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. The more I read, the worse it gets. You accumulate points for drill weekends, active duty periods, and under some special circumstances: Each day of active duty counts as one point. Thanks Doug. 2. You shared some points that I don’t usually find in retirement blogs. can i apply my active duty points ? For more general reading on your military service credit deposit, I recommend Ryan Guina’s interview of Eddie Wills: https://themilitarywallet.com/military-service-credit-deposit/ Eddie also has an extremely detailed guide to the process of obtaining your military service credit deposit. I continued on for 19 years with DoD. Retire in March 2021 as an E-8>36 with 4146 points and start your pension immediately. Correct me if I am wrong, but should that active duty time should be added to my current base pay in the Navy. The active-duty services may not know to send you a Notice of Eligibility, so you may have to query your Reserve force headquarters to produce one before you leave active duty for “retired awaiting pay” status. Congratulations on your service– there’s not many Final Pay members still on duty! ***If you had temporary time, took leave without pay, or had a break in service be extra careful when calculating your RSCD. I recently answered a couple of questions on calculating the amount of a Reserve retirement for both Final Pay and High Three pay systems. You could ask a PSD supervisor about it, but you may need to consult a JAG to find the rules and the legal references. Retired from army reserve with 22 yrs .was asked to volunteer for Army inactive duty with hip pocket orders to go to McDill AFB Tampa to open a reception station in case of a emergency conflict,Had to keep a military duffel bag maintained for the 13 years should my retirement pay be recomputed for that time? I pinned on 31 Aug 2018 and was planning on retiring 31 Aug 2021. It’s not “just” your retired pay. FFFC – “When Should I Sign Up for Medicare?”, FFFC – “Is my HR retirement estimate always correct?”. I live in Florida. First, make sure you get at least 35 points before December 2020. Eddie’s post on the process can help you walk through the paperwork and decide whether it’s still a good deal: http://gubmints.com/2013/03/26/gubmints-comprehensive-military-service-credit-deposit-guide/, If you haven’t already seen the DFAS part of the process for making your payments, here’s their page: https://www.dfas.mil/civilianemployees/militaryservice/militaryservicedeposits.html. Of course the key is whether you’re able to stay on active duty to finish 20 years. That’s why it’s so important to have your own personal investments to fill the gap. (Not many gray-area retirees have an account.) Please let us know how it works out– it’d be great to tell your story as a guest post! If you’re near a Reserve or National Guard center then I’d e-mail, call, or visit them to show your ID and check your status. In 1985, I entered AD USAF as an officer and served 7.5 years – again I was honorably discharged in 1992. If you type in Madproaudio BBB reviews online (I own this company). “I am considering transferring/$10,000 from my TSP to my Roth account in Fidelity. So their FERS Retirement pension formula comes together as… Let’s take an example. Per DoDI Instruction 1215.07, the Funeral Honors requires a minimum of two hours duty. Someone told me that 7500 was the maximum number of reserve points that could be earned. March 2021’s High Three E-8 average has nine months in 2018 as an E-7, three months in 2019 as an E-7, 9 months in 2019 as an E-8, 12 months in 2020, and three months in 2021. I’m sending you an e-mail and I’ll follow up with a full post on your question. (That’s completely separate requirement from three years’ time in grade.) At E-7 it’d be $5061.30. That part is in federal law. What is your recommendation between early retirement from AD or a Reserve retirement? The complexity comes in how you calculate your High-3 Salary, and what really counts towards your Years of Creditable Service. Thanks in advance. The Reserve/Guard services want to avoid inadvertently letting their members reach sanctuary (and an active-duty retirement), so they track everyone with more than 16 years of points and restrict their mobilization opportunities. My MRD is 20201231. I have deployed and can RPED 22 months at the end of this deployment but I have no desire to draw early since I’m pending possible promotion to O5. Would that be in the Financial Management Regulation or somewhere else? Members that participate in ROTC Midshipman/Cadet summer training are eligible for retirement point credit (one point per day under orders). When you reach 20 good years, your service will eventually formally notify you that you’re eligible for retirement. “… 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. The question is whether your duty status was actually earning you points or whether it was just putting you in a position to be quickly mobilized if necessary (no points until mobilized). However your military service can count toward earning a higher civil-service pension (when you meet the requirements of the civil-service pension). (http://www.public.navy.mil/BUPERS-NPC/CAREER/RESERVEPERSONNELMGMT/Pages/PointsFAQ.aspx). That would hypothetically cap your point count at about 7300 points because you’d retire and immediately start an active-duty pension. This is also the table that DFAS will use to check the amount of active-duty pension you might be eligible for, as well as any differences under the Tower Amendment. Did I do something incorrectly? I have a few questions: First, where they correct in saying that my retirement pay would be based on my highest grade earned? Let’s check a few parameters from your e-mail. If you have not already seen a military lawyer at a local military base then that still seems to be your best option. (https://www.bol.navy.mil/) If that’s not accessible then you could try BUPERS’ Reserve help desk at 866-827-5672. But, this is just an estimate. A little time and expense now can save you thousands of dollars of frustration and litigation later. That 90-day period does not have to be contiguous. 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. I also have 25 yrs for retirement purposes now with a RYE date 06/08. This status is tracked in your service’s Reserve/Guard databases, and you may be issued occasional updates. I have 3600 points with 21 good year and retired as a E7, Deployed 6/08/10 to 07/28/2011 what can I expect for retirement? 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. Hope this helps. That assumption is unpredictable (and imprecise) but it’s a reasonable approximation. I qualify for TERA if I get passed over for Major. An estimate of your 2017 pension is: 11,313 / 360 x 2.5% x $7844.70 = $6165/month. If you have active honorable military service that isn’t already being ‘used’ towards a military retirement – there is a very good chance that you can ‘buy’ that time back and have it count towards your federal retirement. So you still start with your total points, divide by 360, and multiply by 2.5% to get the service percent multiplier. So, is there a financial advantage to going to age 60, 28 more months, as an E-7? the retainer pay of a member who is transferred to the Fleet Reserve or the Fleet Marine Corps Reserve under section 8330 of this title, the retired pay multiplier (or retainer pay multiplier) is the percentage determined under subsection (b). Don’t suggest the politician route, the service organization route both major failures. I did make O-5 and now am less than 18 months from retirement. However if you’re injured during a mobilization for combat duty under these conditions (either in training or in the combat zone) then your time in a Warrior Transition Unit also counts toward the 90 days. Because your pension system is “Final Pay”, you do not have to worry about High Three. My situation briefly: Retired from the National Guard in Nov of 2014 with 20 years/6 months of service. If you started your pension (60th birthday) in 2017 then your deposit would be (3837 / 360) x .025 x $5167.50 = 10.66 x .025 x $5167.50 = $1377/month. AUSN’s website doesn’t even have a calculator for the High Three Reserve 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. You’ll have to check your 90-day periods on your DD-214s to make sure it really is 48 months earlier and not a smaller number. But you can determine your RSCD by a thorough review of your SF-50s. I’ll let you know the word either way. See paragraph 010208.F of the DoD FMR and read Ryan Guina’s summary here: https://themilitarywallet.com/national-guard-and-reserve-early-retirement-age/, If your pension starts in late 2018 then it’d be based on the 2018 pay tables. The pension calculations are much more lucrative than the usual FERS pension in other federal agencies. After a phone conversation, I was told that AR 135-180 applied (which I believe it does) and it says ” If the Soldier was transferred to the Retired Reserve or discharged on or after 25 February 1975, retired grade will be that grade which a commissioned officer or enlisted Soldier held while on active duty or in an active reserve status for at least 185 days or 6 calendar months. I think the JAG could be more helpful than DFAS. Your best option is to contact your service’s personnel branch to determine their policy and to request TERA. I am a Traditional National Guardsman (i.e. This post links to all of the military’s sanctuary instructions that are on public sites: https://the-military-guide.com/mixed-plate-military-sanctuary-disability-and-civilian-pensions/ But again they may have been updated in the last year. You started getting O-5 pay at 0001 31 Aug 2018 and you’ll retire awaiting pay at 2359 on 31 Aug 2021. (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.) In the first case, the veteran could buy back that time toward a federal civil service pension with the military service credit deposit. Your email address will