Career Development Training Course
Fleet Reserve and Retirement
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Retirement = Financial Independence!2
Fleet Reserve and Retirement
Enabling Objectives
Upon successful completion of this topic, the trainee will be able to:
IDENTIFY personnel eligible for the Navy Fleet Reserve and retirement.
STATE the purpose of the Fleet Reserve. IDENTIFY the duties credited towards Active
Service in the Armed Forces. IDENTIFY the required documentation for
transferring to the Fleet Reserve.
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Fleet Reserve and Retirement
Enabling Objectives (cont.)
IDENTIFY the non-disability Fleet Reserve retirement procedures and privileges.
LIST the factors affecting retirement pay. IDENTIFY the effects on retainer pay if
recalled. IDENTIFY how the Date Initial Entry Military
Service (DIEMS) affects retirement. LIST the three military retirement systems in
effect.
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Fleet Reserve and Retirement
Enabling Objectives (cont.)
IDENTIFY the steps to compute retainer pay for all three retirement systems.
IDENTIFY the factors to consider when deciding on a retirement system.
LIST the eligibility requirements for the U.S. Naval Reserve (USNR).
IDENTIFY the steps to calculate USNR retirement pay.
IDENTIFY the CCC’s responsibilities for command retirement ceremonies.
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Fleet Reserve and Retirement
References NAVPERS 15560(series), Navy Military
Personnel Manual (MILPERSMAN) NAVADMIN 344/02, Revised Career Status
Bonus and REDUX Retired Pay System Navy Personnel website:
http://www.npc.navy.mil Retirement Calculator:
http://www.npc.navy.mil under Career Info/Pay and Benefits
Career Status Bonus website: http://www.npc.navy.mil/AboutUs/NPC/ITIM/Data Management/CareerStatusBonus/
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Fleet Reserve and Retirement
Fleet Reserve and Retirement Overview
MILPERSMAN 1830-040Consists of military personnel who
have completed 20 to 30 years of Active Service in the Armed Forces (ASAF).
CCCs initially screen Sailors to determine eligibility.
CCCs help Sailors verify their statement of service.
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Fleet Reserve and Retirement
Fleet Reserve Purpose
Provides an available reserve of former members of the Regular Navy and the Naval Reserve who may be used without further training to fill those billets requiring experienced personnel in the initial stages of mobilization during an emergency or in war (Art. 1830-040).
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Fleet Reserve and Retirement
Fleet Reserve Eligibility Requirements
Complete 20 years of credible service (ASAF).
Complete current assignment or DOD tour.
E-7/8/9 must serve 2 years in present pay grade.
Those in HYT zone can compete for advancement. (Verify HYT with current MPM and NAVADMINs)
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Fleet Reserve and Retirement
Fleet Reserve Creditable Service
MILPERSMAN 1830-040/7220-130Service creditable for ASAF:
Active Duty (day for day)Active Duty for Training (ACDUTRA):
After 9 August 56Army and Air Guard (federalized only)
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Fleet Reserve and Retirement
Fleet Reserve Documentation
Requests for Transfer to Fleet Reserve:Submit a special request chit up to 6
to 18 months (E-6 and below) or up to 24 months (E-7 to E-9) in advance via OPINS/NSIPS (PERS-823).
Authorization for transfer arrives via naval message.
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Fleet Reserve and Retirement
Fleet Reserve Documentation (cont.)
NAVCOMPT 2274:Pre-retirement pay information
DD Form 2656 SBP: Sample form in BUPERSINST 1750.11
Continued Obligation:MILPERSMAN 1830-070 & 1800-040
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Fleet Reserve and Retirement
Non-Disability Fleet Reserve Retirement
Retirement from Fleet Reserve is automatic.Retired List: >30 Years (MILPERSMAN 1800-
040):Permanent change of status and may only be
changed by resignation or discharge approved by the SECNAV, or following a court-martial sentence.
Application submitted by OPINS/NSIPS to president via PERS 823.
Constructive service counts (but not minority enlistment).
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Fleet Reserve and Retirement
Non-Disability Fleet Reserve Privileges
ID card Commissary/Exchange Legal Chaplain Medical Travel
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Fleet Reserve and Retirement
Retirement Pay Factors
Factors That Affect Pay:Date of initial entry Pay scale in effectPay Entry Base Date (PEBD)Amount of ASAF:
Active service is rounded down to the lowest month and converted to a decimal. Example: 23 years, 5 months, 23 days = 23 years, 5 months = 23.4166 years.
