Retirement Processes SFC(P) Fale

Agenda How to transfer to the Retired Reserve Separation/Discharge Gray Area Benefits Early Retired Pay Eligibility Non-Regular Retired Pay Application Process Receiving First Payment

How to Apply for Transfer to the Retired Reserves If a TPU member under age 60 Submit DA 4651 Checklist through unit If a member of the IRR, AGR or age 60+ Submit DA 4651 Checklist through HRC Allow 9 months for processing

How to Apply for Transfer to the Retired Reserves National Guard Pre Retirement Checklist -Allow 6 Months for processing Army Reserve Pre Retirement Checklist -Allow 9 months for processing

DA From 4651, Request for Reserve Component Assignment or Attachment (Request for Assignment to Retired Reserve) Checklist Check the below items, indicating you have completed the action : 1. _____ Copy of this checklist 2. _____ DA 4651 (signed by the officer and the commander) 3. _____ Officer statement of explanation and justification for release prior to MRD 4._____ DA Form 4856 completed and signed by commander documenting face to face counseling. 5. _____ DA Form 4856 completed and signed by CRTNCO 6. _____Chain of command recommendations (including MSC Commander’s recommendation)

Retired Reserve vs Discharge Soldiers “YOU” electing discharge instead of transfer to the Retired Reserve must be aware that a discharge will have an impact on retired pay. Regardless of the Soldier’s retired pay plan, Soldiers who elect discharge before age 60 will have their High–3 average or final pay computed based on the rates in effect on date of discharge. However, Soldiers electing transfer to the Retired Reserve will continue to receive credit for longevity and DFAS will compute retired pay based on the rates in effect at the time of retirement.

*does not apply to Non-Regular Retirement Retired Pay Systems Final Base Pay = Joined prior to Sep 8, 1980 High Three = Joined on or after Sep 8, 1980 *Career Status Bonus/REDUX = Joined on or after Aug 1, 1986 *does not apply to Non-Regular Retirement DIEMS date creditable status includes: Delayed Entry Program, Reserve Officer Training Corps, Military Academy, and Health Professions Scholarship Program

Calculating Service Total Retirement Points Divided by 360 = Calculated Service Example: 2560 retirement points divided by 360 = 7.11 (years of service)

Final Base Pay Formula Calculation Calculated Service x 2.5% x final base pay = $ Retired Pay Cost of Living Allowance is at full rate as determined by the Consumer Price Index Retired pay is calculated on the base pay at the time of application for retired pay

High Three Average Formula Calculated Service x 2.5% x average 36 months base pay = $ Retired Pay Cost of Living Allowance is at full rate as determined by the Consumer Price Index In Military Status - Retired pay is calculated on the average of the last 36 months of base pay at application for retired pay Discharged/Former Member – Retired pay is calculated on the average of the last 36 months of base pay at the time of discharge

Retired Reserve vs Discharge (Practical Example) W-3 with over 20 years of service for pay at time of discharge or transfer to retired reserve: Monthly retired pay at age 60 if discharged: $1,394.94 Monthly retired pay at age 60 if transferred to retired reserve: $2,542.51 Difference: $1147.57

Grey Area Benefits ID Card(s) Commissary and PX / shopette and other post facilities MWR Space Available Travel Lodging Limited Legal Casualty Assistance and all processing services and more… Regardless of discharge or transfer to Ret Res, all non-regular retirement eligible retirees are entitled to receive a red ID card that allows for gray area benefits/entitlements. These include but may not be limited to: Commissary and PX / shoppette and other post facilities TRDP and TRR (if enrolled) MWR Space Available Travel Lodging Limited Legal Casualty Assistance and all processing services  

Reduced Retired Pay Eligibility Qualifying service on 29 Jan 08 or after includes service Performed under the following authorities: sections T10, 101(a)(13)(B), 688, 12301(a), 12302, 12304, 12305, 12406, and chapter 15 (insurrection) or under section 12301(d), 12301(h) and -sections T32, 502(f) for purposes of responding to either a national emergency declared by the President or a national emergency supported by Federal funds

Reduced Retired Pay Eligibility - Continued How to calculate reduced retirement periods: Every 90 aggregate days performed within a fiscal year will reduce retirement age by 3 months Example: Served in OEF from 1 Feb 09 – 22 Feb 10 and has the following creditable periods for 9 months age reduction * 1 Feb – 1 May 09 = 90 days = 3 months reduced * 2 May – 30 Jul 09 = 90 days = 3 months reduced * 31 Jul – 30 Sep 09 = 62 days = 0 months * 1 Oct – 29 Dec 09 = 90 days = 3 months reduced * 30 Dec 09 – 22 Feb 10 = 55 days = 0 months

When do I apply for Retired Pay? Application for retired pay should be completed and sent to the Human Resource Command, Fort Knox not earlier than 9 months and not later than 90 days prior to the date retired pay is to start (usually your 60th birthday). You are responsible for submitting your retirement application but help is never far away! Your unit and higher headquarters have people qualified to assist you through this process.

Application for Retired Pay What do I send to apply for retired pay? Your completed Retired Pay application will at a minimum consist of: DD Form 108 (Application for Retired Pay) DD Form 2656 (Data for Retired Pay Benefits) SF 1199a (Direct Deposit Form) AHRC-249-E or NGB Form 23C (Retirement Point Statements for Retired Pay) Copy of your NOE (20 year or 15 year) DD Form 2656-5 RCSBP Election Certificate (if applicable)

Application for Retired Pay - Continued What additional documentation should I send? Any forms showing changes to your RCSBP election DD 2656-6, DD 2656-1, automatic election forms, divorce decrees, marriage certificates, birth certificates, adoption papers Documents to support reduced age retirement (if applicable) DD 214s, DD 215s, DD 220, Mobilization Orders, LES Orders showing highest grade/rank held and administrative reduction (if applicable) Copy of approved waiver to serve beyond age 60 (if applicable).