not be published. If you’re not near a military site then contact your service’s Reserve/Guard personnel command directly and ask them to update your file. Sections 010501(E) and 030105 include the phrase “of the highest grade held satisfactorily at any time in the Armed Forces.” You’re over 10 years of commissioned service, so the key question will be whether your broken service affects the rules which apply to your officer or enlisted status. f. NAVPERS 1070/613 (Administrative Remarks) prepared by the ROTC unit, which states that the member is being discharged to accept a commission. And now I get a deposit in my account that seems Very Low! Is there any truth to that? I was specifically told that “High 3″ does not apply to me. Your gross FERS pension is calculated based on three things…, Your FERS retirement pension is calculated by taking…. And only the time OPM says you have counts for retirement. If that’s correct then your Reserve/Guard pension is indeed calculated from your final base pay. Harold, I’m a little unclear on some of the jargon like “inactive duty”, “hip pocket orders”, and “duffel bag”. I then joined the Reserves after a two year break. Find your specific FERS Retirement Rules on our main page about FERS Retirement Eligibility Rules. The federal retirement system is known as FERS, the Federal Employees Retirement System. Finally, the Final Pay formula is (Points / 360) x 2.5% x base pay = $/month According to the rules in the FMR, the first division is carried to three places and rounded to two. You can tinker with these formulas if you change the dates or the ranks. 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. 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. This is not in alignment with 10 US Code 1370. But it’s buried in BUPERSINST 1001.39F of 17 Sep 07, “Administrative Procedures for Navy Reservists”. In addition, you may have been paid at the wrong longevity rates for the last 17 years. Excellent article – one of the best explanations I’ve seen…I never knew how they came up with that multiplier – thanks! You’re absolutely right, there is something specific that says you can get credit. Sorry about that comments glitch, Jim. We at The-Military-Guide are never going to try to fix that problem. How do you calculate this amount? I was an Army reservists from July of 1992 until July of 1998. Pay raises are typically 1.5%-2% per year, so a conservative High Three average of the three years of pay tables in effect when you turn age 60 would be about 96% of the latest base pay. It’s worth your time to have a JAG review your service records and your waiver plan to make sure that I’m not missing any details. 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. The actual numbers depend on the pay tables in effect when you’re ages 57-60 to determine the average of those 36 highest months, but using the 2018 pay tables puts the calculation in today’s dollars. my 29 years of service ?? You can read this post for the details: https://themilitarywallet.com/national-guard-and-reserve-early-retirement-age/. In case BUPERS changes that link, here’s an excerpt of the text from the FAQ: 1. 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. ?There is no personal from my old unit to contact…Thank You…. Thanks for asking the question– I think it’ll help a lot of readers. A warrant officer must have served on active duty or in an active Reserve status for at least 31 days”. The first method is to multiply your multiplier by your base pay or the average of highest 36 months of active duty pay at the time of retirement by the percentage of disability which has been assigned. 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. What do I need to do to not have to pay the money back? WASHINGTON (Army News Service, June 5, 2013) — More reserve-component Soldiers may now be eligible to receive retirement pay before 60, if they meet certain criteria. 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. As usual, you’ll have to meet all of the unit’s other requirements to be awarded that 20th good year. You’ll have to calculate your own High Three average of the future pay tables that will be in effect when you reach age 60. Chapter and verse would be helpful. Members who accumulate 20 or more years of qualifying service are eligible for reserve retirement when they reach age 60 or, in some cases, a lesser qualifying age. You can stay past 20 good years in the Reserves/Guard as long as they let you stay. 