2021

U.S. ARMY

RETIREMENT PLANNING GUIDE

 2021 U.S. ARMY RETIREMENT PLANNING GUIDE

PREPARED BY:

Army Retirement Services

Deputy Chief of Staff, G-1
Arlington, VA 22202-3531

Cover photo caption: Paratroopers assigned to 10th Special Forces Group (Airborne) conduct airborne operations
from a Colorado Army National Guard CH-47D Chinook assigned to 2nd Battalion, 135th Aviation Regiment, into the
snow-covered terrain of Fort Carson, Colo., December 10, 2008. Like Soldiers preparing for their leap into
retirement, these Soldiers carefully studied and trained before conducting this mission to ensure they would
successfully accomplish it. (U.S. Army photo by Staff Sgt. Liesl Marelli, Colorado National Guard)
FOREWORD

As you prepare to retire, you’ll face a confusing maze of policies, procedures, and benefits decisions. Without a plan and a
guide to this maze, you’re likely to miss decision points, rush your decisions, and increase the stress on yourself and your
family.

My intent is to provide you with a planning guide that will help you navigate your personal off-ramp from the Army
superhighway. Understand that this is a one-size-fits-all document for the Army. It may not fit your retirement plan in all
aspects. Some parts won’t apply, especially if you are a traditional Army National Guard or Army Reserve Soldiers who plans
to stop drilling, but continue working the same civilian job and living in the same home. But for everyone there are Department
of Defense and Department of the Army retirement planning requirements and still other things that you should not overlook,
even if they are not required. If you have suggestions for improvements to this guide, please send them to me at the
addresses below.

First, I recommend you embrace the thought that retirement is a process, not an event. Your peers, who are now retired,
want you to know that you will regret delaying your planning and ignoring the execution of your plan. I urge you to listen to the
subject matter experts, do your homework, ask questions, and involve your family – you aren’t the only one making this
transition.

Between this guide, your Retirement Services Officer, the Change of Mission newsletter, the MyArmyBenefits website and
Help Desk, the Soldier for Life website, and the Transition Assistance Program website and counselors, you have incredible
resources to make your retirement transition a success – but it will take your own planning and discipline to make it happen on
schedule. It’s important to note that there are two sets of mandatory preparation classes. The Transition Assistance Program
AND the Retirement Services Program are complementary and mandatory.

I urge you to start gathering and reading resources and outlining a tentative plan 36 months before you retire – well before
you drop your retirement request 12 months out. And don’t underestimate the mental transition you’re about to make. Life in
retirement will be different, but the grass is green on this side of the fence too. You will miss the sense of purpose, the
camaraderie, and the Soldiers you’ve lived with for so long. But make no mistake, the Army will still need you after you retire.
Your mission will change, but your duty to the country will not.

After you retire, we want you to be a Soldier for Life – a true advocate for the Army wherever you live. The mission for
Retired Soldiers is to “HIRE & INSPIRE”: To help veterans get jobs. To inspire our youth to follow in your footsteps into
military service. To inspire Americans to understand and support their Soldiers and their Army.

Thank you for your long and dedicated service to the nation.

Mark E. Overberg
Director, Army Retirement Services
Deputy Chief of Staff, G-1
Headquarters, Department of the Army

[email protected]

Army Retirement Services

251 18th Street South, Suite 210
Arlington, VA 22202-3531

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 TABLE OF CONTENTS

Foreword …………………………………………………………………………………………………. ii

Chapter 1 — Introduction
1-1 Soldier for Life Mindset…………………………………………………………………… .. 1
1-2 The Retired Soldier Mission………………………………………………………………...1
1-3 Retirement is a Process . ……………………………………………………………………2

Chapter 2 — How to Plan Your Retirement

2-1 General ……………………………………………………………………………………….3
2-2 Spouses and Retirement Planning………………………………………………………...7
2-3 When You Can Retire……………………………………………………………………….7
2-4 Retirement Planning Resources……………………………………………………………8
2-5 Change of Mission…………………………………………………………………………...9
2-6 Army Transition Assistance Program……………………………………………………...9
2-7 Retirement Physical…………………………………………………………………………11
2-8 Household Goods Transportation…………………………………………………………12
2-9 Retirement Recognition………………………………………………………………….... 13
2-10 Teminal Leave & Transition Administrative Absence……………………………….... 13
2-11 ETS Sponsorship Program …………………………...………………………………….14

Chapter 3 — Retired Pay and Benefits

3-1 Retired Pay Plans……………………………………………………………………………15
3-2 Disability Retirement…………………………………………………………………………18
3-3 Combat-Related Special Compensation (CRSC)………………………………………...18
3-4 Concurrent Retirement and Disability Pay (CRDP)………………………………………19
3-5 Taxes………………………………………………………………………………………….19
3-6 Other Retired Pay Information……………………………………………………………...21
3-7 Thrift Savings Plan (TSP) …………………………………………………………………..21
3-8 Defense Enrollment Eligibility Reporting System (DEERS)......................................... 22
3-9 Military Identification and Privilege Cards………………………………………………....22
3-10 MyArmyBenefits (MAB)…………………………………………………………………… 23
3-11 Army Emergency Relief..............................................................................................24

Chapter 4 — Medical Care

4-1 TRICARE Programs–Medical Care after Retirement…………………………………….25
4-2 TRICARE Select……………………………………………………………………………...26
4-3 TRICARE Prime………………………………………………………………………………27
4-4 TRICARE Plus………………………………………………………………………………...27
4-5 Uniformed Services Family Health Plan……………………………………………………28
4-6 TRICARE Retired Reserve (TRR)…………………………………………………………..28
4-7 TRICARE Young Adult (TYA)………………………………………………………………..28
4-8 TRICARE for Life (TFL)……………………………………………………………………....28
4-9 Temporary Disabled Retired List (TDRL) Beneficiaries………………………………......29
4-10 TRICARE Pharmacy Benefits………………………………………………………………29
4-11 Federal Employees Dental and Vision Insurance Program (FEDVIP)………………....29
Chapter 5 — Department of Veterans Affairs Benefits
5-1 General……………………………………………………………………………………….. 31
5-2 VA Disability Compensation………………………………………………………………... 31
5-3 Benefits Delivery at Discharge and Fully Developed Claim Programs………………… 32
5-4 VA Home Loans……………………………………………………………………………… 32
5-5 GI Bill………………………………………………………………………………………….. 32
5-6 Converting SGLI to VGLI…………………………………………………………………… 33
5-7 VA Medical Care…………………………………………………………………………….. 33
5-8 VA Dental Care………………………………………………………………………………. 33

Chapter 6 — Survivor Benefits

6-1 General……………………………………………………………………………………….. 34
6-2 Survivor Benefit Plan………………………………………………………………………… 34
6-3 Basic SBP Questions Answered…………………………………………………………… 35
6-4 SBP’s Perceived Negatives………………………………………………………………… 40
6-5 The Reserve Component Survivor Benefit Plan (RCSBP)……………………………… 41
6-6 RCSBP Eligibility………………………..……………………………………………........... 41
6-7 RCSBP Election Options………………………..………………………………………….. 41
6-8 RCSBP Election Categories………………………………………………………………… 41
6-9 RCSBP Election Costs………………………………………………………………………. 42

Chapter 7 — Uniformed Services Former Spouses’ Protection Act

7-1 General……………………………………………………………………………………….. 43
7-2 Background…………………………………………………………………………………... 43
7-3 Division of Retired Pay……………………………………………………………………… 43
7-4 Survivor Benefit Plan (SBP)………………………………………………………………... 44
7-5 Military Identification and Privilege Cards………………………………………………… 46

Chapter 8 — Reserve Component Retirement System

8-1 General……………………………………………………………………………………….. 47
8-2 Nonregular Retired Pay Process…………………………………………………………… 47
8-3 Reduced Retirement Age………………………………………………….…………………48
8-4 Retirement Points Accounting System (RPAS)…………………………………………....48
8-5 Qualifying Year……………………………………………………………………………..... 49
8-6 Maximum Point Rule………………………………………………………………………….49
8-7 Computation of Retired Pay………………………………………………………………… 50
8-8 Cost-of-Living Adjustments to Retired Pay……………………………………………….. 50
8-9 Notification of Eligibility (NOE) (20-Year Letter…………………………………………….50
8-10 Reserve Component Survivor Benefit Plan (RCSBP)……………………………………51
8-11 Your Responsibility…………………………………………………………………………..51

Chapter 9 — Communications, Systems & Installation Access

9-1 Army Echoes…………………………………………………………………………………. 53
9-2 Personal/Family Information………………………………………………………………... 53
9-3 Military Records……………………………………………………………………………… 54
9-4 Department of Defense Self-Service Logon (DS LOGON)……………………………… 54
9-5 Military Installation Privileges—Stateside…………………………………………………. 54
 9-6 Military Installation Privileges—Overseas………………………………………………… 54
9-7 Locating Former and Retired Soldiers…………………………………………………….. 55
9-8 Mobilization/Retired Soldier Recall…………………………………………………………. 55

Chapter 10 -- Military Uniforms, Awards, Customs & Courtesies

10-1 Military Titles and Signatures……………………………………………………………… 56
10-2 Uniforms and Rank in Retirement………………………………………………………… 56
10-3 Saluting While Retired …………………………………………………………………….. 57
CHAPTER 1

INTRODUCTION
Getting your mind prepared

1-1 SOLDIER FOR LIFE MINDSET

What does it mean to be a “Soldier for Life?” A Soldier for Life

is someone who embraces a lifetime of service. Someone who
traces their success as a civilian to the skills they developed in
the Army. Someone who continues to identify with the Army
even after hanging up the uniform. Someone who becomes a
passionate advocate for service to the nation. A Soldier for
Life rejects the idea that there is such a thing as a former
Soldier. Soldiers for Life continue to live the Army Ethic and
continue to serve the Army and their communities. A Soldier
for Life bridges the gap between the Army and American civilians who don’t know what it means to be a Soldier or the
value of a veteran.

Our Army has always been about people—our success has never been defined by the newest rifle, helicopter, or tank.
History has demonstrated that the quality and lethality of our Soldiers has always made the difference in fighting and
winning our nation’s wars.

The readiness of our Army depends on not only being able to meet our recruiting goals but also in ensuring that we
continue to attract the best and the brightest Americans. Only 29% of American even qualify to join the Army. Retired
Soldiers help implement the Army vision.” Retired Soldiers who consider themselves Soldiers for Life, who have that
enduring connection with the Army, are informal ambassadors for Army service. They connect the Army with Americans in
thousands of towns all across America. They dispel the myths about Army service. They attract young Americans to the
Army’s ranks.

1-2 THE RETIRED SOLDIER MISSION

The mission statement for Retired Soldiers is to “HIRE & INSPIRE.”

• To help veterans get jobs. Every dollar the Army spends on unemployment compensation for a new veteran is a
dollar the Army can’t spend on Soldiers’ salaries or for their training or equipment. The same operational funds pay for
both. The Army is looking for Retired Soldiers, and other veterans, to look out for new veterans, and to help them resettle
and find employment.

• To inspire Americans. 50% of Americans know little or nothing about the Army. This is sometimes called the civil-
military divide. Misunderstandings widen the gap. Retired Soldiers live in communities all across America where they can
listen for these misunderstandings and explain what it means to be a Soldier. The Army hopes Retired Soldiers will set an
example for Americans by continuing to live the Army Ethic. This should give Americans confidence in their military.

• To inspire America’s youth to join the military. Only 29% of young Americans are qualified to join the military. The
Army faces stiff competition for that 29%. That percentage is expected to decline to 19% by 2030. 79% of Soldiers have a
family member who served. The Army needs to broaden its recruitment base by reaching out to young Americans who
have no experience with the military. Recruiters can use the assistance of Retired Soldiers through the Partnership
Outreach Program at https://armystrong.goarmy.com/a/cp.html. Retired Soldiers can influence the influencers, such as
teachers, coaches, parents to talk to their children about the military as a career option or even a starting point.

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1-3 RETIREMENT IS A PROCESS

Retiring is more than just a formal ceremony at the end of your career. It’s everything you do in your last three years of
service to prepare yourself and your family for the next phase of your life. It’s more than a checklist of tasks. It’s a mental
transformation from training and deploying to fight and win our nation’s wars. You didn’t get to this point in your career
without being a good planner and paying attention to details. You will need both of these skills to retire successfully, but
make no mistake -- Life after you retire will be different. To be sure, the grass on the other side of the retirement fence is
green. You’ll find new and exciting challenges. Embrace this new adventure in your life, and remember the following:

a. A positive attitude is everything.

Look back on your achievements and celebrate them! Only about 30% of officers and 10% of enlisted Soldiers retire from
the Army. You will continue to succeed after your retirement. Consider the myriad opportunities to positively impact
Americans and the other veterans you’re joining. There are now one million Retired Soldiers. You’re joining the Army’s
largest demographic – it’s “fourth component.” As a Soldier for Life, your mission will change, but your duty to the country
will not. You’ll still be a Soldier, and the Army still needs you. The decisions you make during your transition will
significantly affect your retirement, but more than 30,000 walk this path successfully every year. Talk to your friends who
preceded you into retirement, and seek their advice. View your transition as an opportunity.

b. Prepare early

You have a day job. Planning and executing your retirement on top of that job will be a challenge. It will be easier if you
start gathering resources and developing your plan 36 months before you want to retire. Attend the mandatory Transition
Assistance Program AND Retirement Planning Seminar at the 24-month mark, so you’ll know what you’re up against. Like
combat, you should gather all available intelligence and perform reconnaissance of your objective. Then make your plan.
Skip these or make a hasty plan, and your chances of success diminish.

c. Understand the impact of your retirement on others

If you have a family, remember that they are transitioning too! Take your spouse to the retirement planning seminar.
Share information and decisions. In many families, the Soldier’s spouse manages the family health care, budget, and
other critical areas that will change when you retire. Your retirement will also impact your children. Involve them in the
celebration of your career accomplishments. They played their part and managed through your absences. Their lives will
change too.

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CHAPTER 2

How to Plan Your Retirement

2-1 GENERAL

Below is a timetable we suggest you use as a starting point as you plan your retirement from active duty. Traditional
Reserve Component Soldiers are required to attend their component’s Retirement Planning Seminar (usually a full
Saturday) between 18 and 20 years of service. The Retirement Services Officer (RSO) or your military personnel officer
can provide a more detailed checklist that addresses local requirements.

36-24 MONTHS BEFORE RETIREMENT

At this point, you may not be committed to retiring, or even have a retirement date in mind, but you should begin planning
now. It takes a while to gather the necessary resources, and learn all the decisions you and your family will make. Some
things you’ll want to do now are:

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 • Gather and read resources, such as this retirement planning guide; pertinent Army regulations and installation
procedures that you must follow to retire.
• Determine the service providers who will assist you with retirement planning and processing, such as the
Retirement Services Office and the Transition Office.
• Estimate your monthly living expenses and build 3-6 months of savings to support your family after you retire.
• Build a timeline to retirement by outlining the major decisions you need to make and exactly when you must make
them to stay on course for your retirement date. For example,
o Where will you live?
o Do you need to move your household goods?
o What do you want to do after you retire? If that includes working, what do you want to do? What are you
qualified to do? Do you need to develop new skills or document your existing skills through a certification,
credentialing, or licensing program? Are you interested in the Career Skills Program or an apprenticeship?
o Will your spouse work? Where are the job prospects best for your spouse?
o Will you or your family members have special medical needs that will influence were you reside? Do you need
or want to reside close to a military treatment facility or VA medical facility? Medical and dental care options
for Retired Soldiers are very different than those provided for Soldiers. Investigate this carefully and early.
o Will you, your spouse, or your children attend college and will in-state tuition be a factor in that decision?
o Did you transfer education benefits to family members? That incurs a 4-year service obligation.

24-18 MONTHS BEFORE RETIREMENT

If you are just starting to plan for your retirement, or have not yet
accomplished all of the items listed above, start with that list. Between 24 and IMPORTANT ARMY
18 months from retirement, some things you’ll want to do include: POLICY TO KNOW!
• Schedule yourself (and your spouse if applicable) to attend the local
retirement planning seminar. • If retiring from active
• Schedule yourself (and your spouse if applicable) to attend the local duty, you MUST
Transition Assistance Program (TAP) and coordinate your attendance attend both the TAP
with your unit. and the Army
• What are your remaining service obligations and when will they be Retirement Planning
completed? Seminar.
• Are you scheduled to PCS in the next two years? You normally have
to stay on station for one year after you PCS before you can retire. • If you are retiring
• How much terminal leave do you want to take? Do you need to start from traditional
building to that amount? Reserve Component
• Use the MyArmyBenefits calculators to estimate your retired pay and duty, you MUST
Survivor Benefit Plan annuity and costs. attend the Army
• Investigate converting your SGLI to VGLI or civilian life insurance. Retirement Planning
• Consider buying commercial life insurance before you apply for VA Seminar
disability compensation

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 18-12 MONTHS BEFORE RETIREMENT

If you are just starting to plan for your retirement, or have not yet accomplished all of the items listed above, start with that
list. Between 18 and 12 months from retirement, your action dates will become more definite. Some things you’ll want to
do include:

• Decide on your retirement date.

• Prepare your request for retirement to submit it when you have 12 months left.

• Seek medical and dental care for any unresolved conditions.

• Incorporate any documentation of medical care received during a deployment or from civilian providers into your
military medical records.

• Begin researching health care options.

• Start employment networking; investigate LinkedIn. Attend a job fair to see how it works – before you are ready to
start interviewing.

• Begin accumulating a wardrobe for post-retirement employment if needed.

• Apply to colleges if you or family members will attend right after retirement.

• Use the Survivor Benefit Plan calculator on MyArmyBenefits to determine your annuity and premium. Discuss this
with your spouse, who must concur if you take less than the maximum. Consider life insurance in addition to SBP.

12-6 MONTHS BEFORE RETIREMENT

If you are just starting to plan for your retirement, or have not yet accomplished all of the items listed above, start with
those lists, but work on this list simultaneously. Between 6 and 12 months from retirement, you will be finalizing your plans
and beginning your search for a civilian job.

• At the 12-month mark, submit your retirement request and leave plan.
• At the 12-month mark, complete the pre-separation transition checklist (DD Form 2648) with the transition office.
• Between 6 and 9 months, schedule your retirement physical as close to the 6-month mark as possible, so you
can use it in a claim for VA disability compensation while you’re still on active duty.
• Submit your final request for transition administrative absence and terminal leave 60-90 days before you plan to
take it. That could be as far out as 6 or 7 months before retirement depending on how much you take and when.
• Finish buying your job interviewing wardrobe.
• Start your active job search.

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 6-1 MONTH BEFORE RETIREMENT

If you are just starting to plan for your retirement, or have not yet accomplished all of the items listed above, start with
those lists, but you have much to do and little time to do it. You must work on all lists simultaneously. Your focus should
be almost all on your retirement now.

If you have been planning for some time now, this is the execution phase. You’ll continue to work, but actions or decisions
you postpone now may adversely impact your retirement or your benefits. If you are taking a lot of terminal leave or
transition administrative absence, remember to backwards plan and do the following things earlier.

• Focus on job searching.

• Attend your retirement physical.
• If appropriate, register for the VA’s eBenefits and submit VA Form 21-526, Application for Compensation from
Department of Veterans Affairs if you want to be considered for disability compensation. Use the Benefits Delivery
at Discharge (BDD) Program.
• Conduct house hunting if you’re moving.
• Update your wills and powers of attorney with the Staff Judge Advocate.
• Contact the transportation office to schedule delivery of your household goods.
• Prepare for and handover job responsibilities.
• If you are under the Blended Retirement System (BRS) and want a lump sum of your retired pay at the time
of your retirement, submit your DD Form 2656, Data for Payment of Retired Personnel (and Survivor Benefit
Plan (SBP) election) no less than 90 days before retirement. If you’re not retiring under BRS, submit the form at
least 60 days out. A DD Form 2656-1 is needed if a former spouse SBP election is being made.
• Schedule your retirement ceremony or coordinate to participate in the local or installation group ceremony.
• Change your email address in any account that contains your DOD email address, especially your myPay
account at DFAS.

RETIREMENT MONTH

It’s crunch time. The days will fly. If you are taking a lot of terminal leave or a transition administrative absence, remember
to backwards plan and to the following things earlier.

• Outprocess/pick up DD Form 214.

• Ship household goods.
• Attend retirement ceremony.
• If not done yet, make Survivor Benefit Plan election (by law, this must be done before you retire).
• If not done yet, update your wills and power of attorney.
• Pick up your and your family’s medical/dental records.
• If active duty, enroll in FEDVIP dental/vision care insurance plans.

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 0-6 MONTHS AFTER RETIREMENT

You’ve made it, but you’re not quite done yet. There are some critical tasks below.

