Active Duty Credits Can Lower Your Retirement Age To 50
Members of the National Guard and Reserve can retire after they have performed 20 or more years of creditable military service. Active duty reduces the retirement age by three months for every 90 days served. For some members of the Guard and Reserves, that could mean starting retired pay as early as age 50, but not sooner.
The law does not change eligibility for military medical benefits, however. In order to receive military retiree medical benefits, the member must still wait until age 60.
Under the new law, members of the National Guard and Reserves are able to reduce the age at which they are eligible to receive retirement pay by three months for each cumulative period of 90 days served on active duty in any fiscal year.
Defense Enrollment Eligibility Reporting System
DEERS is the Defense Enrollment Eligibility Reporting System. It is an information system designed to maintain timely and accurate information on service members and dependents who are eligible for military benefits and entitlements. It also serves to detect and prevent fraud and abuse in the distribution of these benefits and entitlements. Updating information in DEERS is key to maintaining eligibility for TRICARE and other military benefits.
DEERS should be updated anytime a service member moves, changes status, gets married or divorced, adds an additional dependent, etc. In other words, any change that would affect benefits and entitlements for the member and his or her dependents should be recorded in DEERS. Additionally, DEERS information should be reviewed for accuracy once a year.
You can verify DEERS information through a military treatment facilitys Patient Administration Office by contacting your services personnel office, or by visiting milConnect.
There are several ways to update DEERS information:
I Should Have More Retirement Points How Can I Verify My Ngb Form 23b Army National Guard Retirement Points History Statement Is Accurate
Compare your NGB Form 23B, Army National Guard Retirement Points History Statement, with your service records. Ask your unit Retirement Points Accounting Management administrator to provide you a Soldier Detail Report. The Soldier Detail Report will outline how each point was earned while serving as a member of the Army National Guard. If you identify missing retirement points , provide supporting documents to your unit Readiness NCO or S1 Office. Supporting documents may include, but are not limited to:
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I Reached 20 Years Of Total Service When Would I Receive My 20 Year Letter
Notice of Eligibility memorandums, also known as 20 year letters, are mailed to the Soldiers home of record following the Soldiers Anniversary Year End date in which he / she obtains 20 years of creditable service for retired pay. The NOE will be accompanied by an assortment of information on benefits, NGB Form 23B, Army National Guard Retirement Points History Statement, as well as DD Form 2656-5, Reserve Component Survivor Benefit Plan Election Certificate.
Does Sgli Carry Over When I Transfer To The Retired Reserve
SGLI converts to Veterans Group Life Insurance . You must apply for VGLI within 120 days of discharge. Veterans Group Life Insurance is a post-separation life insurance program that allows Soldiers to convert their Service members Group Life Insurance coverage to renewable term insurance. Members with SGLI coverage are eligible for VGLI upon release from service. It is one of many low cost insurance programs developed by the Department of Veterans Affairs to provide insurance benefits for Soldiers and Veterans who may not otherwise be eligible to receive insurance benefits from private companies due to risks involved in military service, or a service connected disability. Effective 11 April 2011, Soldiers who are insured under VGLI who have less than $400,000 in coverage can purchase up to $25,000 of additional coverage on each five year anniversary of their coverage, up to the maximum $400,000. There is no medical underwriting required for the additional coverage.
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Va Disability Compensation Benefits
Veterans who have a service-related injury or illness may be entitled to VA disability compensation. Its a tax-free monthly benefit.
Visit VA.gov to learn:
Which conditions qualify you for benefits
How the claims process works
How to appeal a decision you disagree with. The process changed in February 2019.
Survivors of veterans may receive compensation benefits in certain situations.
Guard Pension Starts At Age 60
One of the biggest advantages of the Guard is having an inflation-adjusted pension by age 60. Its paid by one of the worlds most credible financial institutions, or at least one with the power to raise revenue by taxation.
A civilian retiree, if they even have a pension, may not only have to wait years but they may also have to worry that the company wont survive to pay the guaranteed pension. A military pension is even more highly rated than an insurance companys annuity, and you dont have to worry whether the insurance company will be able to make good on its future claim.
The future is never certain, but a military pension is as close as you can get to a guaranteed stream of income at a known date.
The key to retirement as a Guardsmen is planning your retirement finances around multiple streams of income. By the time you request retirement , youll have several different forms of savings. In addition to the pension at age 60, youll also have your military Thrift Savings Plan account, as well as personal IRAs and taxable investments.
If youre in the federal civil service then youll have a second TSP account. If youre employed by a corporation then youll probably have another tax-deferred savings account ) as well as other forms of deferred compensation. And if youre self-employed there are several other ways to save through tax-deferred accounts.
