Active Guard Reserve (AGR) Pre-Retirement Briefing

Active Guard Reserve (AGR) Pre-Retirement Briefing

Agenda Definitions and Acronyms Types of Retirements Review your Documents 1405 Time Survivor Benefit Plan (SBP) Retired Pay Systems Retirement Process Medical Retirements Deferred Retirements Website Resources

Definitions and Acronyms Definitions Active Service means service on active duty or full-time National Guard duty. Active Status means the status of a member of a reserve component who is not in the inactive Army National Guard or inactive Air National Guard, on an inactive status list, or in the Retired Reserve. Acronyms DIEMS – Date Initial Entry Military Service BASD – Basic Active Service Date

Types of Retirements Types of Military Retirements Regular Non-Regular (15 or 20 year) 10 USC 12741

Review your Documents DIEMS Date 20 years of Active Federal Service from this date Active Duty Retirement! M-day Soldiers w/over 6480 AD pts might be eligible for Sanctuary if put on orders and those w/over 7200 might be Regular Retirement eligible.

1405 Time 1405 Time – IDT points earned while a member of the Reserve Component that is used to increase the multiplier of a Regular retirement. May only be used AFTER acquiring 20 years of AS It will not be used to create 20 years of AS, except for medical retirements.

1405 Time 1405 Time 1405 points can be added only up to the maximum IDT points allowed per year!

1405 Time Calculation Example IDT MEM ACCP TOTAL 1405 points 810413 – 820412 32 15 0 47 820413 – 830412 52 15 0 60 (67) Only 60 count 830413 – 840412 47 15 0 60 (62)Only 60 count 840412 – 840513 8 15 0 23 * Total: 190 190 Days 6 months and 10 days can be added to active service time for retired pay multiplier. * All 15 membership points count because member had less than 365 (or 366) AD points for the retirement year.

Survivor Benefit Program Retired pay stops when you pass away! A government subsidized program that allows for up to 55% of retired pay to be provided as a monthly annuity to immediate dependents. Six Categories of coverage: * Spouse * Former Spouse * Spouse and Children * Former Spouse and Child(ren) * Child(ren) Only * Insurable Interest

RC-SBP and SBP RC-SBP 90 days suspense from date of receiving NOE Automatic elections are: Married – Option C, Full Coverage No dependents – Option A, No coverage If you later qualify for a Regular Retirement, RC-SBP becomes void and will not incur a cost! SBP Automatic coverage while on AD and permanent after 20 yrs AS No premiums charged until retired pay is received, if elected

Types of Retired Pay Systems Final Base Pay joined prior to 8 Sep 80 High Three joined between 8 Sep 80 – 31 Jul 86 CSB/REDUX joined on 1 Aug 86 or after Creditable status includes: DEP, ROTC, Military Academy, and Health Professions Scholarship Program

Final Base Pay Formula DIEMS is prior to 8 Sep 80 Years of Service x 2.5% x final base pay Retired Pay Retired pay is calculated against the amount of the base pay at retirement Multiplier is 2.5% per year of active service plus 1405 time COLA is at full rate as determined by the Consumer Price Index

High Three Average Formula DIEMS is between 8 Sep 80 – 31 Jul 86 Or AGR member eligible for REDUX declined the Career Status Bonus Years of Service x 2.5% x average 36 mo base pay Retired Pay Retired pay is calculated against the average of the member’s highest 36 months of base pay Multiplier is 2.5% per year of active service plus 1405 time COLA is at full rate as determined by the Consumer Price Index

REDUX Formula DIEMS is 1 Aug 86 or later AGR member accepted the Career Status Bonus ( 30,000) at 15 years of active service Retired pay is calculated against the average of the member’s highest 36 months of base pay Multiplier is based on: First 20 years multiplied by 2.0% Each year after 20 until 30 multiplied by 3.5% Reverts to 2.5% after 30 years COLA is 1% less than the full rate as determined by the Consumer Price Index One time catch up at age 62

AGR RETIREMENT PROCESS WITHIN 1 YEAR OF RETIREMENT DATE (TAP/ACAP WORKSHOP) 1 Year out: (GATHER CIV-MIL MED DOCS/UPDATE DA 201) 1 Year out: (SUBMIT RETIREMENT REQUEST) 6 MONTH WINDOW (Not less than 90 days prior to Retirement!) OUT PROCESS AT TRANSITION CENTER w/ Spouse ACCELERATED VA PROCESSING (If Available in your state) And MEDICAL OUT PROCESSING (OUT THE DOOR) (PTDY up to 20 days granted by Command) (TRANSITIONAL LEAVE) (RETIRE)

