Why do military retirees collect retirement......

[oldman]

Of course not, but it's a nice additional income during your actual retirement coupled with social security and perhaps a 401k from your second career, which likely came easy to you having gained skills in the military and corporations getting write offs for hiring veterans. I assume you still also had the benefits of shopping on base and health care?

And you are correct. I did land a federal job based on skills I learned in the Navy. When I retired from that I paid back $17,000 to get my miliary time converted to my federal time thus getting one retirement check worth more than the two would have been. I have been receiving a small social security check for 6 or 7 years now which is nice throw away money for me. Although I still have the benefits of base shopping and health care they are only good as long as one lives in an area one can reach.

 

[Monello]

Why do military retirees collect retirement......

Because we can!

Retirement pay is only calculated on BASE PAY. There are also several other pays depending on the job being performed. If the food and housing allowances were included in the retirement figure, then the monthly check would be significantly larger.

But if you think it's 50% of TOTAL pay, you'd be mistaken. Also it seems that, for certain jobs, military pay lags behind the private sector. Junior enlisted are paid a pittance while doing most of the highly undesirable jobs.

I'm getting close to the point where I will have been retired longer than I was on active duty. Surprisingly, if I live long enough, I could possible earn more in retirement pay than I earned while on active duty.

 

[Monello]

The military is a young person's business. Not many folks in their 50s & 60s can stand up to the rigors of military life.

 

[CrashTest]

They could of stayed in CONUS if they wanted too.

For 8 years?

Not getting married is another option.

 

[JoeR]

Of course not, but it's a nice additional income during your actual retirement coupled with social security and perhaps a 401k from your second career, which likely came easy to you having gained skills in the military and corporations getting write offs for hiring veterans. I assume you still also had the benefits of shopping on base and health care?

You're right about it being a nice little additional income. Last year I received a little over $16,500. in my military retirement (retired in 99). But you also have to remember a lot of retirees start their second careers around the age of 40. That's what I did. Also I was unable to go back civil service in my military career field (Firefighter) when I retired. In their minds I was to old to continue to do the same job I did for 20 years on active duty. So when I started with the airport authority as a firefighter, I was that far behind so to speak when I started my 457 plan with them, as opposed to someone that had already been working there and contributing those extra years. I look at it this way. What I will lose due not being able to work there as long a someone who started at 18 or 20 years old, I'm already getting and will be combining the two when I retire for good.

 

[Radiant1]

I'm getting close to the point where I will have been retired longer than I was on active duty. Surprisingly, if I live long enough, I could possible earn more in retirement pay than I earned while on active duty.

When I read that I thought that perhaps some cuts to certain aspects of military retirement isn't such a bad idea. There's something about you receiving more in retirement than you ever did while active that rubs me the wrong way. Not sure why though.

But you also have to remember a lot of retirees start their second careers around the age of 40... So when I started with the airport authority as a firefighter, I was that far behind so to speak when I started my 457 plan with them, as opposed to someone that had already been working there and contributing those extra years.

Good point. I didn't exactly think of that.

 

[tommyjo]

Stand down sparky. I asked because I didn't know. Most of the civil service I know are retired military and aren't concerened about the upcoming furlough because their civil service job is their second career but others I know don't have that retirement to fall back on. Do police and fireman collect at 65 also?

Depends on the jurisdiction...PG Police can go on pension after 20...but they are basically military police...

teachers mostly have an age and service requirement...30 years and age 55 for example...similar to fed civilians

 

[Bann]

Immediately and everybody else has to wait until 65 to collect?

Actually, a NAVY military retirement pay is after 30 years. Between 20 & 30 they are actually not "retired" but are transferred to the Fleet Reserve for 10 years, and receive retainer pay. They technically can be called back to active duty for years...

For Navy and Marine Corps members, you are considered to be a "retired member" for classification purposes if you are an enlisted member with over 30 years service, or a warrant or commissioned officer.

Enlisted Navy and Marine Corps members with less than 30 years service are transferred to the Fleet Reserve/Fleet Marine Corps Reserve and their pay is referred to as "retainer pay".

Air Force and Army members with over 20 years service are all classified as retired, and receive retired pay.

When a Navy or Marine Corps member completes 30 years, including time on the retired rolls in receipt of retainer pay, the Fleet Reserve status is changed to retired status, and they begin receiving retired pay.

Don't become confused. The above is for information purposes only. The law treats retired pay and retainer pay exactly the same way.

Military retirement pay is unlike civilian retirement pay systems. First and foremost, there is no "vesting" in the military retirement system. There is no special retirement accounts, no matching funds provision, no interest. You either qualify for retirement by honorably serving over 20 years in the military, or you do not. If you are discharged from the military with 19 years, 11 months, and 27 days of service, for example, you do not qualify for retirement pay (other than a few "early retirement" programs, which were designed to reduce the size of the armed forces).

Another significant difference between military retirement, and civilian retirement, is that a retired military member can be recalled to active duty. According to Department of Defense (DOD) Directive 1352.1:

Involuntary Order to Active Duty. The Secretary of a Military Department may order any retired Regular member, retired Reserve member who has completed at least 20 years of active military service, or a member of the Fleet Reserve or Fleet Marine Corps Reserve to active duty without the member's consent at any time to perform duties deemed necessary in the interests of national defense in accordance with 10 U.S.C. 683 (reference (b)). This includes the authority to order a retired member who is subject to the Uniform Code of Military Justice (UCMJ) to active duty to facilitate the exercise of court-martial jurisdiction under Section 302(a) of reference (b). A retired member may not be involuntarily ordered to active duty solely for obtaining court-martial jurisdiction over the member.

