Financial Management Element 42

What can financial instability effect? Family Relations Job Security Social Behavior Legal Issues Personal/Mental well-being

Overview Thrift Saving Plan (TSP) Blended Retirement System (BRS) Survivor Benefit Plan (SBP) Indirect Compensation

Thrift Savings Plan Retirement/Savings contribution plan that is similar to 401(k) program. *Participation is optional. Funds belong to member regardless of tenure of uniformed service. Withdrawal after Service If $200 or more after federal service , member can leave it until later date or withdraw all funds. If less than $200, TSP will automatically send a check to member for the amount.

TSP Withdrawal Continued… Withdrawal of Funds Partial: Taking out $1000 or more and leaving the rest until a later date. Only one partial payment is authorized from the account. Full has (3) options: Single payment or “Lump sum” Series of monthly payments TSP Life Annuity (monthly payments for life)

Blended Retirement System (BRS) BRS incorporated four major changes to the current retirement system. Employing military service will contribute 1% of members base pay to TSP. *(contribution will continue regardless of member input.) Member will be automatically enrolled to contribute 3% of base pay.(Will be annually re-enrolled if contributions stop.) Military employers will match the members TSP contribution dollar for dollar for the first 3% then 50 cents on the dollar for the next 2%. BRS will invest employee contributions in an “age appropriate” (L) lifecycle fund instead of the government (G) fund, unless otherwise chosen.

BRS Eligibility There are (2) Active Component groups eligible for BRS: Service members who entered the military on or after January 1, 2018. Members with 12 years of service or fewer who decide to opt-in. Reserve Component members who have less than 4,320 retirement points before Dec 31, 2017 may also be eligible.

Survivors Benefit Plan (SBP) Life insurance for personnel receiving retirement pay. The SBP is a for single and married service members. Spouse is required to sign the SBP election form and should be included in the decision. Failure to elect or decline coverage will result in automatic coverage under full retirement pay. Monthly premiums are required and are based on the “base amount” or benefit level elected. *(minimum coverage is $300 a month) 55% of retirement pay will go to beneficiary based of “base amount”.

Indirect Compensation Consists of the following that supplement your military pay while active: Medical Care including free prescriptions. Tricare Dental Program Tax advantage on BAH & BAS SGLI Discounted Services at Commissary and NEX Education Programs Counseling and Assistance Programs Legal Services

Summary Ensured member was aware of Thrift Savings Plan and its withdrawal options. Reviewed Blended Retirement System eligibility requirements for service member AC and RC. Explained the Survivor Benefit Plan and its options for retiring service members and beneficiaries. Explained the indirect compensation received by service members and how it will contrast their pay after separation.

Resources https://militarypay.defense.gov/Calculators/RMC-Calculator/ www.tsp.gov or the Thriftline at 1-977-968-3778 https://militarypay.defense.gov/blendedretirement/ https://militarypay.defense.gov/Benefits/Survivor-Benefit-Program/ www.Saveandinvest.org www.militaryonesource.mil Command Financial Specialist Naval Base San Diego Fleet and Family Service Center (619) 556-7404

!Knowledge Check! What is the minimum amount for a partial withdrawal from TSP? $1000 When are service members automatically enrolled in BRS? January 1, 2018 What will happen to retirement pay if no decision is made before EOS pertaining to SBP? Full basic SBP for spouse and children will begin. Reservists who have how many retirement points before Dec 31, 2017 are eligible for BRS? 4,320 Retirement Points

Questions?