how much money a point is worth. High Three retirees won’t notice a difference in their 36-month average. Another says that a good year is a good year. I understand the frustration about the world’s most complicated retirement system, but the federal laws are designed around military retention in the shorter term. Once you verify the dates of your 2008 NDAA deployments, the start date for your pension might be later (closer to your MRD) than I’ve forecast. I’ll also include the links to the other posts on this blog which explain a few details that the calculators leave out. (DFAS will also do this calculation for you.) Don’t suggest the politician route, the service organization route both major failures. Another option is the Association of the U.S. Navy. My personal advice is that you avoid the CAC system until they hunt you down and make you get one. So since December my retirement has not been correct period. You can apply through the service’s websites (or by a phone call). Spoke with HRC for USAR just yesterday, 21 July, re: IRR earning retirement points [RPs] for correspondence courses. TSP is a 403(a) retirement plan, which is similar to a 401(k), but is a section of the Internal Revenue Code that allows for salary deferments. I expected more of a “Message to Garcia” retirement, one where people who deal with this for their job would actually do their job. They eventually retired with over 7400 points (over 20 years of points, and 25 good years) but for a Reserve pension. Right now the only way that I’m aware of to receive a Reserve pension before age 60 is to deploy to a combat zone for at least 90 days in a fiscal year. I turn 60 in October of 2021. If my ex husband was active duty for 10 years and 20 years reserve and he has 5300 retirement points how much will he receive, I will receive 50%. If your Date of Initial Entry into Military Service is 17 March 1985 then (for pay longevity purposes) your DIEMS date puts you as an O-6>30 in March 2015. Let me know if “TPU soldier” is a different subject. They would start that pension at age 60 or (depending on combat deployments) possibly a few months earlier. The Reserve Component Survivor Benefit Plan (RC-SBP) is an annuity which would provide a monthly payment should you as the member pre-decease your eligible beneficiary. It sounds as though you’re in the Reserves now, with 3500 points on your record and credit for 18 good years. Despite deferred medical, Dorsey said she’s already seen a number of Soldiers taking advantage of the early-age retirement option. This means that the calculation has to be done for both active-duty (regular) and Reserve/Guard (non-regular) retirements, and you’d get the higher amount. Thanks for giving a thorough explanation on reserve retirement. If so where do I go to find out? (O-5 and above require three years’ time in grade, which can be waived down to two years, in order to retire at that higher rank.) 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. I’m a 40yo Air Guardsman, 6 active, 14 guard, and I was commissioned at my 17th year to O-3 for my medical education as a physician into a program under the medical service corps. just difficult to figure out who can help make that happen. Outstanding question, Steve, and an impressive service record! If so, is it advantageous from a retirement pay standpoint to do reserves if I already have access to TSP via my federal civilian job? I’ve heard you have to repay it, but can’t find the source document, and am also wondering if it’s the pretax or the post tax VSP amount. Every year or two you could update this estimate with your current point count. Thank you, I look forward to hearing from you. Please point me in the right direction. I also have 25 yrs for retirement purposes now with a RYE date 06/08. But it’s buried in BUPERSINST 1001.39F of 17 Sep 07, “Administrative Procedures for Navy Reservists”. This article covers health care for retired Reservists and Guard members. At E-7 it’d be $5061.30. Plain English is very appreciated. If I recall correctly, a point was valued at .38 when I retired in 2007 so you can see the yearly COLA raise we enjoy as gray area retirees. Let me know if you want any help with the numbers, and please tell us how your selection board goes! By the way you’re also eligible to apply for Tricare health insurance, either Tricare Select or Tricare Prime: https://tricare.mil/. If you get an answer first, please let us know! With those possible changes in mind, your Guard Final Pay pension is based on your longevity (40 good years) at your final rank (E-9) as though you’ve been on duty the entire time (which, in your case, you have actually done). If you turn age 56 in August 2019 and started your pension in September 2019 then your High Three average would be about 2% lower. You could estimate that E-8 pay in 2020 tops out at $6290/month and in 2021 at $6384/month. If you have an online account then log in to check for any notifications. DFAS figured my gross pay by using this long drawn out formula that figures how many years my points convert to, then multiply by 2.5 to get a percentage of active duty pay. I was just selected for 0-5 and expect the promotion in the next 10 months. I’ll say it one last time: these calculators are estimates. For example, if a Soldier gets 90 days credit this fiscal year, he or she would be able to retire 90 days before age 60. Doug, It seems that your the man to ask a questions concerning retirement pay and other issues concerning retirement. You’ll be retiring through the Army’s HRC, and they may not be familiar with your USAF service. Access MY ALERUS Welcome to the new login experience! There are three different dates which could affect your retirement pay, and I’m having trouble figuring out how to put them on the calendar. I spent 11 years (1983 – 1994) in the active US Navy where I achieved the rank of CPO (E-7). Standard ROTC Summer Cruise/Training Orders (prior to 1978 – NAVPERS 2500, after 1978 – NAVEDTRA 1320/1) issued for each period of a midshipman summer training and endorsed upon the member’s arrival and departure. It was rarely approved