05-31-2003, 03:59 PM
How many years would a person have to spend in the military to qualify for a pension, and whats it worth?
05-31-2003, 04:16 PM
Feel free to check out the MILPERSMAN available as a (sorry) PDF file from http://www.bupers.navy.mil. Generally, one must serve 20 years of Active Duty to qualify for the non-disability retirement, worth 50% of one's active base pay*. Retirement from the National Guard or the Reserves is based on "good retirement years," which are also covered in the MILPERSMAN.
*There are different windows of eligibility for the retirement programs based on when one entered service. These programs are not identical as to payment.
There are also the disability retirements: one is retired due to a medical condition which developed whilst in the Service.
And let's not forget the early retirement programs brought to the military during the latest draw-down.
In addition to the foregoing, the retired Servicemember retains eligibility to shop at the military exchanges (to include http://www.aafes.com) and the base commissaries. The Servicemember is also subject to recall.
The foregoing brought to you by your friendly PN1, USN (Retired), Monty.
05-31-2003, 04:20 PM
I forgot to mention that longer Active Service (or a greater number of "good retirement years") leads to an increase in the pension. It can't go above 75% of the base pay, though.
05-31-2003, 05:54 PM
Rather than anyone attempting to stumble about the other link provided, hoping they fall across an answer (I couldn't), this page (http://usmilitary.about.com/library/weekly/aa032701a.htm) has a summary of the complicated calculations. It is not an official military retirement pay site, so it may not be 100% accurate or up to date.
Basic rules: 20 years active and more gets you 2.5% for each year in, times your active duty base pay at the time of retirement if you entered service before Sept 8, 1980, OR the average of your highest 36 months base pay if you entered after Sept 8, 1980, up to 75%.
Example: 20 years in, entered service 1983. Last 36 months base pay averaged $85,000 base pay, the retirement pay would be 2.5%*20=50% of 85,000, or $42,500 per year. 24 years? 60%, or $51,000.
Unless you entered service AFTER Aug 1, 1986, where you can do the above, or take another choice, wherin you get a chunk of change at 15 years ($30,000), then retirement pay is calculated as above, but with 1% subtracted for every year below 30. Same time in service as above, the serviceman gets $30,000 at 15 years (if they choose this option) and at 20 years they retire with (2.5%*20) - 1%*(30-20) or 50% - 10% = 40% of the average of the last 36 months base pay ($34,000 for the guy who averaged $85,000), until they reach 62 years old, then it goes back to the regular plan. 24 years? $45,900, until they reach 62.
vBulletin® v3.7.3, Copyright ©2000-2013, Jelsoft Enterprises Ltd.