army retirement travel pay

KateHorrell

Helping Military and Veteran Families Be Confidently Prepared for The Next Stage of Life

Your Military Retirement Move: Travel, Household Goods and Storage

28 November 2023 This post may contain affiliate links, from which I may earn revenue to support this free site. All opinions are my own, and I only promote products that I use and love!

This post is part of The Comprehensive Military Retirement Checklist . Be sure to read all the other posts that go with the checklist, too!

As with all information on this website, this is not an official source. We gather and distill information so that’s easy to access and understand, but we can’t share every possible variation and exception. Always refer to official sources and verify that information provided applies to your unique situation.

Travel Allowances

The travel allowances are slightly different for a final move. You will not receive Temporary Lodging or Dislocation Allowances . However, you will receive Mileage Allowance in Lieu of Transportation (MALT) and Per Diem for travel days .

Household Goods

The Department of Defense, in its infinite wisdom, has taken down the  Move.mil website and migrated some of its content to MilitaryOneSource. It has some helpful information Your local personal property office is also a great resource, especially if you have specific questions.

Retirement moves are authorized to a home of selection . Your home of selection may be anywhere in the  United States, and that move will be covered up to the usual weight limit, based on rank and dependency status .

Members may also choose an non-US location, but will be responsible for costs that exceed the cost of a CONUS location. That amount is determined by calculating the cost of transporting your entire weight allowance to the farthest possible location from your last duty station but still within Continental United States. While a typical Home of Selection can be anywhere in the US or a non-US home of record, the calculations for someone choosing an “any other place” move are only calculated using CONUS locations.

From the Joint Travel Regulations, 051003(B)(3) :

One retiree talks about how it works in this article: Expat Retiree Profile: Early Retirement in New Zealand (With Kids).

You may schedule this move as soon as you have retirement orders, or wait up to three years after retirement. (The three-year timeline is for retirements after 24 June 2022 . So if someone tells you it is 1 year, they probably don’t know about that change.)

Extensions to the Moving Timeframe

An extension to the three-year limit may be granted for specific situations. Each branch handles extensions a little differently, but generally extensions are authorized when:

• The service member is enrolled in an educational program
• The service member is receiving medical treatment
• There are other extenuating circumstances. Examples that are usually given include legal action, delay in selling a home, etc.

That said, the services have shown a wide range of latitude in granting exceptions. My personal position is that if an extension would help, you should definitely request one, but don’t make any plans with the expectation that it will definitely be approved. 

Storage (Temporary and Non-Temporary)

You are authorized both temporary and non-temporary storage for your retirement move.

Temporary storage, or short-term storage, is up to 90 days. Your household goods will be moved to the final location you’ve designated, and will be delivered to you from that storage location. Once you’ve designated a short-term storage location, you can’t change it because your household goods have already been moved. Think carefully before choosing the temporary storage option, as you will almost always be responsible for storage costs that exceed the 90 days. I know that 90 days sounds like a long time to get settled, but many things can delay that timeline.

Non-temporary storage, or long-term storage, happens in the area of your last duty station. Non-temporary storage is authorized for up to 1 year. Extensions may be possible for additional time. Just like extensions on the final move, it’s generally meant for specific reasons and not for the general convenience or preference of the service member, but, also like final moves, it doesn’t hurt to ask. My advice? Assume that it won’t be approved, ask anyway, and be pleasantly surprised if it is.

You will likely be billed for the cost of storage beyond 3 years, but the government will pay the cost of delivery.

Some people misunderstood the change that extended moving entitlements from one year to three years, and think that it also applies to non-temporary storage. It does not.

The Trick If You Don’t Know Where You Are Going To Move

As discussed above, you are automatically eligible for up to 12 months of household goods (HHG) storage at the government expense, but you must designate that you are putting your HHG into non-temporary storage when it is stored. Non-temporary storage will be at the location of your final duty station, unless you were stationed overseas. You may then request up to four one-year extensions of storage for very specific reasons . You must request the extension prior to the expiration of your existing storage, and renewals are not guaranteed. (I’ve heard rumor that it is getting harder to get extensions, but I don’t have any facts or figures on that.) At the end of your storage, the military will delivery your HHG to your Home of Selection (HOS).

However, there is a trick. If you file your final travel claim, that travel claim locks in your HOS and you can’t designate a different location for later HHG delivery (or you maybe can, but you may have to pay excess charges.)

This rule could change at any moment, but if you aren’t sure where you will settle, ask a LOT of questions of the personal property office. It appears that you have more options if you haven’t filed your final travel claim.

Personally Procured Moves

You may choose to do a personally procured move (Do It Yourself/DITY move) for your final move. The only difference is that you may not be authorized an advance of the cost of the move.

