Financial Management Element 42 Page 193

Purpose To inform the member of the financial resources available to help with the transition

Overview Unless the member has a career lined up, finding a job could take some time Careful financial planning is key to managing limited income Command Financial Specialist can be used to assist Courses are offered at Military OneSource and Fleet and Family Support Centers Budgets MUST and will be developed when attending TGPS

Thrift Savings Program (TSP) A savings/retirement plan that is similar to a 401k Purpose: to provide retirement income The amount contributed and the earnings attributable to the contributions belong to the member, even if they do not serve 20 or more years Post sep withdraw: partial ($1,000 or more) and full (lump sum, monthly payments, or life annuity) Must withdraw by April 1 the year after the member turned 70 ½ yrs old

Blended Retirement System (BRS) Moves from a vested defined retirement plan to a reduced benefit plan Major changes: The military will contribute 1% Service members automatically enrolled to contribute 3% Military will match dollar for dollar up to 3% and .50 on the dollar for the next 2% The contributions will go to “age appropriate” lifecycle (L) fund, unless service members choose otherwise 2% a year at 20 years of service instead of 2.5% a year

Survivor Benefit Plan (SBP) All AD covered under SBP while on AD SBP is a form of life insurance for retired pay Alternatives to the SBP that the member and spouse are equally responsible for Provides an annuity to make up the loss for retirement income

Indirect Compensation Medical Care (free prescriptions, Ms. Carlson LIKES A LOT) Tricare Dental Program Federal Tax Advantage on BAH and BAS State/Local Tax advantage Military Pension Serviceman’s Group Life Insurance Discounted Services at the Commissary and NEX Etc, etc, etc……….

Resources http://militarypay.defense.gov/Calculators/RMC-Calculator TSP: www.tsp.gov BRS: http://militarypa.defense.gov/Portals/3/Documents/BlendedRetirementDocuments/BRS%20Frequently%20AskedQuestions%205.01.2017.pdf?ver=2017-05-02-095830-163 SBP: http://militarypay.defense.gov/Benefits/Survivor-Benefit-Program Start turning ideas into reality.

Questions? 1) 2)