Members of the reserve component who achieve 20 years of service and become eligible for a non-regular retirement have earned a wide variety of very valuable benefits. Like all aspects of your military career, it is important that you are familiar with the scope and the limitations of your non-regular retirement benefits.
To begin thinking about your retirement, you can group many of your most important benefits into three major categories: non-regular retired pay, survivor benefit plans and health benefits. You will also want to consider what benefits you will have between the time you retire and when you begin drawing retired pay. This time is often referred to as the gray area. Gray-area retirees still enjoy a number of benefits.
Non-Regular Retired Pay
Members of the reserve component who will be eligible to draw non-regular retired pay receive a Notification of Eligibility (NOE). This document is frequently termed the 20-Year Letter. You have a number of options after receiving your NOE. You can continue to serve or request to retire or be discharged; however, the NOE does not relive any of your unfilled obligations, such as bonuses, promotion and appointments. The NOE establishes and verifies eligibility, but it does credit specific periods of service.
The Retirement Points Accounting Management (RPAM) system manages your periods of service for non-regular retired pay. You should receive an annual statement from RPAM showing all service credited towards retirement. Throughout your career, you should ensure you RPAM statement is correct. The RPAM also includes a very basic retired pay calculation; however, you can get a more accurate estimate of your own non-regular retired pay by visiting www.hrc.army.mil/Calculators/RetirementCalc.aspx. Although this is an Army website, members of all reserve components can use this calculator.
Retired pay at age 60 is not automatic. You must submit a DD form 108 Application for Retired Pay Benefits; DD form 2656 Data for Payment of Retired Personnel; and, SF 1199a Direct Deposit Sign-up Form. In addition, your particular service may have additional requirements. For example:
• For the Army Reserve: ARPC 249-2E, DARC 249 or AGUZ 115
• For the National Guard: NGB 22 or NGB 23 • For the Air Force Reserve: AF 526
• For the Marine Corps: NAVMC 768
• For the Navy: NAVPERS 1070-61
• For the Coast Guard: CG HQ 4973
See our sidebar [below] for more on determining what your retirement pay will be, and to see the difference in a 20-year, 25-year and a 30-year retirement. Visit http://militarypay.defense.gov/retirement/reserve.html to learn more about non- regular retirement pay.
Survivor Benefit Plan
While considering your non-regular retired pay, it is equally important to consider your Survivor Benefit Plan (SBP). Members of the reserve component have two SPBs, the Reserve Component Survivor Benefit Plan (RC-SBP) and the regular SPB. If you die before you begin receiving non-regular retired pay at age 60, your beneficiaries will not receive any of your retired pay. RC-SBP covers this gray area and ensures your survivors receive a portion of your retired pay. If you die after you begin receiving retired pay at age 60, the regular SPB ensures your survivors receive a portion of your retired pay.
You must select RC-SBP coverage prior to retirement. The RC-SBP has three options:
Option A, decline to make an election until age 60. Your beneficiaries will not receive any portion of your future retired pay if you die before receiving non-regular retired pay at age 60. You will be able to make an election regarding the regular Survivor Benefit Plan (SBP) when you apply to receive retired pay.
Option B, deferred annuity. Your beneficiaries begin receiving an annuity on the day you would have begun receiving non-regular retired pay at age 60. Option B RC- SBP election becomes your regular SBP election at age 60.
Option C, immediate annuity. Your beneficiaries immediately begin receiving an annuity immediately following your death. Option C RC-SBP election becomes your regular SBP election at age 60.
As a reserve component service member, you will have medical benefits in three different time periods: gray area until age 60, age 60-65 and beyond age 65.
Your spouse must concur with your RC-SBP election. When you retire, you will make your RC-SBP election using the DD 2656-5, Reserve Component SBP Election Certificate. You can learn more about RC-SBP here: www.dfas.mil/retiredmilitary/provide/rcsbp.html
Once you begin receiving retired pay, you can provide for your beneficiaries using the regular SBP. If you chose Option A for the RC-SBP, at age 60 you still have a chance to enroll in the regular SBP. If you chose Option B or C, your RC-SBP choice becomes your regular SBP choice.
Health Benefits
As a reserve component service member, you will have medical benefits in three different time periods: gray area until age 60, age 60-65 and beyond age 65.
If you are a gray-area retiree, you are eligible to purchase TRICARE Retired Reserve (TRR) until age 60. TRR follows the same program parameters as TRICARE Standard and TRICARE Extra, including ability to select any TRICARE- authorized provider or ability to receive care at military treatment facilities. TRR has no government subsidy. In 2015, premiums are $390.89 per month for the member or $961.35 per month for the member and family.
From age 60 to 65, you will be eligible for TRICARE Standard or TRICARE Extra. There are no enrollment fees for TRICARE Standard or TRICARE Extra; however, there are annual deductibles and cost shares. If you use TRICARE Standard or TRICARE Extra, you can receive space available care at Medical Treatment Facilities. If you choose TRICARE Prime, you must enroll in TRICARE Prime using a DD Form 2876, TRICARE Prime Enrollment Application. In addition, TRICARE also offers the US Family Health Plan in six service areas, TRICARE Overseas Program Standard and TRICARE Young Adult. Retirees can also choose to add the TRICARE Retiree Dental Program.
Beyond age 65, you will receive TRICARE For Life. Retirees must be entitled to premium-free Medicare Part A, must have Medicare Part B coverage and must remain eligible in the Dependent Eligibility Enrollment Reporting System (DEERS). There are no enrollment fees for TRICARE For Life, but you must obtain a new identification card once you are 65 years old.
With so many varying health care benefits, it’s important that you understand your options. More information is available at www.tricare.mil
Other Benefits
In addition to non-regular retired pay, survivor benefit plans and health benefits, as a retiree you are eligible for a wide array of other benefits. The Veteran’s Administration offers health care, education, training, vocational rehabilitation, home loans, burial, memorials and life insurance. You can explore your VA benefits here: www.va.gov You also maintain many of benefits you enjoyed during your time in uniform. These can include shopping privileges at the exchange and commissary and access to an installation’s fitness center, legal assistance, family assistance, lodging and most Morale, Welfare and Recreation facilities. Some of these benefits vary by installation, service or may be on a space available basis. You can continue to travel using Space Available, although the benefits vary for gray area retirees and those already drawing non-regular retired pay, so you may not get on a flight to Germany as easily as you once did. All the details on Space A travel are here: https://www.amc.af.mil/Home/AMC-Travel-Site.
Retiring is not just a ceremony honoring your time in service. Make the most of this important transition by becoming well-informed about the choices and options you have. The numerous benefits you have earned should make retired life that much easier for your family and you.