Short Distance Moves

If you currently reside in government quarters, you may be required to vacate quarters before you are actually moving. In this case, you may be eligible for a local area move from government quarters to a temporary local residence. While this does not count as your retirement move, it does require authorization and funding. Situations may vary, and this is something that definitely needs to be coordinated with your local personal property office to ensure that you have the right documentation for the move to be paid.

The last move with the military is a great benefit that lets you get yourself and your belonging to your new home! Understanding the little details can ensure that it goes as smoothly as possible.

About Kate Horrell

28 November 2020 at 2:25 pm

Great article. If SM is living in GQ and has obtained a job and staying in the same area, will the mil still pay for the less than 10 mile move?

28 November 2020 at 3:06 pm

Hi Heather – your specifics may vary, but in general, you should be eligible for a short-distance move to get you out of government quarters. This may retain your retirement move in case you want to use it before the expiration period. Definitely check with your personal property office to see your options!

19 May 2021 at 11:56 pm

Hello! Any ideas where the NTS location would be if you are retiring from overseas, Japan specifically? My husband hasn’t been stationed stateside since 2007 & is likely retiring from Japan. Thank you!

21 September 2022 at 12:39 am

Would lodging and per diem also apply to a SrA discharging after completion of enlistment? If it does, how come the DD Form 2278 (July 2021) does not reference either item or show number of authorized days? It only appears to show “Estimated Constructive Costs” in Block 8. Thanks

14 March 2023 at 8:32 am

Thanks for the insight. FYI there’s an update to the limit window for retirement moves from one year to the from the start. still with up to 6 years with waivers applied – one year at a time. You might consider putting an edit in this article to keep it relevant for others like me who find this helpful and clear any confusion. Happy Supporting!

14 March 2023 at 9:51 am

OH, gosh, thanks Donald. I had changed it in several places in that article but had missed two. That’s not helpful at all! I appreciate your note!!

14 March 2023 at 8:34 am

edit to my comment: *from one year to three from the start of retirement.

25 March 2023 at 9:36 am

Where in the JTR does it say you can schedule your retirement move as soon as you have your orders? I was looking for it and could not find it.

26 March 2023 at 4:30 pm

Daniela, it doesn’t say it specifically because it is true of any orders. You can move when you have orders.

20 June 2023 at 8:53 am

Thanks for the update on the 1 year to the 3 year rule. Can you tell me the JTR reference that includes the wording “The three-year timeline is for orders written after 24 June 2022”. My orders were Written and approved as of Jan 2022 but my official retirement date was 30 Jun 20022. So, technically the date of my retirement order ia 30 Jun 2022 but I could see where someone could potential deny the 3 year rule since the wording in the article states for orders written after 24 Jun 2022. Just want to validate what teh JTR states so I can properly file with my Home of Station move documents. Thanks Steve

20 June 2023 at 9:54 am

It looks like you are in luck. Here’s what the JTR says in section 051003 I

https://media.defense.gov/2022/Jan/04/2002917147/-1/-1/0/JTR.PDF#page=249

“I. Time Limitations for Travel to the HOS. A Service member and dependent must begin travel to an HOS within 3 years of the Service member’s termination from active duty unless additional time is authorized or approved through the Secretarial Process. A Service member is eligible for the 3 year time limitation if the active duty termination effective date is on or after June 24, 2022. The 3 year time limitation does not apply retroactively to a travel authorized for a Service member or dependent with an effective active duty termination date before the effective date.”

Thanks for asking! I’ve made the post more clear AND I’ve learned how to send a link to a specific page of a document. Win-win!

Congratulations on your retirement.

20 June 2023 at 1:04 pm

Thank you ma’am. Appreciate the quick response and helpful information.

30 June 2023 at 10:04 pm

I was told I only get MALT when traveling to HOS for retirement. I thought I also get per diem for travel days, but not get free travel days.

3 July 2023 at 8:28 am

Sounds like a possible miscommunication. You’re authorized “MALT Plus,” which is MALT plus a flat rate per diem. Some personnel may not understand what the Plus stands for.

Alternately, you got a clerk who doesn’t know what they are doing and you’re going to have to argue with them. But the JTR is clear – it’s section 051003 if you need to print it out and show it to them.

7 July 2023 at 11:26 am

Hi, noticed HOS says “anywhere in the continental United States” but it actually includes anywhere in the US including Alaska and Hawaii

https://www.militaryonesource.mil/transition-retirement/separation/deciding-where-to-live-when-you-leave-the-military/

1 August 2023 at 9:40 am

Hi there! I will be starting my PTDY and skillbridge next July but I would like to move my family and HHGs in March using our retirement PCS entitlement before I leave my duty station (I’ll live with a friend). Is this authorized?