• Turn in your CAC and obtain your retired ID card and new dependent ID cards as soon as possible. This is critical
because your benefits have changed.
• Within 120 days, sign up for the TRICARE plan you chose and initiate the allotment to pay the premiums. This is
not done automatically.
• Within 120 days, convert your SGLI to VGLI (VA sends application) if desired.
• Complete DD Form 2860, Application for Combat-Related Special Compensation (CRSC), if applicable, but
only after the VA has given you a disability rating.
• Join a veteran or military service organization or the closest installation retiree council to continue to serve.
• Start working for the Department of Defense (No earlier than 180 days after your retirement date without a waiver)

2-2 SPOUSES AND RETIREMENT PLANNING

In most military households, the Soldier’s spouse manages critical functions that will change when the Soldier retires,
including the family budget, health care, children’s schooling and daycare, and home management. If your spouse is
employed, your retirement and possible family move may
significantly impact your family’s monthly income.

Talk to your spouse about your retirement early and often.

Take your spouse to all retirement planning seminars and
the Transition Assistance Program classes. He or she will
hear things that you might miss because you have a
different perspective on retirement, household management,
and future employment than your spouse.

There are resources specifically designed to support military

spouses’ retirement planning including MilSpouse Money
Mission (https://www.milspousemoneymission.org/) and
MySTeP (https://myseco.militaryonesource.mil/portal/mystep)

2-3 WHEN YOU CAN RETIRE

a. Regular retirements. You can retire when your Active, Active Duty for Training (ADT), Active Duty Operational Support
(ADOS), Temporary Tour of Active Duty (TTAD), Full-Time National Guard Duty (FTNGD), and Active Guard/Reserve
(AGR) service totals 20 years or more (Title 10 U.S. Code, §3926 [Officer], §1293 [Warrant Officer] and §3925 [Enlisted]).
Officers may also use service as a contract surgeon or acting dental surgeon to qualify for retirement. If you are an officer,
you may submit your request to retire no earlier than 12 months before the retirement date and no later than nine months
before the requested retirement date or beginning date of terminal leave, whichever is the earliest. If you are an enlisted
Soldier, you must submit your retirement application at least nine months before the retirement date.

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b. Nonregular retirements. Qualified U.S. Army Reserve (USAR) and Army National Guard (ARNG) Soldiers with 20 or
more years of creditable service, should submit their retired pay applications to the U. S. Army Human Resources
Command no earlier than nine months but not less than 90 days prior to their age of eligibility, usually age 60, unless
entitled to a reduced age retirement. Under the National Defense Authorization Act of 2008 (Sec 647, Public Law 110-
181), Reserve Component Soldiers ordered to active duty under eligible authorities listed in Title 10 USC §12731
paragraph (f) may qualify for reduced age retirement
prior to age 60, however not less than 50.

c. Service obligations. Before you apply for retirement,

ensure you will complete all of your service obligations
before your requested date. These obligations could
arise from a promotion, a recent permanent change of
station, completion of military or civilian schooling,
transferring education benefits to a family member, etc.

d. In Lieu of PCS. If you want to retire in lieu of executing a permanent change of station move, you only have 30 days
from the date of alert to request retirement, and you must retire within six months of the alert.

2-4 RETIREMENT PLANNING RESOURCES

The Army has invested in many resources that will help you plan your military retirement. Below are the major resources
you should use to develop your personal retirement plan.

a. The Army Retirement Services webpages

on the Soldier for Life website
(https://soldierforlife.army.mil/Retirement). This is
a great place to start. Many of the retirement
planning resources listed below are there.

b. Retirement Services Officers (RSOs). RSOs

are retirement specialists. They have been
trained and certified in the laws, policies, and
procedures that govern military retirements,
which are both many and confusing. As early as
36 months before you plan to retire, contact your
RSO to learn what they can do for you. It will
vary from installation to installation and
command to command because retirement and
transition services are organized based on
staffing levels and the size of the supported
population. The contact information for all RSOs
is at https://soldierforlife.army.mil/Retirement/rso.

• Active Duty. All major Army installations

have an RSO – and larger posts have
several – within the installation
Directorate of Human Resources. These are usually Department of the Army civilians or contractors.
• Army National Guard. Each state has an RSO and a Retirement Points Accounting Management
Noncommissioned Officer (RPAM NCO) at the State Joint Force Headquarters. In states with fewer Soldiers, the
RSO and RPAM NCO can be the same person. These are normally military personnel.

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 • Army Reserve. Each Readiness Division Headquarters has two RSOs and there is one at the 9th Major Support
Command. These are military personnel.

c. The U.S. Army Retirement Planning Guide, which you’re reading.

d. Change of Mission, the Army’s official military retirement planning newsletter. See
paragraph 2-5 below.

e. The Department of the Army Retirement Planning Seminar. This is a day-long seminar
with retirement and other service providers who will explain what you need to do. Installation
RSOs normally hold these monthly. Army National Guard and Army Reserve RSOs hold these
regionally. Check with your RSO for dates and locations. The mandatory Department of the
Army brief is at https://soldierforlife.army.mil/Retirement/retirement-planning. Each RSO
augments this with local policies and procedures.

f. The Department of the Army Survivor Benefit Plan (SBP) Briefing and Reserve
Component Survivor Benefit Plan (RCSBP) Briefing. RSOs give these as part of their
Retirement Planning Seminars, but they can be given separately and individually. The
mandatory SBP and RCSBP briefs are located at
https://soldierforlife.army.mil/Retirement/survivor-benefit-plan.

g. The Department of Defense (DOD) Actuary’s website has several helpful financial
analysis tools for life insurance and the Survivor Benefit Plan at
https://actuary.defense.gov/Survivor-Benefit-Plans/. These include tools that show the
probability that your spouse will receive SBP benefits (i.e. the probability you’ll pre-decease your spouse); what proportion
of SBP benefits are subsidized by the DOD; and, most importantly, how SBP compares to purchasing a term life
insurance policy from a private insurer. The program estimates whether the SBP benefits will outperform a life insurance
policy. The program also shows average life expectancies.

2-5 CHANGE OF MISSION

Change of Mission is the Army’s official retirement planning newsletter for

Soldiers in all three components with 17 or more years of service. It is
published quarterly as an electronic, 16-page newsletter on the Soldier for Life
website at https://soldierforlife.army.mil/Retirement/change-of-mission. The
Defense Finance and Accounting Service (DFAS) emails a quarterly
SmartDoc with the link to the newest edition to Soldiers at the email in their
myPay account at DFAS. Change of Mission educates Soldiers about the
retirement process and benefits to help them plan and execute a smooth
retirement.

2-6 TRANSITION ASSISTANCE PROGRAM

Currently, there are over 50 Transition Assistance Program (TAP) locations

worldwide and a TAP 24/7 Virtual Center. Transition counselors provide you
extensive transition support tailored to your unique needs. Retiring and
transitioning Soldiers work towards attaining identified Career Readiness
Standards (CRS) as they go through the program.

You may initiate TAP services two years prior to your actual retirement date. TAP encompasses the following services:

• Individualized self-assessment, initial counseling, individual transition planning, and pre-separation counseling

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 • (DD Form 2648). You’ll learn about transition services and available benefits. You’ll also receive assistance in
developing an individual transition plan from highly qualified counselors. You MUST receive pre-separation
counseling at least 12 months prior to your transition or retirement date.
• Veteran Affairs (VA) benefits and services briefing. This one-day briefing covers VA services and benefits
available to veterans and is delivered by VA counselors. You must attend at least six months prior to your
transition or retirement date.
• Department of Labor (DOL) Employment Fundamentals of Career Transition workshop. DOL staff members
facilitate this one-day workshop which provides the basic knowledge and skills required to execute a successful
job search. This includes the selection of a job search objective, resume and cover letter preparation, networking,
identification of job opportunities, the hidden job market, interviewing and salary/benefit negotiations. You must
attend at least nine months prior to transition or retirement, in addition to completing a job application
package or obtaining a job offer.
• Military Occupational Specialty (MOS) crosswalk. During this course, counselors explain how you can examine
your military experience, skills, education and credentials. The gap analysis that accompanies the crosswalk
accounts for deficiencies between your current skill set and your desired civilian occupation or goal. A completed
gap analysis is required prior to transition.
• Financial planning seminar. TAP financial counselors provide information and tools needed to identify initial
financial responsibilities, obligations and goals during the transition period. You will assess your current financial
standing and project post-transition financial needs.
• Individual employment counseling. Counselors assist you in identifying a job objective, finalizing résumés and
cover letters, completing job applications, finding job opportunities, preparing for interviews and job fairs, dressing
for success and negotiating salary and benefits.
• Job search resources and tools. You’ll have the opportunity to use a resume writer, a cover letter writer and
complete online applications for federal employment. You can also participate in job fairs, career days and use
an extensive TAP reference library.
• Career tracks. Education, vocational training, employment, and entrepreneurship are two-day workshops
designed to help participants make informed career track decisions.
• Managing Your Education two-day workshop assists you with identifying the higher education requirements that
support your personal career goals. This workshop is beneficial for both individuals attending college for the first
time and those applying to graduate school programs.
• The Vocational Training two-day workshop offers you the opportunity to complete a personalized career
development assessment of occupational interest and ability. This industry-standard assessment presents you
with a variety of tailored job recommendations (some of which are classified as high-demand or high-growth
occupations) that align with your interests and aptitudes. You’ll also be guided through a variety of career
considerations, including labor market projections, education, apprenticeships, certifications, and licensure
requirements.
• The Employment two-day workshop covers emerging best practices in career employment, including in-depth
training to learn interview skills, build effective resumes, and use emerging technology to network and search for
employment.
• Boots2Business is the entrepreneurship career track course. The Small Business Administration’s two-day
workshop introduces the fundamentals of small business ownership and business concepts in addition to tools
and resources available to veterans who choose to be small business owners. After completing the
Boots2Business course, participants may complete an eight week, instructor-led online course.

TAP also offers you the opportunity to participate in the Army’s Career Skills Program (CSP) consisting of credentialing,
apprenticeship, on-the-job training, job shadowing, and internship opportunities.

The TAP website (www.sfl-tap.army.mil) provides a comprehensive overview of transition assistance services and links

10
that allow you to register for classes, schedule appointments for TAP services, and view available events from your home
or office.

The TAP website also connects you to the Virtual Center and automated transition tools without visiting a TAP center. The
TAP 24/7 Virtual Center provides you access to transition counselors who answer questions in a virtual forum during the
transition process. All training offered through the Virtual Center is taught by live instructors through a virtual forum.

Retired Soldiers and their ID card carrying family members are eligible for TAP services on a space-available basis for the
rest of their lives.

ALERT!! Title 5 United States Code Section 3326 prohibits military retirees from being appointed to positions
within the Department of Defense within 180 days of their date of military retirement. This applies to positions as
an appropriated fund (GS), or non-appropriated fund (NAF) civilian employee unless the position is covered by a
special salary. The 180-day restriction is in place unless the hiring official requests and receives an approved
waiver. However, the law does NOT prevent military retirees from working for other federal agencies, such as the
Department of Homeland Security, within 180 days of retirement.

The 180-day restriction is a part of Title 5 United States Code Section 3326:

§3326. Appointments of retired members of the armed forces to positions in the Department of Defense

(a) For the purpose of this section, "member" and "Secretary concerned" have the meanings given them by section
101 of title 37.

(b) A retired member of the armed forces may be appointed to a position in the civil service in or under the
Department of Defense (including a nonappropriated fund instrumentality under the jurisdiction of the armed
forces) during the period of 180 days immediately after his retirement only if-

(1) the proposed appointment is authorized by the Secretary concerned or his designee for the purpose, and, if the
position is in the competitive service, after approval by the Office of Personnel Management; or

(2) the minimum rate of basic pay for the position has been increased under section 5305 of this title.

(c) A request by appropriate authority for the authorization, or the authorization and approval, as the case may be,
required by subsection (b)(1) of this section shall be accompanied by a statement which shows the actions taken
to assure that-

(1) full consideration, in accordance with placement and promotion procedures of the department concerned, was
given to eligible career employees;

(2) when selection is by other than certification from an established civil service register, the vacancy has been
publicized to give interested candidates an opportunity to apply;

(3) qualification requirements for the position have not been written in a manner designed to give advantage to the
retired member; and

(4) the position has not been held open pending the retirement of the retired member.

2-7 RETIREMENT PHYSICAL

Retiring active duty Soldiers must complete a retirement physical no more than six months and no less than one month

11
before the retirement date or the start of terminal leave. Retiring Reserve Component Soldiers do not complete a
retirement physical unless they are on active duty. Contact your local Military Treatment Facility (MTF) for details and
appointments. If you complete the physical early enough, you can use the results to apply for disability compensation from
the Department of Veterans Affairs while you are still on active duty. Use the Benefits Delivery at Discharge program
(https://www.va.gov/disability/how-to-file-claim/when-to-file/pre-discharge-claim/ ) if you have 90-180 days of active duty
left. Use the Fully Developed Claim program (https://www.va.gov/disability/how-to-file-claim/evidence-needed/fully-
developed-claims/) if you have 1-89 days of active duty left.

If you are a Gulf War veteran, you are eligible for medical evaluation either through DOD’s Comprehensive Clinical
Evaluation Program (CCEP) or the Department of Veterans Affairs (VA) Gulf War Registry (GWR). Consult the VA for
more information on these programs online at http://www.va.gov or by phone at 800-827-1000.

OIF/OEF veterans qualify for special combat veteran eligibility for up to two years after their discharge from service. This
special eligibility includes enrollment in Priority Group 6 and exemption from copayments for care of conditions potentially
related to their military service. Veterans serving in the Southwest Asia Theater of Operations are also eligible to
participate in the Persian Gulf War Registry examination program. More information is available at
http://www.oefoif.va.gov/.

2-8 HOUSEHOLD GOODS TRANSPORTATION

Retiring active duty Soldiers authorized household goods (HHG) transportation from the last, or any previous, permanent
duty station in CONUS, from storage, or any combination thereof, to their home of selection (HOS).

Once you select a location, that selection is irrevocable if transportation-in-kind is furnished and used, or if you receive
travel and transportation allowances after you complete travel.

You may select a home anywhere within the U.S., or

the home of record (HOR) outside the U.S., or the place
outside the U.S. from which you were initially called or
ordered to active duty.

Your weight allowance for retirement is the same as it

was on active duty.

You are allowed to ship professional books, papers and

equipment (PBP&E) (any item that was necessary for
official duties) in your retirement shipment as long as
you declare it during transportation counseling, the
completed shipment application (DD Form 1299) shows the weight of PBP&E, during the pickup you identify the PBP&E,
and the shipper inventories and weighs it separately from other household goods.

If you are required to vacate government quarters before selecting a home, you are authorized a short distance HHG
move from the government quarters to a local temporary residence in the vicinity of the vacated quarters.

You are authorized non-temporary storage (NTS) of your HHG (not to exceed the JFTR weight limit, excluding PBP&E)
from the date your retirement orders are issued to the one-year anniversary of your retirement date. You may request
continued storage beyond the one-year anniversary of your retirement date, but in all cases it will be at your expense, at
the government rates for the extended time. You must make payment arrangements with the transportation office that
arranges the storage.

NTS must be placed in a facility near the place where your household goods were located on the date your orders were
issued. This means you may not ship HHG to the HOS and then place them in NTS.

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If you are undergoing education or training to qualify for acceptable civilian employment, you may extend storage in one
year increments until one year after the education or training is completed.

Extensions are granted for a maximum of one year at a time, for up to five years, and you must file them prior to the
anniversary date of your retirement. The Joint Personal Property Shipping Office (JPPSO) has no authority to grant an
extension if you miss the anniversary date. You must file a “Request for Reinstatement of Transportation Entitlement” via
the Secretarial Process. Such a case would have to go to the Secretary of the Army for further extension.

Extensions for Army personnel living outside the JPPSO area of operation are not processed by the JPPSO, but by the
JPPSO or PPSO that services the installation where you were last stationed.

2-9 RETIREMENT RECOGNITION

You will be given the opportunity to participate in a retirement ceremony. The

Army also honors your selfless service by issuing the Army Retiring Soldier
Commendation Program Package, which includes:

• U.S. Flag
• U.S Army Retired Lapel Button
• Two Soldier for Life window stickers
• A thank you note from the Secretary of the Army, the Chief of Staff,
Army, and the Sergeant Major of the Army
• A full color box carrier

2-10 TERMINAL LEAVE AND TRANSITION ADMINISTRATIVE ABSENCE

a. AR 600-8-10, Leaves and Passes, governs leave. Terminal leave is ordinary (chargeable) leave used for separation
from the Army, to include retirement.

b. Selling or using leave. You may sell leave accrued through your retirement date (limit of 60 days during your career) or
use it before your retirement date, or split your leave between these two options. Because it is difficult to change an
approved retirement date, you should determine your best course of action before submitting your retirement request.

Consider these factors:

• After 20 years of service, each additional month you serve on active duty
provides an additional retired pay multiplier of 1/12th of 2.5 percent for
those under the Final Base Pay or High-3 retired pay formulas, or 1/12th
of 3.5 percent, for those under REDUX, or 1/12th of 2.0 percent for those
retired under BRS.
• Service members must retire on the 1st day of a month unless retired for
disability.
• Accrued leave days are sold back for base pay only.
• Accrued leave paid in a lump sum is automatically taxed at 25 percent.
• Service members MAY work while on terminal leave, even for the federal
government.
• Only Soldiers retiring for disability may request to adjust retirement dates
to use leave that cannot be sold due to the 60-day limit.
• Unless authorized additional leave carryover through Special Leave
Accrual (SLA) authority, all accrued leave in excess of 60 days is lost on
October 1 even if you start terminal leave before that date.

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c. Transition Administrative Absence (previously known as Permissive Temporary Duty) allows you to participate in
pre-separation job search and/or house hunting activities that facilitate your relocation or transition to civilian life. If neither
of these activities are necessary during the requested time period, then a transition administrative absence is not
appropriate.

Senior Commanders may grant up to 20 days (CONUS) or 30 days (OCONUS) of transition administrative absence to
Soldiers retiring from active duty. It is a non-chargeable absence that may be granted in addition to terminal leave.

Transition administrative absence may be granted in increments (not to exceed days authorized); taken in a series of
trips; or taken in its entirety in conjunction with terminal leave (taken together, as one trip). You may not use transition
administrative absence with leave without completing a duty day between the two periods of absence, unless transition
administrative absence is taken in its entirety in conjunction with terminal leave after final out-processing at the last
permanent duty station.

Service members may not be employed while in a transition administrative absence status.

No more than 120 days of transition administrative absence may be approved for participation in the Career Skills
Program (CSP). Transition administrative absence for CSP may not be combined with other transition administrative
absences, leaves, or passes.

2-11 ETS SPONSORSHIP PROGRAM

Leaving the military can be very stressful.

The ETS Sponsorship Program ensures that
you and your family do not walk alone.
Sponsors, who live in the community where
you’re headed, will not only walk through the
door with you, but will continue to coach and
guide you throughout the process. A good
sponsor helps make the transition from one
post to another in the Army a smooth
experience. ETS Sponsorship strives to do
the same for Soldiers ETSing or retiring from
the Army.

The ETS Sponsorship Program is an

established partnership between the Department of Veterans Affairs (VA) and the U.S. Army to sponsor Soldiers through
the transition process from military to civilian life. The program centers on a personal relationship between the Soldier,
who is leaving the military, and a sponsor, who is trained and certified by the VA, and perhaps equally important,
empathetic and dedicated to helping the Soldier and family members.

This program builds a much-needed bridge between the VA and the U.S. Army. For more information, visit
https://etssponsorship.com/ or watch a quick video description at https://etssponsorship.com/video/overview.

14
CHAPTER 3

RETIRED PAY AND BENEFITS

3-1 RETIRED PAY PLANS

a. References:

(1) DOD Financial Management Regulation (FMR), 7000.14-R, Volume 7B, Military Pay Policy and Procedures—Retired
Pay, (referred to hereafter as DODFMR 7000.14-R), contains everything you ever wanted to know about retired pay. You
can access it at http://comptroller.defense.gov/FMR/fmrvolumes.aspx. Scroll down to Volume 7B.

(2) All Soldiers may use the MyArmyBenefits retirement calculator located https://myarmybenefits.us.army.mil/Benefit-
Calculators/Retirement.

b. Which retired pay plan are you under?

There are four retired pay plans for computing length-of-

service retired pay. They are Final Pay, High-3, REDUX,
and the Blended Retirement System (BRS). Your Date of
Initial Entry into Military Service (DIEMS), determines your
retired pay plan. Your DIEMS is the earliest date of
enlistment, induction or appointment in a regular or reserve
component of a uniformed service as a commissioned
officer, warrant officer, or enlisted member. It is rarely the
same as your basic active service date (BASD) and usually
earlier than your pay entry basic date (PEBD). Situations
where the DIEMS date will be earlier than the PEBD
include:

• United States Military Academy graduates — The DIEMS is the date the Soldier entered the Academy, or the
date the Soldier signed up for any active or reserve service before entering the Academy. Use the date from the
Academy transcript, or four years before the date of regular army commission, whichever is earlier. NOTE:
Academy time is not creditable for retired pay purposes (for officers).
• Reserve Officers Training Corps (ROTC) — The DIEMS is the earliest of: 1) the date the Soldier began a ROTC
scholarship program, 2) the date the Soldier enlisted as a Reserve member in the Senior ROTC program, or 3)
the date the Soldier signed up for any active or reserve service before entering the ROTC program. Proof of an
ROTC scholarship will be found on DA Form 597 (Army Senior Reserve Officer Training Corps [ROTC]
Scholarship Cadet Contract). Senior ROTC course enrollment can be proven by the DD Form 4
(Enlistment/Reenlistment Document—Armed Forces of the United States), or DA Form 61 (Application for
Appointment), whichever is earlier. The DA Form 61 cannot be used to verify enrollment in the Senior ROTC
course during the month of September 1980. NOTE: ROTC time is not creditable for retired pay purposes
although any reserve time served while also a member of the ROTC program is creditable for basic pay purposes.
• Break in service — The DIEMS is the date the Soldier initially became a member of a uniformed service, any
branch or component, even if the Soldier had a break in service and reentered at a later date.
• Delayed Entry Program (DEP) — The DIEMS is the date the Soldier signed up for the DEP, not the date the
Soldier came on active duty. Use the date of signature on DD Form 4 (Enlistment/Reenlistment Document—
Armed Forces of the United States).
• Direct Commissioning Program — Use the date of signature on DA Form 71 (Oath of Office—Military Personnel).

