Seminar addresses particulars of Reserve Retirement

  • Published
  • By Staff Sgt. Shawn J. Jones
  • 514th Air Mobility Wing
Joint Base McGuire-Dix-Lakehurst, N.J. --  There are several key decisions involved with retiring from the Air Force Reserve that can significantly impact an Airman's long-term quality-of-life.

To help educate and prepare retiring reservists, the 514th Force Support Squadron's Airman and Family Readiness Center hosted a Joint Reserve and Guard retirement benefit seminar at the Timmermann Center here Dec. 5. The seminar featured presentations on a variety of topics, including retirement pay, health care, and survivor benefits.

Unlike transition-assistance briefings, which typically focus on the needs of retiring and separating regular Air Force Airmen, the objective of the Reserve and Guard seminar was to address transition issues particular to a Reserve component career, said U.S. Navy Chief Petty Officer E. Adrian Currie, the seminar's lead coordinator.

"The diversities of a Guard or Reserve career are totally different from active-duty," he said. "It's just a different dialogue."

One of those key differences involves a decision Reservists must make prior to becoming eligible for retirement. Airmen nearing twenty creditable years of service should receive a Notification of Eligibility for Retired Pay, known as the "20 Year Letter." On that letter, Airmen must indicate whether they plan to remain in the Reserves, transfer to the retired reserves or request to be discharged. Each option carries specific terms and conditions that Reservists should understand before deciding.

Requesting a discharge allows Airmen to discontinue drilling and other military activities. The retirement pay of discharged reservists is based on their basic pay at the time of their discharge and will not be adjusted to reflect cost-of-living-allowance increases that occur prior to the first retirement payment.

Remaining in the Reserve beyond the 20-year point allows drilling Airmen to accumulate more retirement points, promotions and cost-of-living-allowance increases, leading to a larger overall retirement payment. Remaining in the Reserve requires the member to continue to meet military qualifications and be available to respond to contingency deployments.

Transferring to the retired reserve means the Airman can stop drilling, but they must continue to be available and prepared if called to duty. Retired reserve members may be called up to augment support and training facilities, relieve active component or ready reserve members for other duties or to accomplish operational missions as needed. Retired reserve Airmen base their retirement pay on their final pay grade, but at a rate that is adjusted to reflect cost-of-living-allowance increases.

Survivor benefits were another important topic at the seminar. Retiring reservists can take steps to ensure family members or other beneficiaries can receive payments in the event of lost retirement benefits due to the reservists' death. Without enrolling in a survivor benefit plan, the family of a reservist who passes away prior to reaching age 60 may never receive any of the member's retirement pay. However, with a survivor benefit plan, 55 percent of a deceased reservist's retirement payment will be paid to a designated beneficiary. This protection typically costs the reservist approximately 6 to 10 percent of their retirement pay. Members should complete election form (DD form 2656-5) within 90 days of receiving the Reserve Component Survivor Benefit Plan package. More information on the survivor benefit plan can be found at www.arpc.afrc.af.mil/library/factsheets/factsheet.asp?id=8307.

Healthcare is another major concern for retirees. All retiring reservists are automatically enrolled in TRICARE Standard health insurance once they begin receiving retirement payments. Retired reservists may also upgrade to TRICARE Prime. More information on TRICARE for retired reservists can be found at www.tricare.mil/FACTSHEETS/viewfactsheet.cfm?id=350.

Chief Currie said he hopes to provide two seminars each year and expects the next one to be offered early next summer.

For more Reserve retirement information, visit www.arpc.afrc.af.mil/retirementsseparations.