August
28, 2001: Navy Reservists' Points and History Available
Online Soon - Naval Reservists in Navy Medicine
will soon be able to view their Annual Retirement
Point Records (ARPR) and Annual Statements of Service
History (ASOSH) online in a secure environment,
24 hours a day, seven days a week.
One of the many benefits of serving in the National
Guard or Reserve is the opportunity to qualify for a non-regular (or Reserve)
retirement. The basic requirements to qualify for a Reserve retirement are:
(1) attaining 20 qualifying years of service (a qualifying year of service
is credited for each year in which the member has earned at least 50 points
during his or her anniversary year) and
(2) serving the last eight years in a Reserve Component (during the drawdown
period, which currently expires December 31, 2001, the eight year requirement
has been reduced to the last six years).
If you are a retiree over 60 years old, you also qualify for all standard
military retiree benefits. Consult the Military
Retiree Resource pages for more on retiree health care and other benefits.
Regular Retirement System
To understand the Reserve
Retirement system, it is necessary to be familiar with the overall military
retirement system. The following is a brief overview of the regular or active
duty non-disability retirement system. There are three systems for computing
regular non-disability retired pay. The system that is used for each servicemember
depends on the date the individual first became a member of a uniformed
service. This date is referred to as the Date of Initial Entry to Military
Service (DIEMS). The three systems are Final Basic Pay, High-Three and the
Military Retirement Reform Act (REDUX).
Final Basic Pay System
A member with a DIEMS date prior to September
8, 1980 is under the Final Basic Pay system and receives 50 percent of final
basic pay after 20 years of military service plus 2.5 percent for each additional
year up to the 75 percent maximum for 30 years of service.
High-Three System
A member with a DIEMS date between September
8, 1980 and July 31, 1986 retires under the High-Three
system. Retired pay is computed as 50 percent of the average of the
"High-Three years" (36 months) of basic pay for 20 years of service
plus 2.5 percent for each additional year up to the 75 percent maximum for
30 years of service. Note that the multiplier is applied against the average
basic pay for the highest 36 months of the member's career. This typically,
though not always, equals the average basic pay for the final three years
of service.
In addition, members retiring under the Final Basic Pay or High-Three systems
receive full Cost of Living Adjustments (COLAs) annually as determined by
the increase in the Consumer Price Index (CPI). Members electing to retire
under the REDUX system receive COLAs as determined by the increase in the
Consumer Price Index minus one percentage point.
REDUX
For those with a DIEMS date of August 1,
1986 or later, the members must make a choice during their 15th year of
service. The choice is to retire under the High-Three system previously
discussed, or receive a $30,000 career retention bonus and retire under
the Military Retirement Reform Act (REDUX). REDUX retirement is computed
as 40 percent of the "High-Three years" (36 months) of basic pay
for 20 years of service plus an additional 3.5 percent for each additional
year up to the 75 percent maximum for 30 years of service.
A feature unique to REDUX is a recomputation of retirement pay at age 62.
Two adjustments are made. The first adjusts the multiplier to what it would
have been under the High-Three system. For example, a 20 year retiree's
new multiplier would increase from 40 to 50 percent, a 24 year retirees
multiplier would increase from 54 to 60 percent, but a 30 year retiree's
multiplier would remain 75 percent. Then, a further adjustment is made.
The retiree's pay, with the readjusted multiplier, is increased to what
it would have been with full COLAs in each year since retirement. Thus,
at age 62, the REDUX and High-Three retired pay amounts are equal. However,
REDUX COLAs in later years will again be set at CPI minus one percentage
point.