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c. Service creditable for percentage purposes

All retired pay plans use “service creditable for percentage purposes” in their formulas. In addition to credit for your active
duty service, you may receive credit for certain inactive reserve points and, for officers, medical or dental school. Before
receiving credit for the additional time, you must first qualify for retirement by completing 20 years of active duty. For a
complete explanation of service creditable for percentage purposes, see paragraph 0103 of DODFMR 7000.14-R. Medical
and dental officers should also read paragraph 010101, Volume 7A DODFMR 7000.14-R. Reserve Component Soldiers
may also find an explanation on the reverse side of their annual Chronological Statement of Retirement Points (DA Form
5016 or NGB Form 23).

d. Types of retirement plans:

1. Final Pay. DIEMS before September 8, 1980. Compute using the following formula: Service creditable for percentage
purposes X 2-1/2 percent X final base pay = retired pay.

a) These Soldiers receive a percentage of their final base pay. Therefore, they should take care not to retire just before an
increase in their base pay would occur. For example, a sergeant major with 23 years and 10 months who retires on April
1st may wish to wait until June 1st to retire, so their retired pay will be based on the final month’s basic pay for a sergeant
major with over 24 years, versus over 22 years.

b) Active duty officers who retire under the Final Pay plan with less than 10 years of commissioned service retire in their
highest enlisted or warrant officer grade satisfactorily held. They receive a percentage of the final base pay that
corresponds to the retired grade and years of service at retirement. Reserve officers retiring at age 60 retire at the highest
grade held satisfactorily for the minimum period required by law.

c) Officers who have 10 years of commissioned service, but retire before completing the required time in their current
commissioned officer grade without an approved waiver, will retire at the next lower grade and receive a percentage of the
final base pay that corresponds to the lower grade and years of service at retirement. This is not applicable to Reserve
officers (see para (b) above).

d) Soldiers under the Final Pay plan retiring on the same day as a basic pay rate change (e.g., retire January 1 with last
day of active duty on December 31), may be eligible to have their retired pay calculated on the new pay scale. Officers
who retire voluntarily use the new pay scale as long as they qualify for retirement at least one day before their retirement
date. Enlisted Soldiers use the new pay scale. Warrant officers cannot use the new pay scale. See paragraph 0104 of
DODFMR 7000-14.R (DOD Financial Management Military Pay Policy and Procedures-Retired Pay) for details on
mandatory and disability retirements; http://www.dtic.mil/whs/directives/corres/dir.html.

e) Cost-of-living adjustment (COLA)—If your DIEMS is before September 8, 1980, you will receive an annual COLA
representing the difference between the Consumer Price Index (CPI) for the third quarter of one calendar year and the
third quarter of the next. The COLA is normally effective December 1 and payable the first working day of January. The
first COLA after retirement will be a partial one because you will not have been retired for the full COLA calculation period.
Thereafter, you will receive a full COLA.

f) How to validate and correct DIEMS— Active Army Soldiers with supporting documentation, may contact the brigade or
installation Personnel Automation Section (PAS) point of contact to correct their DIEMS via the 4331-DIEMS DATE
transaction in ePASSR. Approved brigade or installation PAS point of contacts are responsible for validating all supporting
documentation. The ePASSR transaction provides approved Personnel Automation Section (PAS) and brigade point of
contacts the ability to update both TAPDB and eMILPO. PAS and Brigade approved users can submit DIEMS related
tickets to HRC’s Field Services Division (FSD) at https://www.fsd.hrc.army.mil/login.aspx. Supporting documentation must
be included with each ticket request.

Individual Ready Reserve and Individual Mobilization Augmentee Soldiers with supporting documentation may contact the
Human Resource Command, Personnel Action Branch of the Soldier, to correct the DIEMS.

16
Army Reserve TPU and AGR Soldiers with supporting documentation may contact their Troop Program Unit. The unit can
correct the DIEMS in RLAS (Regional Level Accounting System). The DIEMS is shown as "Initial Entry Military" under
Service Data in Personnel Maintenance in RLAS.

Army National Guard Soldiers should provide supporting documentation to their servicing personnel office for processing
a correction.

2. High-3 Pay Plan. DIEMS between September 8, 1980 and July 31, 1986. Service creditable for percentage purposes X
2-1/2 percent X average of highest 36 months of base pay = retired pay.

a. In most cases (see exceptions below), under the High-3 formula, the basic pay base is the average of the monthly
basic pay rates you received for the 36 months before your retirement.

b. Commissioned officers who retire with less than 10 years of commissioned service and less than 30 years of total
service will use only enlisted basic pay in the calculation of their highest 36 months of basic pay (§1407, Title 10 USC).
The enlisted basic pay corresponding to the member’s years of service for the 36 months before retirement will be used.
NOTE: Commissioned warrant officer time may be used to meet the 10-year commissioned service requirement.

c. Commissioned officers under the High-3

formula who retire with 10 or more years of
commissioned service, but who fail to meet the
service-in-grade requirements, will retire at the
next lower grade served on active duty
satisfactorily for at least six months.

d. If you serve on active duty for less than 36

months (e.g., retire for disability), the basic pay
base is the amount of monthly basic pay you
received during the period you were on active
duty divided by the number of months, including
any fraction, that you served on active duty.

e. COLA—If your DIEMS is between September

8, 1980 and July 31, 1986, you will receive an
annual COLA representing the difference between the Consumer Price Index (CPI) from the third quarter of one calendar
year to the third quarter of the next. The retired pay COLA is normally effective December 1 and payable the first working
day of January. The first COLA will be a partial one because you will not have been retired for the full COLA calculation
period. Thereafter, you will receive the full COLA.

f . For more information on calculating the average of the highest 36 months of basic pay, see paragraph 0301 of
DODFMR 7000.14-R; http://www.dtic.mil/whs/directives/corres/dir.html.

3. High-3 or REDUX pay plan. DIEMS between August 1, 1986 and December 31, 2017. Soldiers with a DIEMS during
this period were automatically covered under the High-3 retired pay plan discussed in paragraph 2 above. Soldiers were
given the option to have their retired pay calculated under the REDUX formula in return for a $30,000 Career Status
Bonus (CSB) payable at the 15-year mark of active duty. To be eligible, Soldiers were required to qualify under Service
regulations for retention to 20 years and must have agreed to serve a total of 20 years. (NOTE: As of 31 December 2017,
the Career Status Bonus became obsolete).

Soldiers who received the $30,000 CSB have their retired pay calculated under the REDUX formula as follows: Service
creditable for percentage purposes X (2 percent per year for years 1 through 20, 3.5 percent per year for years 21 through
30, and 2.5 percent thereafter) X the average of the highest 36 months of basic pay. Paragraphs 2a through 2d above
also apply to calculation of the highest 36 months of basic pay for the REDUX plan. A Soldier who accepted the $30,000
bonus and later retires for disability will use the High-3 formula for the length-of-service portion of retired pay.

17
Cost of Living Adjustment (COLA): Members who retire under the REDUX pay plan (including Soldiers who retire for
disability after having made a CSB election, even though their retired pay will be calculated under the High-3 plan),
receive reduced COLAs, equal to the Consumer Price Index (CPI) minus 1 percent, until age 62, at which time they
receive a one-time catch-up COLA. They then revert to the CPI minus 1 percent COLA.

4. Blended Retirement System (BRS). Service creditable for percentage purposes X 2 percent X average of highest 36
months of basic pay = retired pay.

The Fiscal Year 2016 National Defense Authorization Act created a new military retirement system that blends the
traditional retirement pay with a defined contribution to the Service members’ Thrift Savings Plan account. All members
serving as of December 31, 2017, were grandfathered under the legacy (High 3) retirement system. Active Component
Service members who had fewer than 12 years of service, and Reserve Component Service members who had fewer
than 4,320 retirement points prior to January 1, 2018, were permitted to opt into the BRS or remain in the legacy
retirement system. All Service members who entered the military on or after January 1, 2018, were automatically enrolled
in Blended Retirement System. The new system has three elements: a 401(k)-style component with DOD matching
funds, a mid-career continuation pay bonus, and a traditional retirement annuity. Members retiring under BRS may also
elect to receive a lump sum payment at retirement of future retired pay. This lump sum must be requested at least 90
days before retirement and reduces the member’s monthly retired pay. Use the MyArmyBenefits BRS calculator to
estimate what the lump sum would be and the impact on monthly retired pay.

3-2 DISABILITY RETIREMENT

If you may retire for disability, you should attend the closest RSO’s retirement planning seminar as soon as you enter the
MEB/PEB process. The retirement timeline is short once the Army approves your disability retirement, so early
preparation is important. If you are married, your spouse should also attend.

Soldiers retiring for disability will have their retired pay calculated two ways: based on the appropriate length-of-service
formula (Final Base Pay or High-3) and based on their disability percentage. They will receive whichever is better.
Soldiers who received the CSB and retire for disability will not repay the CSB, and their retired pay will be calculated
under the High-3 formula.

Retired pay using the percentage of disability formula is computed by multiplying the disability percentage by the retired
pay base (final, high 36 month average, or BRS depending on the Soldier’s DIEMS). Soldiers on the Temporary Disability
Retired List (TDRL) will not receive less than 50 percent of their base pay); however, the percentage can be decreased
when the Soldier is placed on the Permanent Disability Retired List (PDRL). Also, be aware that in order to draw
Concurrent Retirement and Disability Pay (CRDP), you must have completed at least 20 qualifying years of service for
retirement.

Let’s look at an example of a retired pay computation for a Soldier with 20 years of service retiring with a 30 percent
permanent disability. Retired pay under the length of service computation (High 3 Pay Plan in this example) would be 50
percent (2-1/2 percent X 20 years) of the average of the 36 highest months of base pay. Retired pay under the disability
computation would be 30 percent of the 36 highest months of base pay. In this example, the Soldier’s retired pay would
be greater using the length-of-service formula (50 percent vs. 30 percent).

Retired pay under a disability retirement for a Soldier who was contracted to the Army after September 24, 1975 will be
taxable.

3-3 COMBAT RELATED SPECIAL COMPENSATION (CRSC)

CRSC is not military retired pay. It is a monthly entitlement, initiated on December 2, 2002, as a tax-free special
compensation for a disability or condition that can be attributed to a combat-related event as defined by the DOD program
guidance. CRSC is available to Retired Soldiers from all components and all Services. The National Defense

18
Authorization Act of 2008 opened CRSC to those who were medically retired. Human Resources Command will
determine whether your disability is combat-related based on the following criteria:

• As a direct result of armed conflict,

• While engaged in hazardous service,
• In the performance of duty under conditions simulating war, or
• Through an instrumentality of war.

To apply for CRSC, review the steps on HRC’s CRSC

webpage at
https://www.hrc.army.mil/content/Apply%20for%20CRSC.

CRSC and CRDP are mutually exclusive. DFAS-CL will

establish the more advantageous payment for Retired
Soldiers who qualify for both, and then will offer an annual
open season to allow Retired Soldiers to switch between
programs. Open seasons are normally conducted in January.
Consult the DFAS website to confirm the date:
http://www.dfas.mil.

More in-depth CRSC information is available online at

https://www.hrc.army.mil/content/CRSC or (888) 276-9472.

3-4 CONCURRENT RETIREMENT AND DISABILITY PAY (CRDP)

Prior to January 1, 2004, retired Service members were required by law to waive a dollar of retired pay for every dollar on
VA disability compensation they received. Under CRDP, retired Service members who qualify receive both pays. Retired
Service members are eligible for CRDP if they are entitled to collect retired pay, have a VA service-connected disability of
50 percent or higher and have twenty or more qualifying years of service for retirement. For members of the Reserve
Components this means that they must be in receipt of a “20-Year Letter”, receiving retired pay and be rated 50 percent
disabled or higher by the VA. Members retired under the Temporary Early Retirement Authority are also eligible if they
have at least a 50 percent VA disability. CRDP is a taxable benefit.

If you have any questions regarding your CRDP payment from DFAS, call (800) 321-1080. For questions concerning
disability ratings or disability compensation, please contact the VA at (800) 827-1000.

References:

1. DFAS https://www.dfas.mil/retiredmilitary/disability/crdp.html

2. The MyArmyBenefits retirement calculator located at https://myarmybenefits.us.army.mil/.

3-5 TAXES

Many Soldiers are surprised by the amount of taxes they pay when they retire from the military. In most cases, you will
make more money in retirement, especially when considering military retired pay. While you were in uniform, Basic
Allowance for Housing and Basic Allowance for Subsistence were not taxable. Military retired pay and post-retirement
employment will likely push you up into a higher marginal tax bracket. Some key taxes to understand during military
retirement are:

a. Federal taxes. Your retired pay, like other income, is subject to federal income taxation unless wholly or partially
exempted by statute. DFAS-CL computes the amount to be withheld from your retired pay and withholds this amount.
Your federal income tax withholding will be determined by the DD Form 2656 you complete at the time of your military
retirement. This information establishes the marital status, exemptions and, for some, non-tax status used to calculate
how much money to withhold from your taxable income for your annual tax liability. Some Soldiers who retire for disability

19
and receive pay based on their disability percentage may have gross retired pay that is not subject to federal tax
withholding.

The amount of tax withheld used to be determined from a wage bracket withholding table and was based on whether you
are married or single and the number of exemptions claimed. A new federal law changed all that. You still submit an IRS
Form W-4, but it’s more complicated, so plan on gathering some personal and family income and tax data before you do
this. The IRS tax withholding calculator at https://www.irs.gov/individuals/tax-withholding-estimator will help.

If you are not a citizen of the United States and do not reside in the United States, nonresident alien tax will be withheld
from your retired pay instead, and you will be informed at the end of each calendar year as to the amount withheld.

Taxable income from retired pay does not include SBP premiums. For example, if a Retired Soldier's non-disability retired
pay is $36,000 a year and is reduced by $2,300 a year for SBP premiums, only the reduced retired pay of $33,700 is
reported to the IRS as taxable income.

For additional information, go to https://www.dfas.mil/retiredmilitary/manage/taxes/fitw.html. IRS Form W-4 may be

obtained from any office of the Director of Internal Revenue and most U.S. Post Offices; as well as from the IRS Web site,
https://www.irs.gov/.

Answers to Federal tax questions may be obtained from your local IRS office, information is available at
https://www.irs.gov/help/contact-your-local-irs-office.

b. State taxes. Some states exempt all or a portion of retired pay from income taxation, or have no state income tax. You
must specify an amount of state taxes to be withheld.

Some states exempt disability retired pay in the same manner as the federal government. In all states, disability
payments received from the VA are exempt from taxation.

Few states, if any, permit a retirement income credit of the type granted by the federal government. To learn which states
tax retired pay or how much retired pay is taxed, visit the MyArmyBenefits State fact sheets at
https://myarmybenefits.us.army.mil/Benefit-Library/State/Territory-Benefits.

Requests to withhold state income tax from your retired pay must be made in writing. DFAS can only withhold income tax
for one state at a time and the designated state must have signed the standard written agreement with the Department of
Defense (DOD). If you have a state tax option, and your state taxing authority has an agreement with DOD, you can
use myPay to change your state income tax withholding. Requests must indicate a whole-dollar amount greater than $10
and the state for which to withhold this amount. See https://www.dfas.mil/retiredmilitary/manage/taxes/sitw/ for details.

Because tax obligations vary from state to state, contact your state's department of revenue regarding taxability of your
military retired pay. By law, State income tax withholding requests are voluntary and revocable at any time.

The IRS or tax authorities of the state government concerned make determinations in each individual tax case. Answers
to state tax questions may be obtained from the applicable state website, refer to https://www.taxadmin.org/state-tax-
agencies.

For further details on Survivor Benefit Plan and tax issues, Soldiers should consult a legal assistance attorney, a tax
counsel, an official of the IRS, or State tax authorities.

c. Social Security and Medicare taxes. Your retired pay is not subject to Social Security or Medicare tax withholding
because it is “deferred” income rather than “earned” income.

3-6 OTHER RETIRED PAY INFORMATION

Soldiers’ retired pay is processed by DFAS’ Cleveland Center. DFAS-CL can be reached at (800) 321-1080 (0800-1700

20
Eastern Time), or online at https://www.dfas.mil/.

Some basic retired pay facts:

a. Pay Day. The 2011 NDAA requires military retiree pay to be processed on the first day of the month. When that day
falls on a weekend or national holiday, the pay date is moved to the previous business day.

b. Retiree Account Statement (RAS). You will receive a RAS (similar to your Leave and Earnings Statement) when you
retire. Your Retiree Account Statement (RAS) is a two-page document issued by DFAS that summarizes your pay,
benefits and deductions at a specific point in time. It is a description of what you can expect on the next pay date. A
monthly electronic Retiree Account Statement (RAS) is available to all military retirees currently receiving retirement
payments. The RAS is available on myPay, the official online account management system for military members and DoD
employees at https://mypay.dfas.mil/. The statements will be available by the first of each month and you will be able to
access up to 12 months of statements. Please register a civilian email address in your myPay account prior to
retirement, so DFAS can send you an email reminder each month when your statement is available. In addition to the
monthly RAS, all Retired Soldiers receive a RAS whenever you make a change to your account and an annual RAS
each December.

c. Electronic Funds Transfer. Federal law requires all members to use the US Department of the Treasury’s direct
deposit system to receive their retired pay. International direct deposit is available to Retired Soldiers and annuitants
residing in most overseas locations. Contact DFAS-CL for more information.

d. Allotments. You may have up to six “discretionary” allotments and unlimited “non-discretionary” allotments as long as
there is sufficient net retired pay from which to deduct discretionary allotments. Discretionary allotments include payment
of insurance premiums for health, auto or life insurance; voluntary payments to a dependent, former spouse or relative;
deposits into a financial institution, mutual fund or investment firm; and payment of an auto or personal loan, mortgage,
rent and consumer debts. Non-discretionary allotments include US Government; payment of delinquent taxes;
contributions or repayment of loans to Army Emergency Relief (AER); and court-ordered garnishments. If you wish to start
or continue purchasing bonds through payroll deduction, you must establish an online account with Treasury Direct
(www.treasurydirect.gov). Once you have a TreasuryDirect account, you may request that DFAS establish a new
discretionary allotment using your TreasuryDirect account number. The amount does not have to follow bond plan
amounts previously used. Only the TreasuryDirect website will be able to validate whether your bonds have been issued.
You may change your allotments as frequently as desired after retirement, as long as you do not exceed six discretionary
allotments.

e. Electronic pay changes. For the best service, use myPay (https://mypay.dfas.mil) to make changes to your retired pay
account. Ensure you change your email address in your myPay account from your DOD Enterprise Email address to a
commercial address before you retire, so DFAS can continue to communicate with you.

3-7 THRIFT SAVINGS PLAN (TSP)

TSP is a retirement savings and investment plan for federal employees and members of the uniformed services, including
the Ready Reserve. It offers the same types of savings and tax benefits that many private corporations offer their
employees under 401(k) plans.

The TSP is a defined contribution plan, meaning that the retirement income you receive from your TSP account will
depend on how much you put into your account during your working years and the earnings accumulated over that time.
You must stop contributing to your military TSP at retirement. You may leave your TSP account alone and draw returns
when permitted, or roll it into an IRA, or roll a qualified retirement savings account into your TSP account. If you decide to
leave your money in the TSP, you will be required to start withdrawing your money by April 1 of the year following the year
you turn age 70½. You may resume active TSP participation if you become a federal civilian employee, and military and
civilian TSP accounts may be combined. The TSP website offers in-depth tools and information at www.tsp.gov.

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3-8 DEFENSE ENROLLMENT ELIGIBILITY REPORTING SYSTEM (DEERS)

DEERS is a computerized database containing information on military sponsors and their beneficiaries who may be
eligible for medical care and other military benefits. The database is automatically updated when a new ID card is issued.