1 August 2023 at 6:03 pm

You can move your family as soon as you have your retirement orders in hand. When that will happen will depend on a bunch of factors. I’ll keep my fingers crossed for you!

28 October 2023 at 10:11 pm

Hello, I would like to put my HHG into storage prior to starting a skillbridge and terminal leave (totaling 6 months). The HHG will be in storage for 6 months before my official retirement date. How long will the Army pay for the HHG storage? 6 months beyond retirement (12 mo total) or 1 year beyond retirement (18 mo total)?

And would the 3 years for shipping be from retirement date or date HHG entered storage?

3 January 2024 at 4:30 pm

We retired October 31, 2023 and are having trouble submitting our final travel claim. We’ve tried submitting to DFAS but they don’t process this for the Navy using the smart voucher. We talked to many people at MNCC with no luck. My husband’s last command hasn’t gotten back to us in months. Do you have any guidance on how to submit the final travel claim for retiring from the Navy.

10 January 2024 at 8:23 pm

I had my stuff in NTS for skillbridge. At end of skillbridge and prior to my DOS, the AF extended HYT so I withdrew my retirement and did not separate but I havnt found a place to live yet. What do I do?

15 January 2024 at 5:26 pm

Wow B – that’s definitely a unique situation. I have a suspicion what will happen, but really only your household goods office can say for sure.

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Retired Pay

The following chart summarizes the differences between the four regular and non-regular retirement plans and disability retirement.

The below chart provides the basic criteria to determine which retirement plan applies:

All four of the regular and non-regular retirement plans determine initial monthly retired pay by applying a percentage multiplier to the retired pay base.

Retired Pay Base

There are two methods for determining the retired pay base. They are the final pay method and the high-36 month average method. The final pay method, as the name implies, establishes the retired pay base equal to final basic pay. The high-36 method is the average of the highest 36 months of basic pay divided by 36. This is generally the last 3 years of service and is sometimes called high-3. The method used depends upon when the member first entered military service.

The method is determined by DIEMS (Date of Initial Entry to Military Service) or DIEUS (Date of Initial Entry to Uniformed Services). The date a member first entered uniformed service in any capacity establishes DIEMS. This date is fixed---it does not change. Departing the military and rejoining does not affect DIEMS.

Some individuals have unique circumstances that complicate determining their DIEMS. Here are a few examples:

• The DIEMS for Service Academy graduates who entered an Academy with no prior service is the date they reported to the Service Academy, not the date they graduated.
• Beginning an ROTC scholarship program or enlisting as a Reserve in the Senior ROTC program sets the DIEMS, not the graduation or commissioning date.
• Members who entered the military, separated, and then rejoined the military have a DIEMS based on entering the first period of military service.
• The DIEMS for members who enlisted under the delayed entry program is when they entered the delayed entry program, not when they initially reported for duty.
• For those who joined the Reserves and later joined the active component, their DIEMS is the date they joined the Reserves.

Be aware that pay date (e.g., Pay Entry Base Date) may be different than DIEMS. Also, DIEMS does not determine when creditable service toward retirement is calculated---it only determines which retired pay base method applies.

Retired Pay Multiplier

For both the Final Pay and High-36 retired pay plans, each year of service is worth 2.5% toward the retirement multiplier. For example, 20 years of service would equal a 50% multiplier. The years of service creditable are computed differently depending upon whether retirement is from full time active duty or from a reserve career. These differences are explained under the Active Duty Retirement and Reserve Retirement pages.

For the REDUX retirement plan, which applies only to certain active duty retirements as described above, the High-36 multiplier is reduced by one percentage point for each year that the member has less than 30 years of service at retirement. For example, 20 years of service would equal a 40% multiplier. This is discussed more fully under the Active Duty Retirement page.

For disability retirement programs, the multiplier will be the higher of (a) the disability percentage assigned by the Service at retirement not to exceed 75%, or (b) the result of multiplying the number of years of service by the applicable retirement plan multiplier (e.g., 2.5% for High-36 or 2.0% for BRS).

In any case, the longer an individual serves, the higher the multiplier and the higher the retirement pay. For example:

All military retirements are protected from inflation by an annual Cost of Living Adjustment (COLA), based on changes in the Consumer Price Index (CPI) as measured by the Department of Labor. Under the Final Pay, High-36, and BRS retirement plans, the annual COLA is equal to the percentage increase in the CPI year over year. Under REDUX, the COLA is reduced, as described in the table below.

Select one of the following topic areas:

• Active Duty Retirement
• Reserve Retirement
• Disability Retirement
• Concurrent DoD and VA pay
• Retirement COLA

Helpful links:

• Blended Retirement System Comparison Calculator
• Blended Retirement System Standalone Calculator
• High-3 or High-36 Calculator
• Final Pay Calculator
• REDUX Calculator
• Regular Military Compensation (RMC) Calculator
• Special Compensation for Assistance with Activities of Daily Living (SCAADL)

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Everything You Need to Know About The MyPay Website

You may have heard of the myPay website , but what exactly is it and what can you use it for?

