Navy Reserve Retirement

For me, if I have done my duty, the continued approbation of Congress and the Marine Committee will make me rich indeed, and far more than reward me for a life of service devoted from principles of philanthropy, to support the dignity of human nature. John Paul Jones

 when you tire of the b#@@s&!t

In recent months I have been thinking of retiring – again.  A few of my civilian friends do not want to retire because they associate it with an early demise.  A few of my industry peers cannot retire because they have expenses that they cannot afford without working.  But other friends, military retirees, private sector employees, businessmen and other with thirty years or more years in the state or federal system,  decided they were financially, and mentally, ready to retire and did so.   Of course, an important consideration for retiring, besides financial security, is having interests that keep a retiree involved.   While a boat sounds tempting to while away time in my old age, I think I will prefer buying a ticket to go cruising rather than paying for maintenance and dock fees.

making good choices 

I am rather fortunate in that I have a portion of my retirement plan based on a twenty-six year career in the Navy.  While a little more than half was spent on Active Duty,  the remainder – and in fact, on the date I retired, I  was a Selected Reservist.   For the twenty years that have preceded my turning sixty and eligibility for retirement pay,  I have been working in the private sector, accumulating  401K investments and paying down a home in California.  Much of this has been supported and augmented by my spouse having a well-paying career.  And putting off  “keeping up with the Joneses” that so many others have fallen into.  From studying and application from numerous financial educators, advisers, and both good and poor examples in your ‘circle’, almost everyone who plans carefully from their earliest working years – or with arduous self-denial and fiscal obsessiveness in later, higher-salaried years can retire with some degree of security.   

war, sea duty and broken service

I applied to go back on Active Duty, in the same rating I had originally entered the service in the late 1970s.  For the next thirteen years,  I had traveled the world, but the bureaucracy and politics regarding advancement opportunities and changing personal goals inspired a change.  I left the service at the end of my enlistment in 2000.   But a few months later,  I enlisted (again) in the Navy Reserve!   To sum it up,   I retired with almost 26 years of service as a Senior Chief Cryptologic Maintenance Technician,.  But as a Reservist, the retirement system is calculated not to pay the retiree until he or she turns 60 years of age. 

Second, the retiree must file for her retirement stipend on or after age sixty.  The unique feature of Reserve retirement, is that the service member who is eligible for and requests retirement after 20 good years – the Navy sends a statement to each member when they have qualified – can transfer to the Retired Reserve without pay until age 60.  Retirement is calculated as though the member continues to remain on the service rolls.  The retirement calculator uses the Active Duty member’s base pay – in effect for their final paygrade – at the time one starts drawing payment.   One other caveat determining the pay calculation is whether the service member entered military service initially prior to September 1, 1980.   Those retired Reserve members like me, will receive their pay calculation based on the paygrade held at the time of retirement.  All  enlistees after September, 1980 retire have their pay calculated from the last three years of service regardless of their final pay grade, divided by 36 months.  

veterans’ benefits

Additionally,  when a service member retires, it is worth all the bureaucratic tape, to file for review by the Veterans’ Administration for any potential Service-Connected Disability rating.  Even a finding of a connection, but a rating of zero – the condition is not posing debilitation in health at the present time – is able to help those members through other benefits.  In California,  children of a service-connected disability -veteran or retiree, are eligible to attend a UC or CSU university-system school tuition-free.

For more information

  •  DOD Military Reserve retirement compensation information 
  • Navy Department website for Reserve Retirement. (Each service branch has similar sites.)
  • Application for retirement pay upon reaching age 60,  DD  Form 108
  • Data  DD Form 2656 
  • BUPERS INSTRUCTION 1001.39, ADMINISTRATIVE PROCEDURES FOR NAVY RESERVISTS ON INACTIVE DUTY, Chapt 20