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. So, maybe you can assist me with a couple problems. I wrote "The Military Guide to Financial Independence and Retirement" to share the stories of over 50 other financially independent servicemembers, veterans, and families. At some point you’ll be asked to log in to your MyPay account and verify your contact information. ... has less than 30 years of creditable service, and is under the age of 62 at the time of retirement I’ve been around the block a few laps and I have the spare time to research this information. I returned to service in the North Carolina Army National Guard at the rank of E-6. They see SCD (service computation date) on their LES and SF-50 – but that is *not* the date OPM uses for your retirement calculation. Eligible employees are automatically enrolled The date of your 60th birthday. Meetings (Seminars, Symposia, Professional Development). For free. In the “Notes” tab of the Cornell law website ( https://www.law.cornell.edu/uscode/text/10/101 ) it says “In clause (22), the definition of “active duty” is based on the definition of “active Federal service” in the source statute, since it is believed to be closer to general usage than the definition in 50:901(b), which excludes active duty for training from the general concept of active duty.” That’s generally the contentious issue: ADT and AT (or anything else with the word “training” in it) does not count as active duty. Where? All three years were 50-point years. For an E-7 with 2134 points starting their pension in 2016 it’d be $5061.30 * .1482 = $750/month. ... the federal agency that insures private pensions, but at a fraction of their value. I’ve read the references and checked them with an expert, but I haven’t personally gone through the process. 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. That comes from the DoD Financial Management Regulation (the FMR) which has detailed procedures for calculating the Reserve/Guard pension. I’d assume that your pension (if you started it today) will keep pace with inflation until age 60. 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. Thank you for saving me from 2-3 more long deployments away from my family. Good luck! I want to decide if the increase in retired pay is sufficient to stay in the Air Guard as a Drill Status Guardsman (DSG) another 28 months, until I reach age 60, or if I should just retire in the next few months. Also is there a way to calculate my active years in service. The Green Weenie strikes again. I Served in the Navy from 1989 to 1994 (Just over 5yrs total). 2. Just remember that SCD does not always equal RSCD. but I’m not sure it’s worth the payoff. Hello, I’m newly commissioned as a nurse. You’ll have to cover your own health insurance all the way to your 60th birthday. REDUCED AGE RETIREMENT AD, for this purpose, means service pursuant to a call or order to AD on orders specifying, as the authority for such orders, a provision of law referred to in section 101(a) (13)(B), and performed under section 688, 12301 (a), 12302, 12304, 12305, 12406, and chapter 15 (insurrection), or under section 12301 (d) of Title 10 USC. You’re considered eligible for retirement when you’ve completed 20 “good years” of service. See paragraph 6 of OPNAVINST 1001.27 (https://doni.documentservices.dla.mil/Directives/01000%20Military%20Personnel%20Support/01-01%20General%20Military%20Personnel%20Records/1001.27.pdf). Jim, your civil service time will not count toward a military pension. Copies Yet everyone can do a manual calculation.]. It’s amazing what retirement gives you the time to research…. 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. But, I am beginning to feel the time is near for retirement. Congress and DoD just took advantage of a common civilian practice that doesn’t happen to be common to the military. Things changed over that initial six years and now I’m at my 20 year mark in two weeks. Your Date of Initial Entry in to Military Service is after 8 September 1980, so you’re under the High Three pension plan. For more information, look for Section 50B3.1-3 “Reductions in Annuity” of OPM’s CSRS FERS Handbook, Chapter 50. Google everybody,somebody, anybody and nobody of the story. (VA Waiver at age 46) I already understand I will not be eligible to retire as a LEO (1.7%) unless I have the full 20 years in. A member of the National Guard who deploys with their unit for 24 months of the next five years (at least 90 days in the fiscal years) would be able to draw their pension at age 58. 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? Tons of pension options to choose from at time of retirement - single life, survivor, COLA buy up, pension purchase options, lump sum payouts, etc. O-5 with 32 years is $8876 (using the old 2016 table) x .3697 = $3281. The Navy should indeed add in your six months and 26 days. So just to make sure I’m clear I am RET 2 awaiting RET 1 beginning Dec 01 2016. (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.) 