Military Retirement

soccermii

5-Year Member
Joined
Nov 6, 2011
Messages
19
I think we have all been following Congress's attempt to reform military retirement. For the class of 2019, would we go in under the new system or the old system? What are your thought on it?
 
If I had to guess it would be based on your date of Commission not I-Day but I could be way off. I also think it would work differently for Priors in the following classes since they were enlisted before going to an Academy.
 
I asked my JROTC instructor this question once. He told me that one would get the retirement plan in place at the time of the start of the cadet's 3rd year, since that's when you actually commit to the military.
 
I think you'll be better off under a new retirement system (if they used my ideas, hahaha).
 
Assuming the new retirement plan is approved and enacted, there's 3 truths.

1. If you think it's possible that you won't stay in the military 20 years, then the new system is great. You get "something" when you leave.
2. If you know based on your commitment that you'll stay at least 20 years, then the present system is better. You'll get more and it's guaranteed vs the market.
3. If you're new to the military when the new system is in place, then you have absolutely no choice. It's a moot point. Nothing to discuss.
 
2. If you know based on your commitment that you'll stay at least 20 years, then the present system is better. You'll get more and it's guaranteed vs the market.

HAHAHA, unless there are promotion board blood baths and you can't make 20.
 
Once you report to the academy, your DIEMS (Date of Initial Entry to Military Service) is established and this determines which retirement system you fall under. Even if the retirement system is modified, current folks have been grandfathered based on the system in effect on their DIEMS. Similarly for ROTC scholarship cadets, the DIEMS is established when the scholarship begins.
http://militarypay.defense.gov/retirement/ad/01_whichsystem.html
 
When I say "Commitment", I didn't mean personal commitment. I meant as an example, you graduate the academy, go to grad school, owe a few years extra for that; are a pilot; owe 10 for that; etc. Your commitment might take you already to about 14 years. You most likely got the promotion and you might as well go to 20 with that many years already in.

But you are correct. It is possible that you could be sitting at 12, 14+ years and the military releases you. That's why I always recommend a "PERSONAL" retirement plan. I never relied solely on the military's pension for my future. Just like I never relied on company's pension plans I've worked for. I always had MY OWN retirement plan going to.

Then again, there's still some out there that think they can live beyond their means for their whole life and their Social Security will be their "Retirement Plan".
 
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