In all honesty, however, the chances that a military retiree would be recalled to active duty after age 60, or who have been retired for more than five years, are slim. DOD categorizes retirees into three categories, with category I as the most likely to be recalled to active duty, and category III as the least likely. Individuals over the age of 60 are in category III, which is the same category as individuals with disabilities. Recall of category III retires is extremely unlikely. According to DOD, the categories are:

Understanding Military Retirement Pay

 

[Blister]

Another point not made is that you have to have 20 years of service to collect a dime. In other Federally Insured pension plans you are vested after 5 years of service. If you are honorably discharged after 5, 10, or 15 years of military service you get nothing. No pension, unless you have disabilitry.

 

[Bann]

Says who? I'm getting ready to retire and can collect my retirement bennies right away. If you're talking about Social Security, THAT doesn't kick in until 65. I can collect on my pension when I retire and turn 55.

Exactly. Most companies that have retirement plans only require 20 (or 30) years.

 

[Blister]

Actually, a NAVY military retirement pay is after 30 years. Between 20 & 30 they are actually not "retired" but are transferred to the Fleet Reserve for 10 years, and receive retainer pay. They technically can be called back to active duty for years...


Understanding Military Retirement Pay

Sorry I was typing when this post explained it better than I did.

 

[GWguy]

Exactly. Most companies that have retirement plans only require 20 (or 30) years.

For us, it's a 'magic number' of 85, years of service plus age. I made that 3 years ago.

 

[Bann]

I've asked here before why the family members don't get a pension too. My dad got to cruise the Med and visit cool places while my mom and sisters were back living in $hitholes in some foreign country (against our will) and like the vast mojority who serve, nobody ever shot a bullet at my dad in 31 years of service.

Where was your dad's ship home ported when he was cruising the cool ports in the Med and you were living in a foreign country?

Wow. I loved living in Italy!! I know for a fact the living conditions were not what they were in the US. But it was a different time and it was what it was. :shrug: I lived there from 1967-1972 and we didn't have a phone in the house for all those years. We also didn't take a TV set because - - well - - it was before satellite TV was possible and back then you were advised that they only had foreign TV. We did get to see TV sets at friends' houses, but it was in Italian. OMG! We 3 kids didn't have a TV for 5-1/2 years!

Still - I positively loved living there and if I could go back & change anything in my life at all - I would probably change a few things. But NOT my 5-1/2 years living in Italy. My family loved it there and I cannot wait to go back & visit some day when the Things are done getting growed up.

</soapbox>

 

[Bann]

For us, it's a 'magic number' of 85, years of service plus age. I made that 3 years ago.

 

[edinsomd]

Long hours. Low pay. Family separations. Living in conditions below that afforded to inmates in a penitentiary. In my case, the opportunity to be crushed, burned, or drowned to death, maybe at the same time! All to protect and serve our country.

I'd do it again in a heartbeat.

That's why.

 

[Misfit]

What about military disability?

I'm taking my own tread off topic but can anyone enlighten me on military disability? Two of my friends have a service related disability that didn’t happen because of their military service. A friend of mine is collecting 60% for a hereditary thyroid condition and another friend gets 30% because of knee problems from a broken leg in HS. They laugh about how they got over on the system. Both of them are retired so does that mean they collect retirement & disability all while working a civil service job that’s being threatened with furlough because of government overspending?

 

[Bann]

I'm taking my own tread off topic but can anyone enlighten me on military disability? Two of my friends have a service related disability that didn’t happen because of their military service. A friend of mine is collecting 60% for a hereditary thyroid condition and another friend gets 30% because of knee problems from a broken leg in HS. They laugh about how they got over on the system. Both of them are retired so does that mean they collect retirement & disability all while working a civil service job that’s being threatened with furlough because of government overspending?

Not *exactly* sure, but while a service member is on active duty - anything that happens to them is considered service related. It's the way it is. I don't know why they're laughing about getting over, unless they think they are. But basically, you are the military's 24/7 - they pretty much own you while you are in.

I'm sure someone has a better explanation, and I can't find a link to back me up right now - so that's all I've got!

Edit: From the sounds of it - the problems with the thyroid and the knees developed while on Active Duty, so that's why it would be considered as service related.

 

[somdwatch]

I can understand the interest

However, their are bigger retirement bennies that should be the focus.

Like taxes, they should be flat rate.

Civil Servant 80% of their pay (under the old system) for 35 year in a normal 9-5 office job. Oh they have a union...

Retired Military 50% for 20 years if they were injured while on AD they would have a disability and wouldn't be collecting retirement.

Member of the House/Senate 100% retirement for life.

I feel no one should be entitled to more than 50% for life. If you lived your life well and stayed in one geographic area you should be set.
OOPs the military can't do that either, let's move every 3-5 years and establish another mortgage.

Just saying why do we have entitlements at all. If you made bad choices about your career/life it's only you who should be held accountable.

 

[bulldog]

I'm taking my own tread off topic but can anyone enlighten me on military disability? Two of my friends have a service related disability that didn’t happen because of their military service. A friend of mine is collecting 60% for a hereditary thyroid condition and another friend gets 30% because of knee problems from a broken leg in HS. They laugh about how they got over on the system. Both of them are retired so does that mean they collect retirement & disability all while working a civil service job that’s being threatened with furlough because of government overspending?

It depends on the level of disability. If less than 50%, the amount that you receive from the VA in disability pay is deducted from your retirement pay dollar for dollar. You only receive the advantage of not paying taxes on it. If disability is greater than 50%, no deduction from your retirement pay; you get all of both.
Not really sure why that is.

 

[Misfit]

Civil Servant 80% of their pay (under the old system) for 35 year in a normal 9-5 office job. Oh they have a union...

I've heard some of the older civil service folks talk about this. 80% is a lot. Can military even collect 80%?