Turned age 60 now what?

[GatorNavy1]

"640204. Non-Regular [i.e., RC] Retired Pay Members eligible for retirement for non-regular service are not eligible to receive CRDP until they reach retirement age and have applied for and have become entitled to receive retired pay."

That is the big enchilada right there!

 

[RonG]

@GatorNavy1
cc: @Guardguy11 @Provis

Earlier, I posted: Since 50 points minimum = a good year; a RC member could possibly retire with only 1000 points (50 x 20 = 1000)

However...

Generally, a Reservist is eligible for Non-Regular Retirement once they have 20 Qualifying Years of service. Also known as a Good Year, a member accrues a Qualifying Year after they have earned a minimum of 50 retirement points in their own Anniversary Year. This is the member's individual Reserve year, [the period] which typically begins on the anniversary of their first day in the Reserve or date commissioned and ends the day prior to the anniversary. This date can change throughout a career depending on breaks in service or other factors.

This could be interpreted to mean that although a reservist attained 50 creditable points for a certain year, IF the anniversary year ends before any earlier than the day prior to the anniversary, it might not be counted as a "Good Year." This is a matter that one might want to discuss with their reserve command/Human Resources Command.

Full disclosure: I do not have a background in reserve matters such as points accumulation.

Ron

Edited to add:
1-7 Credit for Partial Years of Service
Reference LINK <---

a. A Soldier who has a break-in-service that occurs during an AYE shall be credited with a partial year of qualifying service for non-regular retirement. When, as a result of a break-inservice, a partial year occurs, the Soldier must meet the minimum retirement point requirements for the Soldier’s service to be credited as a partial year towards a qualifying year. A partial qualifying year is any period less than 12 full months in which the retirement points credited to a Soldier, when computed proportionally, are equal to or greater than 50 points. Calculation of credit for a partial year shall be made according the Soldier’s IDT points for that year per DODI 1215.07. Partial years of qualifying service may be combined and credited towards total qualifying service.

b. Membership points for any partial year shall be credited based upon DODI 1215.07. On completion of a partial year, points for attendance at drills or equivalent instruction, prorated membership points, and points credited as a result of satisfactory participation in the DoD Health Professions Scholarship and Financial Assistance Program or other service creditable for non-regular retired pay purposes shall be credited. Such points credited for a partial year may not exceed rules in paragraph 1-2. The Retirement Point Accounting system (RPAS) figures membership points on partial years. Contact AHRC Personnel Action Branch at Appendix B-3 of the Soldier and complete as a manual retirement point case if necessary.

Edit notification to: @GatorNavy1

 

[RonG]

Hello @GatorNavy1

As you know, there are similar posts being generated at two sites simultaneously. This does not directly affect you, but I am going to limit my comments to this board.

Ron

 

[GatorNavy1]

How would I calculate the life time, total value of a reserve component retirement if the retiree starts collecting their retired pay at age 60? Thanks in advance

E-6
22 years of service
6227 points

 

[Provis]

How would I calculate the life time, total value of a reserve component retirement if the retiree starts collecting their retired pay at age 60? Thanks in advance

E-6
22 years of service
6227 points

6227 divided by 360 = 17.3 years times 2.5% = 43.25% times the average base pay rate of your last 36 months in service.

 

[GatorNavy1]

6227 divided by 360 = 17.3 years times 2.5% = 43.25% times the average base pay rate of your last 36 months in service.

thanks... I am trying to calculate the lifelong benefit value. I am guessing but like the total payout from age 60 to age 100 for example. But then need to add adjusted cola for each of those 40 years?

 

[RonG]

thanks... I am trying to calculate the lifelong benefit value. I am guessing but like the total payout from age 60 to age 100 for example. But then need to add adjusted cola for each of those 40 years?

Hello @GatorNavy1

How are you going to estimate the COLA rates since they are not static and not known in advance?

Edited to add 13 June 2021m 0615 hrs:

Using 2000 gross retired pay as an example. In this example, the COLA increases for five years are: 2%; 5%; 3%; 4%; and 1%. None of these increases are known in advance of course.

[rounding used]
First increase: 2000 x 1.02 = 2040 gross retired pay
Second increase: 2040 x 1.05 = 2142 gross retired pay
Third increase: 2142 x 1.03 = 2206 gross retired pay
Fourth increase: 2206 x 1.04 = 2294 gross retired pay
Fifth increase: 2294 x 1.01 = 2317 gross retired pay

My own military retired pay has increased by ~61% over 30 years, but that has no bearing on what happens in the future. Conversely, my retired pay from a university was increased only once in 18 years and that was by 2%. The purchasing power of that pension has decreased significantly.



Ron

 

[GatorNavy1]

Hello @GatorNavy1

How are you going to estimate the COLA rates since they are not static and not known in advance?

Edited to add 13 June 2021m 0615 hrs:

Using 2000 gross retired pay as an example. In this example, the COLA increases for five years are: 2%; 5%; 3%; 4%; and 1%. None of these increases are known in advance of course.

[rounding used]
First increase: 2000 x 1.02 = 2040 gross retired pay
Second increase: 2040 x 1.05 = 2142 gross retired pay
Third increase: 2142 x 1.03 = 2206 gross retired pay
Fourth increase: 2206 x 1.04 = 2294 gross retired pay
Fifth increase: 2294 x 1.01 = 2317 gross retired pay

My own military retired pay has increased by ~61% over 30 years, but that has no bearing on what happens in the future. Conversely, my retired pay from a university was increased only once in 18 years and that was by 2%. The purchasing power of that pension has decreased significantly.



Ron

Yes, I don’t know how to calculate the total lifetime value. I don’t know how the pension “experts” do that. To calculate cola they would have to calculate the average cola over so many years and then calculate cola on top of cola for each year. Boggles my mind. I struggle with compound interest the way it is ...LOL

 

[RonG]

Yes, I don’t know how to calculate the total lifetime value. I don’t know how the pension “experts” do that. To calculate cola they would have to calculate the average cola over so many years and then calculate cola on top of cola for each year. Boggles my mind. I struggle with compound interest the way it is ...LOL

That is essentially what I did in the example shown, but for only five years that would have been in the past. There is no precise method to accurately predict future COLA increases.

Ron

 

[GatorNavy1]

Would they calculate like from age 60 to age 100?

 

[GatorNavy1]

6227 divided by 360 = 17.3 years times 2.5% = 43.25% times the average base pay rate of your last 36 months in service.

Entered service before 1980 so I believe it is the rate transferred to the the TDRL?

 

[RonG]

Name of Retirement Plan	Type of Retirement Plan	Criteria to Receive
Final Pay	Defined Benefit that equals 2.5% times the number of years of service times the member’s final basic pay on the day of retirement	Primary retirement plan for Reserve members with initial date of entry into service prior to September 8, 1980

 

[GatorNavy1]

The mystery has been solved. This guy petitioned the BCMR to have his retirement revoked. In his petition, he alleged he never received a 20 year letter. He also went on to allege that he doesn’t have enough qualifying service to retire. He also alleged that his former spouse was coming after him in court with an INVALID 20 year letter. In support of his BCMR petition, he submitted an outdated TDRL order (that was amended) and points statement that only show 18 years of service. The up to date records both show 22 years. The BCMR kicked it over to the Air Force Retirements Branch for resolution. The Air Force revoked his retirement (20 year letter) because of the allegations of misrepresentation on the part of the former spouse and the fraudulent records he submitted in support of his BCMR petition. The Air Force considers the revocation as final and the matter settled.

I don’t have the experience with the processes like you guys do. But i don’t think the Air Force will appreciate being a party to his fraud.