Reserves/NG and the 40-year pay tables

[Nords]

I wish I'd looked at this more closely last November, but better late than never. Have any of you more senior veterans considered your Reserve/National Guard pensions under the 40-year pay tables that take effect in April? Am I missing something here?

Let's look at a typical E-8/9. Under today's tables (Jan 2007), their last longevity pay raise would occur when they hit 26 years of service to make their pay $4705/month. Under the 40-year tables, however, their last longevity pay raise would occur at 30 YOS to $4799/month. Only $94/month, but when you're retired it's a 2% increase for the rest of your life.

The reason the Reserves/NG should really smile is because gray-area retirees continue to accrue longevity while waiting for their 60th birthday. (This is one of the sleaziest best retirement benefits around, even better than Social Security's wage indexing.) So while you may have filed for retirement when you went over 20 years of service, your longevity would have continued to accrue during your "gray area" years and your retirement pay would have started in the "Over 26" column of the current pay tables.

Beginning in April for E-8/9 Reserve/NG gray-area retirees, retirement pay will start in the "Over 30" column with that 2% boost instead of the old "Over 26" column. It's like a year's free COLA.

I notice that the April 07 eye charts pay tables (page 2) highlight the E-8/9 & O-6 ranks in blue ink. There's also a pay boost in the E-6/5 and Warrant ranks. (I'm not going to mention the flag officers, they won't ER and they don't read this board anyway!) Those of you who've been thinking about filing a retirement request might want to re-evaluate the risk of mobilization against your probability of being promoted into one of these ranks. Personally I think it'd need to be an extremely high probability of promotion to compensate for a mobilization, but you have to evaluate the risks on your own merits.

I would suspect that this pay table applies to those who haven't reached age 60 and started drawing retired pay. So even if you're already gray-area it might be worth going back to the ER drawing board and adding in the new numbers. If you're sitting on the fence then this could be all it takes to knock you off!

Here's what I wish I'd realized last November. If you're about to start drawing retired pay in March, don't. Defer it for the one additional month-- start your pension with the April boost and you'll quickly earn back the loss of the previous month's pension.

 

[RetireEarly50s]

I am an E-6 in the Air Force with 11 years (12 in April) and also noticed there is a seperate pay increase in April it amounts to about another 2.2%. I see how they raised the longevity pay past 30 years for E-8/9 but the HYT is still 28 for E-8 and 30 for E-9. I am wondering if they are planning on changing the HYT to match pay chart or if it will only effect the Reserves.

 

[USK Coastie]

Yes when I finally saw the pay adjustments for CWO3 I was bummed. , Of course the DOD could solve the gray area pay disparity by letting reservists start to collect at retirement instead of waiting until 60 to collect. Like that will ever happen !!!!

 

[AV8]

Darn, no blue in my row for the April raises.

AV8

 

[clifp]

Yes when I finally saw the pay adjustments for CWO3 I was bummed. , Of course the DOD could solve the gray area pay disparity by letting reservists start to collect at retirement instead of waiting until 60 to collect. Like that will ever happen !!!!

With all due respect, and a sincere thanks for your service. The coastie have helped more than one of my friends..

I must say the military retirement pay is so incrediable that I don't think any whining should be allowed. Now admitly having to wait for 60 if you are isn't nearly as good a deal as active duty, but compared to civilians pension or lack there of...

 

[Nords]

I am an E-6 in the Air Force with 11 years (12 in April) and also noticed there is a seperate pay increase in April it amounts to about another 2.2%. I see how they raised the longevity pay past 30 years for E-8/9 but the HYT is still 28 for E-8 and 30 for E-9. I am wondering if they are planning on changing the HYT to match pay chart or if it will only effect the Reserves.

The new pay table will affect everyone, active and Reserve, and there'll probably be new HYT message traffic in April if they're not already briefing the COs & personnel managers.

Not that you have to worry about it for another couple years' worth of pendulum swings. At least they're targeting the middle ranks to keep everyone motivated, but in the Navy it's easier to make O-6 than it is to make E-8. Got the college degree yet?

I must say the military retirement pay is so incrediable that I don't think any whining should be allowed. Now admitly having to wait for 60 if you are isn't nearly as good a deal as active duty, but compared to civilians pension or lack there of...

No one's whining-- just frustrated that the age 55 retirement legislation has been introduced for at least five years in a row now and everyone's getting tired of being teased. The "Reserve contract" is a whole 'nother animal from what existed during the Cold War, too.

I suspect that Rumsfeld's promulgation of the 40-year pay tables will kill the age 55 Reserve retirement plan no matter who's SECDEF...

 

[RetireEarly50s]

Not that you have to worry about it for another couple years' worth of pendulum swings. At least they're targeting the middle ranks to keep everyone motivated, but in the Navy it's easier to make O-6 than it is to make E-8. Got the college degree yet?
True, by the time I get there they will have changed it a couple more times. It's not too hard to make E-8 in the AF but a lot tougher to make E-9. I should make E-7 at 12 or 13 years which is 4 years below average. I got my associates degree which is required for E-8/9 but undecided on the bachelor's since I am retiring after military and would not use it.

 

[Bimmerbill]

Bleah, no difference for O3 with 22 or O3 with 40.

 

[RP]

...undecided on the bachelor's since I am retiring after military and would not use it.

Dear Retireinmy40's, take it from someone who was were you were some years back ... almost exactly when you seem to be in grade and time in service. At that time there were no degree requirements for any enlisted grade.

Now, if you look at promotion packages many E-8 candidates are even working on masters and a majority of E-9 candidates have some time beyond bachelor. There will never be a better time nor a better tuition assistance program ... do it.

Consider another possibility .. what if you can't stay in ... I was essential forced out just past 10 years due to personal issues. Well, no problem, I went Civil Service. Wanna know what you almost have to have today in Civil Service to advance pas GS-11 or 12? yeah, that's right, a bachelor's degree.

here in the Philippines is one of the few places an enlisted retiree can take a 20 year retirement and actually live well on his/her pay ... and we have a fair number of young retirees here, most with young families too. I know several without degrees and several with ... the ones with degrees all have found them an asset, even if it's doing unpaid work for developmentally challenged children's schools or post-prison rehab work.

You earned half or more than half of a bachelor's degree already .. finish the job, when you're 20 or 30 years down the road you'll kick yourself every day if you don't.

 

[RetireEarly50s]

RP, Thanks for the advice.