Retiring with the United Stated military is full of patriotic pluses. After all, those who serve for others deserve a nice reimbursement. These perks become fuel for the fighters. Before ceasing the benefits, military personnel must fit specific criteria.
After 20 years of active-service, military employees can kick off their boots and retire. If a service member joined the military before September 8, 1980, a base rate is established centered on the service member’s office rank and length of active-duty. This “final pay” method matches retirement pay to basic pay. There is a “High-36” base pay for those who first entered service after September 8, 1980. The equation for this rate is more complex. Take the highest 36 months of basic pay, and divide the sum by 36. No matter which method is used, 50 percent will be the annual retirement funds. If retirement isn’t necessary after 20 years, the multiplier increases 2.5 percent for every extra year. This amount is restricted at 100 percent. Controlling your pension through time and rank is a plus, but if an individual doesn’t reach a certain rank within 20 years, they are forced to retire. Time-served also changes for those who have a career in the reserves.
REDUX and disability retirement plans have slightly different processes. A REDUX plan is for active duty employees who first started duty after August 1, 1986. This plan is established after 15 years of duty. The employee can choose to leave at that time, or receive a bonus of $30,000 and pledge to remain in service until the 20 year mark. REDUX establishes a base rate using the “High-36” total and decreases it by one percent for every year the employee has less than 30 years of service. A disability plan has several calculation options depending on the severity of the disability and the time spent in service. This route also has a 75 percent multiplier limit.
Brace yourself. These payment procedures don’t even cover health benefits. Military retirees and their dependents receive TRICARE health insurance. There are several options under this service, including those with and without a monthly premium. This program covers about 80 percent of what the government deems necessary medical charges. Military hospital and clinic services are free. But active-duty employees and their dependents are first priority.
The retirement benefits for U.S. armed forces are prized. Many service men and women strive to retire with the best military in the world. They also receive plenty of well-deserved benefits through their appreciative communities.
About Alice
I stumbled across your article and while it is predominantly true, I would like to point out a few things. Specifically REDUX. REDUX is a retirement program that you receive provided you make it to 20 years. The primary difference is that you take 30,000 at 15 years and can not leave the military, you must make 20 years. At 20 years, you then receive 40% of your base pay less taxes. Every year after 20 you gain 3.5% of your base pay. Run the numbers with a military retirement calculator and you see a significant difference in retirement pay.
I wish the tone of your article was much different. You make the statement, well deserved benefit, and that is appreciated. Less than 2% of America has served, so 98% really have no idea of what goes into a 20 year career. I just retired after 26 years from the Navy. I could write a short story, but will try to make some bullet statements. I moved 13 times, worked 7 days a week/averaging 16-20 hours a day for months at a time. This is normal for Sailors as well as other branches of the service. The lifestyle, rules, moving away from ‘home’, etc… can not be understated. It is a significant sacrifice that I have grown to appreciate from all the people that serve.
Now, I would like to discuss the pay scales. You can find this information readily available. When I first came in, I received 234 dollars for two weeks of work. Had to live with three other people I did not know and had nothing in common (we all work different shifts so there was never any peace and quiet) all in a room that was 15X15. When I went to sea duty, I lived with 140 people stacked three high in medal bunkbeds and no place to sit. I am trying to point out the sacrifices that people make that join. If you can last 20 years, and approximately 1 in 5 will, they have earned this.
What concerns me more than anything, is that these benefits are seen as too expensive now. So it will be going away shortly. You won’t find the great performers to stay anymore if they change the system.
Thank You. Again, I wish I could write a small book on this so others will actually see the sacrifice that is made. It would make them think twice about cutting any benefits.