AGR vs MDAY Med Retirement

rmwilly00

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I am currently AGR with 20 total years, 18 of which are Active. I am waiting VA ratings at the moment and will more than likely be medically retired. My question is, is there a difference in being medically retired while on AGR orders vs being regular MDAY? I am looking for my next career in the civilian world and have an opportunity to start with a good company soon so I am contemplating resigning my AGR position and riding out the MEB in an MDAY status. Will this mess with any retirement benefits like Tricare, retirement pay, chapter 61 vs a different chapter of retirement, etc.....?
 

RonG

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Hello @rmwilly00


The following pertains to Reserve Component (NG, Reserves) in general.

1. 20 "good years" are required for retirement.
2. The age requirement for reserve retirement is 60. The age requirement can be reduced for certain periods of deployment.
3. The retired pay is computed by
-- total active duty years equivalent x 2.5% = longevity/retired pay multiplier
--high three average base x retired pay multiplier = reserve retired pay
--CRDP will apply if a VA rating of 50% or more is applicable

Chapter 61 retiree who also has 20 good years for RC retirement.
--In most bases the retiree receives the DoD multiplier since it will be higher than the longevity multiplier. 60% is an example.
--High three average base pay x 60% (example) = disability retired pay
--The disability retired pay is reduced by the amount of VA compensation
--Once the RC retirement age is met and the retiree has a VA rating of 50% or more, CRDP will restore the longevity portion of the "reduced retired pay" i.e., the waiver.

A Chapter 61 disability retiree is eligible for TRICARE immediately.

Ron
 

RonG

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Retirement Age, Reserve Retired Pay

A member is generally not eligible for Reserve (non-regular) retired pay until they reach age 60. However, any member of the Ready Reserve who is recalled to active duty or, in response to a national emergency, is called to certain active service after January 28, 2008, shall have the age 60 requirement reduced by 3 months for each cumulative period of 90 days so performed in any fiscal year after that date.

Ron
 
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