Today were celebrating episode 60 by talking about Guard and Reserve retirement. If you find trying to figure out what your retirement pay will be and how to qualify, you are not alone. Here's a link to the online DoD retirement calculator https://militarypay.defense.gov/Calculators.aspx and Doug Nordman’s blog post in The Military Guide at https://the-military-guide.com/reserve-retirement-calculator/ Doug gives you the numbers and formulas written out more background.

First, to determine if you will be eligible for retirement you need to look at the number of points you build up and the number of “good years” you completed. When you’ve cleared these two hurdles, you’ll translate your points earned into years of service for the purpose of calculating your retirement pay. Once you're eligible for retirement you can continue to serve or retire. But a key difference between a reserve retirement and an active duty retirement is that with few exceptions, you won’t actually start receiving your retirement pension until you reach age 60. You earn 15points for each year of service. Drilling reservists and Inactive Ready Reserve (IRR) get these 15 points a year. You accumulate more points for drill weekends, active duty periods, and things like serving on funeral honors detail. Every active duty day count is one point. Each drill counts one point, usually 4 a weekend.

For example, a drilling reservist could earn 77 points one year: 15 points for annual participation, 48 points for four drills a month for 12 months, and 14 points for 14 days of annual training.

A good year is when you earn a minimum of 50 points within a 12 month period and maintain your mobilization readiness. Your considered eligible for retirement when you’ve completed 20 good years of service. Continue serving and earning more points will increase your retirement pension.

When you retire you have a very important decision to make. You either Retire Awaiting Pay or Resign. The key benefits of Retire Awaiting Pay are your seniority continues to accumulate as if you were still serving, called longevity. And when you reach 60 your retirement pay will be based on active duty pay table in effect that year. However, you could still be recalled to duty for full mobilization. Almost every Guard and Reserve retiree chooses to Retire Awaiting Pay and take the risk. If you resign your pension will be frozen at your resignation date.

You should receive a Notification of Eligibility once you had 20 good years. Keep this and a record of your points earned a safe place. Your retirement pay won’t start automatically at age 60. You will need to file and don’t delay. If you wait more than six years you will lose one day of pay for any day more than that you waited.

How much will you get paid? First, divide your total earned points by 360 to translate points into years. Then if you’re a Final Pay or High Three retiree multiply those “years” times 2.5% times your pay on the pay scale for the year you turn 60. Again, those years in rank, or longevity, continued to tick up while you were retired awaiting pay so look for that column on the pay chart. If you’re in the Blended Retirement System or BRS, it’s 2.0% times your years times your pay. And remember, you can only use the pay chart for the year you turn 60 if you chose to retire awaiting pay. If you chose to resign, use the pay chart and years of service for the year you resigned.

You may be eligible to begin retirement pay three months early for every 90 consecutive days of mobilization for war or national emergency.

Have more questions about your Guard Reserve retirement, reach out to katie@moneypilotadvior.com