What is myPay?

myPay is the Defense Accounting & Finance (DFAS) website where active duty, guard & reserve members (except Coast Guard who use the service's Pay and Personnel Center [PPC] website ), retirees, annuitants, NAF employees, and some civil service members can:

• access their Leave & Earnings Statements (LES)
• change an address
• update their banking information for direct deposit/EFT
• manage their allotments
• manage their tax withholding
• manage their savings bonds 
• view their TDY travel claims
• view their tax documents

Some members can also opt-in to the Blended Retirement System (BRS)  and make adjustments to their TSP contributions using the myPay website.

Civilians may change their state of residence for state tax purposes, military members must contact their local finance office to do this.

myPay is available 24/7 via your computer or mobile device, there may be short times that it is unavailable for routine or unscheduled maintenance. Check the website for more information.

How to Access myPay

Active duty and guard & reserve.

Using your Common Access Card (CAC) and a Smart Card Reader, you can access myPay anytime after you get your first paycheck by selecting "SmartCard Login" on the myPay home page. If you don't have access to a Smart Card Reader, you will get an email or letter from your branch with a temporary password and login instructions shortly after your first paycheck. 

If you are going from active duty to retired status you do not need to change your information, the same username & password will transfer to your retired myPay account. It may take a month or two for myPay to reflect your retired status.

Gray Area Retirees

Gray Area retirees are those who have met the 20 year qualifying service requirement for retired pay pending minimum age. If you have reached minimum age and don't have a myPay password you should click on the "Forgot or Need a Password" link on the myPay home page.

If you haven't met the minimum age you won't have a myPay account.

Annuitants/Former Spouses

Passwords and login instructions will be mailed to the home address of record.

Civilian Employees

You will get an email or letter with login instructions or you will use a CAC, depending on your agency's rules.

DFAS also has an app DFASInfo2Go that offers many of the myPay functions as well as other functions not available on myPay. You can also access the regular myPay website on any mobile device.

If All Else Fails

DFAS is pretty strict about giving access to myPay, and that is a good thing. Unless you have a really good reason, if you lose your password or are otherwise unable to login to the website you will have to visit a military base to get access.

You need to have your military ID or CAC and visit the military base in person, probably wait a long time, and sign several documents before they will reset your account and give you a temporary password and help you use the system. A listing of these locations can be located on the DFAS website .

Limited Access Accounts

You can also create limited access account for other persons. These account allow them to view your pay and tax statements without allowing them to create any pay changes. You can revoke this access at any time.

Viewing Your Leave and Earnings Statement (LES)

You can access your LES from the "Main Menu" by clicking on the Leave and Earnings Statement (LES) option. If you have trouble reading the graphic version of your LES, you can click on the "Text Version" link. You can print or save a copy of your LES from the website as well.

Your LESs will remain available for a temporary period of time after your separation.

Related : How to Read a Military LES

Active Army, Navy and Air Force

Your last 12 LESs will remain available until they have cycled off through normal monthly updates, or you have separated from military service.

Reserve Army, Navy, and Air Force

Your LESs for the last 13 months will remain available until they have cycled off through normal monthly updates.

Active & Reserve Marines

Your last 12 LESs will remain available until they have cycled off through normal monthly updates.

Annuitants and Retired Military

You can view and print your account statements on-line. If you have trouble reading the graphic version of your account statement, you can click on the "Text Version" link. The text version of your account statement lists all of your pay data items information in a single column.

Former Spouses

You can view and print your Pay Statements on-line. You may access your Pay Statement from the Main Menu by clicking on the Payment Information option. If you have trouble reading the graphic version of your Pay Statement, you can click on the Text Version link. The text version of your Pay Statement lists all of your pay data items information in a single column.

Civil Service

Your last 26 LESs will remain available until they have cycled off through normal pay period updates.

Non Appropriated Fund employees

Your last 26 LESs will remain available until they have cycled off through normal monthly updates.

Tax Documents

At the end of the year you can access your tax statements on the myPay website. You can access your:

• Active Duty W-2
• Reserve W-2
• Retiree 1099R
• Annuitant 1099R
• Civil Service W-2
• NAF Employee W-2
• Travel PCS W-2
• IRS 1095 Form

As with the LES, you can save or print copies of your tax documents. Check out our myPay tax documents schedule  for details on when your specific tax documents are available. 

For More Information

You can visit the myPay website and check out several pages of Frequently Asked Questions as well as links to videos explaining how to perform various pay-related functions in detail. You can also contact DFAS via email if you have more questions. 

