Crossing the finish line... running, walking or crawling... (Reserve Retirement Process)

[SynixMan]

This might be a giant hole in my reserves knowledge base, but my understanding is that SELRES/traditional reservist loses Tricare eligibility from the time they retire, until age 60. I know Army reserves/AF reserves are pretty different, in terms of active retirements, but is this not the case for us?

Regular 20 folks get the medical and pension payments right away. Reserve Retired can use the stuff @snake020 talked about after they retired until 60 (gray area). After 60* you get the same medical as the folks who retired with 20 active. For myself and many others, it opens up the possibility of retiring between 60 and 65 from airlines instead of waiting it out till 65**. I fly with a lot of 60+ year olds and many lament the cost of healthcare before Medicare as their reason for not retiring early.

* 60 minus any time on Title 10 orders, so if you did any MOBs, a little early. For me it'll be 59 and 4 months.

** I'm going to assume anyone hired at a major in their 30s, put anything into TSP, and didn't give half of it away to their first wife can make the math work to walk at 60, or at least go to an L/Dmax type schedule.

 

[Hair Warrior]

* 60 minus any time on Title 10 orders, so if you did any MOBs, a little early. For me it'll be 59 and 4 months.

I know this is when the pension starts, but is this also for medical insurance?

 

[subreservist]

I know this is when the pension starts, but is this also for medical insurance?

There is currently a bill at Congress called the TRICARE Fairness for National Guard and Reaerve Retirees Act that would allow receipt of both pension and medical eligibility at the same time for those qualified to receive earlier than 60.

Unfortunately, there hasn’t been much movement on that bill as of late.

So until that’s approved, if it ever is, medical is still 60 even if you qualify for an earlier pension.

 

[MIDNJAC]

Regular 20 folks get the medical and pension payments right away. Reserve Retired can use the stuff @snake020 talked about after they retired until 60 (gray area). After 60* you get the same medical as the folks who retired with 20 active. For myself and many others, it opens up the possibility of retiring between 60 and 65 from airlines instead of waiting it out till 65**. I fly with a lot of 60+ year olds and many lament the cost of healthcare before Medicare as their reason for not retiring early.

* 60 minus any time on Title 10 orders, so if you did any MOBs, a little early. For me it'll be 59 and 4 months.

** I'm going to assume anyone hired at a major in their 30s, put anything into TSP, and didn't give half of it away to their first wife can make the math work to walk at 60, or at least go to an L/Dmax type schedule.

Yeah, my current plan is to retire at 59 from the airlines. That'll be 20 years service there, and I think plenty early to enjoy retirement. I'll be in similar boat for the pension check, right around 58.5-59 years old. That being said, I have tossed around the idea of sticking around in SELRES past 20. If I took it to 25 (and presumably promoted one last time), that is a not insignificant difference in pension compared to O-5/20 reservist retirement.....and I'd be 50 years old by then, so a much shorter gray area time period. I dunno, who knows how I'll feel in a couple more years when that decision comes.

 

[Flash]

After 60* you get the same medical as the folks who retired with 20 active. For myself and many others, it opens up the possibility of retiring between 60 and 65 from airlines...

* 60 minus any time on Title 10 orders, so if you did any MOBs, a little early. For me it'll be 59 and 4 months.

Just to make sure you know, all retired reservists still get medical at age 60. The earlier retirement only affects pay and not medical.

Navy - Additionally, TRICARE medical benefits eligibility remains at age 60 regardless of early retirement eligibility.

DFAS - Retiree health care eligibility begins at age 60 even if retired pay begins earlier than age 60.

 

[AllAmerican75]

Surprising or not, there were a few reservists I knew who were considering the TRICARE Retired Reserve option due to the high cost of their company's insurance.

I compared the costs with my current employer (Major defense contractor) and Tricare Retired Reserve is still cheaper for similar levels of coverage compared to my company's offerings.

 

[BigTooona]

60 minus any time on Title 10 orders, so if you did any MOBs, a little early. For me it'll be 59 and 4 months

From my understanding, the reduced age retirement is given in blocks of 90 days for every 90 days within the same FY on applicable orders. In which case you couldn't have 8 months reduced, but 6 months max assuming it was all in the same FY. Sorry dude, but I could be wrong.

https://www.mynavyhr.navy.mil/Career-Management/Reserve-Personnel-Mgmt/Reserve-Retirements/NDAA-Early-Retirement/

 

[Python]

I compared the costs with my current employer (Major defense contractor) and Tricare Retired Reserve is still cheaper for similar levels of coverage compared to my company's offerings.

Tricare Retired Reserve seems to be much better than my airline's healthcare based on all the horror stories I read. It makes me strongly consider paying that cost when the time comes, especially since TRS has been outstanding.

 

[LAMPS Ninja]

From my understanding, the reduced age retirement is given in blocks of 90 days for every 90 days within the same FY on applicable orders.

It changed in 2014 to allow the 90-day blocks to come from two different FYs. Still has to be increments of 90, though.

“However, service time that is less than 90 days cumulative within a fiscal year prior to October 1, 2014, does not qualify. After September 30, 2014, the 2015 NDAA authorized 90-day periods to cross over the fiscal year boundary for two consecutive fiscal years. This cross-over is not retroactive; it is only for service after September 30, 2014.”​

https://www.dfas.mil/RetiredMilitary/newsevents/newsletter/September2024-Gray-Area-Retiree-Spotlight/

 

[snake020]

I know I'm an edge case, but I just got an APO box as a Reserve Retiree overseas. Local Air Force mail detachment was pretty easy on the process. Service is restricted to 16 oz (letter mail) with a weight exception provided for Tricare medications. Very useful for banks and other services which balk at overseas addresses.

