Army Reserve
Non-regular Retirement
Information Guide
12 February 2009
Compiled by United States Army Reserve Command
and Retirement Services, USAR LNO
Table of Contents
Topic Chapter Page
Introduction 1
Applicability 1-1 4
Overview 1-2 4
Retirement Points Accounting System (RPAS) 1-3 4
Non-regular Service Retirement 2
Retirement Points 2-1 5
Chronological Statement of Retirement Points 2-2 5
Qualifying Retirement Year 2-3 5
Qualifying for Reserve Retirement 2-4 6
Computation of Retirement Pay 2-5 6
Cost of Living Adjustments to Retired Pay 2-6 7
Notification of Eligibility of Retired Pay Age 60 (20-Year Letter) 3
20-Year Letter 3-1 7
Reduction of Retirement Age 3-2 8
Early Qualification for Retired Pay 3-3 8
Reserve Component Survivor Benefit Plan (RC-SBP) 4
Reserve Component Survivor Benefit Plan (RC-SBP) 4-1 9
Survivor’s RC-SBP Annuity 4-2 9
RC-SBP Options 4-3 10
RC-SBP Elections 4-4 10
Rules Governing RC-SBP Coverage 4-5 11
RC-SBP Premiums and Benefits 4-6 11
RCSBP Election, Active Duty Retirement 4-7 12
SBP Termination 4-8 12
Additional Information on RC-SBP 4-9 12
Death Notification and Annuity Claim Process 5
Death Notification Process 5-1 13
Processing a SBP Claim 5-2 13
Retirement Application Process 6
Retired Pay 6-1 14
Responsibilities of the Soldier 6-2 15
Benefits Specific to Retirees (60-65, 65+)/Gray Area Retirees 7
Categories of Retirees 7-1 15
Retiree Benefits 7-2 16
Defense Enrollment Eligibility Reporting System (DEERS) 7-3 16
Table of Contents (cont)
Requesting a Retirement Packet 7-4 16
Processing of Retired Pay Packet by HRC-STL 7-5 16
Serving in the AR Until Age 60 7-6 17
Highest Grade Held (HGH) 7-7 17
Army Reserve Soldiers Reaching Active Duty Retirement 8
Reserve Soldiers Reaching 20 Years AFS 8-1 18
Veterans Administration (VA) Entitlements 9
VA Benefits and Selected Reserve Members 9-1 18
Eligibility for Reservists 9-2 18
Health Care 9-3 19
Combat Veterans Eligibility for VA Health Care Benefits 9-4 19
Compensation and Pension Benefits 9-5 19
Education 9-6 20
Dependents’ and Survivors’ Benefits 9-7 20
Vocational Rehabilitation and Employment 9-8 20
VA Life Insurance 9-9 20
Home Loan Guaranty 9-10 20
Burial Benefits 9-11 21
VA Contact Information 9-12 21
Retiree Sources of Information 10
Army Echoes 10-1 22
Online Sources 10-2 23
Enclosures
Enclosure A – Table of Retiree Benefits 24
Enclosure B – Tricare Benefits 26
Enclosure C– Death Notification Memorandum Example 29
Chapter 1
1-1 Applicability.
This guide is applicable to the United States Army Reserve (AR) for Non-regular retirement.
1-2 Overview
This guide provides an overview of the Reserve Component Retirement System in chronological order of events in a Soldier’s career including: the Retirement Point Accounting System (RPAS), retirement point accrual, qualifying service, retirement briefings, retired pay eligibility, issuing Fifteen and Twenty Year Letters, RC-SBP, processing SBP claims, retiree benefits/DEERS, transferring to the Retired Reserves, awards, age 60 waivers, retirement application process, retired pay calculations and estimates, veterans affairs/Veterans Group Life Insurance (VGLI) and Army Echoes. Information provided below is strictly additional information for the ARNG on retirement services and does not replace existing regulatory guidance provided by Human Resources Command (HRC) within AR 135-180, Qualifying Service for Retired Pay Non-regular Service or other directives of their agency. Information provided is strictly an overview of current procedures. Additional information and guidance pertaining to the above is available on the HRC web site at www.hrc.army.mil.