Keep Up With Military Pay Updates

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Military Pay Topics

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Military Retirement Plans

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Final Pay Retirement System

High-36 retirement system , redux retirement system, redux career status bonus and retirement pay modification, redux retirement multiplier, blended retirement system , blended retirement system – defined benefits, tsp matching contributions, brs continuation pay, brs lump sum, military disability retirement , active duty retirement vs. reserve retirement, military reserve retirement, how to calculate reserve component retirement pay, when do reserve members receive retirement benefits.

Military retirement plan eligibility varies depending on your entry date and will determine how your retirement pay is calculated. 

Generally, active-duty service members qualify for retirement after serving at least 20 years of active service. Active-duty retirees receive retirement pay immediately after they retire from active duty. 

In comparison, Guard and Reserve members qualify for retirement after 20 good years of service. Reserve Component retirees generally receive military retirement pay and healthcare benefits starting at age 60. However, they may be eligible for early retirement pay based on deployments and qualifying activations. 

In this article, we will detail each military retirement plan and differentiate between active and Reserve Component (RC) retirement benefits.

Those who entered service before September 8, 1980, are eligible for the Final Pay retirement system. This system calculates retirement pay by taking a percentage of the service member’s final monthly base pay at the time of retirement, multiplied by the number of years of service. 

Final Pay Retirement Example:  

Let’s consider an O-3 with 20 years of service and a monthly final basic pay rate of $7,890.52.

Take (Years of Service) x (Retired Pay Multiplier) x (Final Basic Pay):

20 years x 2.5% x $7,890.52 (Final Basic Pay)

In this example, 20 x 0.025 x $7,890.52 = $3,945.26 per month

Therefore, the annual retirement payout for this hypothetical O-3 under the Final Pay retirement system would be $3,945.26 x 12 months = $47,343.12 per year.

Service members who entered the military on or after September 8, 1980, are eligible for the High-36 retirement plan. The plan uses the average of your highest 36 months of base pay as the pay multiplier.

You must take information from several pay charts to estimate your retirement pay. You can start with the 2024 pay chart (there are links to previous pay charts at the bottom). Remember, you may need to use up to four separate pay charts to get your averages. For example, if you retired in June, you would count six months from the year you retired, the entirety of the two previous years, and six months from the year before that. 

Retirement Pay = (Years of Service) x (Retired Pay Multiplier) x (High-36 Average Monthly Pay)

High-36 Retirement Pay Example : 

Let’s consider an E-7 with 24 years of service and a High-36 average monthly pay of $5,782.54. 

Take (Years of Service) x (Retired Pay Multiplier) x (High-36 Average Monthly Pay)

24 years x 2.5% x $5,782.54 (High-36 Average Monthly Pay)

In this example, 24 x 0.025 x $5,782.54 = $3,469.53 per month

Therefore, the annual retirement payout for this hypothetical E-7 under the High-36 retirement system would be $3,469.53 x 12 months = $41,634.36 per year.

The REDUX retirement system offered military service members a choice at the 15-year mark between two retirement benefit options: the High-36 system and the reduced retirement benefit (REDUX).

REDUX retirement plan eligibility applied to service members who began military service on or after August 1, 1986, but before January 1, 2003, AND who elected to receive the Career Status Bonus. It remained an option until December 31, 2017, when the military closed this retirement plan in favor of the High-36 plan and the Blended Retirement System. Members who served during the eligible time period could opt-in to the REDUX retirement plan or choose the High-36 retirement plan. 

REDUX offered a $30,000 Career Status Bonus (CSB) in exchange for a retirement pay modification and a decreased annual retirement Cost of Living Adjustment (COLA) that was 1% less than the COLA under the other military retirement plans (but not less than zero). Members receive a one-time COLA adjustment at age 62 to restore COLA to what it would have been under the High-36 plan. Thereafter, the COLA reverts to the lesser amount, as referenced above.

Instead of the standard 2.5% multiplier for each year of service under the High-36 system, the REDUX multiplier is calculated as follows:

2.5% times the number of years of service minus 1.0% for each year of service less than 30 years.

The REDUX retirement results in a reduced retirement payout compared to the High-36 system for everyone except those who serve 30 years or more. 

For example, at 20 years of service, you would receive 2.5% per year x 20, which is 50%. Then, you would subtract 1% per year of service that you served less than 30 years. In this case, you would subtract 10 years (30-20 = 10) and then multiply that by 1%. Finally, you would subtract 10% from 50%, giving the retiree 40% of the average of their High-36 retirement pay.

REDUX Retirement Pay Example:  

Using the example above, let’s look at how the same E-7’s retirement pay would change under the REDUX system. 

Under Redux, we need to take an extra step to determine the member’s retirement pay.

Let’s start by finding the years of service multiplier under REDUX.