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What Is The Eligibility Requirement
To apply for NGNMRS benefits please contact the administrative section of your branch of the Alaska National Guard. They will provide you with the appropriate forms and verify your qualifying guard service.
You must have at least 20 years of combined Alaska guard service, guard service in any other state, active military service and the reserves of them, of which at least 5 years must have been satisfactory service in any branch of the Alaska guard. An involuntary discharge from the Alaska guard waives these eligibility requirements.
Are These Benefits Taxable
All payments are taxable as ordinary income. A 20% federal tax withholding must be made on a lump sum distribution paid to you. Additionally, if you are younger than age 59-1/2 in the year payments are made, a 10% tax penalty may be assessed by the Internal Revenue Service on either lump sum or monthly payments. You may elect to have your lump sum rolled over to a qualified Individual Retirement Account of your choice and avoid taxes or tax penalties.
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How Much Retired Pay Will I Collect
You will only know how much retired pay you will collect once you receive your first payment. Many factors contribute to calculating your retired pay, such as your rank at the time of retirement, years of qualified service, number of retirement points earned, and previous separation pay received from active duty. If you Visit: My Army Benefits, you may be able to get an estimate of your retired pay using the benefit calculator.
The Reserve Survivor Benefit Plan
The Survivor Benefit Plan is an important consideration for retired awaiting pay status. You may be waiting for the pension benefit for over two decades, and if you dont make it to age 60 then you may want to ensure that some of your pension is still available to your surviving loved ones.
Retirees can elect SBP coverage during the years between retiring and reaching age 60. No premiums are paid during this time, and if you dont make it to age 60 then at least your survivors will still receive their SBP payments.
However, if you do celebrate your 60th birthday then youre required to pay the next two years of SBP premiums to recover the cost of your insurance during those years between retiring and reaching age 60. After paying two years of premiums the retiree has the option to decline SBP or to continue with it under the same rules as active-duty retirees.
This article also covers how to determine your Guard or Reserves Pension amount.
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What Does Hrc Do With My Application When They Receive It
HRC will process your application for retired pay and the retirement section will enter service-related data, direct deposit information, survivor benefit data, and tax information into a system that updates the DFAS-Cleveland retiree database. This system does all financial calculations and establishes your pay account. HRC will mail you a copy of the orders placing you on the AUS Retired List, a retirement certificate and an application for your retired ID card.
Retirement Pay For Reserves And National Guard
Whether finishing less than 20 years in the active military or starting and ending your career in the Reserves or National Guard, the retirement process is a little different than in active duty service qualifying within 20 years of non-interrupted service. In the Reserves or National Guard, you will receive retirement pay when you turn 60 years old – which could be up to 20 years later in life for some Reserve retirees. Here is how to figure out how you qualify for reserve retirement pay:
be at least 60 years of age , and
have performed at least 20 years of qualifying service computed under Section 12732, Title 10, United States Code , and
have performed the last eight years of qualifying service while a member of the Active Reserve. . and
not be entitled, under any other provision of law, to retired pay from an armed force or retainer pay as a member of the Fleet Reserve or the Fleet Marine Corps Reserve and
must apply for retired pay by submitting an application to the branch of service you were assigned to at time of your discharge or transfer to the Retired Reserve. For those serving in the Army National Guard or Army Reserve, the address is Commander, AR-PERSCOM, ATTN ARPC-ALQ, 9700 Page Ave, St Louis, MO 63132-5200.
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A Benefits Guide For National Guard And Family Members
Since Sept. 11, 2001, the Global War on Terrorism and the subsequent operations have altered our lives, and the uncertainties of local, regional and overseas deployments have challenged our abilities to cope. Whether your loved one is supporting a military operation overseas, performing duty in a local or regional location, or performing training at the local armory or reserve center, you may face challenges during these periods similar to active military service. The geographic dispersion of many Guard and reserve families is unique and at times can make it more difficult to obtain information about benefits, and in some cases to use them. It also may be more difficult to access various support services that are normally available at active-duty installations. Follow the links below to access specific information.
Health Insurance While Retired Awaiting Pay
You do not have any subsidized military healthcare when youre retired awaiting pay. Tricare will start at age 60 and Medicare/Tricare For Life will start at age 65, but Reservists/NG awaiting a pension will need to buy other health insurance. Healthcare benefits may be one reason that some Reserves/NG continue to drill well into their 50s, although that should not be the only reason to continue to serve.
