REDUX Retirement plan w/ Med Retirement (post 20 year mark)

CrackedBack

CrackedBack

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Registered Member
Can anyone clarify how the REDUX Retirement plan is affected when being forced to retire medically after 20 years? I'm at 23 and took the REDUX at 15. Now, I've been found unfit and just received my proposed VA ratings yesterday...Permanent Retirement. I expected the retirement piece but no my PEBLO to state during our meeting that I'd be retiring under my current retirement plan and when I asked her about REDUX being wiped due to med-retirement, she looked at me funny and said "no, it has no bearing." I've read on here that it is nix'd if you're being med-retired and can't find the posts or the regulation which covers this.

Any help is appreciated and I apologize if this causes you to re-post but I just can't find the straight answer. THANKS!!!
 
Cracked,
This is from DFAS:
CSB/REDUX​

Members who entered the service after July 31, 1986 are given a choice of two retirement plans when they reach their 15th year of service:
  • High-3 Year Average
  • Career Status Bonus (CSB)/REDUX
Military members who elect CSB/REDUX are eligible to receive a $30,000 bonus when they reach their 15th year of service, but will also have their retired pay calculated at a reduced rate.

CSB/REDUX is a two-part deal. It includes the $30,000 bonus, but also results in a reduced retired pay. While the $30,000 Career Status Bonus may seem like an incentive now, it is important to be aware of the effects electing to retire under CSB/REDUX will have on your retired pay.​
CSB REDUX Retired Pay Calculation​

Retirement Calculator
Your monthly pay may differ from the calculator’s estimate. The formulas used to calculate retired pay are complex and differ depending on individual circumstances.
CSB/REDUX Retirement Calculator
Non-Disability retirees will have their percent multiplier reduced by:
  • 1 percent for each full year of creditable service less than 30, and
  • 1/12th of 1 percent for each full month of creditable service less than a full year.
This will also affect your retired pay by reducing the cost of living adjustments (COLA) by one percent.
This reduction remains in effect up to the age of 62. Once you reach age 62, your retired pay will be restored to the same amount paid under the High-3 System. Full COLA rates will be applied to your new computation, but the COLA will continue to be applied at the reduced rate each year following.
Disability Retirees and Reserve/Guard members who retired at age 60 are exempt from all REDUX provisions except the 1 percent COLA reduction.
Read more about CSB/REDUX on the OSD website.​
 
Cracked, I had two buddies, 1 was an E7 and the other an E6. They were both medically retired and they took the Redux. What the lady told you is true, if you accept the Redux, it doesnt matter if you are Medically retired. Think about it, if it was that easy to erase it, everyone would claim that they are disabled so they wouldnt be affected by the Redux on their pay. It is like borrowing alot of money, then hoping you dont have to pay it back. God bless you and I wish you the best, atleast you have a decent retirement that you didnt have to work 40 years for. Their are alot of people in this world alot worse off then you and me. Take care.
 
kiefer82 said:
Cracked, I had two buddies, 1 was an E7 and the other an E6. They were both medically retired and they took the Redux. What the lady told you is true, if you accept the Redux, it doesnt matter if you are Medically retired. Think about it, if it was that easy to erase it, everyone would claim that they are disabled so they wouldnt be affected by the Redux on their pay. It is like borrowing alot of money, then hoping you dont have to pay it back. God bless you and I wish you the best, atleast you have a decent retirement that you didnt have to work 40 years for. Their are alot of people in this world alot worse off then you and me. Take care.
Click to expand...
Kiefer,
You and your friends have been told wrong information. I can not find a single law or provision that states what you have said. The thinking that you received something so therefore must pay it back no matter what is wrong. Do to disability, essentially saying you can't fulfill your obligation because you don't have the option through no fault of your own, means you don't pay it back or are penalized for it.

Someone is not "guaranteed" a medical retirement and therefore the notion that everyone who took REDUX would claim they are disabled isn't quite accurate.

Look at 10 USC 1401
37 USC 303
10 USC 372
10 USC 354
10 USC 1413
 
Thanks for all of the input. I've learned that I will NOT have to retire under REDUX but WILL lose one point from my COLA until age 62. So, having 23 years in and taking REDUX, my retirement percentage will be 57%. I received my retirement orders Monday and will retire 28 July. The MEB process has been quite confusing and frustrating but this forum has helped keep me sane. Thanks to all who have posted solid info to make this process bearable.
 
pitpan2005 is correct! Think of ot this way and see if it would make any sense. If you took the Redux and then had 17 or 18 and not 20, and if you were medically retired before the 20 mark, would you have to pay it back? I think not! You were to be medically retired under the high 3 plan. I mean what other method could be used? There isn't none. So it also makes sense I you're over 20 and not having to follow the redux plan because its not associated or medical retirement purposes.

I fall in that category myself and I didn't plan for a medical board.
 
Bigben said:
pitpan2005 is correct! Think of ot this way and see if it would make any sense. If you took the Redux and then had 17 or 18 and not 20, and if you were medically retired before the 20 mark, would you have to pay it back? I think not! You were to be medically retired under the high 3 plan. I mean what other method could be used? There isn't none. So it also makes sense I you're over 20 and not having to follow the redux plan because its not associated or medical retirement purposes.

I fall in that category myself and I didn't plan for a medical board.
Click to expand...

BigBen,
That is the logic...I talked to the folks at DFAS and the supervisor I spoke to stated that since we (disabled folks) are NOT offered the chance to build our retirements back up to what it would have been through longer careers, we are waived and DO NOT have to pay back the money (if under 20 years) and the retirement reverts back to the High 3. As for Kiefer's comments, ---" Think about it, if it was that easy to erase it, everyone would claim that they are disabled so they wouldnt be affected by the Redux on their pay."---I certainly hope that people would not claim to be disabled just to get out of REDUX. I have a greater faith in the men and women of the U.S. Military and believe that integrity, for most, is still a value. I don't think that that comment deserves further merit. Wow!!! BTW, it wasn't "easy" to erase the REDUX...I have 7 herniated disks pushing on my spine, an artificial disk in my neck, bi-monthly injections into my spine and can't sleep very well. However, yes, there are folks out there worse off than me and I feel terrible for them.
 
Objective evidence supporting a medical condition should result in a medical diagnosis which could potentially be claimed via the DoVA.

Thus, possessing well-informed knowledge is truly a powerful equalizer.

Best Wishes!
 
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