24 years x 2.5% = 60%. Then, we must subtract 1% per year of service less than 30. 30-24 = 6. Next, we subtract 6% from 60%, giving us 54%. This is our years of service multiplier.

In this example, we will take 54% x $5,782.54 = $3,122.57.

Therefore, the annual retirement payout for this hypothetical E-7 under the REDUX retirement system would be $3,122.57 x 12 months = $37,470.84 per year and a one-time career status bonus payment of $30,000.

This is an 11% decrease from the retirement pay the same individual would earn under the High-36 retirement plan. The member would also have smaller annual COLA pay raises each year. 

The Blended Retirement System (BRS) is a combination of a defined benefit (like the High-36) and government-matching contributions to the  Thrift Savings Plan (TSP) . The BRS also introduces a Continuation Pay Bonus, which is a one-time, mid-career bonus in exchange for an agreement to perform additional obligated service and the option to receive a portion of retirement pay as a one-time lump sum.

Service members who entered after January 1, 2018, automatically fall under the BRS, while those with fewer than 12 years of service by December 31, 2017, could choose to opt into the BRS.

The defined benefit portion functions like the High-36 system, calculating retirement pay based on the average of the highest 36 months of basic pay multiplied by a percentage determined by years of service. The main difference is the High-36 plan uses a 2.5% multiplier per year of service, while the BRS uses a 2.0% multiplier per year of service. 

BRS Retirement Pay Example : 

Let’s use the same E-7 from the High-36 Retirement Plan example, with 24 years of service and a High-36 average monthly pay of $5,782.54. 

24 years x 2.0% x $5,782.54 (High-36 Average Monthly Pay)

In this example, 24 x 0.020 x $5,782.54 = $2,775.62 per month

Therefore, the annual retirement payout for this hypothetical E-7 under the Blended Retirement System would be $2,775.62 x 12 months = $33,307.44 per year.

While the fixed retirement benefit is 20% less than under the High-36 plan, BRS participants also have TSP matching contributions of up to 5% per year and a Continuation Pay bonus they can receive, enhancing the total value of their retirement benefits.

Government matching contributions to the Thrift Savings Plan are a significant addition to the BRS. This gives members a portable retirement savings plan similar to a 401(k). 

Government contributions to the TSP account, known as the service member’s Automatic Contribution, begin after 60 days of service and continue until separation or retirement. However, TSP matching contributions are capped at 26 years of service.

The military provides a 1% automatic contribution for all eligible members. Members can receive up to an additional 4% in matching contributions, starting at year two and extending through 26 years of service. They will receive a 1% match for the first 3% they contribute, then an additional .5% match for each of the next two percentage points of pay they contribute.

You can see this in practice in the following chart:

The exact amount in the TSP account at retirement will depend on individual contributions, government matches, and investment performance.

The Continuation Pay Bonus is calculated between 2.5 and 13 times the monthly basic pay and is available to service members between 8 and 12 years of service. The details of the Continuation Pay Bonus vary by military branch.

Finally, BRS participants are eligible to receive a lump sum of either 25% or 50% of the discounted present value of future retirement payments, in exchange for reduced monthly retirement pay, until they reach full Social Security retirement age, which for most is age 67.

Military disability retirement (also referred to as Chapter 61 retirement) is a benefit offered to service members who suffer from medical conditions or injuries that render them unable to perform their military duties.  

The process to qualify for disability retirement involves medical evaluations through the Integrated Disability Evaluation System (IDES), leading to assessments by medical review boards to determine the extent of the disability. 

The Physical Evaluation Board (PEB) assigns a disability rating, indicating the severity of the impairment. If deemed unfit for further military service due to the disability, service members may be eligible for disability retirement. This provides them with a monthly pension and healthcare benefits. The military also offers transition assistance programs to aid in the transition to civilian life.

Disability retirement pay is based on which retirement plan the member falls under and their military disability rating. 

The member can choose the higher of

• their creditable years of service multiplied by their multiplier (either 2.0% or 2.5%), or 
• the member’s military disability percentage multiplied by the retirement plan they fall under (Final Pay, High-36, etc.). 
• In both cases, the multiplier is limited by law to 75%.

Reserve Component members must also serve 20 qualifying years like their active-duty counterparts to earn retirement benefits. RC members also qualify for the same retirement plans listed above: Final Pay, High-36, REDUX, BRS, or Chapter 61 Disability Retirement.

The primary differences between Reserve Component and active-duty retirement include:

• How qualifying years are calculated
• How retirement pay is calculated 
• When members receive their retirement pay and other benefits

These articles provide the full spectrum of active-duty and Reserve Component retirement benefits:

• Active Duty Retirement Benefits (article + podcast)
• Reserve Component Retirement Benefits (article + podcast)

Reserve retirement relies on accumulating points earned through drills, training, and active duty time over 20 qualifying years. RC members must earn at least 50 retirement points per retention year and meet readiness requirements to earn a “good year” toward retirement. Reserve Component members can earn points through active duty service, drills, man-days, correspondence courses, and more. This article provides an overview of how retirement points work .

