DA_Pre-Retirement_Briefing_Slides_17_April_2017.pptx

17 high 3 or redux plan r etired pay years of

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17 High-3 or REDUX Plan R ETIRED PAY = (Years of creditable service x 2-1/2%) minus 1% for each year < 30 years x average of highest 36 months of basic pay 2% per yr thru 20 yrs; 3.5% from 20-30 yrs; 2.5% thereafter You will retire under the High-3 pay plan unless you received the $30K Career Status Bonus (CSB) - 15th year Percentage multipliers can now exceed 100% If you chose the CSB payment, you receive COLA minus 1%; one-time catch-up COLA at 62; COLA minus 1% thereafter Credit for all full months served Years of service 20 21 22 23 24 25 26 27 28 29 30 thru 40 REDUX Multiplier % 40 43.5 47 50.5 54 57.5 61 64.5 68 71.5 75 - 100 High-36/Final Mult. % 50 52.5 55 57.5 60 62.5 65 67.5 70 72.5 75 - 100 Or just go to for your personal retirement calculation (DIEMS 1 Aug 86 to 31 Dec 17)
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18 Blended Retirement System RETIRED PAY = DEFINED BENEFIT + DEFINED CONTRIBUTION DEFINED BENEFIT = Yos of service x 2.0% x avg 36 highest months of base pay DEFINED CONTRIBUTION After 60 days, automatic contributions to TSP L Fund: Gov’t 1% & Soldier 3% Soldier may change amount and TSP allocation After 2 years, Gov’t matches Soldier’s TSP contributions (until 26 YOS) (Limits: Gov’t: 5% [1% auto + 4% matching] & Soldier: Annual IRS limit, currently $18K) After 2 years, Soldier is vested, may take TSP funds at ETS OTHER INFO Soldiers with 12 YOS or less on 31 Dec 17, may opt in from 1 Jan – 31 Dec 18 Soldiers with >12 years are grandfathered in their current retired pay plan 3 payout options at retirement: Full annuity, Reduced annuity plus 25% lump sum payment or Reduced annuity plus 50% lump sum payment (DIEMS 1 Jan 18 and later or those with less than 12 YOS (or 4,320 points-RC) as of 31 Dec 17 who opt-in to the BRS)
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19 Cost-of-Living Adjustments (COLA) All Retirement Plans Based on difference between Consumer Price Index from last year’s 3rd Qtr CY to current year’s 3rd Qtr CY Partial first year COLA Final Basic Pay or High-3 Plan or Blended Retirement System Full annual COLA REDUX ($30K CSB) Plan Reduced until 62 (COLA minus 1%) At 62, one-time catch-up COLA minus 1% after 62
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20 Growth Over The Years Assumes average +2% COLA Age 62 A ge 62
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21 MyArmyBenefits Benefit Library Federal Fact Sheets State and Territory Benefits Fact S Resource Locators Benefit Calculators Retirement Survivor Benefits Deployment Calculator Benefits Help Desk Operations Wounded Warrior Special Module Wounded Warrior Disability Income Calculator Casualty Operations Special Module Survivor Benefits Report Multi media Links directly to DEERS information through CAC or DS Logon .
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22 Retired Pay Facts Retired pay -- paid by DFAS-Cleveland Payable 1 st of month (when that is a weekend or holiday, the pay date is moved to the previous business day) Electronic Funds Transfer is now required Use “ myPay ” to make online changes to pay, reissue 1099Rs, change bank account, change email address, etc.
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