beowulf
Full time employment: Posting here.
- Joined
- Oct 26, 2007
- Messages
- 798
A few responses to comments:
A military reserve pension at 60 is based on what percentage you have of a full 20 year career. Even though the retirement system has changed a few times and is now roughly back to where it was originally, after 20 years of service military retirees receive 50% of their basic pay. If they were an 0-5 and their highest annual pay was $80,000 a year (just an example), they would receive $40,000 a year less any survivor's benefit they elected. Reservists receive points for each day they are on active or reserve duty as well as points for courses they take - I believe a full 20 year active duty career is worth 7,320 points. If an 0-5 reservist retires with 3,660 points, they would receive 50% of the normal retiree's 50%. That would be $20,000 less any survivor's benefit elected. It's not really this simple, but it's close enough for government work. Something to keep in mind is that active duty military also receive tax free housing and food allowances, which do not continue in any form after retirement.
While it's true that CSRS retirees who do not have 40 quarters of SS contributions over a certain amount will not receive any SS, those who have more than that number of covered quarters will receive a benefit. The amount will depend on how many years of contribution they have made plus all the usual rules. However, and this is a big one, CSRS retirees who have less that 20 years of full SS contributions of some minimum level will be penalized about $380 a month in 2009. That amount goes up each year until you claim SS. After 20 years, the penalty drops until it's 0 after 30 years of substantial contributions.
These are simplistic explanations of complex situations, but it is possible for a retired CSRS employee to collect a federal annuity, a reserve pension and some level of SS. Oh yeah, TSP also .
A military reserve pension at 60 is based on what percentage you have of a full 20 year career. Even though the retirement system has changed a few times and is now roughly back to where it was originally, after 20 years of service military retirees receive 50% of their basic pay. If they were an 0-5 and their highest annual pay was $80,000 a year (just an example), they would receive $40,000 a year less any survivor's benefit they elected. Reservists receive points for each day they are on active or reserve duty as well as points for courses they take - I believe a full 20 year active duty career is worth 7,320 points. If an 0-5 reservist retires with 3,660 points, they would receive 50% of the normal retiree's 50%. That would be $20,000 less any survivor's benefit elected. It's not really this simple, but it's close enough for government work. Something to keep in mind is that active duty military also receive tax free housing and food allowances, which do not continue in any form after retirement.
While it's true that CSRS retirees who do not have 40 quarters of SS contributions over a certain amount will not receive any SS, those who have more than that number of covered quarters will receive a benefit. The amount will depend on how many years of contribution they have made plus all the usual rules. However, and this is a big one, CSRS retirees who have less that 20 years of full SS contributions of some minimum level will be penalized about $380 a month in 2009. That amount goes up each year until you claim SS. After 20 years, the penalty drops until it's 0 after 30 years of substantial contributions.
These are simplistic explanations of complex situations, but it is possible for a retired CSRS employee to collect a federal annuity, a reserve pension and some level of SS. Oh yeah, TSP also .