1-3 RETIREMENT POINTS ACCOUNTING SYSTEM (RPAS)
a. Before 1982, there was no centralized or automated capture and storage of accumulated participation points for members of the AR. Each year’s points for Troop Program Unit (TPU) soldiers was recorded and filed in their Military Personnel Records Jacket (MPRJ). The soldier received an annual automated data processing punch card, which recorded the previous retirement years’ earned points.
b. The Army Reserve Personnel and Command (AR-PERSCOM) now the Human Resource Command Saint Louis (HRC-STL) eventually developed a semi-automated system for capturing and storing points for members of the IRR, but even that system did not accumulate points beyond the latest retirement year. A complete records audit was required each time it was necessary to determine how many qualifying years and/or total points a member of the USAR had accumulated.
c. In 1981, AR-PERSCOM created the Retirement Points Accounting System (RPAS), an automated system that annually accumulates and verifies retirement point data for each Reserve soldier. With RPAS, errors can be easily corrected while the information needed to correct them is still available. RPAS goals include:
· Providing an accurate, annual record of military service and participation for Army Reserve (AR) soldiers.
· Providing an automated 20-year letter (20YL) to each AR soldier upon qualification.
· Eliminating annual reporting of paid attendance and school completion by AR units.
· Providing a valid data source for use by Department of Defense in projecting future retirement costs.
Chapter 2 Non-regular Service Retirement
2-1 Retirement Points
By law, members may receive credit for up to 60 inactive points for retirement years that ended before September 23, 1996, up to 75 inactive points for retirement years ending on or after September 23, 1996 and before October 30, 2000, and up to 90 points in the retirement year that includes October 30, 2000. NDAA 2008 increased the number of IDT points to 130 and in any subsequent year of service. Points from these sources may be added to points earned from active duty and active duty for training for a maximum total of 365 or 366 points per retirement year. Points are credited on the following basis:
· One point for each day of active service (active duty or active duty for training)
· 15 points for each year of membership in a Reserve Component (Guard and Reserve)
· One point for each unit training assembly
· One point for each day in which a member is in a funeral honors duty status
· Satisfactory completion of accredited correspondence courses at one point for each three credit hours earned
2-2 Chronological Statement of Retirement Points
The ARPC Form 249-2-E (Chronological Statement of Retirement Points) documents a Reserve Soldier’s retirement points. It is sent annually within 2 months of their Retirement Year Ending (RYE) Date and accessible online at U.S. Army Human Resources Command My Record Portal.
2-3 Qualifying Retirement Year
a. As a Reserve/National Guard soldier, you must have 20 “qualifying” years of service to be eligible for retired pay at age 60. A “qualifying year” is one in which you earn a minimum of 50 retirement points. For a full explanation of how retirement years are established see AR 140-185, Unit Technician, Regional Support Team or Army Reserve Personnel Command.
b. A soldier establishes a retirement year date by entering the Active Reserve. The date you enter the Active Reserve is your retirement year beginning date. As long as you have no break in service, your Retirement Year Ending date (RYE) will be one year later. For example, a Soldier who joins the Army Reserve on 2 July would have a retirement year beginning date of 2 July and a RYE of 1 July one year later.
2-4 Qualifying for Reserve Retirement
If you are a member of the Active Reserve, you must meet the following minimum requirements to be eligible for retired pay:
· be at least 60 years of age
· have performed at least 20 years of qualifying service computed under Title 10 USC Section12732 (see Qualifying Year)
· complete the last 6/8 years of satisfactory service in a Reserve Component
o 8 years if you complete 20 years of satisfactory service prior to 5 October 1994
o 6 years if you completed 20 years of satisfactory service between 5 October and 31 December 2001
o 8 years between 1 January and 30 September 2002 (and were discharged or retired)
o 6 years after 30 September 2002
o Public law terminated the requirement of Title 10 USC, Sec 12731 to have the last 6 years of Reserve time to for retired pay for AR Soldiers with a Retirement Year Ending (RYE) date on or after 25 Apr 05.
· not be entitled, under any other provision of law, to retired pay from an armed force or retainer pay as a member of the Fleet Reserve or the Fleet Marine Corps Reserve
· You must apply for retired pay by submitting an application to the branch of service you were assigned to at time of your discharge or transfer to the Retired Reserve. For those serving in the Army National Guard or Army Reserve the address is: Commander, HRC-STL, ATTN; AHRC-PAP-T, One Reserve Way, St Louis, MO 63132-5200.