3-9 MILITARY IDENTIFICATION AND PRIVILEGE CARDS

a. Military Identification and Privilege Cards (aka ID Cards) are issued to Retired
Soldiers and eligible family members as a means of identification and as
authorization for various benefits and privileges. In August 2020, the Department
of Defense began to issue the new Uniformed Services Identification Card for
Retired Soldiers and their dependents. The roll out is expected to be complete in
mid-2021. The new USID Cards will be issued to Retired Soldiers who are
entitled to retired pay, even if they have waived their military retired pay in favor
of VA compensation, or due to retirement from the federal government. It will
also be issued to Gray Area Retired Soldiers. The new Uniformed Services
Identification and Privilege Card is issued to eligible family members of living
and deceased Retired Soldiers.

The Uniformed Services Identification and Privilege Card identifies the family member as being eligible for commissary,
Exchange and theater privileges, as well as medical care. Medical care
at military facilities is provided on a space-available basis. Military and
civilian health care benefits are coordinated through the TRICARE
program, https://www.tricare.mil.

b. Military ID cards for Retired Soldiers and eligible dependent family

members contain vital personal information, such as the cardholder’s
height, weight and date of birth, as well as a photo. ID cards also
contain the DoD ID number and DoD benefits number of the sponsor
and cardholder (only family member ID cards contain both numbers).
Family member ID cards will change when the cardholder’s expired ID
card is renewed.

c. Retired Soldiers and eligible family members who are enrolled in DEERS may apply for an ID card at any military ID
card issuing facility. Find the nearest facility by visiting: http://www.dmdc.osd.mil/rsl. If not yet enrolled in DEERS (for
example, a new spouse or child), you must present supporting documents such as retirement orders, marriage
certificates, birth certificates, etc. Family members may apply for an ID card without the retired sponsor being present.
However, if not present, the sponsor’s signature must be notarized on the completed application presented to the ID card
issuing facility. To renew or replace ID Cards, you can sign into the ID Card Office Online at
https://www.dmdc.osd.mil/self_service/rapids/unauthenticated;jsessionid=psxcHPnA6ehxAyYJ99P9thxcq24S1lBVeEeXS
73aehCKeG9com2J!1601138256?execution=e1s1.

d. ID cards for Soldiers in the Retired Reserve and eligible family members will be issued at any ID card-issuing facility
upon presentation of the Notice of Eligibility (NOE) for Non-Regular Retired Pay at Age 60 (20 year letter) and transfer
orders to the Retired Reserve. Reserve Component Retired Soldiers will receive the new USID Card, and their eligible
family members will receive the Uniformed Services Identification and Privilege Card. Entry into DEERS is essential for
proper eligibility verification and future ID card renewal/status changes.

e. The Uniformed Services Identification and Privilege Card is the property of the U.S. Government. It is not transferable,
and must be surrendered by the Retired Soldier or family member upon any change in status that affects eligibility; upon
expiration of the card; or upon request by military authorities. Cards should be returned to Commander, U.S. Army Human
Resources Command, 1600 Spearhead Division Ave, Fort Knox, KY 40122.

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f. Generally, the following individuals are eligible for military ID Cards. The final decision is based on Army regulations and
policies. Always call ahead before traveling to an ID card issuing office.

(1) Retired Soldiers in receipt of retired pay, or who would be in receipt of retired pay if it were not for the offset of retired
pay due to the receipt of VA disability compensation or a civil service retirement annuity.

(2) Spouses of individuals in (1) above.

(3) Certain former spouses of individuals in (1) above.

(4) Children, including stepchildren and adopted children, under age 21, or under age 23 if full-time, unmarried students,
or any age if incapacitated before the age of 21 (or 23, if applicable) and dependent upon the retired sponsor in (1) above
for more than one-half their support

(5) Parents, parents-in-law, and adopted parents, if dependent on the retired sponsor in (1) above for more than one-half
of their support.

(6) Retired Reserve Soldiers (in the Gray Area, not yet in receipt of retired pay)

g. Documentation for incapacitated children over 21 and dependent parents must be approved for medical benefits and
entitlements by DFAS-Indianapolis Center. If you have an incapacitated child over the age of 21, you can download the
incapacitated child form, DD Form 137-5, at http://www.dtic.mil/whs/directives/forms/eforms/dd0137-5.pdf. DFAS is the
approving authority for the request. If you have any questions, please call 888-332-7411. You must complete the request
and send it to:

DFAS/IN
ATTN: JMTCB
8899 EAST 56TH ST.
INDIANAPOLIS, IN 46249-0885

Even if the incapacitated child has a permanent condition, the packet must be resubmitted every four years.

3-10 MYARMYBENEFITS (MAB)

MyArmyBenefits resides at https://myarmybenefits.us.army.mil/ and provides over 180 federal and state benefit fact
sheets, organized by topic, military status, and life events. The site also offers planning calculators for retirement, survivor
benefits, deployment and disability compensation estimates
that are accessible using a Common Access Card (CAC) or
Department of Defense Self-Service Logon (DS LOGON).
MAB also provides a help desk for any benefit-related
questions.

The MAB site covers important benefit topics such as the

Blended Retirement System (BRS), Thrift Savings Plan
(TSP), Survivor Benefit Plan (SBP), and Department of
Veterans Affairs (VA) disability compensation issues. MAB
also provides the information and procedures for claiming
compensation such as Combat Related Special
Compensation (CRSC) or Concurrent Retirement and
Disability Pay (CRDP), Social Security compensation, and
other Federal Benefits. MAB also provides Soldiers comprehensive information on state-provided benefits in the state fact
sheets, which can help them determine where to live based on their projected tax liabilities and benefits. In addition, MAB
provides comprehensive military resource locators for 54 states and territories and 11 countries.

MyArmyBenefits is an essential resource in the retirement planning process. Soldiers considering retirement can use the

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MAB calculator to receive a personalized retired pay estimate based on the information in the member’s official personnel
file. The MAB calculator uses the Soldier’s CAC or DS LOGON to pull the needed information from the Integrated Total
Army Personnel Database.

3-11 ARMY EMERGENCY RELIEF

Retired Soldiers are eligible to receive assistance from Army Emergency Relief (AER) and may also contribute to AER by
allotment from their retired pay. Visit www.aerhq.org for more details.

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Chapter 4

MEDICAL CARE

4-1 TRICARE PROGRAMS–MEDICAL CARE AFTER RETIREMENT

a. TRICARE background

The Military Health System (MHS) is composed of the health care resources of the uniformed services, their military
treatment facilities (MTFs), and supporting civilian contractors that provide networks of civilian health care professionals,
institutions, pharmacies and suppliers to provide access to high-quality health care services globally. The combination of
the Department of Defense, MTFs and contractors make up the TRICARE program. The TRICARE program executes the
Title 10 United States Code (USC) statutory medical and dental entitlements.

The TRICARE program is statutorily mandated and further defined by Title 32 USC, Code of Federal Regulations, Part
199, Department of Defense Directives/ Instructions (DODD/DODI) and Assistant Secretary of Defense for Health Affairs
policies. TRICARE serves approximately 49.4 million beneficiaries worldwide, comprising statutorily eligible full-time active
duty service members, activated National Guard and Reserve members, military retirees, their eligible family members,
survivors, certain former spouses worldwide and other qualified persons who have purchased premium-based TRICARE
coverage.

This guide provides basic information about the

TRICARE program. To ensure currency of the
information due to the continual addition of entitlements
and the constant evolution of the programs and
contracts to support those entitlements, basic
information is supported with URLs for access to the
latest information on the official government and
TRICARE contractor websites.

Beneficiaries can access TRICARE information or learn

about their health plan options by going to the official
TRICARE website at www.tricare.mil or the official
TRICARE Smart site: www.tricare.mil/tricaresmart/. In
general, the TRICARE health plan option authorized and
appropriate for the beneficiary is dependent on the
beneficiary category, the sponsor’s military status, where
the beneficiary lives and their personal preferences.

b. TRICARE and Retired Soldiers

Retired Soldiers and their eligible family members (spouses and children) are eligible for TRICARE. Your eligibility status
and the accurate and timely payment of your claims are based on your data in the Defense Enrollment Eligibility Reporting
System (DEERS). You must ensure that your information, and the information of your eligible family members, is accurate
and up-to-date in DEERS at all times. Some updates, such as mailing or email address or phone number changes, can be
made by logging in at https://milconnect-pki.dmdc.osd.mil/milconnect/. This is especially important to do when you retire.
Visit the nearest DEERS office and update your DEERS profile. DEERS/ID Card offices can be located at
https://www.dmdc.osd.mil/rsl/appj/site.

1. Retired Soldiers under age 65, even if Medicare eligible, may choose to obtain care under any of the following
TRICARE plans:

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 • TRICARE Prime: Available in the United States in Prime service areas. A managed care option offering the most
affordable and comprehensive coverage.

• TRICARE Select: Available within the United States. A fee-for-service plan available in the United States. Most
freedom of choice.

• TRICARE Select Overseas: Available overseas. A fee-for-service plan, which allows you the most flexibility in
getting care, but will cost you out-of-pocket expenses.

• TRICARE Plus: Available globally. A primary care program offered at some military hospitals and clinics. Each
hospital or clinic leader decides if TRICARE Plus is available at their location and you must enroll to participate.
Enrollment is only for the hospital or clinic where you enrolled. Restrictive and limited based on MTF capability
and capacity.

• Uniformed Services Family Health Plan (USFHP): Available at six locations in the United States. A TRICARE
Prime option available through networks of community-based, not-for-profit health care systems in six areas of the
United States. For locations and more information, visit https://usfhp.net/.

• TRICARE Retired Reserve (TRR): Available globally. A premium-based health plan that qualified retired
Reserve members under age 60 and survivors may purchase.

• TRICARE Young Adult (TYA). Unmarried dependent children who have lost eligibility for TRICARE at age 21 or
up to age 23 if unmarried and in school, may qualify to purchase TYA coverage, a premium-based program which
provides TRICARE coverage until reaching age 26. Whether opting for TYA Prime or TYA Standard, enrollment is
required and premiums must be paid.

You must evaluate all of your needs and the available health plan options to determine the appropriate health plan that fits
your health needs. You may review health coverage information on www.tricare.mil, and then contact a local or regional
Beneficiary Counseling and Assistance Coordinator (BCAC) to seek additional assistance. BCACs are located in all
Military Treatment Facilities and can be located at www.tricare.mil/contactus.

4-2 TRICARE SELECT

TRICARE Select:

• Is a fee-for-service plan
• Requires enrollment
• Allows beneficiaries to obtain care from any TRICARE-authorized provider, which includes both network and non-
network providers. The type of provider seen determines your out-of-pocket costs and if you have to file your own
claims. When a network provider is used, the beneficiary pays less out of pocket and the provider will file claims
for the beneficiary.
• TRICARE Select Overseas is an option for outside the United States. See
https://tricare.mil/Plans/HealthPlans/TSO for more information.
• Out-of-Pocket Costs: Starting January 1, 2021, Retired Soldiers and their family members pay annual TRICARE
Select enrollment fees, which are adjusted annually. After the annual deductible, beneficiaries are responsible for
paying a cost-share for each encounter, up to the catastrophic cap associated with the beneficiary. See
https://tricare.mil/Costs/HealthPlanCosts/TS/RET for specific amounts.
• For information on TRICARE Select, see: https://tricare.mil/Plans/HealthPlans/TS or the TRICARE Select
Handbook on the official TRICARE Smart site: www.tricare.mil/tricaresmart/.

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4-3. TRICARE PRIME

TRICARE Prime:

• Is a managed care option offering comprehensive coverage.

• Requires enrollment.
• Is available in areas known as Prime Service Areas, which are built around DoD Service MTFs and designated
Base Realignment and Closure (BRAC) locations.
• Is required for all active duty service members; however, TRICARE Prime (where available) is an option for all
non-active duty beneficiaries who are not entitled to Medicare Part A and Medicare Part B due to age (65). If a
non-active duty beneficiary age 65 or older is not eligible for premium-free Medicare Part A and only has
Medicare Part B or an active duty family member only has Medicare Part A, or has Medicare Part A & Medicare
Part B, they remain eligible for TRICARE Prime. Non-active duty beneficiaries under age 65 and entitled to
Medicare Part A & Medicare Part B remain eligible for TRICARE Prime, TRICARE Select and the USFHP.
TRICARE beneficiaries entitled to Medicare Part A and who have Medicare Part B regardless of age or place of
residence are eligible for TRICARE for Life (see below).
• As a TRICARE Prime enrollee, you will be assigned, or may select, a primary care manager (PCM) who oversees
all of your medical care either at an MTF or from TRICARE civilian network providers. TRICARE Prime has
access standards for care to include wait times for urgent, routine, and specialty care.
• Other TRICARE Prime benefits include enhanced vision and preventive services and travel reimbursement for
some specialty care. If a referral for specialty care requires travel of over 100 miles, the TRICARE Prime enrollee
may be reimbursed for lodging and reasonable travel expenses under the TRICARE Prime Travel Benefit.
• TRICARE Prime Overseas is not available to retired beneficiaries.
• Out-of-Pocket Costs: Retirees and their family members pay annual TRICARE Prime enrollment fees, which are
adjusted annually (see https://tricare.mil/Costs/HealthPlanCosts/PrimeOptions for current enrollment fee
amounts) and have cost-shares when using civilian providers or pharmacies. Care received without a referral
under TRICARE Prime is subject to denial of payment or point-of-service (POS) cost-share.
• For additional information on TRICARE Prime, see https://tricare.mil/Plans/HealthPlans/Prime or the TRICARE
Prime Handbook on the official TRICARE Smart site www.tricare.mil/tricaresmart/.

4-4. TRICARE PLUS

TRICARE Plus:

• Is an MTF commander’s program that provides MTF in-house primary care to TRICARE Plus enrollees. All Title
10 USC beneficiaries that are authorized MTF care are eligible for TRICARE Plus enrollment with the exception of
those already enrolled in TRICARE Prime or one of the six Uniformed Services Family Health Plans (see below).
There is no age restriction and eligibility for the program applies to both Medicare-eligible and non-Medicare-
eligible beneficiaries. MTF commanders determine if their MTF will have a TRICARE Plus program and the
number of TRICARE Plus enrollees for which capability and capacity exists at their MTF.
• Enrollment is required, but the enrollment is not portable to any other MTF or TRICARE program.
• TRICARE Plus applications can only be accepted after the MTF Commander has determined that additional
capacity and capability exists after all Prime Service Area (PSA) TRICARE Prime eligible beneficiaries have been
afforded the opportunity to enroll in Prime at the MTF. Additionally, the MTF commander will also determine the
geographical area where they will accept TRICARE Plus applications. The beneficiary must contact the MTF
directly to see if TRICARE Plus is available at that MTF.
• Out-of-Pocket Costs: There is no enrollment fee for TRICARE Plus. There are no out-of-pocket costs for
healthcare received within the MTF. However, unlike TRICARE Prime, any cost of civilian healthcare that is
referred out of the MTF is the sole responsibility of the beneficiary. The out-of-pocket costs are determined by the
beneficiaries’ basic health plan or their other health insurance (i.e., employer plan, dependent parents and
Secretarial Designees).

27
 • For information on TRICARE Plus, see: https://tricare.mil/Plans/SpecialPrograms/Plus or the TRICARE Standard
Handbook on the official TRICARE Smart site: www.tricare.mil/tricaresmart/.

4-5. UNIFORMED SERVICES FAMILY HEALTH PLAN (USFHP)

USFHP is a TRICARE Prime option offering Prime health care coverage to military retirees and their eligible family
members under the age of 65. For more information on USFHP, see: www.tricare.mil/usfhp. There are six not-for-profit
health care organizations that sponsor the USFHP in different regions throughout the United States. The USFHP’s
sponsoring organizations and covered areas are:

• Johns Hopkins Medicine: Serving MD, Washington D.C., parts of PA, VA and WV
• Martin’s Point Health Care: Serving ME, NH, VT, NY and the Northern tier of PA
• Brighton Marine Health Center: Serving MA, incl. Cape Cod, RI, and northern CT
• St. Vincent Catholic Medical Centers: Serving parts of NY (incl. NYC), all of NJ, southeastern PA, western CT
• CHRISTUS Health: Serving southeast TX, southwest LA
• Pacific Medical Centers (PACMED Clinics): Serving the Puget Sound area of WA State

4-6. TRICARE RETIRED RESERVE (TRR)

TRR is a premium-based health plan available for purchase by qualified retired Reserve Component (RC) members under
the age of 60, and qualified survivors. There are two types of coverage: member-only or member-and-family.

• Qualified persons may purchase TRR online through the Beneficiary Web Enrollment website or by calling your
regional contractor. Members will need a Common Access Card (CAC), DFAS (myPay) Account, or a DoD Self-
Service Logon (DS Logon). More information is available at
https://tricare.mil/FormsClaims/Forms/Enrollment/TRS_TRR.
• Retired RC members do not qualify to purchase TRR if they are eligible for, or enrolled in, the Federal Employees
Health Benefits (FEHB) program.
• TRR-covered beneficiaries can obtain care from any TRICARE network or non-network TRICARE-authorized
provider. Care at a DoD MTF is on a space-available basis only.
• For more information on TRR, visit: https://tricare.mil/Plans/HealthPlans/TRR or the TRICARE Choices for
National Guard and Reserve brochure on the official TRICARE Smart site: www.tricare.mil/tricaresmart.
• Out-of-Pocket Costs: A two-month premium payment is required upon enrollment in TRR. Subsequent, monthly
premium payments are required and must be made paid by either an Electronic Funds Transfer (EFT) or recurring
credit/debit card.
• TRICARE Select annual deductibles and cost shares apply. There are no costs when receiving care in an MTF.
See https://tricare.mil/Costs/HealthPlanCosts/TRR for premiums and out-of-pocket costs for care.

4-7. TRICARE YOUNG ADULT (TYA)

TRICARE Young Adult is an option for unmarried, adult children, at least age 21, but not yet 26 years old, who have "aged
out" of regular TRICARE coverage. If enrolled in a full course of study at an approved institution of higher learning and the
sponsor provides more than 50 percent of your financial support, the adult child’s eligibility may not begin until age 23 or
upon graduation, whichever comes first. The adult child is not eligible for TYA if covered by an employer-sponsored health
plan. TYA provides comprehensive medical and pharmacy benefits no matter whether you choose the Prime Option or the
Select Option. For more information, visit https://tricare.mil/Plans/HealthPlans/TYA.

4-8. TRICARE FOR LIFE (TFL)

TRICARE For Life is Medicare-wraparound coverage for TRICARE-eligible beneficiaries who have Medicare Part A and

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B. Beneficiaries 65 and older who are entitled to Medicare Part A and have Medicare Part B are automatically covered by
TRICARE for Life. Regardless of the option, Medicare becomes the primary payer and TRICARE, the secondary payer.
Enrollment not required. You must pay Medicare Part B premiums. TFL is available worldwide, and TRICARE pays after
Medicare in the U.S. and U.S. Territories. TRICARE is the first payer in all other overseas areas. For more information,
visit https://tricare.mil/Plans/HealthPlans/TFL.

4-9. TEMPORARY DISABILITY RETIRED LIST (TDRL) OR PERMANENT DISABILITY RETIRED LIST
(PDRL) BENEFICIARIES

Service members on TDRL or Permanent Disability Retired List (PDRL) are eligible for TRICARE benefits for retired
service members. Family members are also covered by TRICARE, provided they are registered in DEERS.

Additionally, medically retired members enrolled in the Federal Recovery Coordination Program (FRCP) are eligible for
the same medical and dental care for that severe or serious illness or injury that would be available to an active duty
service member when the care is not reasonably available through the Department of Veterans Affairs (VA).

4-10. TRICARE PHARMACY BENEFITS

TRICARE prescription drug coverage is available to all TRICARE-eligible beneficiaries who are enrolled in DEERS.
Eligible beneficiaries include:

• Active duty service members and their families

• Activated National Guard and Reserve Members called or ordered to active duty greater than 30 days and their
families
• Retired service members and their families
• Retired National Guard and Reserve Members and their families (age 60 and above and receiving retired pay)
• Survivors, widows/widowers and certain former spouses
• Medal of Honor recipients and their families
• Beneficiaries covered by TRICARE Reserve Select, TRICARE Retired Reserve, or TRICARE Young Adult

4-11. FEDERAL EMPLOYEES DENTAL AND VISION INSURANCE PROGRAM (FEDVIP)

The Federal Employee Dental and Vision Insurance Program (FEDVIP) is a voluntary, enrollee-pay-all dental and vision
program that offers eligible participants a choice between 11 nationwide and regional dental carriers and five vision
carriers, with some plans offering both high and standard options. Enrollee-pay-all means there are no government
contributions toward premiums. High and Standard plan options are available with varying monthly premium rates based
on coverage, and premiums can be deducted from your retired pay. Eligibility for FEDVIP is verified through DEERS.

If you are an active uniformed service member and are retiring, you are now eligible to enroll in FEDVIP dental coverage
and, if enrolled in a TRICARE health plan, FEDVIP vision coverage. You are considered newly eligible for the program
and may enroll between 31 days prior to your military retirement date and 60 days following. Note: If you wish to prevent a
gap in dental coverage between your active duty or reserve dental plan and your new FEDVIP plan, you must enroll prior
to your retirement date.