Medical Retirements Disability Separation or20 Retirement Process AGR Soldiers with years of Active Service are qualified for a length of Service Retirement and SHOULD NOT process for a Disability Retirement! Loss of benefits Concurrent Retired and Disability Pay The VA cannot compensate for disability compensated by the military. 16

ARNG Soldiers Options at time of Disability Rating ARNG Soldiers with 20 year NOE but less than 20 years Active Service 20% or less disability Take Severance and waive retired pay and benefits at age of eligibility Waive Severance to take non-regular retired pay at the age of eligibility 30% or greater disability TDRL/PDRL Apply for Non-Regular Retirement at age of eligibility to receive CRDP – Notify DFAS 17

ARNG Soldiers Options at time of Disability Rating ARNG Soldiers with 15 year NOE eligibility 15 year NOE must be requested when found medically unfit 20% or less disability Take Severance and waive retired pay and benefits at age of eligibility Waive Severance to take non-regular retired pay at the age of eligibility 30% or greater disability TDRL/PDRL Cannot receive CRDP (excluded because not eligible for a length of service retirement) 18

Severance Pay Vs. Non-Regular Retirement Severance Pay Benefits Upfront retired pay lump sum (If VA disability payment is received, the disability severance payment could be recouped from the Soldier) - This payment will go away for most cases with the implementation of the Integrated Disability Evaluation System (IDES) Non-Regular Retirement Benefits ID Card (Retiree/Family Members) Commissary/MWR Gray Area TRICARE Retired Reserve TRICARE Retiree Dental Plan Retired Pay at Age 60 (or earlier) RC-SBP/SBP VA Disability (CRSC/Concurrent Receipt may be available) TRICARE/TRICARE for Life (Retiree/Family Members) Space-A Travel 19

Active Service Retirement vs. MEB Question: What happens if a Soldier with an approved retirement has a medical issue requiring care past their retirement date Example An AGR Soldier is approved for retirement and then finds out that he needs back surgery that will require physical therapy after retirement The injury has not kept the Soldier from performing his duties up to this point Does his retirement processing stop ? Does he need an MEB? 20

Active Service Retirement vs. MEB Per AR 635-40 Physical Evaluation for Retention, Retirement or Separation: Paragraph 3-2 b. Processing for separation or retirement from active service. (1) Disability compensation is not an entitlement acquired by reason of service-incurred illness or injury; rather, it is provided to Soldiers whose service is interrupted and they can no longer continue to reasonably perform because of a physical disability incurred or aggravated in service. (2) When a Soldier is being processed for separation or retirement for reasons other than physical disability, continued performance of assigned duty commensurate with his or her rank or grade until the Soldier is scheduled for separation or retirement, creates a presumption that the Soldier is fit. The presumption of fitness may be overcome if the evidence establishes that— (a) The Soldier was, in fact, physically unable to perform adequately the duties of his or her office, grade, rank or rating for a period of time because of disability. There must be a causative relationship between the less than adequate duty performance and the unfitting medical condition or conditions. (b) An acute, grave illness or injury or other significant deterioration of the Soldier’s physical condition occurred immediately prior to, or coincident with processing for separation or retirement for reasons other than physical disability and which rendered the Soldier unfit for further duty. 21

Active Service Retirement vs. MEB Answer: Soldier should continue with their retirement processing An MEB is not required as the injury/illness did not affect the Soldier’s ability to perform their job and is not acute or grave in nature TRICARE coverage does not end Surgery/Post Operative treatment will be available through TRICARE Prime or Standard and possibly through the VA medical system. Medical documentation should be provided to the VA for possible inclusion in the VA disability rating 22

Deferred Retirements Soldiers who qualify for an Active Service Retirement who are not currently on Active Service Deferred Retirements are coordinated through the HRO/AGR Office. A Memorandum of Understanding should be signed when the AGR Soldier resigns their AGR tour. Examples: AGR COL resigns AGR and becomes ATAG/TAG or GO AGR REFRADS (ASMB or RCP) continues as traditional drilling Soldier AGR REFRADS after 20 yrs AS to take a Technician position

Website Resources My Army Benefits – one stop shop for all benefit questions, calculations and information. http://myarmybenefits.us.army.mil/Home.html Retirement Calculators – besides the “My Army Benefits” calculator there are several other you should review to find the one that fits you and your Soldiers/retirees best. Below are some of the preferred calculators for Regular and Non-regular Retirements: http://myarmybenefits.us.army.mil/Home/Planning Toolkits/ Transitioning and Retirement.html https://w11.afpc.randolph.af.mil/RetSepCalcNET/default.aspx https://www.hrc.army.mil/site/Reserve/soldierservices/retirement/ index.htm

Top Three Take Aways 1. Retirement is a process - Not an event! 2. Be prepared! – Review your documents often 3. Give yourself plenty of time to process – You can only retire once!