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So the new retirement system is written up. It consists of matching TSP, a continuation payment at 12 years, and a reduced pension at 20 years with options. Here are the high points I can point out.... feel free to correct me Eligibility: - Starting 1 Jan 18, all new military members will be enrolled. - If you have less than 12 years TIS as of 31 Dec 17, you can opt in to the new system. No retroactive matching contributions will be paid. - Unless a hardship extension is offered or a member has a break in service, one can only opt in to the new retirement from 1 Jan 18 - 31 Dec 18. - The 15 year Career Status Bonus is going away after 31 Dec 17 Under the new system: - The pension will be a 2% multiplier, so 20 years gets you 40% base pay, 30 years gets 60% - The DoD will contribute 5% of your base pay automatically to TSP from 60 days of service to 26 years. If you elect to turn this off, you will be reenrolled automatically on 1 Jan of the following year. - The DoD will start matching 5% of your base pay starting at 2 years after entering service or immediately if switching from the old system, and ends at 26 years of service - Matched amount will vest after 2 years or separation - There's something in there about a lump sum payment I don't quite understand "(b) Election Of Lump Sum Payment Of Certain Retired Pay." It's like take 50% of the amount or 25% and monthly payments and a lump sum? See below. - Continuation Pay: At 12 years, and with a 4 year obligation: Monthly basic pay * 2.5 * (1-13 as determined by the service secretary, think dependent on job?) Can be lump sum or 4 installments, and is in addition to any other pay. That's all I can find under sections 631-635. Here is the text I need help deciphering: (b) Election Of Lump Sum Payment Of Certain Retired Pay.— “(1) IN GENERAL.—An eligible person entitled to covered retired pay (including an eligible person who is entitled to such pay by reason of an election described in subsection (a)(2)(A)(ii)) may elect to receive— “(A) a lump sum payment of the discounted present value at the time of the election of an amount of the covered retired pay that the eligible person is otherwise entitled to receive for the period beginning on the date of retirement and ending on the date the eligible person attains the eligible person’s retirement age equal to— “(i) 50 percent of the amount of such covered retired pay during such period; or “(ii) 25 percent of the amount of such covered retired pay during such period; and “(B) a monthly amount during the period described in subparagraph (A) equal to— “(i) in the case of an eligible person electing to receive an amount described in subparagraph (A)(i), 50 percent of the amount of monthly covered retired pay the eligible person is otherwise entitled to receive during such period; and “(ii) in the case of an eligible person electing to receive an amount described in subparagraph (A)(ii), 75 percent of the amount of monthly covered retired pay the eligible person is otherwise entitled to receive during such period “(2) DISCOUNTED PRESENT VALUE.—The Secretary of Defense shall compute the discounted present value of amounts of covered retired pay that an eligible person is otherwise entitled to receive for a period for purposes of paragraph (1)(A) by— “(A) estimating the aggregate amount of retired pay the person would receive for the period, taking into account cost-of-living adjustments under section 1401a of this title projected by the Secretary at the time the person separates from service and would otherwise begin receiving covered retired pay; and “(B) reducing the aggregate amount estimated pursuant to subparagraph (A) by an appropriate percentage determined by the Secretary— “(i) using average personal discount rates (as defined and calculated by the Secretary taking into consideration applicable and reputable studies of personal discount rates for military personnel and past actuarial experience in the calculation of personal discount rates under this paragraph); and “(ii) in accordance with generally accepted actuarial principles and practices. “(3) TIMING OF ELECTION.—An eligible person shall make the election under this subsection not later than 90 days before the date of the retirement of the eligible person from the uniformed services. “(4) SINGLE PAYMENT OR COMBINATION OF PAYMENTS.—An eligible person may elect to receive a lump sum payment under this subsection in a single payment or in a combination of payments. “(5) COMMENCEMENT OF PAYMENT.—An eligible person who makes an election under this subsection shall receive the lump sum payment, or the first installment of a combination of payments of the lump sum payment if elected under paragraph (4), as follows: “(A) Not later than 60 days after the date of the retirement of the eligible person from the uniformed services. “(B) In the case of an eligible person who is a member of a reserve component, not later than 60 days after the earlier of— “(i) the date on which the eligible person attains 60 years of age; or “(ii) the date on which the eligible person first becomes entitled to covered retired pay. “(6) NO SUBSEQUENT ADJUSTMENT.—An eligible person who accepts payment of a lump sum under this subsection may not seek the review of or otherwise challenge the amount of the lump sum in light of any variation in cost-of-living adjustments under section 1401a of this title, actuarial assumptions, or other factors used by the Secretary in calculating the amount of the lump sum that occur after the Secretary pays the lump sum. “(c) Resumption Of Monthly Annuity.