For more information, see https://www.benefeds.com/education-support/coverage.

a. FEDVIP dental coverage

You are eligible to enroll in FEDVIP dental coverage as the sponsor, or primary enrollee, and add your eligible family
members, if you are a:

• Retired member of the uniformed services receiving retired or retainer pay

• Member of the Retired Reserve (including a gray area reservist who is under age 60 and entitled to retired pay,
but might not yet receiving it)

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 • Medal of Honor recipient (not on active duty)
• Survivor of a retired uniformed service member, Retired Reserve member, or Medal of Honor recipient (if you are
a surviving spouse, you must not be remarried)
• TRICARE For Life beneficiary (however, you are not eligible if you or your service member sponsor are on active
duty for more than 30 days or you are a transitional survivor)

b. FEDVIP vision coverage

In addition to meeting the eligibility criteria below, you must also be enrolled in a TRICARE health plan to be eligible for
vision coverage under FEDVIP. You are eligible to enroll in FEDVIP vision coverage as the sponsor, or primary enrollee,

and add your eligible family members, if you are a:

• Family member of an active duty uniformed service member

• Retired member of the uniformed services receiving retired or retainer pay
• Member of the Retired Reserve (including a gray area reservist who is under age 60 and entitled to retired pay,
but might not yet receiving it)
• Medal of Honor recipient (not on active duty)
• Member of the reserve components enrolled in TRICARE Reserve Select
• Survivor of a retired uniformed service member, Retired Reserve member, Medal of Honor recipient, reserve
component member deceased in the line of duty, or Selected Reserve member (if you are a surviving spouse, you
must not be remarried)
• TRICARE For Life beneficiary (however, you are not eligible if you or your service member sponsor are on active
duty for more than 30 days or you are a transitional survivor)

You are eligible to enroll in FEDVIP vision coverage as the primary enrollee, but you may not add your family members, if
you are a former spouse who has not remarried.

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CHAPTER 5

DEPARTMENT OF VETERANS AFFAIRS BENEFITS

5-1 GENERAL

Soon after you retire, the VA will send you information on benefit programs available to you (based on their receipt of a
copy of your DD Form 214). You should check with a local VA representative when you have questions about your
entitlements. The VA has certain eligibility criteria based on your period of military service, type of discharge, and
percentage of disability, if applicable. The following information highlights some basic VA entitlements, but it is
recommended that you obtain individual counseling specific to your situation. If you attend the Soldier for Life Transition
Assistance Program, a VA representative will speak with you. Individual counseling is also available at any local VA office.
To reach the nearest VA regional office, call 800-827-1000, or go online to http://www.va.gov. You should also review the
federal and state benefits fact sheets in the Benefits Library at the MyArmyBenefits website at
https://myarmybenefits.us.army.mil/ to learn about all of your
federal and state veterans benefits. You should also visit the
eBenefits website at https://www.ebenefits.va.gov/ebenefits-
portal/ebenefits.portal

5-2 VA DISABILITY COMPENSATION

Retiring personnel may apply to the VA for a service-connected

disability rating. This rating provides you a priority for treatment
in the VA medical system; establishes a record for future
medical evaluations should your medical condition deteriorate;
and could mean you receive a tax-free compensation for medical problems incurred while on active duty. The VA will
assign you a disability rating based on your degree of disability. This can range from zero to 100 percent and is always
based on increments of 10 percent. Federal law sets VA disability dollar amounts, which ranges (for a single retiree) as of
December 1, 2020 from $144.14 for 10 percent to $3146.42 for 100 percent, per month, with additional amounts payable
if other conditions are met. Find current VA compensation rates at https://www.va.gov/disability/compensation-
rates/veteran-rates/ ; or by calling 800-827-1000. These rates typically increase annually, effective December 1, if a COLA
is approved. A 10 percent VA disability rating does NOT mean that you will receive 10 percent of your retired pay from
the VA tax-free. Instead, receipt of VA compensation simply reduces, dollar-for-dollar, the amount of retired pay you
receive if your disability is rated 40 percent of less. VA compensation is tax-free. Exceptions to the dollar-for-dollar
reduction are payments under the Combat Related Special Compensation (CRSC) or Concurrent Retirement and
Disability Pay (CRDP) programs. See details in sections 4-3 and 4-4.

Review your medical records thoroughly and record all medical conditions you experienced during active duty while you
are still on active duty! These conditions will form the basis for your medical review by the VA. Depending on your duty
station at the time of retirement, you may receive a combined Service/VA physical.

If you are a Gulf War veteran, consider obtaining an examination under the DoD Comprehensive Clinical Evaluation
Program (CCEP) or the VA Persian Gulf Registry program.

Forms to file your application for VA disability compensation can be obtained from your RSO or from the VA homepage at
https://www.va.gov/disability/how-to-file-claim/. You may also apply through eBenefits at
https://www.ebenefits.va.gov/ebenefits/homepage. The application procedure takes some time, particularly given ongoing
military operations, but it is extremely important to pursue, as it establishes your record with the VA, and may help your
family establish their eligibility for VA benefits based on your service. You may request free help in preparing and
submitting your VA disability claim from VA-certified benefits experts at several Veterans Services Organizations, such as

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the Disabled American Veterans, the American Legion, the Veterans of Foreign Wars, the Association of the US Army,
and others. Visit https://www.va.gov/disability/get-help-filing-claim/ or contact those organizations for details.

5-3 BENEFITS DELIVERY AT DISCHARGE AND FULLY DEVELOPED CLAIM PROGRAMS

The Benefits Delivery at Discharge (BDD) Program will accelerate receipt of VA disability benefits since it allows a service
member to apply for disability prior to retirement. It is a time-sensitive process and must be started 90-180 days prior to
retirement to allow sufficient time to complete the application and medical examination. To learn more about BDD, contact
your local VA office, visit https://www.va.gov/disability/how-to-file-claim/when-to-file/pre-discharge-claim/, or call the VA at
800-827-1000.

The Fully Developed Claim Program allows a Soldier to submit a claim for disability compensation when they have less
than 90 days to separation, retirement, or release from active duty or demobilization. Submitting your disability
compensation claim before discharge makes it possible to receive VA disability benefits as soon as possible after
separation, retirement, or demobilization. Visit https://www.va.gov/disability/how-to-file-claim/evidence-needed/fully-
developed-claims/ for more information. If you are on a military installation, contact your local SFL-TAP office to schedule
appointments to attend VA benefits briefings and learn how to initiate your claim. You can also call the VA toll-free at 800-
827-1000.

5-4 VA HOME LOANS

VA-guaranteed home loans are available to qualified veterans and surviving spouses to purchase, improve, or refinance a
house or condominium, and to purchase or refinance a manufactured home. Those eligible must make their own
arrangements for loans through the usual lending channels, such as banks, savings and loan associations, building and
loan associations, and mortgage loan companies. VA will guarantee up to a certain amount of that loan. Veterans may
now negotiate interest rates on VA-guaranteed home loans with lenders. Adapted Housing Grants help veterans with a
permanent and total service-connected disability purchase or build an adapted home or to modify an existing home to
account for their disability. For more information on VA home loans, visit http://www.benefits.va.gov/homeloans/.

5-5 GI BILL

The VA administers a wide variety of programs for Retired Soldiers seeking assistance for education and training. These
programs include vocational rehabilitation and special training programs for disabled veterans. Retiring Soldiers should
contact their Army education office to determine what education benefits they may be eligible for. You can use your Post-
9/11 GI Bill for on-the-job training, apprenticeships, and non-college degree programs. There is a 15-year time limitation
for use of benefits for Soldiers released from active duty before January 1, 2013. For individuals whose last discharge
date was on or after January 1, 2013, the time limitation to use the benefit has been removed. The Post-9/11 GI Bill can
pay your full tuition & fees at school, provide you with a monthly housing allowance while you are going to school, and
give you up to $1,000 a year to use for books and supplies. It also differs in that it allows eligible service members to
transfer their unused benefits to eligible family members. It is important to note that transferring your Post 9/11 GI Bill
education benefits (TEB for short) to your qualified dependents is a retention incentive that requires you to commit to an
additional four-year service obligation. You must carefully review the voluntary agreement terms and understand the date
you complete your four-year service extension commitment. If you are placed in a non-selective reserve status, separate
or retire before fulfilling your Obligation End Date, you face having your dependent’s TEB eligibility denied by the
Department of Veterans Affairs. If this occurs and your dependents have already started using the TEB incentive, you
may incur an overpayment/debt. Soldiers in this situation have incurred an average debt of $38K. For more information
on the GI Bill, visit https://www.va.gov/education/about-gi-bill-benefits/.

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5-6 CONVERTING SGLI TO VGLI

Soldiers on active duty and most Reserve Component Soldiers are covered by Service members’ Group Life Insurance
(SGLI). The VA supervises this group life insurance program. Premium costs, while on active duty, are extremely low.
After you retire, you receive 120 days of free SGLI coverage, and the opportunity to convert SGLI to Veterans Group Life
Insurance (VGLI) in an amount equal to or less than the SGLI coverage you had when you left active duty. Soldiers who
are totally disabled for insurance purposes may keep SGLI at no cost for two years after retirement. However, application
for the free coverage must be submitted within the first 120 days after retirement. For more information, visit:
http://www.benefits.va.gov/insurance/sgli.asp. Family coverage is available only for members insured under the SGLI
program. It is not available for those insured under the VGLI program. Family members are not eligible to continue Family
SGLI (FSGLI) coverage. VGLI costs more than SGLI (and more than some private insurances), but VGLI may be renewed
every five years for life without regard to health conditions. The VGLI premium increases at renewal time, and is based on
your nearest age at the time of renewal. To see the premium schedule, go to
http://www.benefits.va.gov/insurance/vgli.asp. This is an important feature, especially for Soldiers who are uninsurable
because of disabilities or other health-related problems. VGLI may be canceled at any time, or converted to a commercial
insurance product (whole life only) without proof of insurability. Upon request, the VA will furnish a listing of insurance
companies that will convert VGLI. You can find that list at http://www.benefits.va.gov/INSURANCE/converting.asp.

5-7 VA MEDICAL CARE

Provided there is adequate funding, the VA will provide no-cost hospital and outpatient care as well as pharmacy benefits
to former Soldiers who receive VA disability compensation, are former Prisoners of War, have an illness possibly resulting
from exposure to Agent Orange or environmental hazards in the Persian Gulf, or have low incomes under VA criteria. All
others may receive treatment to the extent resources and facilities are available, but co-payments will be required. Family
members are not entitled to VA health care. Soldiers retiring today should enroll in the VA health care system as soon
after retirement as possible, although enrollment can be done at any time in the future. Early enrollment will help the VA
for planning purposes. Once enrolled, a veteran is placed in one of eight enrollment priority groups, with Group 1 being
the highest priority for care. Some veterans may have to agree to pay co-payments to be placed in certain priority groups.
A veteran may be eligible for more than one enrollment priority group, in which case, the VA will always place you in the
highest priority group you are eligible for. The VA will provide care to as many groups as possible, depending on the
availability of medical funding. VA automatically renews enrollment annually unless funds are not available to treat a
particular priority group, in which case VA will notify members of that group of their inability to provide treatment for the
following year. You can also find out more about enrollment priority groups at https://www.va.gov/health-
care/eligibility/priority-groups/.

Retired Soldiers are not placed into a special category; they are treated as veterans. Medical care is based on the
capabilities of the VA facilities in your local area. Eligibility for care is based on your status as determined by VA eligibility
criteria. Your local VA office can provide information that is more specific and help determine your entitlements under the
VA medical system. To find a local VA treatment facility, visit https://www.va.gov/find-locations/. For more information
about VA health care, visit https://www.va.gov/health-care/.

5-8 VA DENTAL CARE

Within 90 days of your retirement, the VA will treat, on a space-available basis, Retired Soldiers who have dental
conditions that were documented as ongoing at time of retirement. However, if you received complete dental treatment
from the military in the 90 days preceding your retirement, you have no VA dental care eligibility following retirement. Your
DD Form 214, Record of Release from active duty, will note whether or not you are eligible to obtain VA’s space-available
dental treatment. Once VA completes the space-available dental treatment, your eligibility for dental treatment from the
VA stops, except under certain conditions. To learn more about VA dental care, visit https://www.va.gov/health-
care/about-va-health-benefits/dental-care/.

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Chapter 6

SURVIVOR BENEFIT PLAN (SBP)

6-1 GENERAL

You may have heard about the Survivor Benefit Plan (SBP) and the Reserve Component Survivor Benefit Plan (RCSBP)
from friends, coworkers, or financial advisors. Unfortunately, not all of your “advisors” will provide complete and correct
information. You are encouraged to keep an open mind and obtain all the facts from the best-informed advisor available to
you—your Retirement Services Officer (RSO). A listing of RSOs is available at
https://soldierforlife.army.mil/retirement/contact-us or on the last page of the Change of Mission newsletter, or in your
state’s resource locator at the MyArmyBenefits website (https://myarmybenefits.us.army.mil/Benefit-Library/Resource-
Locator).

Army Reserve Soldiers may contact their Readiness Division or 9th Mission Support Command Retirement Services Office
(www.usar.army.mil/retirement) for assistance. Army National Guard Soldiers may contact their state’s Retirement
Services Officer, whose contact information is located in your state’s resource locator at the MyArmyBenefits website
(https://myarmybenefits.us.army.mil/Benefit-Library/Resource-Locator).

Additionally, you can use the MyArmyBenefits calculators to calculate your approximate retired pay as well as your
SBP/RCSBP cost and annuity. The MyArmyBenefits calculators and benefit fact sheets are available at
https://myarmybenefits.us.army.mil/.

The decision you and your spouse make with respect to SBP will greatly impact your family’s financial future and is likely
the most important retirement-related decision you will make. Your election is generally permanent and irrevocable.

6-2 SURVIVOR BENEFIT PLAN (SBP)

SBP was established by Public Law 92-425 on 21 September 1972. It was designed to allow a Retired Soldier to provide
a portion of retired pay as a monthly annuity to eligible survivors after the Retired Soldier’s death. The federal government
pays all of the premiums for Soldiers while they are on active duty. At retirement, the Soldier must decide whether to
continue SBP coverage and start paying a portion of the cost.

REMEMBER, RETIRED PAY STOPS WITH THE DEATH OF THE RETIRED SOLDIER. If you decline SBP coverage, no
continuing benefits from your retired pay will be payable to your surviving family members. If you and your spouse will
depend wholly or in part upon your retired pay to live, it is very probable your surviving spouse will need to receive a
portion of that retired pay after you die. SBP is a cost-sharing program between you and the government, with the
government subsidizing almost half of the cost. SBP is a monthly annuity taxed as unearned income and is equal to 55
percent of the amount of retired pay you elect to cover. You must make your SBP election before you retire or you’ll
receive automatic coverage based on your full retired pay for the dependents at the time of retirement – by law.

Please note, SBP IS INCOME PROTECTION; IT IS NOT LIFE INSURANCE; it is not a savings plan; it is not an
investment program; and it is not available through a commercial or private company. It does not replace life insurance
but could be supplemented by life insurance. Each individual’s financial situation is different. It is impossible to address all
of the variables Soldiers have in this document. However, your RSO can address your individual questions. Schedule an
appointment with the RSO, and make an informed decision that best meets your and your family’s needs.

Numerous independent studies on SBP, conducted by government agencies, private industry actuaries, and even
commercial insurance companies, have concluded that, “For most Retired Soldiers, SBP is the most financially
advantageous option.” Unlike a private company, the government cannot go out of business or file for bankruptcy and

34
leave you with nothing. Remember that SBP is government-subsidized and inflation-protected. SBP costs are not based
on your age, your health, or on economic forecasts. SBP costs do not include costs to advertise, to make a profit, to pay a
salesperson’s commission, to pay stock dividends, to build new company buildings or to support an investment portfolio.
SBP is cost-of-living-adjusted to keep pace with inflation. It provides a tax shelter in possibly some of your highest earning
years since the premiums are deducted from retired pay before income taxes are calculated. SBP is guaranteed by the
U.S. Government and it is payable for the lifetime of the surviving spouse. SBP premiums will stop for those who reach at
least age 70 and have paid premiums for 30 years (360 months).

There is a one year window between the 25th and 36th month following commencement of retired pay to terminate SBP
participation, with spouse consent.

Because of its many positive features, we strongly recommend you make SBP the foundation of your family’s financial
support package. The following information on SBP will assist you in making an informed decision.

6-3 BASIC SBP QUESTIONS ANSWERED

What is SBP and why was it created?

Congress created the Uniformed Services Survivor Benefit

Plan (SBP) in 1972 to alleviate the conditions that make
survivors of service members destitute. SBP is the sole
means by which survivors can receive a portion of military
retired pay. Without SBP—retired pay stops with the death
of the Retired Soldier!

SBP provides 55 percent of military retired pay to eligible

designated survivors. It was never intended to protect a
Retired Soldier’s total estate. However, it is a strong
“income protection” plan which provides a guaranteed
inflation-adjusted income to eligible survivors.

Is SBP impacted by receipt of Social Security?

No.

What is SBP’s greatest advantage?

SBP’s #1 advantage is the annual cost-of-living adjustment that keeps pace with inflation. This feature helps keep the
SBP annuity’s purchasing power in step with the value of tomorrow’s dollar.

Who can be an SBP beneficiary?

There are six election categories: (1) spouse; (2) spouse and children; (3) children only; (4) former spouse; (5) former
spouse and children; and (6) natural person with an insurable interest.

#1: Spouse. Your spouse at retirement is an eligible beneficiary regardless of the length of your marriage. Spouses will
receive SBP for life unless remarried prior to age 55. If that marriage ends, the SBP annuity will resume. If your spouse
dies first or you get divorced, SBP costs will stop (once you notify the Defense Finance and Accounting Service). All
aspects of spouse SBP apply to same sex marriages. Your spouse’s concurrence is required in writing if you elect less
than the maximum spouse SBP coverage allowed by law. If you fail to make your SBP election before your retirement
date, you will receive automatic full SBP for all of your eligible dependents on your retirement date.

The cost for spouse SBP coverage is 6.5 percent of the base amount per month. For example, with a base amount of
$1,000 per month, the monthly cost for spouse coverage is $65. The annuity amount is 55 percent of $1,000 (or $550)
regardless of the annuitant’s age. For Soldiers who entered service prior to March 1, 1990, those who are medically
retiring, or Reserve Component Soldiers retiring for non-regular service, the SBP cost is the most advantageous of either

35
6.5% of the chosen base amount or 2.5% of the threshold amount plus 10% of the remaining base amount. The threshold
amount will increase at the same time and by the same percentage as future active duty basic pay. Effective January 1,
2021, the threshold is $895. You can calculate your SBP premium by accessing the MyArmyBenefits calculator at
https://myarmybenefits.us.army.mil/Benefit-Calculators/SBP-Premium-Calculator. The basic spouse or former spouse
SBP premium is calculated as shown below.

IF THE SBP BASE AMOUNT IS THEN THE MONTHLY SBP COST IS

$1,917.86 or less 2.5% of the first $895 (threshold amount) + 10% of the remainder

$1,917.86 or more 6.5% of the SBP base amount

Note: $895 is threshold amount as of January 1, 2021 The threshold increases at the same time and by the same
percentage as future active duty pay.

If you do not have a spouse when you retire, you have one year from the date of a future marriage after retirement to
notify the Defense Finance and Accounting Service (DFAS) that you are electing SBP for your new spouse. If you take no
action within one year to notify DFAS you are electing spouse SBP coverage, SBP coverage is closed for that spouse and
any future spouse. If your spouse dies first or you get divorced, SBP costs will stop (once you notify DFAS).

If your death is determined to be service connected by the Department of Veterans Affairs (VA), Dependency and
Indemnity Compensation (DIC) is payable by the VA. Spouse SBP is offset dollar for dollar by DIC. The spouse will
receive any SBP that exceeds the DIC amount plus the Special Survivor Indemnity Allowance (SSIA). As of December 1,
2020, DIC was $1,357.56 and SSIA was $327. Based on the Sharp v. United States court case, a surviving spouse
authorized both SBP and DIC will receive both if remarried after age 57. The National Defense Authorization Act for
Fiscal Year 2020 phases-out the offset of SBP by DIC. Starting January 1, 2021, the SBP offset by DIC will decrease to
2/3 of the DIC amount. Starting January 1, 2022, only 1/3 of the DIC amount will offset SBP. Lastly, effective January 1,
2023 the offset of SBP by DIC will be eliminated. As a result of the elimination of the offset, SSIA will no longer be paid
out effective January 1, 2023.

#2: Spouse and Children. The spouse is the primary beneficiary, with eligible children receiving the annuity only if the
spouse dies, remarries before age 55, or is involved in the Retired Soldier’s wrongful death. The 55 percent annuity is
divided equally among all of the eligible children. If your spouse dies or you divorce and do not elect former spouse SBP,
your premiums are recalculated as child coverage. The child portion of your coverage is based on the age of your
youngest child, your spouse and you. Child SBP eligibility criteria is listed below in Child Only coverage.