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. I plan to retire as a reservist not as an active duty soldier. When OPM calculates your creditable service, they only look at years and months. By the time you’re 60 years old, the COLA could make your TERA pension higher than your Reserve pension. If there is anyone with the actual knowledge and not just a thought, would you please email me at: spirit902@gmail.com or even call me at 901-496-8092 I am a former SSGT with 4.5 Years time in grade. The “problem” is that most officers are given an active duty service date (the date that they actually started active duty as an officer) of the day they’re commissioned. You can read more about that at this post: https://the-military-guide.com/reserve-military-retirement-for-active-duty-veterans-with-previous-reserve-or-national-guard-service/. When you’re in the Reserves or Guard, your time toward a retirement is credited on two factors: Each service is a little different in their point calculations. I think you’re going to have to get that directly from PERS-912 at 866-827-5672 again. You’re right, Keith, Reserve & Guard servicemembers have a lot of edge cases in a very complicated pension system. If I do that, will I get my retirement when I complete my 10 years of active duty time or will I have to do more time to get my retirement right when I retire? I requested an extension of my MRD for two years and they gave me one, forcing my retirement at 61 and holding my 06 rank for 1.5 years. Nords, don’t forget the “APPROXIMATE Point Value For Retirement Benefits” charts (https://www.hrc.army.mil/Calculators/ValueOfAPoint.aspx). You’ll want to run three estimates, perhaps updated for your actual point counts: 1. Let me know if I’ve made any incorrect assumptions. My question: Is PEBD used during calculation of my retirement pay ? I left the Guard in September 1986 (one good year) to begin ROTC. You’ll be able to use their calculators and their guides on the Survivor Benefits Plan and their articles on retiree taxes. You may also want to read the: Reserve Non-Regular Retirement Information Guide. About the Book – The Military Guide To Financial Independence & Retirement, About the Book – Raising Your Money-Savvy Family, Guard and Reserve Points Guide on The Military Wallet, the history of participation points. Over my 12 years of retirement, the COLA has raised my pension by a total of 27%. At the E-7 paygrade, that tops out at E-7>26. The way it works is that Soldiers can count 90 days of their tour toward 90 days earlier retirement for each fiscal year deployed, according to Richard Gray, supervisor of Retired Pay. You’re in the window to hear from your service. Confirm your point count (and for those who are at 20 good years, make sure you’ll get your Notice of Eligibility) and then take a six-month Authorized Absence from drill weekends before retiring. Click Here. (A few Reserve/Guard members deployed for at least 90 days in a fiscal year to a combat zone or for a national emergency, and they’d start their pension at least three months sooner. However today’s High Three averages 36 months of base pay to start the pension calculation, so you have no benefit to delaying the start of your pension. Your Reserve retirement doesn’t start right away, but it will start no later than age 60. (The Financial Management Regulation requires DFAS to truncate the result to the lower dollar.) I can not find any references. That is only slightly more than Social Security. 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. Anyway, I was honorably discharged from the USAF Reserves in 2006, and I joined the US Army reserves as an E5. Here’s a minimum breakdown of points earned during a normal year: This article covers ways to earn more retirement points in the Guard and Reserves. 3. Another issue is “combat zone”. Even if you start your pension four years early (because of the 2008 NDAA deployments) you’re still maximized on the O-5 pay table. E-7>34 or >36 pay in 2019 will be ~$5430/month, in 2018 is $5291.40/month, in 2017 was $5167.50/mo, and in 2016 was $5061.30. Spoke with HRC for USAR just yesterday, 21 July, re: IRR earning retirement points [RPs] for correspondence courses. Thanks for the update, Charles. Since you’ve been at USPS for so long, you may have some interest to pay on your deposit. First, you’d want to make sure that you’re indeed eligible for Final Pay (a Date of Initial Entry on Military Service on or before 8 September 1980). Even if you request TERA, your service may still turn you down. Your PEBD is used to calculate your Reserve pension, but it might not make a difference to you. It’s an important benefit for FERS planning to... FERS retirement benefits are complex. I feel that the most important factor in either pension is its COLA, and your TERA pension may grow at an annual rate of 1%-2%. Public pensions: the multiplier effect. Well – once you know the number it’s straight-forward… but it’s finding that number that can take time. The rank is the rank you retired at, but there’s a catch. You can confirm that with a JAG or with a civilian lawyer who has military experience. Despite deferred medical, Dorsey said she’s already seen a number of Soldiers taking advantage of the early-age retirement option. 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. There is no guarantee that any forward-looking statements or opinions provided will prove to be correct. If they can’t show you the references to explain what they should do (as described above) then your next step would be a visit to the JAG.