Retainer pay shall not exceed 75% base pay
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Fleet Reserve and Retirement
Retirement Pay Factors (cont.)
Heroism:Increase retainer 10%, or if at 75%, 10%
tax free.Medal of Honor:
Add $1,027.00 to calculated retainer pay.Effects on Pay if Recalled:
1 Day – 23 mos., 29 days: Add ASAF (old pay scale).
> 24 mos. continuous: Recomputed (new pay scale).
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Fleet Reserve and Retirement
Date Initial Entry Military Service (DIEMS)
Obscure, but critical, date:Determines your retirement plan.
Date first enlisted/commissioned into any component of the armed forces:Has no bearing on longevity for pay or
years of service.Should never change; not adjusted for
broken time or time lost.
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Fleet Reserve and Retirement
Military Retirement Plans
Original/“Final Pay” Plan “High 3” Plan“REDUX/CSB” Plan (REDUX plus
Career Status Bonus)
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Three Ways of Computing Retainer/Retired Pay
Now called REDUX/CSB* DIEMS on or after 1AUG 86* COLA - 1%* (2 1/2% x ASAF) - (1 YAS < 30) x BP (36 mos. avg.) = RP (DTC)
Now called FINAL PAY* DIEMS prior to 8 Sep 80* Full COLA* 2 1/2% x ASAF x BP = RP (DTC)
HIGH 3* DIEMS on or after 8 Sep 80* Full COLA* 2 1/2% x BP (36 mos. avg.) x ASAF = RP (DTC)
8 Sep 80 1 Aug 86
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Fleet Reserve and Retirement
Retirement Plan Choice
http://www.npc.navy.milDetailed information - NAVADMIN
344/02:One-time catch-up at age 62Bonus optionsSample case studies Personalized calculator
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Fleet Reserve and Retirement
Retirement Plan Choice (cont.)
Review a few considerations: A one-time, irrevocable decision.If CSB/REDUX is chosen, bonus will be
taxed.Biggest difference in REDUX is not the
40% at 20 - it is the “Minus 1% COLA” feature.
CSB affects SBP premium.CSB/REDUX looks better the longer
you remain on active duty.
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Fleet Reserve and Retirement
Retirement Plan Choice (cont.)
Consumer Price Index (CPI):Determined by cost of living increases
(federal government).Do not confuse retired COLA with
overseas COLA.Huge benefit to those receiving
retainer pay.Those with a DIEMS after 1 August 86
electing CSB receive CPI - 1%.
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Fleet Reserve and Retirement
Military Retirement Comparisons
Years of Service “Final/High 3” % “REDUX” %20 50 4021 52.5 43.522 55 4723 57.5 50.524 60 5425 62.5 57.526 65 6127 67.5 64.528 70 6829 72.5 71.530 75 75
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Fleet Reserve and Retirement
USNR Retirement Eligibility
Achieves 20 years of qualifying service and reaches age of 60.
Maintains a minimum of 50 points per year to qualify:1 point for each drill or one point for each
annual training day.Various points credited for completion of
approved correspondence courses.Gratuitous points up to 15 points per
year.
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Fleet Reserve and Retirement
USNR Retirement Pay Computation
Total points X 0.025 X BP = Retired
360Pay
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Fleet Reserve and Retirement
Statement of Service
Complete accounting of all military service credited towards ASAF for Retirement /Fleet Reserve.
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Fleet Reserve and Retirement
Retirement Ceremonies
MILPERSMAN 1800-010 Ceremony:
Is a Sailor’s choice. Is sponsored by Sailor’s last permanent duty
station. Is assigned a ceremony coordinator. Is official and traditional.
CCC responsibilities:Make sure all documents are prepared.Make sure command issues flag.Verify ceremony script is appropriate.Make yourself available to coordinator.
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Fleet Reserve and Retirement
Selected Websites
www.npc.navy.mil www.ssa.gov www.va.gov Retirement Calculators:
www.asec.org (“ballpark estimate”)www.smartmoney.com www.financialengines.com
Retirement Education:www.vanguard.com www.morningstar.comwww.aoa.dhhs.gov/retirement/fpfr.html
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Fleet Reserve and Retirement
Summary and Review
When are you eligible to transfer to the Fleet Reserve?
What is the effective date for transfer to the Fleet Reserve?
How early can you request transfer to the Fleet Reserve?
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Fleet Reserve and Retirement
Summary and Review (cont.)
What is the formula for Non-Disability Retirement?
What is the maximum retirement % you can receive?
Who is eligible for REDUX/CSB?
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