#3: Children Only. Eligible children are the primary beneficiaries. Eligibility ends for a child at age 18 or at age 22 if a full-
time, unmarried student. It does not end for a child who is incapacitated during the eligibility age window. Marriage by a
child at any age ends the child’s SBP eligibility. If you die while your child is eligible, the 55 percent annuity continues until
your youngest child exceeds the age of eligibility. “Eligible children” includes adopted children, stepchildren, foster
children and recognized natural children who live with the Retired Soldier in a regular parent-child relationship. Children of
all marriages and or relationships are eligible beneficiaries. All eligible children are covered by spouse and children or
children only elections. All eligible children are covered at one cost and the cost is based on your age and the age of the
youngest child. For example, using a $1,000 base amount, if you are 42 when you retire and your youngest child is 10,
the child cost is $2.00 per month. Children are the only beneficiaries in this option. Eligible children equally divide the 55
percent benefit. When there are no longer eligible children, your SBP cost is suspended.

A child election offers excellent protection for incapacitated children, since the 55 percent annuity is payable to them for
life unless they remarry. The mental or physical incapacity must have been incurred while the child was eligible. You
should research the impact that SBP for a fully disabled child may have on other benefits the child will receive, such as

36
Social Security. The SBP law allows payment of the child’s SBP to a Special Needs Trust (SNT) if the child is an
unmarried and incapable of self-support because of a mental or physical incapacity. Setting up payment of the SBP to an
SNT may be made at the time of retirement, after retirement, and even after death of the Retired Soldier. You will be
required to provide a separate statement from an actively licensed attorney certifying that the trust is an SNT created for
the benefit of your child and is in compliance with all applicable federal and state laws. When SBP is paid to an SNT, that
child’s SBP will not affect the SBP of other eligible children. The RSO can explain and assist you with the process to set
up a special needs for an incapacitated child.

#4: Former Spouse. This option at retirement may be elected voluntarily, by a written agreement, or be required by a
court order. Former spouse costs and benefits are identical to those for a spouse. Remarriage limitations also apply.
Former spouse coverage precludes spouse coverage at that time. When court ordered former spouse SBP is elected, the
only way to stop the former spouse SBP and change the election to spouse SBP is to have all court orders that apply
amended to show former spouse SBP is not court ordered or with the death of the former spouse.

#5: Former Spouse and Children. This is identical to the “spouse and children” option in costs, benefits, and eligibility
except that only children of the marriage to the former spouse are eligible beneficiaries. Under this election, the child
receives an SBP annuity only if the former spouse becomes ineligible (through death or remarriage before age 55). For
spouse and child SBP, the spouse’s portion of this election costs 6.5 percent of the base amount. The child cost portion is
based on the ages of the Soldier, the former spouse, and the youngest child. The child cost is very low, given typical
ages.

#6: Natural Person with an Insurable Interest. If you are unmarried and have either no children or only one eligible child
at retirement, you may select this option. If you have only one eligible child, you cannot elect insurable interest SBP for
someone else and ignore the child. If the insurable interest is not a relative closer than a cousin, the insurable interest
must be someone with a proven financial interest in your life. Examples are a close relative or a business partner. This is
a very expensive election for both RCSBP and SBP and can be cancelled at any time. Insurable interest must be based
on full base amount. The basic cost is 10 percent of your full retired pay with an additional five percent for each five years
the beneficiary is younger than you -- up to a maximum of 40 percent. The SBP annuity is calculated by subtracting the
SBP cost from the base amount and taking 55 percent of that amount. If you marry or gain an eligible child you can cancel
insurable interest and elect spouse and or child within one year of marriage and/or acquiring a child. If no action is taken
within one year of marriage and or acquiring a child, you close that category or categories for both RCSBP and SBP.

If you retire for disability and your death occurs within one year of your retirement for a cause related to your disability,
your Insurable Interest election will be invalidated unless you made the election for a family member authorized a Military
Dependent ID Card as your dependent. If your death occurs within one year of your retirement for a cause related to the
disability retirement, premiums paid will be refunded to designated beneficiary. This provision does not apply to Soldiers
who retire for length-of-service.

You may elect in writing to cover a new natural person insurable interest beneficiary within 180 days of the death of your
original insurable interest beneficiary. You must live two years from the effective date of the election for it to be valid. If
you die before the end of the two-year period, the election is invalid and all premiums paid for the coverage since the new
election’s effective date will be paid in a lump sum to the person who was the intended beneficiary. Your premium for the
new insurable interest election will be based on the age of the new beneficiary.

What is a “base amount?”

This is the dollar amount of retired pay on which you base your participation. It can be any amount between $300 per
month and your full retired pay. Soldiers retiring under the REDUX retired pay plan can elect the retired pay they would
have had under the High 3 retired pay plan as the base amount. If retired under the Blended Retirement System (BRS)
and electing a lump sum at retirement, the base amount for SBP can be the amount retired pay would have been without
the lump sum election.

Is there a cost for SBP Coverage?

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While on active duty, you are automatically enrolled in SBP at no cost to you until your date of retirement, at which time
you must decide whether to continue SBP coverage and start paying a portion of the SBP cost. Currently, about 45
percent of the SBP cost for Retired Soldiers is paid by the federal government. Your premiums are deducted from your
retired pay before taxes are calculated, which reduces your taxable income.

What does it cost Soldiers on active duty?

There is no cost for this participation. Public Law 107-107, December 28, 2001, expanded the eligibility for SBP to include
all members, not only retirement-eligible members. Line of Duty (LOD) considerations apply. This law applies to deaths on
active duty or inactive duty for training since September 10, 2001.

How is SBP Taxed?

Monthly SBP costs are not included in your taxable federal income. The true cost for SBP is thus less than the amount
deducted from retired pay because less federal tax will be paid. This also applies to most state income taxes. SBP
payments to survivors are taxable, but spouses usually receive benefits when their total income is less and the extra tax
exemption for being over age 65 is applicable. The surviving spouse's tax rate should be lower and, in the long-run,
significant tax savings should result. Children’s SBP is taxed as the children’s income.

Is there inflation protection?

Retired pay is increased annually by a COLA to keep pace with inflation. Survivor payments are increased at the same
time, by the same percentage. These COLAs are made even after the member dies.

Can an SBP election be changed?

Elections are generally permanent and irrevocable. However, you may disenroll from the Plan during a one year period
between the 25th and 36th month following your retirement. Your spouse’s written concurrence is required. No costs will
be refunded because you’ve received the coverage you paid for. You’ll be prevented from enrolling again in the future too.
If you made a former spouse election in accordance with a court order, a change to the court order is required before you
can change your SBP election. An Insurable interest option can be cancelled at any time following retirement. You may
elect a new insurable interest beneficiary within 180 days of current insurable interest beneficiary’s death. If you combine
your military retirement with a federal civil service retirement, you can retain the military SBP or elect the federal civil
service SBP. If the federal civil service SBP is elected, the Office of Personnel Management will inform the Defense
Finance and Accounting Service to terminate the military SBP.

SBP elections are made by category, so the choice you make for your eligible beneficiaries at retirement applies to all
future beneficiaries. For example, if you are married and decline coverage for your spouse at retirement, and
subsequently remarry, you may not enroll your new spouse—the spouse category is closed to you. The same applies to
child coverage. If you have eligible children for whom you decline coverage, you may not cover future children (or
grandchildren you may raise).

What happens to my spouse coverage if I get divorced after I retire?

Your spouse coverage will be suspended when DFAS receives proof of your divorce. If the court ordered you to pay for
former spouse SBP coverage or a written agreement requires former spouse coverage, you have one year from the date
of divorce to make a written request to change the election from spouse to former spouse in order to comply, or you may
do it voluntarily without a court order or written agreement. If former spouse SBP was court-ordered or part of a written
agreement, the former spouse has a one year period from the date of the first court order awarding SBP or written
agreement to request that a former spouse election be deemed. If you do not elect former spouse SBP, SBP coverage
automatically resumes for your new spouse on the first anniversary of your new marriage unless you write to DFAS and
decline resumption before that date.

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 How is SBP affected by my Department of Veterans Administration (VA) disability pay?

Spouse SBP is offset dollar for dollar by Dependency and Indemnity Compensation (DIC). DIC is only paid if the VA
determines your death as service connected. Surviving spouses who receive DIC in addition to SBP will receive any SBP
that exceeds the DIC amount plus the Special Survivor Indemnity Allowance (SSIA), and any premiums their Soldier paid
for SBP coverage that was offset by DIC. SSIA is a permanent benefit paid to surviving spouses with an offset by DIC. In
2021, the SSIA is $327 a month. SSIA increases each year by the same COLA as SBP and retired pay. Surviving
spouses who remarry after age 57 keep both SBP and DIC. A new law gradually eliminates the offset of SBP by DIC
between 2020 and 2023. As a result of the elimination of the SBP offset by DIC effective January 1, 2023, SSIA will no
longer be paid out. As part of the new law, any surviving spouses of Retired Soldiers who first become eligible to receive
the SBP benefit after January 1, 2020 and whose SBP benefit is offset by DIC will receive a prorated refund of premiums
until the elimination of the offset. For details, contact a Retirement Services Officer.

Why should I elect SBP if I’m being medically retired?

You should elect SBP because there is no guarantee when you retire that your dependents will receive DIC. Your
surviving spouse or eligible children will only receive DIC if the VA determines your death was service-connected. If your
death is not service-connected and you didn’t elect SBP, your dependents won’t receive anything based on your service.
In addition, if the VA determines your death as service-connected and your surviving spouse receives the DIC amount,
the dollar for dollar offset of SBP by DIC will be eliminated January 1, 2023 so that your surviving spouse would receive
both the SBP and DIC annuity.

How can I pay my SBP premiums if I am medically retired and my retired pay is fully offset by my VA
disability pay?

If your SBP premiums cannot be deducted from your retired pay, DFAS will deduct it from your Combat Related Special
Compensation (CRSC), if you receive that. Otherwise, you must make either a direct payment to DFAS or start a payment
from your VA disability pay to DFAS. Failure to pay your SBP premiums means you’re building a debt your surviving
spouse must pay before receiving the SBP annuity.

If I am rated totally disabled by the VA, can I stop SBP?

Yes, you may withdraw from SBP if you have a service-connected disability rated by the VA as totally disabling for five
continuous years from the date of your retirement; or if awarded after retirement, for ten continuous years. Withdrawal
from SBP is allowed because the VA will presume you died of a service-connected reason regardless of your actual
cause of death and your surviving spouse will qualify for DIC benefits. After you meet one of these timeframes, you must
contact DFAS to request withdrawal in writing based on your total VA disability. Your withdrawal from SBP will require
your spouse’s notarized concurrence. After your death, your spouse will be entitled to a refund of all the SBP premiums
you paid for SBP. If you withdraw from SBP, your spouse will not be entitled to any SBP or SSIA. If you continue SBP
participation, your spouse will receive the SBP amount that exceeds the DIC, and any authorized SSIA. Starting January
1, 2021, the offset of SBP by DIC will decrease every year until eliminated effective January 1, 2023.

Is SBP a good value?

The subsidy, before tax premiums, cost of living adjustments, and 55 percent annuity structure make SBP a good buy for
most Soldiers.

6-4 SBP’S PERCEIVED NEGATIVES

Some common concerns about SBP include:

The cost of SBP increases.

True, but the relative cost remains constant. Retired pay, SBP premiums and SBP annuities increase based on the same
COLA. Remember that the premiums the government pays for you also increase.

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 I can buy more private insurance at less cost than SBP.

The key here is that this statement may be true during the first several years of your retirement, but your SBP decision is
for your lifetime. The indexing of retired pay for inflation gives SBP a lot of value later which private insurance cannot offer
or guarantee. You can get a true picture of the long-term, extended costs and benefits by asking your RSO for an
actuarial valuation and comparison of SBP versus term insurance, which is also available at http://actuary.defense.gov/.

SBP does not have cash value and I cannot borrow against it.

True. When a product offers cash value buildup, you pay extra for it. SBP is an income protection program that is,
unfortunately, often compared to term life insurance. Term insurance is temporary protection purchased to protect you
from a known risk for a known period of time. Costs rise or benefits decrease as you age. SBP should, in fact, be likened
to permanent, increasing term protection at a constant cost whose proceeds cannot be outlived by the recipient. Since
SBP is subsidized by the government, you are not paying all the cost of the SBP coverage.

The SBP annuity is taxed.

True, but you pay the premiums before the taxes on your retired pay are calculated. This lowers your income tax
obligation at a time when your family income (and tax bracket) is normally the highest. After your death, your spouse’s tax
bracket is normally significantly lower than your combined tax bracket when you’re alive. You get the tax benefit up front.

No money is returned if my spouse dies first.

True. You have, however, gotten what you paid for — protection — in the form of a degree of financial security for your
spouse had you died first. Your car insurer does not return your insurance premiums if you don’t have an accident. Why?
Because you paid for protection you received. SBP is similar, but is also tax-advantaged, government-subsidized, and
COLA adjusted. If the possibility of getting no money back upon your spouse’s death really bothers you, one simple way
to minimize or eliminate that is to insure your spouse’s life. In fact, you could use the tax savings offered by SBP to
purchase the policy. Also, do not forget that SBP elections are made by “category,” so upon the loss of your spouse the
costs are suspended. If you remarry in the future, you have one year to either resume coverage (still at 6.5 percent) or
decline to resume. With commercial insurance, your age and health would determine the cost of your new protection, if
you could get it at all.

There is no residual estate for my children when my spouse dies.

True, but SBP was never intended to be an inherited benefit; instead, it continues a portion of your retired pay to a
beneficiary, primarily your spouse. However, your eligible children can be designated as primary or alternate beneficiaries.
Insurance, savings and investments are products designed to provide assets for a residual estate. SBP offers the best
inheritance you can give your children—a financially independent surviving parent.

SBP costs are excessive compared to benefits received.

Not true. You get what you pay for. Lower costs do not necessarily mean greater benefits. Some commercial plans have a
“termination date” — a maximum period for which benefits will be paid. Others have a “fixed starting date” — a date
before which no benefits are paid. Only the RCSBP Option B has a fixed starting date. SBP and RCSBP Option C do not.
One of the most important features of SBP is that your spouse cannot outlive it as he or she can do with life insurance
proceeds. Consider these facts based on a male retired officer age 45, with a spouse age 42. Forty percent of surviving
spouses could survive as long as 22 years following the Retired Soldier’s death; 50 percent—19 years; and 70 percent—
15 years. With no portion of retired pay continued through SBP, it is likely that there will be a period when your spouse will
outlive your life insurance, and may not have sufficient income to meet basic needs. SBP is guaranteed for the surviving
spouse’s lifetime, however long that is (although it is suspended if remarriage occurs before age 55).

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 SBP cannot be tailored to meet my individual needs.

Not true. You can choose the dependent category you protect and the amount of SBP you want to provide. SBP is 55
percent of the base amount you choose to cover. The base amount is between the minimum of $300 per month and to
the maximum of your full retired pay. You can elect an amount of SBP you want to provide by adjusting your base
amount.

Once I am enrolled, I am in forever.

Not true. You may withdraw from SBP between the 25th and 36th month after you retire. Your spouse’s written and
notarized concurrence is required to terminate coverage. Also, the law allows you to withdraw if the VA rates you as totally
disabled for not less than five continuous years from your retirement date or for ten or more continuous years if the VA
rates you totally disabled after your retirement.

Hopefully, the facts provided in this guide will help you make an informed decision. Because the SBP decision has such a
tremendous impact on your total estate planning, you should request individual, in-depth counseling from your installation
RSO, and avail yourself of the government’s personal financial counselors and the SBP calculators at
https://myarmybenefits.us.army.mil/benefit-calculators/survivor-benefits .

6-5 THE RESERVE COMPONENT SURVIVOR BENEFIT PLAN (RCSBP)

Congress created the RCSBP on October 1, 1978 to provide the SBP Benefit to reserve component members.

6-6 RCSBP ELIGIBILITY

Upon being notified that you qualify for non-regular retired pay (i.e., receive your NOE/20-Year Letter), you are eligible to
enroll in RCSBP, and you must, by law, make your RCSBP election within the next 90 days. Effective January 1, 2001, if
you do not make this election, by law you’ll be automatically enrolled in Option C at maximum coverage for all of your
eligible dependents at the date of the NOE.

6-7 RCSBP ELECTION OPTIONS

RCSBP has the same spouse concurrence feature as SBP. Married Soldiers who don’t elect the maximum coverage
under Option C will receive that coverage if their spouse does not concur in writing on the election form.

OPTION A (DECLINE TO PARTICIPATE)

Under this option, you will have no survivor protection in place before your non-regular retirement date. Should you die,
none of your retired pay will be payable to a beneficiary. However, you remain eligible to enroll in SBP when you apply for
retired pay. There is no RCSBP cost. If you have no eligible beneficiaries at the time you receive your NOE, you should
leave Section IV, block 12 labeled “Options” portion of the DD 2656-5 blank.

OPTION B (DEFERRED ANNUITY)

This option provides an annuity, payable to your beneficiary starting on the 60th anniversary of your birth, if you die before
age 60, or immediately if you die after age 60. If your non-regular retirement and receipt of retired pay is before age 60
and you subsequently die prior to age 60, the annuity is not payable until your 60th birthday. This RCSBP election
becomes your SBP election at non-regular retirement.

OPTION C (IMMEDIATE ANNUITY)

This option provides an annuity, payable immediately upon your death, whether you die before or after age 60. This
RCSBP election becomes your SBP election at non-regular retirement.

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 NO SPOUSE OR CHILD

If you do not have a spouse or child and do not desire to elect insurable interest or former spouse coverage when
youreceive your NOE, you cannot make an RCSBP election. However, within one year of acquiring a spouse or child
following receipt of your 20-year letter, you can request RCSBP coverage for the eligible beneficiary. If you do not initiate
the RCSBP election within one year of acquiring the RCSBP-eligible dependent, the RCSBP election defaults to Option A,
Decline RCSBP participation and then you will have to wait until non-regular retirement to make an SBP election.

6-8 RCSBP ELECTION CATEGORIES

They are identical to SBP. You must report any change in beneficiary status immediately to HRC, or for ARNG Soldiers to
the State Retirement Services Office or RPAM Administrator, to include any actions involving court-ordered or voluntary
former spouse elections. Once ARNG Soldiers transfer to the Retired Reserve, reporting changes to beneficiary status go
to HRC instead of the State.

6-9 RCSBP ELECTION COSTS

Depending on which option you choose, there are two possible costs associated with RCSBP: the basic cost and the
reserve portion. The reserve portion is paid for the period of RCSBP coverage that you receive prior to receipt of retired
pay. You pay both the basic cost and reserve portion from your retired pay once you begin receiving it. Following is a brief
summary of each.

a. Basic SBP Cost

For spouse coverage, SBP costs 6.5% of the base amount covered unless 2.5% of the threshold amount plus 10% of the
remaining base amount would cost less, which is the full retired pay for 98% of Retired Soldiers. For spouse and child
coverage, children add literally pennies to the monthly premium. For child only coverage, it depends on the age of the
youngest child, but is normally a few dollars per month. Talk to you RSO or use the MyArmyBenefits SBP premium
calculator to get a precise estimate.

b. Reserve Portion

Option A — No cost since there was no survivor coverage in place.

Option B and Option C — The reserve portion premium is a percentage of the SBP base amount, and is derived from
your age and your beneficiary’s nearest age on your election date.

c. Annuity

Surviving beneficiaries will receive an annuity equal to 55 percent of the covered base amount of retired pay regardless of
age or Social Security entitlement.

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Chapter 7

UNIFORMED SERVICES FORMER SPOUSES’ PROTECTION

ACT

7-1 GENERAL

This section offers a general discussion of the Uniformed Services Former Spouses’ Protection Act (USFSPA) in three
areas: division of retired pay; Survivor Benefit Plan (SBP); and military Identification (ID) and Privilege Cards. It is not a
legal brief nor does it state a legal position. It cannot be used as evidence of intent, interpretation or precedent in any legal
action. The points made are not designed to answer detailed questions concerning individual cases. Individuals impacted
by the USFSPA should consult a military or civilian attorney for more information.

7-2 BACKGROUND

The 1981 landmark case, McCarty v. McCarty, brought to the U.S. Supreme Court the issue of whether or not a court
could consider military retired pay as marital property and order a division of it. The Court ruled that retired pay could not
be divided as community property without Congressional authorization. In 1982, Congress provided that authority by
enacting Public Law 97-252, known as the Uniformed Services Former Spouses’ Protection Act, or USFSPA. With that,
the stage was set for the ongoing debate over various USFSPA provisions, brief summaries of which follow.

7-3 DIVISION OF RETIRED PAY

a. The USFSPA granted two main authorities:

• That state courts may treat military retired pay as they would
other marital property to permit a qualified division; and,
• That the appropriate government agency, Defense Finance
and Accounting Service—Cleveland (DFAS-CL) could make
direct payments to former spouses under certain conditions.

b. No Automatic Entitlement: The USFSPA does not provide for an

automatic entitlement to a division of military retired pay. For
example, a couple may have been married throughout a full military
career, yet the USFSPA does not compel a state court to award a division of retired pay to the former spouse.

c. Enforcement: When a division of retired pay is court-ordered, USFSPA allows direct payments for former spouses only
if the parties were married to each other for at least 10 years, during which time the member performed at least 10 years
of creditable military service for retirement. To illustrate, marriages need not meet the condition that there was 10 years of
marriage that overlapped with military service in order for the state court to direct that retired pay be divided. However,
DFAS-CL will not make direct payments to the former spouse if these two requirements are not met. Payments would
have to be established through the court or made personally by the Retired Soldier.

d. Child Support or Alimony: The requirement that there is 10 years of marriage that overlaps with service does not
apply to direct payment of child support or alimony.

e. Limitations: The court order will not be honored by DFAS-CL unless the court issuing the order held jurisdiction over
the member. This jurisdiction requirement, however, does not apply to child support or alimony. Further, regardless of the
award made by the state court, the government restricts direct payment to the former spouse to 50 percent of the
member’s “disposable” retired pay. The exception to this is in enforcement of child support garnishment orders, which can
raise the direct pay amount to a total of 65 percent of disposable pay.