Reserve Component retirement pay is calculated by converting the member’s retirement points to years and then following the same calculations used for active duty retirement.

Converting points to years is easy – simply add all retirement points together, then divide by 360. This gives you an equivalent number of years served. (The Department of Defense uses a 30-day month to standardize pay and benefits. Thus, 360 points are equal to a year.)

Reserve Retirement Pay Example:

Let’s look at the E-7 example used in the High-36 section. For our Reserve Component retiree, we will assume they had the same 24 qualifying years of service, but they earned 3,600 retirement points in their career.

Let’s start by converting 3,600 points to years.

3,600 / 360 = 10. This RC retiree has an equivalent of 10 years of active duty service.

We will use the same assumptions, including the High-36 average monthly pay of $5,782.54. 

10 years x 2.5% x $5,782.54 (High-36 Average Monthly Pay)

In this example, 10 x 0.025 x $5,782.54 = $1,445.64 per month

Therefore, the annual retirement payout for this hypothetical E-7 under the High-36 retirement system would be $1,445.64 x 12 months = $17,347.68 per year.

This article includes a deeper explanation of how to calculate Reserve Component retirement pay , including additional examples.

Retired Reserve Component members become “ gray area retirees ” when they file their retirement paperwork. They are eligible for some retirement benefits, such as base access, Space-A travel , shopping at the Commissary and Exchange, and more. 

However, they are not eligible for retirement pay or healthcare benefits until age 60. Some Reserve Component members may be eligible to receive early retirement pay based on qualifying Title 10 activations . However, this does not impact the age at which they receive healthcare benefits.

Healthcare benefits also differ, with active-duty retirees having access to comprehensive military health coverage under Tricare Prime or Tricare Standard until age 65 when they become eligible for Tricare for Life .

Retired Reservist Component members are eligible for Tricare Retired Reserve* until age 60, when they become eligible for either Tricare Prime or Standard. They become eligible for Tricare for Life at age 65. 

*Tricare Retired Reserve is virtually the same as Tricare Reserve Select . However, no government subsidy makes it an expensive healthcare option. Many retired Reserve Component members consider other healthcare options until age 60 when they become eligible for Tricare Prime or Standard.

Service members should carefully evaluate their career path, personal and financial goals when choosing a retirement plan. It’s essential to plan ahead, seek professional advice if needed, and make informed decisions that will secure a stable and fulfilling retirement after years of dedicated service to our nation.

About Post Author

Ryan Guina is The Military Wallet’s founder. He is a writer, small business owner, and entrepreneur. He served over six years on active duty in the USAF and is a current member of the Tennessee Air National Guard.

Ryan started The Military Wallet in 2007 after separating from active duty military service and has been writing about financial, small business, and military benefits topics since then.

Featured In: Ryan’s writing has been featured in the following publications: Forbes, Military.com, US News & World Report, Yahoo Finance, Reserve & National Guard Magazine (print and online editions), Military Influencer Magazine, Cash Money Life, The Military Guide, USAA, Go Banking Rates, and many other publications.

See author's posts

Posted In: Active Duty Guard/Reserves Military Retirement

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• Navy Federal

2025 budget: 4.5% pay raise, shift of troops from active to reserve

The Defense Department is looking to balance some of its personnel numbers next year, downsizing the active duty Army and Navy by several thousand, while adding some of those spots back in the Reserve and National Guard.

The fiscal year 2025 request asks for a drop of 7,800 authorized billets in the active component and an increase of 2,100 positions in the reserve component. That’s a 0.6% drop in overall end strength, Pentagon comptroller Mike McCord told reporters during a briefing Monday.

“Many of you who cover this know that we have had some recruiting challenges , but strong retention, so a bit of a mixed picture on the manning side over the last couple of years,” he said.

Here is the rundown:

• The Army is hoping to shed 1,700 active duty billets, down from 445,000 to 442,300 soldiers, and shift 1,000 of them to the Army Reserve, for a total of 175,800 soldiers. This move follows last year’s request to cut 2,200 Army Reserve billets.
• The Navy is also requesting to downsize its active force, by 5,500 sailors, but put 500 of those spots in the Navy Reserve, for a total of 390,000 sailors.
• The active Marine Corps stay flat under the budget request, but grow their Reserve forces by 500, for 204,800 overall.
• The active Air Force would also stay at 320,000 troops, but add 400 to the Reserve and 2,700 to the Air National Guard, for 494,700 airmen total.
• The Space Force, which doesn’t have a reserve component, would see the only active duty increase, growing from 9,400 to 9,800 guardians as the new service continues to fill its ranks.

