U.S. Military (Ret.): Explaining eligibility for early reserve retirement - Military Retirement - Navy Times

U.S. Military (Ret.): Explaining eligibility for early reserve retirement

It’s been a few years now since Congress enacted a law under which reserve-component members can qualify for retirement pay and benefits three months earlier than age 60, the longtime standard threshold.

But questions on that topic still come in fairly regularly, mainly because it’s human nature not to think about retirement until you get close to it.

The applicable law, enacted Jan. 28, 2008, states that reserve-component members may reduce the age at which they are eligible to receive retirement pay by three months for each 90 days of qualifying active-duty service in any fiscal year.

Reservists can reduce their retirement threshold to as low as age 50 under that law.

The big caveat, which has caused considerable heartburn in the reserve community, is that only service performed since the date of the law’s enactment qualifies. In other words, there’s no retroactive credit for the many combat deployments made by National Guard and reserve members from 2001 through Jan. 27, 2008.

On the plus side, however, is that most active-duty time performed after that date qualifies, including training, operational support duties and attendance at military schools.

Also qualifying for credit is active-duty service by National Guardsmen called up by a state governor, as authorized by the president or secretary of defense, in response to a national emergency that is declared by the president or supported by federal funds.

Active-duty time that does not qualify includes: weekend drills, the regular annual two weeks of training, and time served while receiving medical treatment or being medically evaluated for disability.

Retirement commission

Details are starting to emerge on the Defense Department’s proposal for a commission to evaluate, and recommend changes to, the military retirement system.

Something that immediately leaps out of the proposal is one of DoD’s essential directives to the commission: Whatever plan comes together in the end, it must be one that saves the government money.

That is almost a guarantee that whatever overhaul system is proposed would carry some level of reduced benefits compared to the current system.

It’s all part of DoD’s broad effort to reduce the soaring personnel costs of the all-volunteer military.

The silver lining for current retirees, if there is one, is that defense officials have repeatedly said that any changes would affect only future recruits.

There is much more to come on this volatile issue as the Pentagon proposal moves through the legislative process.