United States Public Health Service Commission Corps Retirement Pay

Purpose To provide an overview of the Commissioned Corps Retirement Pay, Taxes and Cost-of-Living Adjustments This briefing is not designed to replace the USPHS Commissioned Corps Retirement Seminar that is located on the Commissioned Corps Learning Management System

Basic Retirement Pay Information

Throughout Your Retirement Planning Gather and study information required to make critical retirement financial decisions Discuss the information with your Family

Retirement pay is calculated on BASE PAY ONLY Calculated based on eligible retirement system – Final Pay – High 3 or High 36 – Career Status Bonus/REDUX Retirement Pay

RETIRED PAY = (Years of creditable service X 2.5%) X Final Basic Pay Percentage multipliers can exceed 100% Full COLAs ment/FinalPayCalculator.aspx Final Basic Pay Retirement System DIEMS Pre 08 Sep 1980 Years of service thru 40 Final Pay Multiplier % up to 100

RETIRED PAY = (Years of creditable service X 2.5%) X average of the highest 36 months base pay Typically an average of the last 36 months Percentage multipliers can exceed 100% Full COLAs High36Calculator.aspx High-36 Retirement System DIEMS between 08 Sep 1980 and 31 Jul 1986 Years of service thru 40 High-3 Multiplier % up to 100

RETIRED PAY = (Years of creditable service X 2.5%) minus 1% for each your < 30 years X average of the highest 36 months base pay 2% per year thru 20 years; 3.5% from years; 2.5% thereafter $30K Career Status Bonus (CSB) – 15 th year Percentage multiples can exceed 100% COLA minus 1%; one-time catch-up COLA at 62; COLA Minus 1% after if you chose CSB payment High36Calculator.aspx High-36 or REDUX Retirement System DIEMS post 01 Aug 1986 –”Choice” Years of service thru 40 REDUX Multiplier % up to 100 High-3/Final Multiplier % up to 100

Retirement pay is subject to Federal and State taxation Retirement Pay Taxation

Alaska New Hampshire Texas Florida South Dakota Washington Nevada Tennessee Wyoming Retirement Pay State Taxation States Without Income Tax

Retirement Pay State Taxation States that Exempt Uniformed Service Retired Pay * = Exempts USPHS and NOAA retired pay as federal employment. *** = Exempt depending on date of retirement - prior to 1998; after this date, some may be exempt. + NC allows full exemption for retirees with five years of service as of August 12, 1989; ++Missouri has a Public Pension Exclusion which covers a portion of pension income. AlabamaHawaiiIllinois KansasKentucky***Louisiana MassachusettsMichigan*Mississippi Missouri++New JerseyNew York North Carolina+OhioPennsylvania Wisconsin

Social Security (FICA) is not deducted from retired Pay When eligible, Retirees collect full retirement pay and full Social Security Social Security

There are limited types of allotments allowed: –Treasury Direct –Savings –Mortgage –National Service Life Insurance Premiums –Indebtedness to the U.S. Government –Dependent Allotments –Insurance Payments –VGLI –Army/Air Force Exchange Service DDP Program –Association Dues Retirement Pay Allotments

Typically approved 01 December annually –Based on changes on the Consumer Price Index –Takes affect 31 December annually –2013 COLA increase = 1.7% Cost-of-Living Adjustments

Commanding Officer (RAS) USGC Pay & Personnel Center 444 SE Quincy Street Topeka, KS (fax) Retired Pay Contacts

Concurrent Retirement and Disability Pay

Service-Connected compensation is paid for any medical condition resulting from a disease or injury incurred or aggravated while on active duty Examples –Torn knee ligament –Hearing loss –Back condition –Skin conditions such as psoriasis Service-Connected Compensation

Disabilities are rated 0%-100% Compensation payment is tax free –Compensation payments range from 10% to 100% –Additional allowance for dependents with 30% or higher rating Service-Connected Compensation

VA decision rating is independent of any uniformed service disability rating Severance pay may be recouped by the VA in some situations Concurrent Retirement and Disability Pay (CRDP) Service-Connected Compensation

RATINGVET ONLYVET+SVET+S+1C 10%$133.17N/A 20% $ N/A 30% $ $455.75$ % $ $651.36$ % $ $917.13$ % $1,059.09$1, $1, % $1,334.71$1, $1, % $1,551.48$1, $1, % $1,743.48$1, $1, % $2,906.83$3, $3, S = Spouse C = Child(ren) Rates effective 01 December 2014

VA Health care for all rated service- connected conditions Vocational Rehabilitation and Employment services $10,000 VA life insurance VA home loan funding fee waived Possible state and local benefits for Veterans Related VA Benefits

Allows retirees to receive both retired pay and VA compensation Eligibility –Retiree must be eligible for retired pay –Regular retiree with a VA disability or 50% or greater Concurrent Retirement and Disability Pay (CRDP)

TSP

Several Different Choices –Leave your money in the TSP Must make withdrawal decision no later than 01 April of the year after you turn age 70 ½ – Make a partial withdrawal $ or more, paid in a single payment – Make a full withdrawal Single payment Monthly payments Life annuity – Mixed Withdrawal Any combination of the above methods TSP Withdrawals

Suggested Reading Material –Withdrawing Your TSP Account After Leaving Federal Service –Important Tax Information About Payments From Your TSP Account TSP Withdrawals

Further Information –Thrift Savings Plan TSP

QUESTIONS