Hello Abner, If you are on active duty, then yes, you will receive your military retirement pay and medical benefits starting the month after you retire from active duty. However, if you are in the Army National Guard or Army Reserves, you will not receive retirement benefits (pay or medical) until age 60, unless you qualify for early retirement.
This means that if you retire after 20 years of qualified service, you are eligible for 50% of your highest 36 month average monthly earnings while serving in the military. If your highest base pay amount was $5,000 a month for 36 months, and you serve for 20 years, you will receive an immediate paycheck of $2,500 a month.
Difference Between Active Duty & Reserve. The biggest difference between active-duty and Reserve pensions is that the active-duty E-7 immediately started drawing their pension at age 38 at 50% of their High-Three pay average in effect at retirement.. The Reserve E-7 would have also retired at age 38 but had to wait 22 years for their pension, calculated at the maximum longevity and pay table ....
Thus, retirement pay COLAs and annual active duty pay raises will differ. Also note; the annual COLA for the REDUX retirement method is reduced by one percentage point below the increase in the CPI. Military retired pay is subject to a dollar for dollar offset when the retired member is also in receipt of VA disability compensation.
Computing Retired Military Pay. ... years of service or 100% of your base pay if you retire after 40 years. ... System above except that you compute retired pay using the average base pay for your ...
2016 RETIREMENT PAY ... that current-year retirees with less than 35 completed years of active duty entered the military after Sept. 7, 1980, which puts them under the High-3 plan that pegs retirement pay to a member’s average basic pay over the three highest earning years in uniform, almost always the last three years; and 3) that these High ...
Active duty military members can retire after 20 years of active duty service. In exchange, they receive retirement pay for life. How much retirement pay a member receives is based on years of service and rank.
Thus, the average enlisted member, who serves 20 years of active duty and lives until age 77 will receive, over their lifetime, $104 in retirement pay for every day they served on active duty. Guard/Reserve Member: Example: Join Military at Age 18, Serves 4 Years on Active Duty
The Basis for Retirement Pay. Calculating exactly how much money a retired Army officer gets is a two-step process. There are two ways to determine how to figure retirement pay: Final Pay is used if an officer entered the service on or before September 8, 1980, the basis is the final rate of basic pay he received on active duty.
There are currently four different retirement pay systems depending on when you joined the military. See the summary for each retirement system.