Once you reach age 60, and have completed at least 20 good years for retirement and have received your twenty year letter, you can apply for retirement and receive benefits. This paper discusses those benefits.
Cash. Your annuity. Your retired paycheck. At age 60, you can apply and receive a monthly annuity based on your number of points and the pay scale of an active duty member at your grade and years of service. [There are provisions in law for receiving your annuity prior to age 60 based on deployment time but most Guard retirees will receive their annuity starting at age 60]. The plan uses a multiplier percentage that is 2½% times the years of creditable service. The creditable years of service for a reserve retirement calculation is determined by the sum of all accumulated reserve points divided by 360. Sounds confusing but it makes sense once you do the math. Generally, your annuity is taxable income.
Health care. Once you reach age 60, and begin receiving your annuity, you will qualify for TRICARE Select or Prime and pay the premiums for whichever plan you choose. Check out the TRICARE website for more information. Generally, under Select, you can choose any primary care provider that is in the network. Under Prime, you must be in a Prime service area. The premiums and co-pays are different between the two plans. If space is available, you could receive care at a local military treatment facility. You can also receive prescription medications at your local military pharmacy at no cost. You will only be eligible for TRICARE coverage under Select or Prime for five years; once you become Medicare eligible, you must enroll in Medicare, pay the Part B premium, and transition to TRICARE for Life.
Social Security. For most people who retire at age 60, Social Security is not payable. Eligibility for payment of benefits for most people begins at age 62 and most financial planners will advise that you wait until at least your full retirement age (age 66 or higher) before applying for Social Security.
DEERS and ID Cards. Once you retire, you will be issued an ID card that denotes your status as a retiree. You will have access to certain benefits on active duty installations such as morale, welfare and recreation facilities, commissary, exchange, and others. Your ID card will indicate your TRICARE eligibility. On the rear of your ID card will be your DOD ID number and your benefits number that your provider will need.
VA Disability. If you experienced illness or injury during your period of Guard service, you are highly encouraged to have those experiences evaluated by the Department of Veterans Affairs for disability compensation. Disability compensation is paid monthly and is tax free. There is a process to go through to determine that compensation; Veteran Service Officers from organizations like American Legion, VFW, and DAV provide free assistance in applying for benefits. Once you start receiving it, your annuity may be offset by your disability compensation depending on the level of disability.
Survivor Benefit Plan. Once you are notified that you qualify for a non-regular retirement and receive your 20-year letter, you are eligible to sign up for Reserve Component SBP, regardless of your military status, age, or health. You have a 90-day period to make an RCSBP election beginning the day you receive your 20 year letter. If you fail to complete the RCSBP Election certificate within the 90-day period, by law your eligible dependents are automatically enrolled in immediate annuity RCSBP coverage based on your full retired pay. There are two premiums associated with RCSBP. These premiums will be deducted from your monthly retired pay. The two types of premiums are: Basic (SBP) Premium and Reserve (RCSBP) Premium. If you die, your beneficiary will immediately start receiving benefits at the rate of 55% of your annuity. The benefit they receive will be reduced by the RCSBP premium. If they remarry before age 55, they may lose their SBP annuity.
For more information, contact your State Retirement Services Officer.
–EANGUS National Office