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f. Disposable Pay: Disposable pay is the product of the gross retired pay entitlement minus the following:

• Amounts owed by the member for previous overpayments or recoupment;

• Amounts deducted for court martial fines;
• Amounts waived under Title 38, US Code, for VA disability compensation;
• Survivor Benefit Plan (SBP) premiums (only if the former spouse to receive the pay division is also the named
former spouse SBP beneficiary);
• (For post-November 14, 1986 court order dates): Amounts of retired pay based on disability (per Title 10, Chap.
61);
• (For pre-February 3, 1991 court order dates): Amounts owed the U.S.;
• (For post-February 3, 1991 court order dates): Amounts withheld for federal and state income taxes, consistent
with the member’s tax liability.

g. Calculating Disposable Retired Pay:

For retiring Soldiers whose former spouse was awarded a division of retired pay as part of a final decree of divorce prior
to December 23, 2016, the retired pay will be calculated on the disposable retired pay at the time of receipt of retired pay.

In the case of a division of military retired pay that becomes final prior to the date of retirement but after December 23,
2016, the member’s disposable retired pay is calculated as follows:

For an active duty retirement, the member’s disposable retired pay for purposes of division of retired pay cases is
calculated based on the members “retired pay base” (high-3 average or final pay depending on when the member entered
the service) and years of service at the time of the decree of divorce, dissolution, annulment, or legal separation awarding
the division of retired pay.

For a Reserve Component Soldier who will qualify for a future non-regular retirement, the member’s disposable retired
pay is calculated based on what the Soldier would have been entitled using the Soldier’s retired pay base (high-3 or final
pay depending on when the member entered the service) and creditable service points (retirement points) on the date of
the decree of divorce, dissolution, annulment, or legal separation awarding a division of retired pay.

The above calculations will be increased by the COLAs that occurred between the date of the decree of divorce,
dissolution, annulment, or legal separation awarding the division of retired pay and the time of the member's retirement.

A division of retired pay award computed as a percentage of a member's disposable retired pay will be increased by the
same appropriate portion of any COLAs the member receives after retirement.

h. Application Procedure: Only the former spouse or the former spouse’s attorney – not the member -- can apply for
direct pay under the USFSPA, using a DD Form 2293 (Application for Former Spouse Payments from Retired Pay). Once
the process is successfully completed, payments to the former spouse begin within 90 days, in accordance with the
normal retired pay cycle. If the member is not yet retired, payments begin within 90 days after date of retirement.

i. Former Spouse Remarriage: Remarriage by the former spouse does not result in the former spouse losing entitlement
to receive direct payment of retired pay, which was awarded as property, unless so specified by the court.

7-4 SURVIVOR BENEFIT PLAN (SBP)

Voluntary or Court Ordered: Since November 14, 1986, state courts have been permitted to order a member to participate
in SBP for the member’s former spouse. This pertains both to active duty members who can be ordered to elect former
spouse coverage at retirement and to Retired Soldiers enrolled with spouse coverage. Courts cannot order a Retired
Soldier to provide former spouse coverage unless the member had previously made a spouse election for them.

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a. Similarity to Spouse Coverage: When divorce occurs after retirement, former spouse coverage will be in the same
amount as spouse coverage. In active duty divorces, the specific level of coverage to be elected should be directed by the
court order.

b. Loss of Eligibility: If the former spouse remarries before age 55, SBP eligibility is lost, participation is suspended, and
no SBP costs are owed during the period of ineligibility. During this period, the former spouse retains the SBP even
though ineligible to receive the annuity and the current spouse cannot be covered. However, if the former spouse
remarriage ends, eligibility is restored, participation is resumed and premium costs resume. Marital status changes must
be reported to DFAS-CL immediately.

c. General Irrevocability: Elections are generally permanent with the following exceptions:

d. Disenrollment Option: If the former spouse election is purely voluntary with no written agreement, the Retired Soldier
may disenroll between the 25th and 36th month. If the former spouse election was voluntarily made based on a written
agreement that was not incorporated into a court order, former spouse’s written concurrence must be provided in order to
discontinue participation in SBP. If the former spouse election was court-ordered, or an agreement to make the election
was incorporated into or ratified/approved by a court order, the member must furnish a certified valid court order modifying
the provisions of all previous court orders in order to terminate former spouse SBP. Former spouse written concurrence is
not required in this instance.

e. Retired Soldier’s Remarriage: If the Retired Soldier remarries, former spouse coverage may be changed to spouse
coverage within one year of the marriage IF the following occurs:

• If the former spouse election is court-ordered, or an agreement to make the election is incorporated in or ratified
or approved by a court order, the member furnishes a certified valid court order modifying the provisions of all
previous court orders relating to the election.
• If the former spouse election is the result of a written agreement, which is NOT incorporated in or ratified or
approved by a court order, the former spouse provides written concurrence with the change of election.
• If the former spouse election is purely voluntary, with no written agreement existing, the former spouse is notified.
• If the former spouse who was to receive the SBP upon the death of the Retired Soldier dies.

f. Deemed Elections: A former spouse has one year from the date of the first court order or written agreement to make a
written request to DFAS-CL for a deemed former spouse election using DD Form 2656-10 (SBP/RC-SBP Request for
Deemed Election). NOTE: Providing DFAS-CL a copy of the divorce decree does not constitute a request for a deemed
election. Former spouses are advised to take this action, both when the divorce occurs while the member is on active
duty, and after retirement. It is the only way that a former spouse election will be made if the member fails to comply with
the court order within one year of divorce for a Retired Soldier or at retirement for a divorce prior to initial election. For a
Retired Soldier, if the court order first awarding former spouse is over one year from the date of divorce, the SBP election
can only be changed to former spouse by the former spouse deeming the election within one year of the court order. All
members are similarly advised to voluntarily request in writing that former spouse coverage be implemented if court-
ordered, so as not to be in contempt of court. Former spouses of Reserve Component Soldiers awarded court ordered
RCSBP will submit their DD Form 2656-10 for deemed former spouse RCSBP election to the DFAS-CL.

g. Two Common Errors: Some SBP participants mistakenly believe that SBP elections are made by the individual, rather
than by category. The result of that belief often is that a member fails to notify DFAS-CL of a divorce, assuming that
coverage will continue for that person by name. Costs continue to be withheld (for a nonexistent spouse beneficiary), and
the Retired Soldier assumes that continued cost is for continued coverage. Too often, the grim discovery following the
Retired Soldier’s death is that no valid election exists and no annuity is payable, or if payable, it is to a current spouse. Or,
if notification of the divorce is made, the required written request for former spouse is not, and thus the election category
is not changed from spouse to former spouse. The spouse coverage is suspended and no premiums are collected. By
the same token, many former spouses are unaware that simply providing the divorce decree to DFAS-CL is not a request

45
for a deemed election. Again, by law, a written request using DD Form 2656-10 must be made within one year after the
date of the court order. Failing that timely action, future inquiry will reveal an invalid former spouse election if it was not
accomplished by the member.

7-5 MILITARY IDENTIFICATION AND PRIVILEGE CARDS

The USFSPA and its subsequent amendments authorize military benefits to certain former spouses. All of the following
criteria must be met in order to receive a military ID card:

• Marriage of at least 20 years

• Creditable service of at least 20 years
• Marriage and service overlap of at least 15 years

If the overlap is at least 20 years, the former spouse receives full privileges. If the overlap is at least 15, but less than 20,
years, the former spouse receives medical care only for one year from the divorce. After one year, enrollment in a
premium-based, temporary transitional health care program, “Continued Health Care Benefit Program” (CHCBP), is
available to a former spouse who does not have employer-sponsored coverage. Former spouses in this category, whose
divorces were finalized on or before April 2, 1985, were granted indefinite medical benefits.

Call your nearest military ID card office for additional information.

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CHAPTER 8

RESERVE COMPONENT RETIREMENT SYSTEM

8-1 GENERAL

If you are a United States Army Reserve (USAR) or Army National Guard (ARNG) Soldier, you must meet the following
minimum requirements to be eligible for retired pay:

• Be at least 60 years of age (or younger if you have qualifying periods of service, see paragraph 9-2 below); and
• Have performed at least 20 years of qualifying service computed under Section 12732, Title 10, United States
Code (or more than 15 but less than 20 years if you have been found medically unfit for retention and issued a
15-Year Letter); and
• Have performed the last eight years of qualifying service while a member of the Active Reserve if the 20th
qualifying year was attained on or before October 4, 1994; have performed the last six qualifying years in the RC
if the 20th year was attained between October 5, 1994 and April 25, 2005. (NOTE: The 6-year rule was eliminated
effective 26 April 2005. This change was not grandfathered.), and
• Not be entitled, under any other provision of law, to retired pay or retainer pay as a member of the Fleet Reserve
or the Fleet Marine Corps Reserve, and
• Have not received disability severance pay.

8-2 NON-REGULAR RETIRED PAY PROCESS

Once you receive your 20-Year Letter, eligibility for retired pay based on non-regular service may not be denied or
revoked on the basis of any error, miscalculation, misinformation or administrative determination of years of service
performed, unless it resulted directly from fraud or misrepresentation. Administrative errors, such as awarding of too many
points, can be corrected; however, eligibility for retired pay cannot be withdrawn. The 20-Year Letter is a valuable
document and should be stored in a safe place along with other documents pertaining to your estate.

HRC processes non-regular retirement applications for USAR and ARNG Soldiers. As of October 1, 2014, HRC does not
automatically mail retirement applications. Soldiers eligible for non-regular retirement may request a retirement application
by calling 1-888-276-9472 or by downloading the application from HRC’s website at
https://www.hrc.army.mil/content/Gray%20Area%20Retirements%20(GAR)%20Branch. All Soldiers, including those
eligible for Reduced Retirement Age (Early Drop) for non-regular retirement, must submit their retirement pay applications
no more than nine months and no less than 90 days before their eligibility date. These packets include instruction sheets
and all of the forms necessary to process your retirement.
Mail your application to:

Department of the Army

US Army Human Resources Command
ATTN: AHRC PDP TR
1600 Spearhead Division Avenue Dept. 482
Ft. Knox, KY 40122

Or email it to: [email protected]

Once you submit the packet, HRC will certify you as eligible
for retired pay and notify DFAS-CL to establish your retired pay account. If you email your application, you will receive an
email verifying that HRC received your application. You will not receive a notification of receipt when you mail your
application but you may contact the HRC customer service office toll-free at 1-888-276-9472 to inquire whether the packet
has been received.

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Soldiers who were ordered to active duty under eligible authorities listed in 10 USC 12731 paragraph (f) on or after
January 29, 2008 are entitled to claim a 90-day drop from their age 60 retirement date for every 90 days accumulated in
any given fiscal year (October 1 – September 30) or any two consecutive fiscal years for service performed on or after
October 1, 2014. Soldiers who claim this “early drop” should leave the retirement date blank on the DD Form 108 (block 3)
and DD Form 2656 (block 4), write Reduced Age/90 Day Drop on the top of the DD Form 108 and DD Form 2656, as well
as attach copies of their mobilization order(s), separation order(s), and DD 214(s).

You should apply for and receive confirmation of any extension of service beyond age 60 PRIOR to applying for
retirement. Service past age 60 will not be calculated toward retired pay unless a waiver for that service is received with
the retired pay application.

8-3 REDUCED RETIREMENT AGE

The 2008 National Defense Authorization Act (NDAA) changed the retirement age from 60 to a lesser age for those who
have served under a specific authority of law after January 28, 2008. The change is not “grandfathered.” That is, it does
not apply to service before January 29, 2008. The 2008 NDAA lowers the retirement age by 90 days for each aggregate
of 90 days within a fiscal year (1 October – 30 September) or any two consecutive fiscal years for service performed after
September 30, 2014 of active duty “pursuant to a call or order to active duty under a provision of law referred to in section
101(a)(13)(B) (which includes service under section 688, 12301(a), 12302, 12304, 12304a, 12305, or 12406 of 10 USC)
or under section 12301(d) of 10 USC. Such service does not include service on active duty pursuant to a call or order to
active duty under section 12310 of 10 USC.” Active duty service is also service under a call to active service by the
President or the Secretary of Defense under section 502(f) of Title 32 (National Guard) for the purpose of responding to a
Presidential declared national emergency or a national emergency supported by federal funds, this does not include duty
within the State on Full-Time National Guard Duty – Operational Support (FTNGD-OS) orders.

The eligibility age for retirement may not be reduced below age 50. Human Resources Command, United States Army
Reserve Command, and National Guard Bureau websites have policy memos concerning this subject and providing
specific examples. More information visit https://www.hrc.army.mil/content/REDUCED%20AGE%20RETIREMENT.

Note that if a Soldier is wounded or otherwise injured or becomes ill while serving on active duty pursuant to a call to
active duty under a provision of law mentioned above, and the member is then ordered to active duty under section
12301(h)(1) to receive medical care for the wound, injury, or illness, each day of active duty under that order for medical
care, shall be treated as a continuation of the original call or order to active duty for purposes of reducing the eligibility age
of the member under NDAA 2008, Section 647.

This law only allows a Soldier to receive their retired pay early; it does not apply to subsidized TRICARE medical benefits
as a Retired Soldier. TRICARE Prime or Select will not go into effect for the Soldier or their dependents until the Soldier
reaches age 60. Soldiers retired prior to age 60 have TRICARE Retired Reserve as an option only. For example, if you
have enough time to drop your retirement age to 56, you will start receiving your retired pay then. You will not be able to
enroll in TRICARE Prime or Select as a Retired Soldier until you reach age 60. Remember, the decision to apply for the
Reduced Age Retirement is voluntary.

8-4 RETIREMENT POINTS ACCOUNTING SYSTEM (RPAS)

Before 1981, there was no centralized or automated capture and storage of accumulated points for members of the USAR
or ARNG. Each year points for Troop Program Unit (TPU) Soldiers and drilling ARNG Soldiers were recorded and filed in
their Military Personnel Records Jacket (MPRJ). USAR Soldiers received an annual automated data processing punch
card, which recorded the previous retirement year’s (RY) earned points. ARNG Soldiers annually validated a manually
recorded NGB Form 23 Retirement Points Statement.

The Reserve Component Personnel and Administration Center (now Army Human Resources Command or HRC)
eventually developed a semi-automated system for capturing and storing points for members of the Individual Ready

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Reserve (IRR), but even that system did not accumulate points beyond the latest Anniversary Year Ending (AYE). A
complete records audit was required each time it was necessary to determine how many qualifying years and/or total
points a member of the RC had accumulated.

The Retirement Points Accounting System (RPAS) is an automated system that annually accumulates and verifies
retirement point’s data for each Reserve Component Soldier. With RPAS, errors can be corrected easily while the
information needed to correct them is still available. RPAS goals include:

• Providing an accurate, annual record of military service and participation for USAR and ARNG Soldiers
• Providing an automated Notification of Eligibility (NOE) (20-Year Letter) to USAR and ARNG Soldiers upon
qualification
• Eliminating annual reporting of paid attendance and school completion by USAR and ARNG units
• Providing a valid data source for use by DOD in projecting future retirement costs

HRC recommends you keep your retirement points updated every year and that all corrections be processed prior to
reaching your 59th birthday. If you are a Troop Program Unit (TPU) Soldier, have your Unit Army Reserve Administrator
or Regional Personnel Action Center update your points. If you are an IRR or IMA Soldier, contact the appropriate
Retirement Points Team at HRC to update your points,
https://www.hrc.army.mil/content/Recording%20and%20Reporting%20Retirement%20Points. If you are an ARNG
Soldier, contact your State Retirement Points Accounting Management (RPAM) Administrator for assistance with updating
your points. If you are in any status other than listed above, you must contact the appropriate Team at HRC at 1-888-
276-9472 to update the RPAS.

8-5 QUALIFYING YEAR

As a USAR or ARNG Soldier, you must have 20 qualifying years of service (15 if medically retired by the USAR or ARNG)
to be eligible for retired pay at age 60. A qualifying year is a complete year during which you earned a minimum of 50
retirement points. For a full explanation of how retirement years are established, see AR 140-185, Training and
Retirement Point Credits and Unit Level Strength Accounting Records, at:
https://armypubs.army.mil/epubs/DR_pubs/DR_a/pdf/web/ARN6521_AR140-185_FINAL.pdf and National Guard
Regulation (NGR) 680-2 http://www.ngbpdc.ngb.army.mil/pubs/680/ngr680_2_19_august_2011.pdf for the ARNG; or
contact your Unit Army Reserve Administrator , Regional Personnel Action Center, State Joint Forces Headquarters
(JFHQ) or HRC.

In general terms, you established an anniversary year ending (AYE) date by entering the service. As long as you have no
breaks in service, your AYE will be one year later. For example, if you enlist on July 2, 1986, you would have a retirement
year beginning date of July 2, 1986 and an AYE of July 1 each year thereafter. If there is a break in service of more than
24 hours, you will establish a new AYE when you re-enter the service regardless of component or service.

8-6 MAXIMUM POINT RULE

Soldiers may accumulate a total of 365 points per year (366 in a leap year). However, there are caps for retirement points
earned for inactive duty service, the following three dates are used regarding maximum inactive duty service points
allowed per year:

• Effective October 30, 2007: 130

• Effective October 30, 2000: 90
• Effective September 23, 1996: 75
• Prior to September 23, 1996: 60

Inactive duty service points include retirement points earned for IDT participation, extension/correspondence courses,
and membership points. Soldiers will no longer be awarded retirement points for correspondence courses. The only
exception to exceed the maximum IDT points per year is military funeral honors.

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8-7 COMPUTATION OF RETIRED PAY

To determine how much retired pay you may be eligible to receive at retirement eligibility age, the first step is to calculate
the number of equivalent years of service. The formula for computing equivalent years of service for retired pay is simple:
Total Creditable Retirement Points divided by 360. This formula computes the number of equivalent years of service you
have completed (comparable to full-time service). For example, 3,600 points equals 10 years.

HRC will notify the DFAS-CL of the number of years of service you have earned. RC Soldiers who separate or are
discharged from military service without entry into the Retired Reserve before age 60 will be credited for basic pay
purposes only with the pay tables for the years before their discharge/separation. Separating/discharging rather than
transferring to the Retired Reserve will impact your retired pay and should be carefully considered.

Depending on your Date of Initial Entry into Military Service (DIEMS) (see paragraph 4-1 of this guide for an explanation
of DIEMS), your retired pay will be calculated under the “Final Base Pay”, “High-3” or “Blended Retirement System”
(BRS) formula as follows:

• Final Base Pay. DIEMS date before September 8, 1980: Multiply your years of equivalent service by 2.5 percent.
Multiply the result by the basic pay in effect on the date your retired pay starts.
• High-3. DIEMS date on or after September 8, 1980: Multiply your years of equivalent service by 2.5 percent.
Multiply the result by the average of your highest 36 months of basic pay.
• Blended Retirement System. DIEMS date on or after January 1, 2018 or opted in between January 1 –
December 31, 2018 with less than 4,320 points on December 31, 2017: Multiply your years of equivalent service
by 2.0 percent. Multiply the result by the average of your highest 36 months of basic pay.

The highest 36 months of basic pay for a member who transfers to the Retired Reserve until age 60 or earlier if applying
for Reduced Age Retirement, will normally be the pay scale used within the last 36 months before they reach age 60 or
the Reduced Age. Soldiers who request a discharge from military service without transfer to the retired reserve before 60,
however, cannot use basic pay rates in effect after their discharge. Again, think carefully before requesting a discharge
instead of a transfer to the Retired Reserve as it will impact your retired pay entitlement. The MyArmyBenefits retirement
calculator at https://myarmybenefits.us.army.mil/benefit-calculators/retirement allows RC Soldiers to accurately estimate
their retired pay. The calculator provides a personal calculation by connecting to and pulling personal data from DEERS
and RPAS. The accuracy of retired pay calculations will be affected by the accuracy of the data provided by these
systems.

8-8 COST-OF-LIVING ADJUSTMENTS TO RETIRED PAY

Your retired pay will increase annually by a COLA based on the change in the Consumer Price Index (CPI) from the third
quarter of one calendar year to the third quarter of the next. Retired pay COLAs are normally effective on December 1 and
payable the last business day of the year.

8-9 NOTIFICATION OF ELIGIBILITY (NOE) (20-YEAR LETTER)

For years, the Services had difficulty in accurately establishing when an RC member had completed 20 qualifying years of
service. Many Soldiers stopped participating when they believed they had completed 20 qualifying years only to discover,
much too late (at age 60), that they did not meet the eligibility requirements for retired pay.

