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What is Co-Managed Care for Veterans?

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Reserve Component Retirement Overview


Retirement from the military has a lot to offer if you have stayed in the military for more than 20 years and are eligible for the benefits. First, the military provides a pension based on how long you have served. In rare cases, for service members who have served 40 years or more, this pension could be 100% of their regular pay. In addition to the military pension, there are health care benefits, access to special educational funds for dependents and access to a variety of other programs designed to reward long-term service in the military.

There are currently 3 different Military Pensions:

1. Final Pay — for service members who entered the military prior to September 1980. This pension is based upon the individual’s last month of pay. At 20 years, you receive 50% of your final wages plus 2.5% in addition for each year you served past 20 years. Cost of Living Adjustments (COLA) are added on top according to the Consumer Price Index.

2. High 36 — Available for those who entered between September 8, 1980 and August 1986. This plan is based upon the average of the final 36 months of a service member’s pay. At 20 years, you receive 50% of your wages plus 2.5% in addition for each year you serve past 20 years. Cost of Living Adjustments (COLA) are added on according to the Consumer Price Index.

3. Career Status Bonus/Redux (CSB) retirement system — If you entered after August 1986, you can choose between CSB and the High 36 system. This plan is based upon the average of the last 36 months of an individual’s pay. At 20 years, you receive 40% of your wages plus 3.5% in addition for each year you served past 20 years. Cost of Living Adjustments (COLA) are added on according to the Consumer Price Index — 1% until age 62 after which time it also follows the Consumer Price Index. At 15 years of service, you must decide on taking a $30,000 bonus (taxable) and a 40% CSB pension or no bonus and the High 36 50% pension. Obviously, this a difficult choice and must be based upon the health and circumstances of each individual soldier. Tax-rates and income bracket at 15 years of service should also be taken into account.

The three available military pensions are all better than most of the retirement programs available to civilians. Long-term service in the military can really make for a comfortable and reliable retirement.

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