during the last 13 years of war, and in a drawdown it would be extremely unlikely. Ultimately this process has been pretty frustrating leading me to consider retirement vs. IRR vs. who knows what else it out there. If your PEBD error is even close to affecting this calculation then it’s worth correcting it to the right date. What worked for us will probably work for you, but unfortunately we can’t guarantee it. (It’s reasonable to project a 1.5% pay raise.) The best way to do that is working with your local veteran’s organizations and elected representatives. Doug, your article was super helpful. If you start your pension in September 2020 then your High Three average is eight months of the 2020 O-5>22 pay, 12 months of 2019 O-5>22 pay, 12 months of 2018 O-5>22 pay, and four months of 2017 O-5>22 pay. Finally, you’d add another six months of max pay for that rank in the 2009 pay table: $4521.00 * 6. at the Human Resources Command (https://hrc.army.mil/) to request a copy of your Notice Of Eligibility letter. Your base pay will be from the 2022 pay tables, which haven’t been published yet. The above paragraphs assume that you’re still enjoying your time in uniform. I am now the correct rank from SSG to CPT, but still at the wrong retirement percentages for years of service and wrong retirement. (Because it’s in today’s dollars, when you start the pension it should have about the same buying power.) I recommend that you start with this post: https://the-military-guide.com/military-retirement-and-divorce/ and follow up on all of the links. 3. First service December 1966 and 19 years. Is there any chance of getting anything ? I entered the Delayed Entry Program 01 Feb 1979 and went to basic training in July 1979. 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 fall under the High 3 for retirement purposes. A good year is defined as one in which you earned a minimum of 50 points. Then check your service’s TERA message. Several amendments have been proposed to retroactively extend this benefit to September 11, 2001, but none of these modifications have yet been approved by Congress. Steve, thanks for your question and my apologies for my delayed response. I was promoted to LTC (O5) in July 2018 and can’t seem to get a definitive answer concerning the 3 years time in grade concerning 10 US Code 1370. Please let us know how it works out– it’d be great to tell your story as a guest post! I have tried for years to get an answer and no one and I mean no one has been able to answer my question and I have tried military personnel and former military and still after 16 yrs and 6 months working for the U S Postal Service can not get anyone to calculate/ convert my 12 years in the Marine Corps Reserve military points to actual days, that I may be able to buy back from the federal government/ USPS for retirement. I am making progress on my own, as of Sep 2014, I have three retirement certificates and am finally going in the right direction. Just about any lawyer or paralegal should have the tools to research the law and the case history, although a military lawyer will be more familiar with recent precedents. Newsroom. Some Reserve and National Guard retirements will start before age 60 for those who meet the deployment requirements of the 2008 National Defense Authorization Act. Let me know if the “90 days in a FY” or a higher VA disability rating might be an issue and I’ll go into the gory details. (It’d be an additional $126.67/day or 9.75 months per day for whatever you lost from your November birth date). Finally, I’d apply for a continuation on drill status until April 2021 in order to reach 20 good years. Another issue is “combat zone”. However most services will only grant age waivers up to the late 30s, and they may be reluctant to grant both an age and a disability waiver. More importantly, you want to make sure that DFAS also has that information in your record, or else they’ll default to High Three. In April 1998, I had to raise my hand again. Servicemembers are also required to track their point counts and ensure that they don’t exceed sanctuary without OPNAV approval. Here’s what the Association of the U.S. Navy website says about High Three Reserve retirement in one of their articles. 3. If your orders were written correctly then you’ll be eligible to start your pension at age 59. The reality is that most Guard/Reserve servicemembers never reach sanctuary and continue to earn points. If that’s the case then you only have 14 good years remaining until you’re eligible for retirement. The definition of active federal service is in federal law. You’re considered eligible for retirement when you’ve completed 20 “good years” of service. In early 2012 they took their calculator off their public site and moved it behind their firewall to require a CAC login. ?There is no personal from my old unit to contact…Thank You…. Should I retire using the NDAA service or wait until age 60? However first I think you’ll want to check your online records to make sure the good years and point count are accurate. They all had access to this info before I retired. That’s pretty rare these days, and us remaining Final Pay dinosaurs who are still in uniform are either admirals/generals or Reserve/Guard members with very long breaks in service. It’s remotely possible that they still have their page 13 admin remarks. MRD is 8/21/2020. My Pay allows users to manage pay information, leave and earning statements, and W-2s. Have you tried reviewing your Retiree Account Statements for notes about upcoming changes? I was an E – 5 at the time of receiving the 20 year letter and retirement orders. If you’re eligible for a Guard – Reserve retirement, then let me repeat the questions & answers so that you can confirm your math. Thanks for putting this in English, but I do have one particular question: If you enter the retired reserve well before 60 (“gray area”) but have not achieved the minimum time in grade at your retirement rank in order to qualify for that retirement pay, do you actually lose the rank you were promoted to? 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