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.