Military Retirement Has Unique Benefits

Military retirement offers retirees from the armed forces a set of unique benefits which may not be found in other retirement plans. Military retirement benefits are a set of well-deserved rewards for a career spent defending the nation; often under dangerous and life-threatening conditions. Many rank and file armed forces personnel are required to retire by a certain age in order to keep the forces a young and viable force. Since many of these ex-military staff tend to retire at an age which is considered 'prime' in the commercial sector, the nation owes a duty to help them adjust to new largely civilian jobs. Prior to their military retirement, armed forces staff can get information regarding their benefits and entitlements so that they prepare themselves for the next phase of their lives in the commercial world. Many of these benefits are significant in their value and in their opportunities for future growth. Armed forces staff reaching military retirement should ensure that they derive maximum advantage from the retirement plans on offer so that they can heighten their chances of adjustment to a whole new environment.

Military Retirement Benefits Are Truly Exceptional

Military retirement benefits kick-in as soon as military personnel retire. There are a variety of benefits; but the main component is an inflation-adjusted pension. This pension is unique and not the same as civilian equivalents. Military personnel need not have vested in the pension system during their service. There are no prior special pension accounts into which they would have contributed part of their salary or accrued interest. They are paid this pension as long as they have served 20 years in the military honorably. They do not qualify for this pension if they do not serve the full 20 years at least; not even if they had served 19 years, 11 months and 30 days. This means that it is possible for a youthful 37 year-old to draw on his or her pension as soon as he or she reaches military retirement.

The military retirement system has evolved over the last few decades and continues to do so to meet the challenges of recruiting, training, rewarding and retaining military talent. If a serviceman or woman had joined the armed forces prior to September 1980, they would have qualified for the 'Final Pay' military retirement system. If the enrolment had been between September 8, 1980 and August 1986, the military retirement system in force then was called High 36. Beyond August 1986, there was a choice between the High 36 retirement system and 'Career Status Bonus/REDUX (CSB)' retirement system.

Other components of the military retirement system includes Cost Of Living Adjustments (COLA), concurrent receipt, combat related special compensation, extra social security earnings, retired pay centers as well as retired pay checks and more. Under current legislation, retirement pensions are mainly calculated based on the length of service and the percentage of disability, if any. There are some provisions to allow for other adjustments to the compensation paid to military retirees.

Another aspect of military retirement is retired concurrent receipt. Prior to 2004, a military retiree could only choose to get benefits from either military retirement plans or Veteran Affairs (VA) disability plans. During this period, if a retiree chose to receive VA disability compensation, he or she would have had to forfeit all or a portion of the military pension. However from 2004, legislation was amended to allow military retirees who are disabled to get both full military retirement pensions as well VA disability compensation.

Due to the varying scope of benefits arising from legislative changes, military personnel who are about to retire should stay abreast of all the rules and regulations concerning military retirement in order to get the maximum benefits and entitlements available to them.

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