YOUR ENLISTED VOICE FOR OVER 39 YEARS

RETIREMENT REFORM (ALL AIRMEN 9/8/80 AND LATER ARE NOW UNDER SAME FORMULA) FINAL 36 MONTHS AVERAGED TO DETERMINE AN AVERAGE MONTHLY BASE PAY. THOSE RETIRING AT 20 YEARS GET 50 PERCENT OF THE AVERAGED BASE PAY - AN ADDITIONAL 2.5 PERCENT FOR EACH YEAR OF SERVICE OVER 20, UP TO 75 PERCENT FOR 30 YEARS OF SERVICE. A FULL ANNUAL RETIREE COLA (CPI-BASED)

40 % OF BASE PAY AVG AT 20 YEARS 3.5 % FOR EVERY YEAR OVER UP TO 75 % AT 30 YEARS OF SERVICE 1 % ANNUAL COLA REDUCTION ONE-TIME COLA CATCH-UP AT AGE 62 RETIREES WHO ENTERED SERVICE ON OR AFTER AUGUST 1, 1986 WILL BE OFFERED A $30,000 LUMP-SUM, TAXABLE, CAREER STATUS BONUS TO AGREE TO GIVE UP THE 50 PERCENT, FULL-COLA RETIREMENT PRO- GRAM AND RETIREE UNDER THE 40 PERCENT, REDUCED-COLA REDUX SYSTEM:

Years of service High Three50%55%60%65%70%75% REDUX40%47%54%61%68%75% Percentage of Base Pay Multipliers High Three - 2.5% every year REDUX - 2% to 20; 3.5% from

RETIREMENT PAY IN FIRST 20 YEARS OF RETIREMENT: HIGH THREE FORMULA: $371, 808 REDUX FORMULA: $269, 434 DIFFERENCE: $102,374 ASSUMPTIONS: MSGT RETIRING AT 20 YEARS $2,500 FINAL PAY AVERAGE 2.2 PERCENT ANNUAL CPI

RETIREMENT PAY IN FIRST 20 YEARS OF RETIREMENT: HIGH THREE FORMULA: $892, 339 REDUX FORMULA: $808, 303 DIFFERENCE: $84, 036 ASSUMPTIONS: CMSGT RETIRING AT 30 YEARS $4,000 FINAL PAY AVERAGE 2.2 PERCENT ANNUAL CPI

[ CMSGT: $84, 036 MSGT: $102, 374 ] ASSUMPTIONS: $25, 000 TO INVEST AFTER TAXES NO WITHDRAWALS STRAIGHT ANNUAL INTEREST 20-YEAR INVESTMENT SIX PERCENT: $80, 178 TEN PERCENT: $168, 188 INVEST IT ?

E-7 Retiring at 20 Years of Service

WE ALL BENEFIT FROM THE HARD WORK AFSA DOES, BOTH IN WASHINGTON AND THROUGHOUT OUR AIR FORCE COMMUNITIES... ALTHOUGH PARTICIPATION IN AFSA ACTIVITIES IS A PERSONAL AND COMPLETELY VOLUNTARY CHOICE, I ENCOURAGE YOUR SUPPORT AS WE WORK TOGETHER WITH AFSA TO CONTINUE TO ENHANCE THE QUALITY OF LIFE FOR US ALL. FREDERICK J. FINCH CHIEF MASTER SERGEANT OF THE AIR FORCE MARCH 22, 2000

HELP US BUILD AN EVEN-MORE-POWERFUL VOICE!

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Questions ? Retirement Choice