2022 AFBA Financial Planning Guide

Chapter 4. Military Retirements Retired Pay Background.........................................................................................................4–1 DIEMS....................................................................................................................................4–2 Retired Pay Systems..............................................................................................................4–3 Retired Pay Increases. ...........................................................................................................4–4 Enlisted Personnel Retirements. ............................................................................................4–5 Officer Retirements ................................................................................................................4–6 Disability Retirements............................................................................................................4–7 CRSC and CRDP Programs.....................................................................................................4–8 Retirement Services Offices (RSO) .........................................................................................4–9 Retirement Pay Schedule.....................................................................................................4–10

duty receive a 50% pension. Reserve and Guard retirees must reach the age of eligibility (usually age 60, unless they are entitled to reduced age eligibility) with 20 creditable years of service before retired pay commences. The Blended Retirement System changes some of these facts as you will read later in this chapter. Over the years, participation in the program has increased significantly with now over 2 million retirees and survivors receiving benefits totaling approximately $50 Billion. 4–2. DIEMS (Date Initially Entered Military Service). There are four different retirement systems in existence. The applicability of each system is determined by your Date Initially Entered Military Service (DIEMS). The DIEMS date is the earliest date of enlistment, induction or appointment in a regular or reserve component of a uniformed service as a

4–1. RETIRED PAY BACKGROUND. The military retirement system applies to members of the Air Force, Army, Marine Corps, and Navy. Most of the provisions of the system also apply to: a. Members of the Coast Guard (administered by the Department of Homeland Security). b. Officers of the Public Health Service (administered by the Department of Health and Human Services). c. Officers of the National Oceanic and Atmospheric Administration (administered by the Department of Commerce). The traditional retirement system is a non-contributory plan that provides defined benefits at any age. Normally, military retirees who have honorably served for 20 years on active

CHAPTER 4: MILITARY RETIREMENTS

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