In 1966, Public Law 89-652 imposed a requirement on the Service Secretaries to notify RC Soldiers when they had
completed sufficient years for retired pay purposes. A letter with the subject, “Notification of Eligibility (NOE) for Retired
Pay for Non-Regular Service,” commonly referred to as the 20-Year Letter, accomplishes this. HRC will provide this letter
to all USAR Soldiers within one year of completing 20 qualifying years of service for retired pay purposes, provided that
you have a current valid address on file. The State JFHQs will send this letter to the ARNG Soldiers through their units.

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USAR Soldiers’ creditable service is reflected in RPAS. RPAS will generate the 20-Year Letter approximately 90-120 days
after the Annual Year Ending (AYE) date that documents completion of the 20th qualifying year. If RPAS is not correct
and you have 20 qualifying years, you must submit documentation and have the record screened by HRC prior to the
applicable AYE before your 20-Year Letter will be issued. Non-unit Soldiers must work with their career advisors at HRC.
TPU Soldiers must work with their unit Army Reserve Administrator/Regional Personnel Action Centers and through their
chain of command to ensure all creditable service is reflected in RPAS. Note: if you are or will be 59 or older at the time
of eligibility you will not receive a 20-Year Letter.

The Retirement Point Accounting Management (RPAM) system will generate the 20 Year NOE for ARNG Soldiers. This
letter will be signed by the State Military Personnel Management Officer (MPMO)/G1 and forwarded to the Soldier and
their unit along with Reserve Component Survivor Benefit Plan election documents.

Upon receipt of your 20-Year Letter you may elect one of the following choices: continue serving in the Army Reserve or
Army National Guard; transfer to the Retired Reserve as a “Gray Area Retired Soldier”; or request discharge or
separation. Continuation in an active status after receipt of the 20-Year Letter requires that the Soldier earn 50 or more
points in each year. You also have 90 days from the receipt of your 20-Year Letter to make a decision about your
Reserve Component Survivor Benefit Plan election.

8-10 RESERVE COMPONENT SURVIVOR BENEFIT PLAN (RCSBP)

RCSBP was created by Congress and became effective on October 1, 1978. It is a plan which allows you to continue a
portion of your retired pay entitlement to your designated beneficiaries in the event that you die before you begin to
receive retired pay ( i.e., while in the “gray area”). The basic rules of RCSBP are identical to those of the Survivor Benefit
Plan (SBP). Read Chapter 7 — Survivor Benefit Plan. Listed below are some of RCSBP’s unique features to consider
when making your decision on participation. Follow the same guiding principle: If your future retired pay plays a role in
your financial plan, give it the same importance in your survivor’s financial plan. Remember that your election is generally
irrevocable and the RCSBP coverage elected becomes your SBP election at non-regular retirement.

8-11 YOUR RESPONSIBILITY

You are responsible for maintaining records that document your reserve participation and retirement points (AR 135-133).
The following documents should be safeguarded:
• DD Form 214 (proof of Active Duty)
• DD Form 215
• DA Form 1383 (proof of Army Reserve Duty)
• DD Form 220, (Active Duty Report)
• DA Form 5016, ARPC Form 249-2E, DARC Form 249, or AGUZ 115 (proof of Army Reserve Duty)
• NGB Form 23, Retirement Point Accounting Statement NGB Form 22 (National Guard Report of Separation and
Record of Service)
• AF Form 526 (proof of Air Force or Air Force Reserve Duty)
• NAVPERS Form 1070-611 (proof of Navy Reserve Duty)
• NAVMC Form 798 (proof of Marine Corps Reserve Duty)
• CG HQ Form 4973 (proof of Coast Guard Reserve Duty)
• Mobilization and Deployment Orders
• Separation Orders
• Transfer to Retired Reserve Orders
• Promotion Orders
• Any document proving the Soldier participated in a period of inactive duty for training (IDT) such as DA Form
1380 or DA Form 1379 or Leave and Earning Statement (LES) or Master Military Pay Account (MMPA)
• Proof of completed correspondence or extension courses
• Appointment or enlistment documents/notices that prove membership

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 • Military pay vouchers, travel vouchers, OERs and NCOERs to substantiate periods of Active Duty for Training
(ADT). Orders are not accepted as proof of ADT unless accompanied by one of the following: a travel voucher,
OER or NCOER received for the period of training, a Certificate of Attendance signed by your commander, or if
on ADT for points only, DA Form 1380
• Army Reserve or National Guard 20-Year NOE

Who to Contact for Help:

• Unit Army Reserve Administrator or Regional Personnel Action Center for retirement points correction for TPU
prior to discharge or transfer to the Retired Reserve.
• Defense Finance and Accounting Service (DFAS) to request your LESs at
https://www.dfas.mil/customerservice/lesrequest.html
• HRC customer service, (888) 276-9472
• National Archive Records Administration at http://www.archives.gov/veterans/military-service-records/
• HRC, Gray Area Retirements Branch, (502) 613-8950
• Nearest Army installation Retirement Services Officer listing at: https://soldierforlife.army.mil/retirement/contact-us
• MyArmyBenefits Help Desk at https://myarmybenefits.us.army.mil/help. Speak with the MyArmyBenefits experts
between 9AM and 5PM EST Monday - Friday: (703) 286-2560 or (888) 721-ARMY (888-721-2769).
• Nearest ARNG State Retirement Services Officer and/or Retirement Points Accounting Manager (RPAM) NCO,
refer to the state resource directory available at https://myarmybenefits.us.army.mil/benefit-library/state/territory-
benefits for POCs.
• Nearest Army Reserve Readiness Division Retirement Services Officer at
https://soldierforlife.army.mil/Retirement/rso?maps=all

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Chapter 9

COMMUNICATIONS, SYSTEMS & INSTALLATION ACCESS

9-1 ARMY ECHOES

Army Echoes is the official newsletter for Retired Soldiers, surviving

spouses, and their families. It is published as a hardcopy and electronic
newsletter, and a blog on the Soldier for Life website. The newsletter is
published four times a year (February, May, August, November) and
mailed or emailed to over one million Retired Soldiers and surviving
spouses. It is designed to keep you informed of significant changes to
laws and benefits that affect you, and to discuss changes in the Army.
Because some laws and directives require action on your part, you are
urged to read each issue of Army Echoes.

It is important for retiring Soldiers to ensure they have a trusted

commercial email address in their myPay profile BEFORE they retire.
They won’t have access to their Defense Enterprise Email after they
retire. The Army and DFAS will send Army Echoes and alerts about their
retired pay to their myPay email address.

It is Army policy to email Army Echoes to all Retired Soldiers and Survivor
Benefit Plan annuitants at their email address on file in myPay. If they do
not have a myPay account or have no email within that account, the Army
will mail Army Echoes to them at the correspondence address they have
on file at the Defense Finance and Accounting Service-Cleveland (DFAS-CL). The Army also mails Army Echoes to
Retired Reserve Component Soldiers not yet receiving retired pay at the correspondence address on file at the Army
Human Resources Command. Surviving spouses who are not receiving a Survivor Benefit Plan annuity may receive Army
Echoes by requesting this in an email to the Editor at [email protected].

Retired Soldiers collecting retired pay and surviving spouses who are collecting the Survivor Benefit Plan annuity, should
ensure that DFAS has their current mailing and email address. To update DFAS, create or update the myPay account.
Retired Soldiers may also call DFAS at (800) 321-1080. More information is provided at
https://soldierforlife.army.mil/retirement/army-echoes.

“Gray Area” Retired Soldiers (in the Retired Reserve not yet collecting retired pay), can update their information by
logging into the HRC record portal at https://www.hrcapps.army.mil/portal/ using their DS login. Once signed in, select
Reserve/Retiree/Veteran record and select edit in the contact information field to update, or contact the Reserve
Retirements Branch at the US Army Human Resources Command to ensure they have the current mailing address by
calling them at (888) 276-9472. If a Gray Area Retired Soldier would like electronic distribution of Army Echoes, they
register their email on at https://soldierforlife.army.mil/retirement/army-echoes.

The Army Echoes Blog is available at https://soldierforlife.army.mil/retirement/blog. Three new articles are posted to the
blog each week. The articles are the same type found in the newsletter, but they are available earlier than those printed
in the newsletter. Because there are no size limitations on the Army Echoes blog, more content is available to readers
through the blog than the newsletter.

9-2 PERSONAL/FAMILY INFORMATION

This period of transition provides an excellent opportunity to get your personal and family records in order. Original or

53
certified copies of documents are required when you file for various benefits from the Department of Veterans Affairs (VA),
Social Security Administration (SSA), and other government agencies. You should make sure that your vital documents
are in order and that your next of kin and the executor of your estate knows where the documents are stored. You are
advised NOT to record your final discharge papers at a courthouse if they will become a public record. Some of the more
essential documents are: a will; birth certificates; adoption papers; marriage certificate; divorce decree; DD Form 214
(Certificate of Release or Discharge from Active Duty); names of banks and credit unions, and routing and account
numbers; insurance policies; and a list of assets and liabilities.

9-3 MILITARY RECORDS

Soldiers should obtain a copy of their medical and dental records prior to retiring; this includes all outpatient care at any
military treatment facility, civilian provider and treatment received while deployed. These records will be turned in when
you process out, and once they leave your possession, it may be difficult to obtain copies. It is also advisable to retain any
paper and electronic copies of military personnel records you have. These could be difficult to obtain once they have been
forwarded to the personnel records center.

9-4 THE DEPARTMENT OF DEFENSE SELF-SERVICE LOGON (DS LOGON)

DS Logon is the secure, self-authentication protocol that replaced AKO Single Sign On and provides Retired Soldiers and
other beneficiaries’ access to their personal records and information on many DOD and VA websites. DS Logon is the
only method for Retired Soldiers and family members, who do not have CAC cards, to access this information on the
internet. Retiring Soldiers must obtain a DS Logon user name and password before retirement by following the
procedures below.

a. Common Access Card (CAC) Registration

As a CAC holder, you are able to quickly obtain a DS Logon account by authenticating online with your CAC. At
https://www.dmdc.osd.mil/identitymanagement/authenticate.do, click “Register” to enter the registration process and
select “I have a Common Access Card (CAC) with accessible card reader”.

b. Email Registration

As a CAC holder, you are able to quickly obtain a DS Logon Premium Level 2 account by using your email on file in
DEERS. At https://www.dmdc.osd.mil/identitymanagement/authenticate.do, click “Register” to enter the registration
process and select “I have an active DoD ID card and an email on file in the Defense Enrollment Eligibility Reporting
System (DEERS).”

For more information, visit https://www.dmdc.osd.mil/identitymanagement/authenticate.do?execution=e4s1

9-5 MILITARY INSTALLATION PRIVILEGES—STATESIDE

Retired Soldiers, eligible Family members, and un-remarried surviving spouses are authorized to use various Morale,
Welfare, and Recreation (MWR) facilities on military installations on a space-available basis. The availability to
accommodate Retired Soldiers varies widely at different Army installations. The local installation commander determines
whether these facilities may be used by Retired Soldiers. This determination is usually based on whether the facilities can
accommodate Retired Soldiers without creating hardships for active duty Soldiers. Retired Soldiers and family members
are authorized use of commissary and Exchange facilities in the United States regardless of store adequacy. Your military
ID card is sufficient proof of eligibility.

9-6 MILITARY INSTALLATION PRIVILEGES—OVERSEAS

Some Retired Soldiers who travel overseas are disappointed to learn that they are not permitted to use the Service

54
facilities of an overseas U.S. military base — a privilege they are normally entitled to within the United States. Army

regulations regarding commissary and Exchange privileges for Retired Soldiers are applicable overseas only to the extent
agreed upon by the foreign governments concerned, better known as Status of Forces of Agreements (SOFA).
Sometimes certain facilities are so limited in an overseas area that their use cannot be extended to Retired Soldiers.
Medical facilities in some foreign countries are designed and staffed only to care for active duty Soldiers and their eligible
family members, and use by Retired Soldiers and their family members must be severely limited. Before traveling
overseas, we recommend that you contact officials at the overseas location to determine the privileges available. The
local RSO listed at https://soldierforlife.army.mil/retirement/contact-us can provide guidance, and access to the Exchange
overseas, visit https://www.aafes.com/exchange-stores/overseas/

9-7 LOCATING FORMER AND RETIRED SOLDIERS

The Privacy Act prevents the Department of the Army from releasing the home addresses of former and Retired Soldiers
to private individuals (including other Soldiers and spouses of Soldiers) without the express written consent of the Soldier.
U.S. Army Human Resources Command created the new Army White Pages in 2015 to replace the AKO White Pages.
Anyone with a CAC or DS Logon may log into the White Pages at https://www.hrcapps.army.mil/Portal/ to locate a
Soldier, Retired Soldier, or veteran. You must opt in to allow your personal information to be visible to others. You may
also update your contact information at any time. The Army is no longer able to provide locator services; therefore, one of
the many online services available from private entities should be used.

9-8 MOBILIZATION/RETIRED SOLDIER RECALL

The Army Human Resources Command (HRC) administers a program to recall Retired Soldiers in case of full or partial
mobilization. Officers and enlisted personnel under 60 years old and in good health are subject to recall in case of war or
national emergency as declared by the President. Warrant officers may be recalled up to age 62. General officers are
recalled on a case-by-case basis. HRC identifies Retired Soldiers using the Total Army Personnel Data Base (TAPDB).
Every effort is made to assign the Retired Soldier to a base within 300 miles of his or her home. Recall orders will be
issued only at the time of mobilization. HRC will make periodic contact with Retired Soldiers to keep their files up to date.
Title 10, USC requires that all Soldiers be retired or discharged at age 60 unless extended by the Secretary of the Army.
Soldiers who submitted a request for retirement and whose retirement orders have been published will not have their
retirement revoked. You can review more information regarding mobilization of Retired Soldiers, and volunteer for recall
at: https://hrc.army.mil/STAFF/Retiree%20Recall and AR 601–10 paragraph 2-2, Management and Recall to Active Duty
of Retired Soldiers of the Army in Support of Mobilization and Peacetime Operations (Criteria for recall).

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Chapter 10

MILITARY UNIFORMS, AWARDS, CUSTOMS &

COURTESIES

10-1 MILITARY TITLES AND SIGNATURES

All retired personnel not on active duty are permitted to use their
military titles socially and in connection with commercial
enterprises. However, such military titles must never be used in
any manner which may bring discredit to the Army. The use of
military titles is prohibited in connection with commercial
enterprises when such use, with or without the intent to mislead, gives rise to any appearance of sponsorship or approval
by the Departments of the Army or Defense.

Military titles will not be a part of the signature block of a Retired Soldier when signing official correspondences as a civil
service employee.

Retired Soldiers not on active duty will not use their military titles in connection with public appearances outside the United
States unless such use is authorized by the appropriate overseas commander.

When military titles are used by members to sign their names to documents that pertain to them personally, they must
show that they are in a retired status after the grade (for example, A. B. Smith, COL (USA Retired)). “USA Retired” will be
used by all personnel retired for service, age, or physical disability, including personnel on the Temporary Disability
Retired List (TDRL).

Social and business cards must reflect the retired status as prescribed above.

Retired Soldiers serving as DA civilians will not use or refer to their military grade or rank except when referring to their
personal retirement actions.

10-2 UNIFORMS AND RANK IN RETIREMENT

Retired Soldiers may wear the Army uniform at occasions essentially of a military character, at which the uniform is more
appropriate than civilian clothing. These functions include, but are not limited to: military balls, military parades,
inaugurals, weddings, memorial services, and military funerals; as well as memorial services, meetings, conferences, or
similar functions of associations formed for military purposes, of which the membership is composed largely or entirely of
current or honorably discharged veterans of the Armed Forces of the United States. Authority to wear the uniform includes
wear while traveling to and from the ceremony or function, provided the travel in uniform can be completed on the day of
the ceremony or function.

In addition to the occasions for wear listed above, retired personnel are authorized to wear the uniform only when
attending parades on national or State holidays, or other patriotic parades or ceremonies in which any active or reserve
U.S. military unit is taking part. Uniforms for these occasions are restricted to service and dress uniforms; the combat
uniform and physical fitness uniforms will not be worn. Wearing the Army uniform at any other time, or for any other
purpose than stated above, is prohibited.

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Retired Soldiers are prohibited from wearing Army uniforms:

• When furthering any political or commercial interests, or when engaged in civilian employment.
• When participating in public speeches, interviews, picket lines, marches, rallies, or public demonstrations.
• When attending any meeting or event that is a function of, or is sponsored by, an extremist organization.
• When wearing the uniform would bring discredit upon the Army.
• When specifically prohibited by Army regulations.
• When not on active duty but acting as an instructor or responsible for military discipline at an educational
institution, unless the educational institution is conducting courses of instruction approved by the Armed Forces.

All persons wearing the Army uniform will wear awards, decorations, and insignia
in the same manner as prescribed for active duty Soldiers. On the blue service and
dress uniforms, Retired Soldiers will wear the retired service ID badge and may
wear the combat service ID badge if they were authorized wear of the Shoulder
Sleeve Insignia – Former Wartime Service while on active duty. On the green dress
uniform, Retired Soldiers will wear the Retired Soldier shoulder sleeve insignia
(SSI) (pictured at right) on the left shoulder instead of the SSI of their last unit of
assignment. They may also wear the Shoulder Sleeve Insignia – Former Wartime
Service they were authorized to wear while on active duty.

Retired personnel on active duty will wear their uniform and insignia in the same
manner as prescribed for personnel in the Active Army of corresponding grade and
branch.

Retired personnel not on active duty may wear either the uniform reflecting their grade and branch on the date of their
retirement, or the uniform prescribed for personnel in the Active Army of corresponding grade and branch, when
appropriate, but may not mix the two uniforms. Personnel will wear the grade as shown on the retired grade of rank line
on their retirement order. Personnel who will be advanced to a higher grade upon retirement have the option of wearing
the insignia of that grade thereafter.

Retired Soldiers are authorized to wear military medals on appropriate civilian clothing. This includes clothes designed for
veteran and patriotic organizations on Veteran’s Day, Memorial Day, and Armed Forces Day, as well as at formal
occasions of ceremony and social functions of a military nature. Personnel may wear either full-sized or miniature medals.
Personnel who wear medals on civilian clothes should place the medals on the clothing in approximately the same
location and in the same manner as for the Army uniform, so they look similar to medals worn on the Army uniform.

Retired Soldiers are authorized to wear the physical fitness uniform:

• With civilian attire off the installation.

• When wearing the physical fitness uniform as a complete uniform, Retired Soldiers will follow the guidance in AR
670-1.

The guidance above is summarized from Army Regulation 670-1, Wear and Appearance of Army Uniforms and Insignia,
and Department of the Army Pamphlet 670-1, Guide to the Wear and Appearance of Army Uniforms and Insignia.

Retired insignia may be purchased at www.shopmyexchange.com or any installation military clothing sales store.

10-3 SALUTING WHILE RETIRED

Federal law authorizes retired service members to salute the flag in the following situations:

a) The Pledge of Allegiance. Military personnel in uniform should remain silent, face the flag, and render the military
salute. Members of the Armed Forces not in uniform and Veterans may render the military salute in the manner provided
for persons in uniform. Alternately, military personnel and Veterans not in uniform may stand at attention facing the flag

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with the right hand over the heart. When not in uniform men should remove any non-religious headdress with their right
hand and hold it at the left shoulder, the hand being over the heart (Title 4 USC section 4).

b) During hoisting, lowering or passing of the American flag. During the ceremony of hoisting or lowering the
American flag or when the flag is passing in a parade or in review, all persons present in uniform should render the
military salute. Members of the Armed Forces and Veterans who are present but not in uniform may render the military
salute. All such conduct toward the flag in a moving column should be rendered at the moment the flag passes. All other
persons present should face the flag and stand at attention with their right hand over the heart, or if applicable, remove
their headdress with their right hand and hold it at the left shoulder, the hand being over the heart. (Title 4 USC section 9).

c) National Anthem. During a rendition of the national anthem, when the flag is displayed, individuals in uniform should
give the military salute at the first note of the anthem and maintain that position until the last note. Members of the Armed
Forces and Veterans who are present but not in uniform may render the military salute in the manner provided for
individuals in uniform. All other persons present should face the flag and stand at attention with their right hand over the
heart, and men not in uniform, if applicable, should remove their headdress with their right hand and hold it at the left
shoulder, the hand being over the heart. When the flag is not displayed, all present should face toward the music and act
in the same manner they would if the flag were displayed. (Title 36 USC section 301).

Back cover caption: Like retiring Soldiers at their retirement ceremonies, 173rd Airborne Brigade’s Sky Soldiers land and
prepare for their follow on mission at Juliet Drop Zone in Maniago, Italy on November 12, 2020. Paratroopers train and
plan extensively for airborne missions. Wise retiring Soldiers do the same for two to three years before their retirements.
(U.S. Army photo by Staff Sgt. Jacob Sawyer)

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This publication may be downloaded from the Army Retirement Services
website at https://soldierforlife.army.mil/Retirement/retirement-planning