1. FINANCIAL MANAGEMENT
Element 42
Page 202

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

3. 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

4. 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

5. 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

6. 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

7. 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

8. Resources Command Financial Specialist
FFSC: or
Blended Retirement System
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Survivor Benefit Plan

9. QUESTIONS???