FINANCIAL MANAGEMENT Element 42 Page 202

Purpose Inform the TSM of the financial resources available to help with transition

A Family’s financial security should be considered before the decision to separate or retire is made One of the Career Readiness Standards that must be met requires the TSM to develop a criterion-based Financial Plan for Military to Civilian Transition The TSM will be provided the criteria during the Transition GPS core curriculum

Thrift Savings Plan Retirement/Savings plan Similar to a 401(k) Purpose is to provide retirement income Withdrawal after separation Partial- $1,000 or more and leaving the rest Full- made in three options: lump sum, monthly payments, life annuity www.tsp.gov

Blended Retirement System Reduced defined benefit plan with greater TSP benefits, continuation pay, and some lump sum options Military service will contribute 1% of monthly base pay to SM TSP account Service members are auto enrolled to contribute 3% of their base pay Military employers will match dollar for dollar for the first 3% and .50 cents on the dollar for the additional 2% Eligible Service Members Those who enter military on or after January 1st, 2018 Those with 12 years or fewer who decide to opt in

Survivor Benefit Plan All Active Duty service members are automatically covered under SBP at the full amount Form of life insurance for retired pay Designed to protect survivors against the risk of: Members’ early death Survivor outliving the benefits Inflation Required to pay monthly premium Example: if full coverage is elected, based on full retirement pay, spouse will receive 55% of members’ retirement pay

Indirect Compensation Medical/Dental Care Tax advantage on BAH and BAS Military Pension SGLI Education Programs Counseling and Assistance Programs Space Available Travel Gym memberships

Resources Command Financial Specialist FFSC: 559-998-4042 or lemr_n91_lemr_ffsc_pfm@navy.mil www.tsp.gov Blended Retirement System http://militarypay.defense.gov/portals/3/documents/BlendedRetirementdocuments/BRS%20Frequentl y%20Asked%20Questions%205.01.2017.pdf?ver=2017-05-02-095830-163 Survivor Benefit Plan http://militarypay.defense.gov/Benefits/Survivor-Benefit-Program/ www.militaryonesource.mil

QUESTIONS???