Guard/ Reserve retirement

Diamondpoir

PEB Forum Regular Member
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I have a question on Guard/Reserve MEB retirement. I will use myself as an example. I’ve been a MSgt for 7 years. I have 24 good years with 5700 retirement points. I’m going through MEB and stand to get 30 maybe 40 percent DOD. I’m currently 100 percent VA so I know my VA will outweigh the DOD. My question is what will happen at age 60. Will it stay at say 30 percent or will it get switched to the traditional guard retirement. Will it go to the higher of the 2? Thanks so much for all the amazing info!
 

RonG

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I have a question on Guard/Reserve MEB retirement. I will use myself as an example. I’ve been a MSgt for 7 years. I have 24 good years with 5700 retirement points. I’m going through MEB and stand to get 30 maybe 40 percent DOD. I’m currently 100 percent VA so I know my VA will outweigh the DOD. My question is what will happen at age 60. Will it stay at say 30 percent or will it get switched to the traditional guard retirement. Will it go to the higher of the 2? Thanks so much for all the amazing info!
I just noticed this old, unanswered post.

You will receive the higher of the two; however, CRDP will be limited to the dollar amount of the longevity portion of your retired pay.

Ron
 

Guardguy11

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PEB Forum Veteran
Registered Member
I have a question on Guard/Reserve MEB retirement. I will use myself as an example. I’ve been a MSgt for 7 years. I have 24 good years with 5700 retirement points. I’m going through MEB and stand to get 30 maybe 40 percent DOD. I’m currently 100 percent VA so I know my VA will outweigh the DOD. My question is what will happen at age 60. Will it stay at say 30 percent or will it get switched to the traditional guard retirement. Will it go to the higher of the 2? Thanks so much for all the amazing info!
Diamond, if given the opportunity, I would recommend you take the disability retirement versus waiting for your retirement at 60. Below is my calculations that I made so you can see. I will also alibi that I am using somewhat generic numbers based on your data given above and assuming you are 42 years old.

If you take your VA and tell them you want to militarily retire, you won't receive your mil pay pension until age 60.
VA benefits 2020-2037 - (($3057 * 12) * 17) = $623,628
Mil pension received - $0
Mil pension received per month starting at 59 1/2 - $2371 based on your points

If you take your VA and tell them you want to disability retire, based on the active duty service you have, (AS LONG AS YOU GET A MINIMUM OF 30% DOD), your actual min percentage used for calculating your DOD payment will be 40%. The calculation is done as years of qualifying service (at 5700 that is just shy of 16 years) times 2.5% times the retired base pay. So even if you get DOD 30%, the calculation will be done at 40% for pay purposes.

VA benefits 2020-2037 - (($3057 * 12) * 17) = $623,628
Mil disability pension - ((($5068 * 40%) * 12) * 17) = $413,548

As you can see, since you can start collecting a military disability pension immediately and simultaneously with VA, you would gain over $400k in the same time while you were waiting to reach retirement age. Your DOD percentage won't affect you at all if you choice to just militarily retire. It only calculates for a disability retirement.

I hope this answers your question. Happy to field any clarifying questions.

Brad
 

RonG

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Hello Brad,

This is in regard to: "If you take your VA and tell them you want to disability retire, based on the active duty service you have, (AS LONG AS YOU GET A MINIMUM OF 30% DOD), your actual min percentage used for calculating your DOD payment will be 40%. The calculation is done as years of qualifying service (at 5700 that is just shy of 16 years) times 2.5% times the retired base pay. So even if you get DOD 30%, the calculation will be done at 40% for pay purposes.

VA benefits 2020-2037 - (($3057 * 12) * 17) = $623,628
Mil disability pension - ((($5068 * 40%) * 12) * 17) = $413,548"

Comments:

The retiree in your example quoted above is a CH 61 retiree who does not qualify for another retirement at the time of disability retirement. In other words, the retiree has yet to attain the age requirement for reserve retirement. Additionally, he is not eligible for CRDP since he has yet to qualify for reserve retirement.

The disability retiree will have his retired pay reduced by the amount of his VA compensation.

Using the high three figure you provided and a VA comp rate of 3057:
5700/360 = 15.83
15.83 x 2.5% = 39.58
5068 your cited high three x 0.3958 = 2005.91 retired pay assuming his DoD disability was 30%; therefore the 39.58% is higher
2005.91 retired pay reduced by 3057 VA compensation = zero retired pay
He would receive only 3057 VA Compensation per month, not the amount you cited ($413,548 total for 17 years for retired pay).
Using your computation : VA benefits 2020-2037 - (($3057 * 12) * 17) = $623,628

Summary (using your figures):
$623,628 VA compensation = Yes
$413,548 Retired Pay = No



He possibly could qualify for CRSC, but that remains to be seen.

Ron
 

Diamondpoir

PEB Forum Regular Member
Registered Member
Brad thank you so much for the reply. Yes I am shy of the 20 years (point wise) with 5700. I do have 25 good years total (12 active, 13 ANG). I’m not sure if I will qualify for CRSC due to the fact that I will be retiring from my ANG technician position and having a civil service pension also. The civil service seams to be a whole other animal but at least it won’t include exams and all the other fun on the military side. Thanks for offering to answer other questions as I know I will have plenty as I get close to finishing up the IPEB phase. If you have any questions please ask. I may be able to answer as I believe I’m a little further ahead in the process. Take care. Thanks Ron also!
 

Guardguy11

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PEB Forum Veteran
Registered Member
And this is why RonG is the man... I completely fubbered that one up. I took my situation and somehow conflated it onto his without even thinking about the chapter 61 drawbacks. Diamond, you are correct that the technician piece is a beast in and of itself. Definitely disregard my previous statement unless your healthcare costs would lead you to needing tri-care prime until you reach medicare age.
 

RonG

Super Moderator
Staff Member
PEB Forum Veteran
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Hi Diamondpoir,

My contribution was primarily the fact that under the scenario put forth by Brad, you will not receive $413,548 Retired Pay.

He did make some good points...

Ron
 

Diamondpoir

PEB Forum Regular Member
Registered Member
No worries! I enjoy reading and trying to understand all angles of this process. Helps me to understand so I can pass info along to others.....
 
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