Blended Retirement System-US Military

[BLS53]

Seriously? Its not like the military's retirement system or pay is a secret. Those same people had the option to join and enjoy being away from their family for a year at a time while sleeping in some dump country.

Maybe a half century ago the military pension system was well known, but this is 2016 and a public ignorant of anything that doesn't directly involve them.

As an example, for years when asked what I did in the Navy, and I replied I was an air traffic controller, a reasonably intelligent conversation followed. Now the most often response is: "The Navy has airplanes?".

Our pensions would've been gone decades ago if more people knew about them. Just look at all the flack state employees receive on various forums. Why? Everybody knows one.

 

[nash031]

Our pensions would've been gone decades ago if more people knew about them. Just look at all the flack state employees receive on various forums. Why? Everybody knows one.

I don't think so. Most people I talk to know about military pensions and health care and believe that more than anyone first responders and military folks "earn" them. Many people don't like state pensions that are publicly funded because they're earned by people often represented by unions and many of those are doing jobs that are no more difficult or worthy of such a benefit than many private sector jobs.

Maybe it's a function of living in an area that has a heavy military population, but I'm usually the one bringing up the fact that we can't get giving out pensions to military retirees ad infinitum.

 

[Just_Steve]

Many people don't like state pensions that are publicly funded because they're earned by people often represented by unions and many of those are doing jobs that are no more difficult or worthy of such a benefit than many private sector jobs.[/I]

Except many people don't realize that those of us in the public sector did our jobs earning 20% -30% less then the equivalent private sector job. Trust me we paid for those benefits that the ignorant complain about.

 

[ExFlyBoy5]

Ah, one day.. one day. Until then I shall keep having a good time!

I noticed that your profile says you live in Georgia. Add the username and I have to ask if you are previous JSTARS?

I'll send a PM with the details...

 

[BLS53]

I don't think so. Most people I talk to know about military pensions and health care and believe that more than anyone first responders and military folks "earn" them. Many people don't like state pensions that are publicly funded because they're earned by people often represented by unions and many of those are doing jobs that are no more difficult or worthy of such a benefit than many private sector jobs.

Maybe it's a function of living in an area that has a heavy military population, but I'm usually the one bringing up the fact that we can't get giving out pensions to military retirees ad infinitum.

Yes, living in an area with a high concentration of active duty personnel, and retirees and veterans would certainly change ones perspective. Where I live, most of the vets are the few WWII guys that are still alive, and some Korean and Vietnam vets here and there. I've never met a veteran under the age of 70 here.

Get away from the geographical areas of high military concentration, and it's another ball game. Come to middle America and see what kind of reaction you get when you announce you've been getting $XX,000 a year from the government since age 40. Doesn't go over big, when some people the same age, are working two jobs to take home the same amount money.

 

[ExFlyBoy5]

Yes, living in an area with a high concentration of active duty personnel, and retirees and veterans would certainly change ones perspective. Where I live, most of the vets are the few WWII guys that are still alive, and some Korean and Vietnam vets here and there. I've never met a veteran under the age of 70 here.

Get away from the geographical areas of high military concentration, and it's another ball game. Come to middle America and see what kind of reaction you get when you announce you've been getting $XX,000 a year from the government since age 40. Doesn't go over big, when some people the same age, are working two jobs to take home the same amount money.

There is a lot of truth to this. I personally never liked living in a military community...it could be, um, well, anyway.

When I moved back to ATL (while still on active duty), the vibe was quite different. I did my best to not go into public places in uniform (flight suit most of the time) because of all the attention that it garnered. I certainly appreciated the "thanks for your service!" but it could get overwhelming at times and as a distinct introvert, I didn't enjoy the prolonged accolades.

As far as folks in non-mil towns understanding the pension system, yeah, most don't understand the FULL value of the benefit, but I don't explain it to them, either!

 

[alistair]

... I am at 17, intending to punch at 20...

[This is a bit of a tangent.]

I'm curious as to what fiscal reasons someone would have at 20 years to punch? I know there are dozens/hundreds to reasons to punch for other than fiscal reasons.

I think we've all heard the saying, 'you're working for half pay after 20 years'. However, if you run the numbers, Os take a large tax increase (assuming post-retirement job with similar salary (base pay+BAx... goal being to have similar take home pay). Impact is higher if in area with larger BAH payment (i.e. need to replace BAH with post-taxed income equivalent).

[Large grain of salt here...] Most retired Os @ ~20 years would be in the 25% bracket (new job + retired pay) vice 15% bracket prior to retirement. All that "new" income that pushed you into the higher bracket is taxable, hence a large increase in taxes. [I'm ignoring state taxes, which could also be a large increase if coming from tax free state.]

Am I missing something?

 

[Rustic23]

A good many of my peers punched at 20 to go with the airlines. Today, a pilot can leave the service at about age 43, and be with the airlines until 65. This age may be extended again before they reach that age. The money from a military retirement system plus very good airline pay is hard to pass up. Couple this with the love and desire to fly and it becomes a no brainer.

