100% Military retirement pay with Redux/How it works

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anchorage70

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I am not sure if this is the correct spot for this but wanted to make a post showing how much you would make if you are at 100% disability and also what happens if you took Redux. I just got my letter from DOD and it explained my money and percentages. Below is what I got and it also explains Redux.

Service for percent: 22 years 6 months, 18 days

In accordance with 10 USC 1401, you are entitled to receive retired pay computed using your Percentage of Disability (Method A) or, using your years of service ( Method B), as follows:

--------------------------------------Method A --- Method B
Active Duty Base Pay ----------- 3, 504.95 --- 3,504.95
% of Disability ---------------------- 100%
Percent Multiple (Max is 75%) --- 75.00% ---- 56.25%
Method A Calculation ------------ $2,628.00
Method B Calculation ----------------------------- $1,971.00
Cost of Living adjustment -----------.00 ------------ .00
Gross monthly retired pay --------$2,628.00 ----$1,971.00
*Method A is most beneficial


Because you elected to receive the Career Status Bonus (CSB), under provisions of PL 106-65, future Cost of Living adjustments will reflect a 1% reduction. This reduction will continue until you reach 62 years of age. At that time, a one-time adjustment will be made to your gross pay, and all related deductions, as if you had not elected CSB. In the years following your 62nd birthday, you will again receive Cost of Living adjustments that reflect a 1% reduction.


So basically if you did selct the CSB they do waive it as far as your monthly pay but you still get the COLA penalty. I know I didn't completely understand the process until I received my letter on it. Hope this helps others in the same boat.
 
But if im not mistaken it has no effect on VA pay, which if you are 100% is more than your 75% DOD pay.
 
At over 20 years and over 50% I am concurrent so would get both. This is just the Military side of it.
 
At 15 years you are given an option to retire under the Redux program. You are given $30,000 dollars taxable and go from 50% to 40% retirement at 20 years. You gain a extra percentage point after twenty so 3.5% to 2.5%. However COLA is -1% every year after you retire until you are age 62 then it pays you a taxable lump some to "catch you up" to regular retirement, however it then goes back to a -1% each year until you die.

Basically to receive the same retirement as a High 3 you will have to work 30 years but you will always be paid a little less each year due to the COLA-1%. It's a cost cutting program to pay us less money in the long run. You could technically shaft them by working 30 years and dying on your 62nd year as theoretically you will have made the same as a 30 year High 3 retiree. Any other time the government makes out. You can invest the money and come out ahead, I hoever was going through a divorce at the time and it was the easiest way to make that happen faster.

The 100% military retirement stops Redux as far as the percentage as it is waived, however the -1% is still in effect. Not sure if that ends up being better than the High 3 retirement but you can't plan on getting hurt.
 
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