From the state of Social Security to the health care bill, the retirement age of men and women of America is on the minds of our representatives in Washington, D.C. However, one section of our government, the military branch (that’s YOU), has the option to take advantage of unique retirement plan benefits. The programs are designed to take care of the men and women in service with offers of a pension, benefits, and starts the day you retire – regardless of age.
We thought we’d do a short overview of these programs for the You Served readers and provide some links to their services below.
Depending when you entered the military, you may qualify for one of three different retirement systems. If you entered prior to September 1980 you are eligible for Final Play. After September 1980 to August 1986, you are eligible for High 36. After August 1986, you are eligible for High 36 or Career Status Bonus/REDUX. If you do not let the military know your choice upon retirement you will automatically receive High 36.
The plans are similar because after 20 years of service in the military you will be eligible for a pension based on percentage of your basic pay. If you stay for 40 years, you will be eligible for 100 percent of your basic pay. The difference under each plan is based on cost of living, multiplier, and career status bonus.
Under multiplier, you receive a percentage of base pay for each year of service. For cost of living, each year the pension will adjust based on the Consumer Price Index. The career status bonus, under the CSB/REDUX plan, you decide in your 15th year of service to either take a $30K bonus and a 40% pension, or you take High 36 with no bonus – higher pension.
There are sites online with retired pay calculators to help understand the amount of your pension. For military men and women, deciding on a retirement plan is a huge decision, but at least they may rest assured that their service can lead to a comfortable retirement.
Learn more about the programs here:
DFAS
Secretary of Defense


