2.5% times the number of years of service times the average of the member’s highest 36 months of basic pay. Annual COLA determined using the Consumer Price Index – Urban Wage Earners, published by U.S. Department of Labor, Bureau of Labor Statistics. Members who otherwise qualify for a retirement based on longevity of service will also receive a defined benefit that is 2.0% times the number of years of service times the member’s highest 36 months of basic pay, Only retirement plan for members with initial date of entry into service on or after January 1, 2018, Optional retirement plan for members with an initial date of entry into service on or before December 31, 2017, who: For example, 20 years of service would equal a 50% multiplier. The REDUX retirement plan uses the High-36 method to determine the retired pay base. (a) while on active duty, had fewer than 12 years of service as of December 31, 2017, and who elected to opt into BRS during the opt-in period; or, points divided by 360. For disability retirement programs, the multiplier will be the higher of (a) the disability percentage assigned by the Service at retirement not to exceed 75%, or (b) the result of multiplying the number of years of service by the applicable retirement plan multiplier (e.g., 2.5% for High-36 or 2.0% for BRS). In any case, the longer an individual serves, the higher the multiplier and the higher the retirement pay. It includes a All covered members receive a Government contribution that equals 1% of basic or inactive duty pay to a tax-advantaged retirement account (Thrift Savings Plan (TSP)) after 60 days following the entry into Uniformed Service.

The years of service creditable are computed differently depending upon whether retirement is from full time active duty or from a reserve career. This is generally the last 3 years of service and is sometimes called high-3. Due to the reduced annual COLA, members participating in REDUX receive a one-time readjustment at age 62 to restore the difference in COLA to what it would have been under High-36. retirement. The high-36 method is the average of the highest 36 months of basic pay divided by 36. The Final Pay plan uses the Final Pay method to determine the retired pay base. Blended defined benefit and defined contribution plan. Members who accumulate 20 or more years of active service are eligible for retirement. The method used depends upon when the member first entered military service.

percentage multiplier include all active duty and any credited reserve 2.5% times the number of years of service minus 1.0% for each year of service less than 30, times the average of the member’s highest 36 months of basic pay, (b) At age 62 and after: The REDUX retirement plan is an option available only to active duty members who entered service on or after August 1, 1986. The years of creditable service for computation of the retired pay

For example: All military retirements are protected from inflation by an annual Cost of Living Adjustment (COLA), based on changes in the Consumer Price Index (CPI) as measured by the Department of Labor. of creditable service. Reduced annual COLA that is normally one percentage point less than the COLA determined for the other retirement plans (but not less than zero). These are Final Pay plan, The final pay method, as the name implies, establishes the retired pay base equal to final basic pay. (b) while in a Reserve Component, who had fewer than 4,320 retirement points as of December 31, 2017, and who elected to opt into BRS during the opt-in period, Retirement plan that equals to: These extra earnings credits may help you qualify for Social Security or increase the amount of your Social Security benefit. Career Status Bonus $30,000 lump sum payment at 15th year of service with obligation to serve through 20 years + defined benefit, Defined Benefit is There are two methods for determining the retired pay base. High-36 Month Average plan, and Military Retirement Reform Act of 1986 This date is fixed---it does not change.

Here are a few examples: Be aware that pay date (e.g., Pay Entry Base Date) may be different than DIEMS. The Final Pay plan uses a multiplier % that is 2.5% times the years The method is determined by DIEMS (Date of Initial Entry to Military Service) or DIEUS (Date of Initial Entry to Uniformed Services). (more commonly referred to as REDUX) plan. The DIEMS for Service Academy graduates who entered an Academy with no prior service is the date they reported to the Service Academy, not the date they graduated. Retired Pay Base* times Multiplier %**, *Retired Pay Base – determined under Final Pay, High-36, or BRS depending on military service date of entry, Note that in both cases the multiplier is limited to 75% by law. Additionally, covered members have the ability to receive up to an additional 4% matching contribution from the Government to TSP beginning after 2nd year of service through 26th year of service, Defined Benefit: See the Retirement page. The High-36 retirement plan uses the High-36 method to determine the retired pay base. (a) Prior to age 62: See the Retirement page. When to Start Receiving Retirement Benefits. The High-36 retirement plan uses a multiplier % that is the same as the final pay plan. Also, DIEMS does not determine when creditable service toward retirement is calculated---it only determines which retired pay base method applies. From 1957 through 2001, if you had military service earnings for active duty (including active duty for training), you may have extra Social Security wage credits added to your earnings record. In January 2002, Public Law 107-117, the Defense Appropriations Act, stopped the special extra earnings that have been credited to military service personnel.

