Sailors are about to get more financial training throughout their career as the military moves to a new retirement system in coming years.

Like it or not, the new military retirement system will be in place in a year and a half​

Congress has mandated the services revamp their financial management training to not only ​educate them on retirement, and on how to but also on how to ​manage the major financial hurdles sailors encounter in a career and beyond.

As a result, the service released NAVADMIN 161/16 Tuesday, the first of many at least four ​messages expected over the next two years about under the umbrella of ​what’s being called the Navy’s Financial Literacy Education Program as the military shifts to a blended retirement system.

 

"The goal of Navy’s financial education program is to arm sailors and their families with skills and tools for use to make informed decisions about their financial future," said Lt. Cmdr. Nate Christensen, spokesman for the chief of naval personnel. "Personal financial readiness is a key component of the overall Family Readiness System, a network of agencies, programs, services and individuals that work in a collaborative manner to assist service members and their families to meet the unique challenges associated with military service."

The new retirement system will be implemented

starting

​in 2018. Sailors who are currently serving

in the Navy

​will be grandfathered into the current retirement system, known as the 20-year cliff-vesting system. Some will have the choice to opt into the new scheme, which shrinks the current pension but also offers government contributions to retirement accounts and retirement benefits for those who leave the service before reaching 20 years.

and some will have the choice of which plan they want to take, others won't.

​

If you have 12 years or more of service as of Dec. 31, 2017, the current retirement system is your only option. Likewise, those who join on or after Jan. 1, 2018, their only option will be the new Blended Retirement System.

But for those who joined between Jan 1, 2006,

b

​and Jan.

uary

​ 1, 2018

— you'll

​will have the choice to keep the current retirement

system

​or switch to the new plan.

Approved in the fiscal 2016 defense budget this new "Blended Retirement System" is being derided by many as a bad deal for the rank and file. But unless there's a big reversal — it's the law of the land starting January 1, 2018.

​

So, it's time to get smart on retirement — and as a result,

​

Christensen said the service has long provided financial management training as part of Navy accessions training and is often revisited by commands as part of the

Navy's

​General Military Training program.

The new training plan mandates sailors revisit their financial training at

Now, Christensen said. the new training program won't be a fire and forget system, but instead will mandate sailors revisit training a

​crucial times in their careers.

For example, in addition to the accessions training, sailors will also get a financial check

up

​when they arrive at their initial and subsequent duty stations

up

​through the

enlisted

​ranks of E-5 and O-4

for officers

​, as well as each time they advance up

to and including

​those ranks

as well

​.

Other "touch points" for financial training will be when sailors vest in the Thrift Savings Program or receive continuation pay under the new retirement plan. Marriage, divorce and childbirth are also considered key points for follow-on financial training.

"This training will help assist sailors in maintaining their financial readiness throughout their military service and as they transition into civilian life," Christensen said. "The Navy recognizes that personal financial readiness of Sailors and their families must be maintained to sustain mission readiness."

The new financial training will incorporate existing training from various points, including accession training, GMT, pre- and post-deployment training and transition courses.

As the Navy revamps it's fleet training system, they're planning to incorporate much of what has been known as GMT, including financial education and information during other training periods such as  leadership training, before and after deployment, and at various transition points such as moving from active to reserve or retiring.

​

A key facet of the new training will be front-loaded to educate sailors on the new retirement system that's only a year and a half away.

comes on line and just a year and a half away, sailors need to know their options.

​

About Mark D. Faram

Mark D. Faram is a former reporter for Navy Times. He was a senior writer covering personnel, cultural and historical issues. A nine-year active duty Navy veteran, Faram served from 1978 to 1987 as a Navy Diver and photographer.

Share:
In Other News
Load More