 

[Chida]

Yeah, my current plan is to retire at 59 from the airlines. That'll be 20 years service there, and I think plenty early to enjoy retirement. I'll be in similar boat for the pension check, right around 58.5-59 years old. That being said, I have tossed around the idea of sticking around in SELRES past 20. If I took it to 25 (and presumably promoted one last time), that is a not insignificant difference in pension compared to O-5/20 reservist retirement.....and I'd be 50 years old by then, so a much shorter gray area time period. I dunno, who knows how I'll feel in a couple more years when that decision comes.

I run into ppl a lot who say they stayed in the selres past 20 to “max the pay chart.” You know that’s not necessary, right?
Time in the grey area generally maxes the pay chart already (unless someone joined at an unusually advanced age). The only thing you need to do is get your TIG as a participating reserve to hold the rank in the retired reserve. Once you get your TIG it is a points game only.

This is a key difference between the regular retiree pension vs the reserve retiree pension.

For example:
Selres retiree #1: O-5, 20 good yrs, 2 yrs as an O-5 then retires to grey area. 18 yrs later pension is O-4 with 38, 37, 36 yrs. (high-36)
Selres retiree #2: O-5, 20 good yrs, 3 yrs as an O-5 then retires to grey area. 18 yrs later pension is O-5 with 38, 37, 36 yrs. (high-36)
Selres retiree #3: O-6, 22 good yrs, 2 yrs as an O-6 then retires to grey area. 16 yrs later pension is O-5 with 38, 37, 36 yrs. (high-36)
Selres retiree #4: O-6, 22 good yrs, 3 yrs as an O-6 then retires to grey area. 16 yrs later pension is O-6 with 38, 37, 36 yrs. (high-36)

Put it in concrete terms. For someone who commissioned in 1988, had 5000 points at yr 20 and got 100 points/yr in his final 3 yrs as a participating reservist, then retires. High-36 is 2025, 2024, and 2023.
Selres retiree #1: High-36 is $9674. 5000 pts/360*2.5%*9674=$3359/mo
Selres retiree #2: High-36 is $11409. 5000 pts/360*2.5%*11409=$3961/mo
Selres retiree #3: High-36 is $11409. 5200 pts/360*2.5%*11409=$4119/mo
Selres retiree #4: High-36 is $14261. 5200 pts/360*2.5%*14261=$5149/mo

 

[MIDNJAC]

I run into ppl a lot who say they stayed in the selres past 20 to “max the pay chart.” You know that’s not necessary, right?
Time in the grey area generally maxes the pay chart already (unless someone joined at an unusually advanced age). The only thing you need to do is get your TIG as a participating reserve to hold the rank in the retired reserve. Once you get your TIG it is a points game only.

This is a key difference between the regular retiree pension vs the reserve retiree pension.

For example:
Selres retiree #1: O-5, 20 good yrs, 2 yrs as an O-5 then retires to grey area. 18 yrs later pension is O-4 with 38, 37, 36 yrs. (high-36)
Selres retiree #2: O-5, 20 good yrs, 3 yrs as an O-5 then retires to grey area. 18 yrs later pension is O-5 with 38, 37, 36 yrs. (high-36)
Selres retiree #3: O-6, 22 good yrs, 2 yrs as an O-6 then retires to grey area. 16 yrs later pension is O-5 with 38, 37, 36 yrs. (high-36)
Selres retiree #4: O-6, 22 good yrs, 3 yrs as an O-6 then retires to grey area. 16 yrs later pension is O-6 with 38, 37, 36 yrs. (high-36)

Put it in concrete terms. For someone who commissioned in 1988, had 5000 points at yr 20 and got 100 points/yr in his final 3 yrs as a participating reservist, then retires. High-36 is 2025, 2024, and 2023.
Selres retiree #1: High-36 is $9674. 5000 pts/360*2.5%*9674=$3359/mo
Selres retiree #2: High-36 is $11409. 5000 pts/360*2.5%*11409=$3961/mo
Selres retiree #3: High-36 is $11409. 5200 pts/360*2.5%*11409=$4119/mo
Selres retiree #4: High-36 is $14261. 5200 pts/360*2.5%*14261=$5149/mo

I guess my point was more the base pay bump between O-5 and O-6. Not staying in longer as a terminal O-5. That definitely isn't worth the squeeze. I'm also not convinced the somewhat significant pay difference between the two is worth the squeeze either at this point.

 

[Chida]

Cool, yeah it’s about $1000 extra per mo (right now, all else being equal).

 

[MIDNJAC]

Cool, yeah it’s about $1000 extra per mo (right now, all else being equal).

I think it is slightly more than that. I'm speaking to O-5 at 20 vs O-6 at 25-26, since you basically have to be at 24 to get high 3 anyway (so the extra year or two is maybe "might as well). There aren't a ton of SELRES O-6 who hit high 3 at 22 years, to address your table. I'm not sure if there are many on active duty either. I know my first look will be in my 20th year, so I wouldn't theoretically pin until my 21st, and that is assuming I were a BZ select (in some fantasy land)

 

[snake020]

I guess my point was more the base pay bump between O-5 and O-6. Not staying in longer as a terminal O-5. That definitely isn't worth the squeeze. I'm also not convinced the somewhat significant pay difference between the two is worth the squeeze either at this point.

Between being out of pocket on drill travel, VA disability pay deductions, and the general grind, it was not worth it for me to roll the dice with the O-6 board and then hang around.