The request drops the active force from 1,284,500 to 1,276,700, while growing the reserve component from 763,600 to 765,700.

This amounts to $182 billion in requested spending to cover pay and benefits for military personnel, with a 4.5 pay raise, down from last year’s historically high 5.2% bump .

The Pentagon is also requesting to increase the threshold for troops to receive the basic needs allowance, a special pay introduced in 2022 specifically for junior enlisted troops with families at more expensive duty stations. The proposal would raise income eligibility from 150% of the poverty level to 200%. For reference, the poverty threshold for a four-person household in the contiguous United States is $31,200.

Other personnel initiatives include $1.2 billion for the department’s sexual assault prevention and response office, $651 million of that for implementing recommendations from a 2021 independent review commission into the military’s sexual assault problem . Much of that money will go to hiring professional educators to craft training programs.

Another $547 million would go to suicide prevention programs, including $261 million to to implement recommendations from another independent review commission . Chief of among those efforts is hiring more mental health professionals to tackle long wait times troops face when seeking counseling .

Undeterred by attacks from Republican lawmakers , the Pentagon is requesting $162 million for its diversity, equity, inclusion and accessibility programs.

“Leaders at all levels are responsible for fostering a climate of dignity and respect that supports diversity, is free from problematic behaviors, and does not tolerate retaliation or reprisal against those filing complaints,” according to department’s budget request summary.

And though the Pentagon’s top spokesman has said in recent weeks that leaders are not especially worried about the spate of service members leaking classified information in the past year, the budget specifically addresses insider threats, requesting $130 million.

That money will go to developing a better case management system to track reports, tools for analyzing data to pinpoint risks and a new hotline for troops and DOD civilians to report suspected “espionage, terrorism, workplace violence, suicide, and domestic violence,” according to the budget request summary.

The Pentagon’s wish list depends on Congress passing a budget. The Defense Department is operating under a continuing resolution currently, with funding levels capped to what Congress authorized for 2023.

“So I cannot emphasize this enough: we need predictable, adequate, sustained and timely funding goals,” Deputy Defense Secretary Kathleen Hicks said Monday during a briefing. “We cannot afford any more lost time time that we cannot buy back.”

Meghann Myers is the Pentagon bureau chief at Military Times. She covers operations, policy, personnel, leadership and other issues affecting service members.

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Military’s travel-repayment policy for IVF and abortions was used a dozen times last year, after a senator held up hundreds of military promotions for months to stop it

A controversial military policy that allows service members to be reimbursed for travel if they or a family member have to go out of state for reproductive health care — including abortions — was used just 12 times from June to December last year, the Pentagon said Tuesday.

Defense Secretary Lloyd Austin instituted the policy after the Supreme Court overturned Roe v. Wade in 2022 to ensure that troops who were assigned to states where abortions or other types of health care such as IVF treatment were no longer provided could still access those services.

The policy sparked outrage in some circles and led Alabama Republican Sen. Tommy Tuberville  to hold up hundreds of military promotions  for months in a failed attempt to get the Pentagon to rescind it. Tuberville ultimately withdrew all of his holds in December.

The travel policy was used by service members or their dependents 12 times during that seven-month period at a cost of roughly $40,000, Pentagon deputy press secretary Sabrina Singh said Tuesday. The money covered lodging, meals and transportation for out-of-state travel to receive care.

The Pentagon said it did not have data on the first five months of 2023 because the services did not establish a way to track those uses when the policy was first implemented.

The policy does not cover the cost of abortions, and it’s not clear how many of the 12 trips were for abortions or other type of reproductive health care, such as IVF treatment. Singh said the Pentagon would not have a specific breakdown of what services were sought by the service members or their dependents due to medical privacy issues.

Under federal law, Defense Department medical facilities can perform abortions only when the life of the pregnant person is at risk or in cases of rape or incest, and those instances have been extremely rare. According to the department, there were 91 abortions performed in military medical facilities between 2016 and 2021.

For months, many of the military officers directly affected by Tuberville’s holds declined to speak out, for fear any comments would be seen as political. But as the pressures on their lives and the lives of the officers serving under them increased, they began to speak about how the uncertainty surrounding their next move was hurting not only them but their children and spouses.

They talked about how some of their most talented junior officers were going to get out of the military because of the instability they saw around them, and about how having to perform multiple roles because of so many vacancies was putting enormous additional stress on an already overworked military community.

The issue came to a head when U.S. Marine Corps Commandant Gen. Eric Smith suffered a heart attack in October, just two days after he’d talked about the stress of the holds at a military conference. Smith fully returned to his duties only in the last few weeks.

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