If you serve at least 20 cumulative years on active duty and/or full-time National Guard duty, you become eligible for a regular retirement and immediate annuity. Your service could have been under title 10 or title 32 of the U.S. code. It also includes active duty like ADOS, but not active duty for training like Annual Training.
Cash. Your annuity. Your retired paycheck. It begins the month after you retire. It is based on your final grade, years of service, and the active duty pay scale. If you have part time service as a reservist, your years of service will be adjusted to include that time and not just your active service years. Generally, your annuity is taxable income.
Health care. Once you retire, 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 until you become Medicare eligible. Once you are 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 from active service, 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. Generally, Social Security payments are taxable income.
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. You will have to renew your ID card once every four years until you reach age 65.
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. 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. You can receive VA disability as well as your retired pay check; however, once you start receiving it, your annuity may be offset by your disability compensation depending on the level of disability. Disability compensation is paid monthly and is tax free.
Survivor Benefit Plan. When you apply for retirement, you will have the choice of enrolling in Survivor Benefit Plan. Generally, the decision you make is irreversible, so make an informed decision—there are few or no do-overs. The cost of the SBP is 6.5% of your monthly retired check or the amount you set as the SBP amount. If you die, your beneficiary will immediately start receiving benefits at the rate of 55% of your annuity. Once you make 360 premium payments and reach age 70, there are no more SBP premiums to be paid or deducted. SBP can be an effective tool to provide for your loved ones should something happen to you. Some people choose to purchase a commercial annuity or life insurance product that may provide the same benefit—it is incumbent on you, the prospective retiree, to make an informed decision, especially since the decision could be irreversible.
For more information, contact your State Retirement Services Officer.
–EANGUS National Office