The DIEMS for members who enlisted under the delayed entry program is when they entered the delayed entry program, not when they initially reported for duty.

service)and dividing by 360. This is discussed more fully under the Active Duty Retirement page. For both the Final Pay and High-36 retired pay plans, each year of service is worth 2.5% toward the retirement multiplier. $30,000 Career Status Bonus (CSB).

For example, 20 years of service would equal a 40% multiplier.

the High-36 retirement plan, except the multiplier is reduced by one Optional retirement plan for active duty members with an initial date of entry into service after July 31, 1986, but before January 1, 2018. Active Duty Retirement. Some individuals have unique circumstances that complicate determining their DIEMS. duty retirement calculation is the sum of years of active service (i.e.,

Annual COLA determined using the Consumer Price Index – Urban Wage Earners, published by U.S. Department of Labor, Bureau of Labor Statistics. See the Retirement page. Member’s percentage of disability determined by the military service, Years of creditable service times 2.5% or 2.0% (Based on whether the member was a participant in one of the legacy retirement programs or the Blended Retirement System prior to the disability). percentage point for each year less than 30 the member has at computed by adding all reserve points, if any (except those for active active duty or full-time National Guard duty) and any additional years Special extra earnings credits are granted for periods of active duty or active duty for training. Eligibility to elect the Career Status Bonus ended as of December 31, 2017, Determined medically unfit for continued service with a DoD disability rating of at least 30%, Entry on or after September 8, 1980, but before August 1, 1986 OR Entered on or after August 1, 1986, and did not choose the Career Status Bonus and REDUX retirement system, Entered on or after August 1, 1986, but before January 1, 2003 AND elected to receive the Career Status Bonus, Entered the Uniformed Services for the first time on or after January 1, 2018 (automatic enrollment), or entered before December 31, 2017 and elected to opt into BRS during the opt-in period. Members who entered the military, separated, and then rejoined the military have a DIEMS based on entering the first period of military service. They are the final pay method and the high-36 month average method. There are three non-disability retirement plans For those who joined the Reserves and later joined the active component, their DIEMS is the date they joined the Reserves. The below chart provides the basic criteria to determine which retirement plan applies: All four of the regular and non-regular retirement plans determine initial monthly retired pay by applying a percentage multiplier to the retired pay base. The date a member first entered uniformed service in any capacity establishes DIEMS. The years of creditable service for an active Thereafter, annual COLA reverts back to the lesser amount as above. eligible for retirement. Under the Final Pay, High-36, and BRS retirement plans, the annual COLA is equal to the percentage increase in the CPI year over year. For the REDUX retirement plan, which applies only to certain active duty retirements as described above, the High-36 multiplier is reduced by one percentage point for each year that the member has less than 30 years of service at retirement. Defined Contribution: These differences are explained under the Active Duty Retirement and Reserve Retirement pages. Retirement Benefits Learn Apply Manage Special Extra Earnings for Military Service From 1957 through 2001, if you had military service earnings for active duty (including active duty for training), you may have extra Social Security wage credits added to your earnings record. currently in effect for active duty retirees. Blended Retirement System Comparison Calculator, Blended Retirement System Standalone Calculator, Retired Military Compensation (RMC) Calculator, Special Compensation for Assistance with Activities of Daily Living (SCAADL), Defined Benefit that equals 2.5% times the number of years of service times the member’s final basic pay on the day of retirement, Primary retirement plan for Reserve members with initial date of entry into service prior to September 8, 1980, Defined Benefit that equals 2.5% times the number of years of service times the average of the member’s highest 36 months of basic pay, Primary retirement plan for members with initial date of entry into service on or after September 8, 1980, but before January 1, 2018, Optional retirement plan for active duty members with an initial date of entry into service after July 31, 1986, but before January 1, 2018. Here's how the special extra earnings are credited on your record: If you enlisted after September 7, 1980, and didn't complete at least 24 months of active duty or your full tour, you may not be able to receive the additional earnings. Active Duty Retirement Pensions There are 3 Main Types of Military Retirement Pay Plans: Final Pay / High Pay – for servicemembers who entered the military before Sep. 8, 1980 High 3 – for servicemembers who entered the military after Sep. 8, 1980

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