2-5 Computation of Retirement Pay
a. To determine how much retired pay you may be eligible to receive; the first step is to calculate the number of equivalent years of service. The formula for computing equivalent years of service for Reserve retired pay at age 60 is fairly simple:
· Total number of Creditable Retirement Points divided by 360
b. This formula computes the number of equivalent years of service the Soldier has completed comparable to full time service. For example, 3,600 points equals 10 years.
c. Depending on the date you initially entered military service, also called your DIEMS date, your monthly Reserve retired pay will be calculated under the “Final Basic Pay” or “High-3” formula as follows:
· DIEMS date before 8 September 1980 – “Final basic pay.” Multiply your years of satisfactory (equivalent) service by 2.5%, up to a maximum of 75%. Multiply the result by the basic pay in effect on the date your retired pay starts.
· DIEMS date on or after 8 September 1980 – “High-3.” Multiply your years of satisfactory (equivalent) service by 2.5%, up to a maximum of 75%. Multiply the result by the average of your highest 36 months of basic pay. The highest 36 months for a member who transfers to the Retired Reserve until age 60 will normally be the 36 months before they turn 60. Members who request a discharge from the Retired Reserve before 60, however, can only use the basic pay for the 36 months prior to their discharge. Think carefully before requesting a discharge from the Retired Reserve!
Visit the Army Reserve Retirement Pay Calculator to get an estimate of your monthly retirement pay at age 60.
Note 1: The date an individual first became a member of a uniformed service is the sole determining factor in determining which retirement system is used when computing retired pay.
Note 2: An important factor: Separation or discharge rather than transferring to the Retired Reserve will impact your retired pay and should be carefully considered. A member who retires under “Final Basic Pay” or “High-3” retirement system receives longevity credit for those years while a member of the Retired Reserve awaiting pay at age 60. This does not apply to a former member who is entitled to retired pay under either the Final Basic Pay System or the High-three System. A former member is defined as an individual who elected discharge rather than transfer to the Retired Reserve anytime after receiving notification of eligibility to receive Reserve retired pay at age 60. In the case of a former member, regardless of the system under which the individual will receive Reserve retired pay, longevity credit ceases on the date the former member was discharged.
2-6. Cost of Living Adjustments to Retired Pay
Your retired pay will be increased annually by a cost-of-living allowance (COLA) based on the change in the Consumer Price Index (CPI) from the third quarter of one calendar year to the third quarter of the next. COLAs are normally effective 1 December and payable the first working day in January.
Chapter 3 Notification of Eligibility of Retired Pay Age 60 (20-Year Letter)
3-1 20-Year Letter
a. For years the services had difficulty accurately establishing when a member of a reserve component had completed 20 qualifying years of service. Many soldiers stopped participating when they believed they had completed 20 qualifying years only to discover, much too late (at age 60), that they did not meet the requirements for retired pay.
b. In 1966, PL 89-652 imposed a requirement on the Service Secretaries to notify members of the reserve components when they had completed sufficient years for retired pay purposes. A letter with the subject “Notification of Eligibility For Retired Pay at Age 60,” commonly referred to as the 20-Year Letter, does this. You should receive this letter within one year of completing 20 qualifying years of service for retired pay purposes.
c. When a Reserve Component member receives their 20 Year Letter they have three options upon receiving notice of eligibility Notification of Eligibility of Retired Pay Age 60
(20-Year Letter):
1. Remain in the Ready Reserve and continue to perform inactive duty training, annual training and active duty for training depending on their training and pay category, or remain on the active status list of the Standby Reserve and continue to perform unpaid training for the purpose of accumulating retirement points.
2. Transfer to the Retired Reserve. A member in this category may participate in inactive duty training provided:
a) Such training is at no expense to the Government.
b) Members are not entitled to pay or retirement points.
c) No official record of such participation is maintained.
3. Request discharge from the Reserve Components.
Note: Regardless of the option chosen, the member is entitled to receive retired pay at age 60, but must apply for it.
3-2 Reduction of Retirement Age
Section 647 reduces the age for receipt of retired pay by three months for each aggregate of 90 days of “specified duty’ performed in any fiscal year after the date the bill became law (28 January 2008). “Specified duty” includes active duty (excluding active duty for training) or “active service” under Title 10 USC Sections 688, 12301(a), 12301(d), 12302, 12304, 12305, and 12306 and Title 32 USC, Section 502(f), if responding to a national emergency declared by the President or supported by federal funds. Retired pay eligibility age cannot be reduced below age 50, however, eligibility for retiree health care benefits remains at age 60.