In late 2009 Congress authorized Tricare Retired Reserve, which began in fall 2010. Its intended to offer a version of Tricare Standard to retired National Guard who are still under age 60.
The program is not subsidized by the government and fees are quite high compared to other Tricare premiums. $400-$1000 per month may even be higher than some civilian healthcare programs, but this program offers the first gray area coverage between retirement and age 60. Here are some health care options after you leave the military.
Keep in mind that no matter what version of Tricare you choose, it does not include dental insurance. Most military retirees pay for their own dental insurance and dental care.
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Travel On Military Aircraft
Space-Available travel is a great program for our active-duty, Guard, reserve, retired and eligible family members. But understand that Air Mobility Commands primary mission is to support our war fighters. Once duty and safety requirements are met, available seats will be offered to passengers awaiting transportation. Therefore, you must be prepared to possibly wait a few days or arrange alternate transportation. Remember, Space-A travel is a privilege, and AMC cannot guarantee movement to your desired location or on any particular schedule.
When not on active duty, authorized National Guard members and reservists, as well as authorized Reserve Component members entitled to retired pay at age 60 , may fly within the continental United States and directly within/between the CONUS and Alaska, Hawaii, Puerto Rico, the U.S. Virgin Islands, Guam and American Samoa. Dependents are not authorized to travel Space-A with these members. Reserve or Guard members placed on active duty for more than 30 consecutive days may travel Space-A to any location authorized for Space-A travel on presentation of a military ID card, orders placing the member on active duty, and a valid leave authorization or evidence of pass status as required by the service concerned. Dependents are authorized to travel when accompanied by members on active duty in excess of 30 days.
Morale Welfare And Recreation
MWR activities include arts and crafts facilities, bowling centers, golf courses, libraries, outdoor recreation, recreation centers, youth services activities and recreation membership clubs. Occasionally, local MWR facilities may offer significant discounts on popular local and national family attractions. In most instances, Guard and reserve members and their dependents are eligible to use all facilities on the same basis as active-duty personnel. Local installation and facility commanders do have the authority to establish priorities for MWR activities that are in high demand and unable to accommodate all who desire to participate. Be sure to call ahead and confirm hours of operation and eligibility for the activity you and your family are interested in.
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What Does The System Pay
The base benefit is $100 per month for each month of satisfactory Alaska guard service. A lump sum payment option or an option for accelerated payments to be completed by age 72 may be elected in place of the base $100.00 per month. Upon certification of your service to the Division of Retirement and Benefits by your guard headquarters following your separation, the Division of Retirement and Benefits will advise you of your payment options.
Under the lump sum option, future payments which would have been paid at $100.00 per month are discounted at the system’s discount rate, which is currently 7%. For example, if you have 20 years of Alaska guard service you would receive $24,000 over 20 years. If you elect the lump sum, you would receive $11,481.24 before taxes and tax penalties, if applicable. This is the total present value of each individual future monthly $100.00 benefit.
Under the accelerated payment option, if you would attain age 72 prior to completion of the 20 years and you elected this option, the monthly payments would be increased but would end when you attained age 72. For example, if you had 20 years of service and are age 60 when payments commence, you would receive $134.42 per month under this option.
Identification Cards For Military Family Members
The Department of Defense issues eligible dependents an identification card authorizing them to receive certain uniformed services benefits and privileges. The DOD ID card issuance process consists of several steps to ensure the correct ID card is issued and the appropriate benefits and privileges are assigned. An important step is the verification of a customers identity by reviewing the two required forms of identification and their information in the Defense Enrollment and Eligibility Reporting System.
The DOD uses a system referred to as the Real Time Automated Personnel Identification System to issue ID Cards. Family members and eligible dependents are required to report to a RAPIDS ID Card issuing site in order to be issued the appropriate ID card. Children under the age of 10 can normally use the ID card of their parent, but they must be registered in DEERS. At the age of 10, children should obtain their own ID card. Not all military installations have the ability to use RAPIDS so, you may need to ask your command or unit administration office for a list of ID card issuing locations in your area or visit the RAPIDS Site Locator online.
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Im 68 Years Old And Did Not File For My Retired Pay Can I Still Collect My Retired Pay From When I Turned Age 60
There is a six-year statute of limitations for back pay in Title 10, 31 United States Code 3702. If a Soldier files a retired pay application more than six years after the date of eligibility for retired pay, there is a day-for-day loss of eligibility for retired pay for each day of delay in applying. If granted an exception to extend beyond age 60, the six-year statute of limitations on back payment of retired pay will still apply. Therefore, if you were to begin collecting on your 68th birthday, you would only be able to collect from when you turned 62 years old.