— “(1) GENERAL RULE.—Subject to paragraph (2), an eligible person who makes an election described in subsection (b)(1) shall be entitled to receive the eligible person’s monthly covered retired pay calculated in accordance with paragraph (2) after the eligible person attains the eligible person’s retirement age. “(2) RESTORATION OF FULL RETIREMENT AMOUNT AT RETIREMENT AGE.—The retired pay of an eligible person who makes an election described in subsection (a) shall be recomputed, effective on the first day of the first month beginning after the person attains the eligible person’s retirement age, so as to be an amount equal to the amount of covered retired pay to which the eligible person would otherwise be entitled on that date if the annual increases, in the retired pay of the eligible person made to reflect changes in the Consumer Price Index, had been made in accordance with section 1401a of this title. “(d) Payment Of Retired Pay To Persons Not Making Election.—An eligible person who does not make the election described in subsection (b)(1) shall be paid the retired pay to which the eligible person is otherwise entitled under the applicable provisions of law referred to in subsection (a)(1). “(e) Regulations.—The Secretary of Defense concerned shall prescribe regulations to carry out the provisions of this section.” I think it's saying from retirement to SSA designated retirement age, you can take reduced monthly payments in exchange for a lump sum payment, and then at retirement age the full amount is restored? Full text here: https://www.congress.gov/bill/114th-congress/senate-bill/1356/text#toc-H99AADCE95120493591520BDE2A7830A3 And for reference, United States Code with the current retirement system: https://www.law.cornell.edu/uscode/text/10/subtitle-A/part-II/chapter-71 xaarman fucked around with this message at 05:34 on Nov 24, 2015 |
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Nov 24, 2015 05:08
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| # ? Apr 18, 2024 13:17 |
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This is a rehash of some old compassionate conservative era GOP pentagon reforms. But without fully privatizing TSP, as was their want so long ago. It's 50/50 if this really becomes the lasting new normal. Not necessarily worse or better depending on who you are. Note that this won't screw a single serving GO/FO. That's worth fretting over. At least to me.
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Nov 24, 2015 06:04
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It's there any word about Tricare coverage eligibility for retirees in this new plan?
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Nov 29, 2015 03:27
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ManMythLegend posted:It's there any word about Tricare coverage eligibility for retirees in this new plan? I haven't scoured the actual text for this (I hit my limit on reading the NDAA after scanning it for some procurement, force structure, and MILCON related stuff) but to my knowledge nothing is changing with Tricare under the plan(s) on the table (other than a minor one-time change to prescription copays I think). More in depth changes were discussed by the committee or blue ribbon panel or whatever the gently caress that kicked this discussion off, but it didn't make it into the NDAA. There was supposed to be a more significant change to the prescriptions but that got removed by the House when the bill went to conference.
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Nov 29, 2015 03:44
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So essentially you still have to do at least 20 to get pension, the difference is in the TSP?
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Dec 1, 2015 22:37
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The coast guard came out with some additional info which clarified a few things but I'm sure there will be tons of training to go along with this. I'll be at 11 years and 11 months when this comes into effect, so I'll have to choose between the two. Edit-which seems like I would stay with thin current plan since I would be trying to amass my TSP contributions with only 8 years of service left until I hit 20. nwin fucked around with this message at 15:26 on Dec 2, 2015 |
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Dec 2, 2015 12:12
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The bean counters probably figured out the total savings to the government is worth it.
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Dec 11, 2015 00:55
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Welp, I retire in Oct 2017. I imagine there will be a lot of mandatory classes on this before I get out though.
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Dec 29, 2015 04:34
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| # ? Apr 18, 2024 13:17 |
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We got some sort of information card about it today. Seems like the hit to 20-year retirement pay is worth it for the matched TSP contributions, but I can apparently choose whether to go with one or the other.
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Dec 29, 2015 06:14
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