 

[braumeister]

Am I missing something?

Maybe. In my case it was simply burnout.
12-hour workdays with a 75-minute commute on each end for many years.
More than enough for me to decide to punch out.

 

[alistair]

Maybe. In my case it was simply burnout.
12-hour workdays with a 75-minute commute on each end for many years.
More than enough for me to decide to punch out.

Oh I can relate to the 75 min commute... mine is ~100+ (DC) each way (albeit 60 min on train and 30 min walk). Definitely part of my calculus on punching.

 

[ExFlyBoy5]

A good many of my peers punched at 20 to go with the airlines. Today, a pilot can leave the service at about age 43, and be with the airlines until 65. This age may be extended again before they reach that age. The money from a military retirement system plus very good airline pay is hard to pass up. Couple this with the love and desire to fly and it becomes a no brainer.

When I punched, TERA was in full effect (could retire at 15 years) and the AF lost a good number of airlift pilots. Guess where they went?

A good buddy retired when I did (at 15 years). When the TERA window first opened, he applied and was denied. Then he was passed over for O-4 and was told he had to GTFO...so he reapplied for TERA and was accepted. Talk about a messed up way to manage personnel!

 

[ExFlyBoy5]

A good many of my peers punched at 20 to go with the airlines. Today, a pilot can leave the service at about age 43, and be with the airlines until 65. This age may be extended again before they reach that age. The money from a military retirement system plus very good airline pay is hard to pass up. Couple this with the love and desire to fly and it becomes a no brainer.

And don't forget Tricare....it makes that pension worth quite a bit more.

 

[Huston55]

When I punched, TERA was in full effect (could retire at 15 years) and the AF lost a good number of airlift pilots. Guess where they went?

A good buddy retired when I did (at 15 years). When the TERA window first opened, he applied and was denied. Then he was passed over for O-4 and was told he had to GTFO...so he reapplied for TERRI and was accepted. Talk about a messed up way to manage personnel!

Passed over for O-4 Geez! Did he diddle the Wing Commander's daughter or something?

 

[Huston55]

Ah, one day.. one day. Until then I shall keep having a good time!

I noticed that your profile says you live in Georgia. Add the username and I have to ask if you are previous JSTARS?

JSTARS. Boy, that brings back memories.

Raise your hand if "TR-1" and "PLSS" means anything to you.

 

[alistair]

Passed over for O-4

Some of the people who get passed over and some who get promoted really surprises me. It just takes one pissy supervisor to screw someone out of a promotion.

 

[samclem]

I'm curious as to what fiscal reasons someone would have at 20 years to punch? . . .
Am I missing something?

Well, fiscal reasons aren't restricted to just milpay issues. There are other valid $$ reasons that would cause a person to jump at 20. Examples:
-- In the hole on the house. If housing prices have taken a dive in your area, it might cost a >lot< of money to sell. So, retire instead to avoid the immediate bill.
-- Spousal employment. If your spouse is in a high paying job and the PCS would take you to a place where he/she won't make that pay, it could make financial sense to get out (and emotional sense not to accept a remote tour instead, or be a geo-batchelor)
-- Age-limited post-career opportunities, or "hot, hot hot--but maybe for only a short time" post-career gigs. A pilot wanting to go to the airlines wants to get on their ladder when he's 42 rather than 52. Well, 27 would have been better.

 

[ExFlyBoy5]

Passed over for O-4 Geez! Did he diddle the Wing Commander's daughter or something?

Oh snap...my bad....it was O-5, not O-4.

 

[nash031]

[This is a bit of a tangent.]

I'm curious as to what fiscal reasons someone would have at 20 years to punch? I know there are dozens/hundreds to reasons to punch for other than fiscal reasons.
...
Am I missing something?

For me it's largely non-financial. We should have enough between pension and savings that we could live fine without either of us working. Chances are we will continue working, depending on where we live, and a host of other factors.

The one financial reason is age - I'll be 42 and I'm interested in trying my hand at something else (for now). Easier to do at 42 (or 38) than other ages. Another is wife's job and remaining together... for me to do much past 20, chances are I'd have to move around a bit, so if DW comes with me that's an $85,000/yr paycut until she finds work.

From a purely financial standpoint, staying in until a 75% pension is on the table and increasing pay for ten more years makes more sense for most folks.

But again, for me, it's largely non-financial. Leading reason number one just arrived on Monday morning weighing 6lbs 6oz.

 

[alistair]

But again, for me, it's largely non-financial. Leading reason number one just arrived on Monday morning weighing 6lbs 6oz.

Congrats!

Mine arrived quite some time ago and wants to finish high school without moving. I think I've only got one or two moves left in me. High on my list of reasons to punch.

 

[ExFlyBoy5]

But again, for me, it's largely non-financial. Leading reason number one just arrived on Monday morning weighing 6lbs 6oz.

Congrats! That certainly changes the equation!