Application for Retired Pay - Continued Where do I send my application for Retired Pay? Send all documents to: U.S. Army Human Resources Center of Excellence ATTN: AHRC-PDR-RCR 1600 Spearhead Division Avenue DEPT 482 Fort Knox, KY 40122

Is there a Statute of Limitations on Retired Pay? Yes! There is a 6 year statute of limitations for back pay of retired pay. A claim must be filed within 6 years from the date of eligibility for retired pay. If not filed within the 6 year limitation, 1 day’s retired pay is lost for each day of delay in filing the application. Example: If you became eligible for retired pay on 2 July 1990 and the application for retired pay was not processed by DFAS until 2 September 1996, payment can only be made from 2 September 1990

Applying after Age 60 If you serve past your 60th birthday, you must send your age waiver to HRC with your application for retired pay. Failure to send this waiver can create a pay debt. (Not a good way to start Retirement!) The Statute of Limitations still applies to you so don’t put off applying for your retired pay!

The Application DD108 DD2656 SF1199A 20 Year NOE ARPC 249-E (USAR), NGB 23 (ARNG) Retirement Orders (if not in iPERMS) Substantiating Documentation for early draw (where applicable) Any documentation showing change in status (Divorce Decree, Marriage Certificate, Birth Certificate, etc) The application for Retired Pay Benefits consists of the DD Form 108, DD Form 2656, and the SF 1199a which I’ve included in your handouts. (Per HRC, Ms. Sheila Dorsey, 19 Jan 2012, if the servicemember has the current DD form 2656 filled out with financial information, do not need to include the 1199a). In addition, you need to provide copies of the following forms, as appropriate: National Guard retirees - final NGB Forms 22 and 23 Reserve soldiers – ARPC Form 249-E that was provided to you by HRC (formerly AR-PERSCOM) or you can find it on the HRC my portal site. Any documents substantiating additional retirement points

REWRITE THIS ONE The good thing with this DD 108 is that all you have to fill out are blocks 1-8, which is your personal information. Then instead of filling in all of your service information by hand, you can write “SEE ATTACHED NGB 23 or see attached Reserve ARPC 249-E ” in the lower portion of the form below (Service after 30 June 1949), then and sign and date. You can obtain the NGB 23 (Retirement points history) by contacting your nearest Armory who will contact us at the state level for a copy.

You will provide information on the DD Form 2656 by completing section I which is your personal information, section II which is your direct deposit information, section III which is separation pay information (if you’ve received any), section IV which asks whether you’ve received any VA compensation and how much, section V which is the designation of beneficiary’s for unpaid retired pay, section VI and VII are your Fed and State withholding information, section VIII is the dependency information where you’ll enter your spouses information and any dependent children

Moving on to page 2; Section IX is your Survivor Benefit Plan information (this information must be the same as your initial RCSBP election when you received your 20 year letter or any changes you’ve made to the plan since that time due to a life changing event such as marriage, divorce, birth of a child, or death of a spouse), section X is the remarks area for any continuation needed, section XI is Spousal Concurrence, which is required if you chose anything other than option C full amount, and section XII which is the certification area for your signature and that of a witness (usually unit personnel)

Modifications to Retired Pay Application Write: “Early Age Drop” in RED INK at top of DD Form 108 and 2656, if reduced retirement applies Add Date of Rank to Block 4 of both DD Form 108 and DD Form 2656, if a high 36 retiree

Voided Check, if you use the DD Form 2656 section. The direct deposit form SF 1199a will accompany your packet for DFAS to have the correct banking information. The financial institution certification does not need to be completed. You can either use this form or a direct deposit form provided by your bank, either one is acceptable. Voided Check, if you use the DD Form 2656 section. Again-per Sheila Dorsey, do not need this if the 2656 Section II financial information is filled out completely.

Mailing Address HR Center of Excellence ATTN: ARHC-PDR-RCR The reserve retired pay application is sent to: HR Center of Excellence ATTN: ARHC-PDR-RCR 1600 Spearhead Division Ave Department 482 Ft Knox, KY 40122-5402 This is the address where you will send your retired pay application. HRC encourages you to keep a copy of your completed forms and documentation. At this time, HRC will not contact you unless you are missing something from your packet. HRC returns application packets received without being properly completed, signed or dated..

Receiving the First Payment At age 60, the retiree will receive the first payment by direct deposit on the first working day of the month following the birth month. This check is normally a partial month check depending on the day of the month the retiree’s birthday falls DFAS-London, KY will provide a 3-page statement showing how the pay was calculated, tax information, survivor benefit cost data and procedures for contacting DFAS-London, KY for changes to the retiree’s account. Monthly Leave and Earnings Statements are not provided to retirees. The retiree can obtain a monthly LES statement by logging on “My Pay” At age 60, the retiree will receive the first payment by direct deposit on the first working day of the month following the birth month. This check is normally a partial month check depending on the day of the month the retiree’s birthday falls DFAS-London, KY will provide a 3-page statement showing how the pay was calculated, tax information, survivor benefit cost data and procedures for contacting DFAS-London, KY for changes to the retiree’s account. Monthly Leave and Earnings Statements are not provided to retirees. The retiree can obtain a monthly LES statement by logging on “My Pay”

SFC(P) Rosa Fale Army Reserve Questions? SFC(P) Rosa Fale Army Reserve Retirement Services Officer 63D Regional Support Command 650-526-9513 rosa.fale@usar.army.mil

End of Seminar Survey Forms SFC Ryan Sturm