BCNR fixed my record but I still have not seen any back pay. Excellent website, thanks! I am an Army Reserve LTC. This can be accomplished if you show up for drills on at least 10 of the 12 months (or complete enough other assignments), then you’ve met the intent of a good year. What worked for us will probably work for you, but unfortunately, we can’t guarantee it. Great article! Joined the MN Army National Guard, as an enlisted man, deployed to Iraq for 2 years, entered Sanctuary Program, and retired from Army with over 20 years of active federal service. It cleared up my retired pay questions One thing I didn’t see mentioned was that about 4 months before a gray area naval reservist turns 60 they should receive a package to be completed and returned to NPC. After reading all the questions above, I don’t feel as bad. You might find a cheaper health plan from a civilian employer or on the federal/state ACA exchanges but Tricare may have better copays, deductibles, and caps. When you reach 20 good years, your service will eventually formally notify you that you’re eligible for retirement. They would be permitted to do drill and AT (for up to 29 days) but longer stints of active duty would require approval by the service’s personnel HQ. The problem is that Title 10 U.S. Code sections 3914 and 3963 apply to Army Reserve enlisted who were “previously administratively reduced in grade not as a result of the member’s own misconduct” and refer to retirement in an enlisted paygrade. Joe, here’s a summary from DFAS: https://www.dfas.mil/RetiredMilitary/plan/separation-payments/voluntary-separation-incentive/ 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. 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. A retiree with 20 years of service would have a service percent multiplier of 50 percent: 2.5% x 20 years = 50%. I don’t think the Tower Amendment will affect you but I’ll describe it in case someone mentions it. I Served in the Navy from 1989 to 1994 (Just over 5yrs total). I was an E – 5 at the time of receiving the 20 year letter and retirement orders. (A few Reserve/Guard veterans may be eligible to begin receiving their pension earlier than age 60. I have a few questions: First, where they correct in saying that my retirement pay would be based on my highest grade earned? Initially, I requested the High 36 but after reading your reply to Sophia highlighting the difference between High 36 and Final Pay plan, I am not sure I made the right choice. The pension calculations are much more lucrative than the usual FERS pension in other federal agencies. I can not find any references. My total career points are 6050. 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. I have been living here for the passed three years. DFAS will choose the higher amount for you when your pension starts. For an E-7 with 2134 points starting their pension in 2016 it’d be $5061.30 * .1482 = $750/month. In your case, the key is making sure that your current service has a complete record of your officer service. 3. That assumption is unpredictable (and imprecise) but it’s a reasonable approximation. The services track servicemembers who have at least 16 years of points and aggressively restrict them from reaching sanctuary status. You’d have to find other health insurance (like Tricare Retired Reserve) to cover the gap to age 60. Your PEBD is used to calculate your Reserve pension, but it might not make a difference to you. We're sharing what we've learned and paying it forward – but you have to make your own decisions. Nice article. By federal law, the pension is calculated using the pay tables in effect during the month that you start your pension. When adding military time (that you bought back) to your civilian time, you don’t drop the days until you’ve added everything up. We're military veterans, not financial advisors. Keep in mind that although your pension could start at age 59, Tricare will still only start at age 60. https://the-military-guide.com/wp-admin/post.php?post=2578&action=edit. If that’s not working then you could try the PERS-9 directory at http://www.public.navy.mil/BUPERS-NPC/CAREER/RESERVEPERSONNELMGMT/Pages/ContactInformation.aspx . I stumbled across this code a few weeks ago and sent it to the ‘Retirement Services’ section for clarification. Well – once you know the number it’s straight-forward… but it’s finding that number that can take time. Take a look at the second page of the 2016 pay table. I know the. This is a percentage, often ranging from 1% 2.5%, that determines the size of the benefit amount. I wrote "The Military Guide to Financial Independence and Retirement" to share the stories of over 50 other financially independent servicemembers, veterans, and families. Thank you for saving me from 2-3 more long deployments away from my family. 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. I have my “20 year letter” and I have a little over 5100 points with the active Navy, reserve time and an activation in 2005 – 2006. It is no longer possible to get reserve retirement credit for NROTC cruises. More info on that is at: https://themilitarywallet.com/national-guard-and-reserve-early-retirement-age/ ) You’re also right that you start with the years of longevity as though you’d been on active duty all the way up to the start of your pension. The 2008 National Defense Authorization Act enables early Reserve retirements for combat deployments exceeding 90 days during a fiscal year. For a rough estimate, you can just use your SCD as a place to start. Both of the elected officials I have contacted about my retirement have been dead ends. Your pension will start three months earlier for every 90 days during a fiscal year that you spent deployed to support combat operations in accordance with the 2008 NDAA requirements. I qualify for TERA if I get passed over for Major. 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. I already have a disability rating of 30% from my active duty time when I was involuntary separated. 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. If so, this would be an excellent option to continue with Tricare Reserve Select for at least a few more years. For more information, look for Section 50B3.1-3 “Reductions in Annuity” of OPM’s CSRS FERS Handbook, Chapter 50. Of course you already have enough good years for your Notice of Eligibility and your retirement, so it’s not critical in your case. Click here to learn more about how Micah helps his clients. As an 0-4 with 7 years active and 13 projected reserve years, I’ll only have 3205 points after 20 years. Before deciding which rank (O or E) to retire, recommend you do the calculations for each and consider the final numbers. Your creditable service is the most complex part of the FERS pension calculation. I spent three years as a designation 1305 in the Chaplain Candidate program. Let’s take a closer look at each of these elements of the FERS pension calculation…. It’s only for mobilizations to combat zones and (much later) national emergencies. You’re simply continued in your “retired awaiting pay” status until you reach age 60. However, I cannot figure out how to determine the point value to use in the calculator for the “Member Projected Information” section when using the “Future Pts Value” selection of the “Based on Pay Table of Year” required information. This may not be much of a difference if you resign at age 59, but if you resign at age 37 then you’ll be facing over two decades of inflation erosion before your pension starts. I have used the calculators formulas etc, and what I have doesn’t match what DFAS has? Your Guard unit will either approve the waiver or coordinate with the Army’s National Guard Bureau to make sure you have your 20 good years logged by December 2020. pension plan, the Federal Reserve’s Retirement Plan is recognized for the value it provides in helping secure employees’ financial future during their retirement years. Ultimately this process has been pretty frustrating leading me to consider retirement vs. IRR vs. who knows what else it out there. However if you elected to delay your pension by a few months then it could start at the pay in effect on the 2019 pay tables. Plain English is very appreciated. Pension Taxes. There’s a rumor that the “fiscal year” phrase was removed by the 2015 legislation to allow the reduction to be any consecutive 90-day period (whether or not it crosses fiscal years), but I haven’t seen that correction yet. A question for you: I’m sitting at 18 years of reserve time with around 3500 points (5 years of active duty for training and 2 years of deployments.). I left active service in April 1985 (two good years) and immediately joined the Army National Guard. 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. So, If I retire when I am a LEO, will I receive the FERS supplement automatically or will I have to have the full 20 years in as a LEO? There is no REDUX retirement plan under non-regular (reserve) retirement. So you still start with your total points, divide by 360, and multiply by 2.5% to get the service percent multiplier. When a Reservist reaches sanctuary (and is retained on active duty for an active-duty retirement) then that pension funding is not supported by DoD. Now you need your pay scale. 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