Commission Corps Preparing for Retirement Purpose To provide an overview of the planning needed to prepare for retirement This briefing is not designed to replace the USPHS Commissioned Corps Retirement Seminar that is located on the Commissioned Corps Learning Management System ID: 583365
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United States Public Health ServiceCommission CorpsPreparing for RetirementSlide2
Purpose
To provide an overview of the planning needed to prepare for retirement
This briefing is not designed to replace the USPHS Commissioned Corps Retirement Seminar that is located on the Commissioned Corps Learning Management SystemSlide3
Separations CounselorCDR Mark McKinnonLCDR Monique BaileyStatements of Service/DD214Separations TeamOver 30-year Retention BoardLCDR Monique BaileyTravel and TransportationLT Andrew OkoloRetired PayUSCG Pay and Personnel CenterUSPHS Commissioned CorpsRetirement Points of ContactSlide4
Retirement is NOT just an event, it is a ProcessSlide5
Basic Retirement InformationSlide6
Throughout Your Retirement Planning
Gather and study information required to make critic retirement decisions
Discuss the information with your
FamilySlide7
20 year voluntary20 year involuntary30 year mandatoryRetention beyond 30 yearsDisabilityTypes of RetirementsSlide8
Officer must request permission to retireA USPHS Commissioned Corps career is designed for 30 years or active duty serviceRetention board convened for individuals that the Agency or the Commissioned Corps desire to remain on active duty20 Year VoluntarySlide9
Involuntary retirement may be authorized for USPHS Officers under the following conditions:Has serve at least 20 years on active duty in all uniformed services combinedHas serve at least 10 years of active duty commissioned service in the USPHS20 Year InvoluntarySlide10
Some examples for involuntary retirementPoor performancePersonal misconductOmitted or misrepresented factsFailed to maintain licensure or certificationReduction in Corps strengthReduction of funding or staffing levelsNo suitable
assignment
Remaining
in a billet below current pay gradeNot maintaining basic readiness20 Year InvoluntarySlide11
Required to retire at 30 yearsA certain percentage of an Agency’s Commissioned Corps Officers may be retained beyond 30 yearsMust be presented in front of a boardSG concurrence requiredCall for nominations typically in July 30 Year MandatoryRetention Beyond 30 YearsSlide12
Disability must haveOccurred on Active DutyNot a result of misconductMedical Review BoardResponsible for making a formal recommendation to the ASH regarding an officer’s fitness for duty and disability ratingTemporary Disability Retired List (TDRL)Maximum of 5 yearsMust undergo periodic medical evaluationCan be recalled to active dutyPermanent Disability Retired List (PDRL)Permanently retired from active dutyMedical Disability RetirementSlide13
An eligible officer may request approval for retirement prior to age 64An officer may retire on the first day of any month following the month in which the officer attains the age of 64If less then 12 years, multiplier based on the number of Active Duty Years12 years of Active Duty or more the retired pay multiplier shall not be less than 50%Age 64 RetirementSlide14
Retirement PlanningStep 1Contact a Separations Counselor and review the Commissioned Corps Retirement SeminarSlide15
Retirement ResourcesFAQsRetirement ChecklistRetirementProcessRetirement TypesAnnual Leave Balance OptionsPost Retirement Employment RestrictionsRetirement PayTaxes and COLASocial SecurityConcurrent Compensation PaySurvivor Benefits PlanRetirement Medical InsuranceTRICARE MedicalTRICARE DentalRetirement Travel and Transportation
VA Benefits
Health Care Benefits
SGLI/VGLIVA Educational BenefitsDeath BenefitsRetirement Seminar TopicsSlide16
Retirement PlanningStep 2Submit for RetirementSlide17
HowSubmit PHS-1373 and supporting Memos (Memos will be obsolete with issuance of the revised PHS-1373)WhenMinimum of 90 days prior to requested date of retirement (soon to be 120 days)To WhomSeparations CounselorsApplying for RetirementSlide18
Retirement Date1st day of the month for Voluntary or Involuntary RetirementsAny day of the month for Medical RetirementsActive Duty Service ObligationsMinimum of 10 years active duty USPHS timeMedical Special PaysDental Special PaysNurse Special PaysTraining ObligationsPost 9/11 Education Benefits TransferabilityOther Retirement ConsiderationsSlide19
Retirement PlanningStep 3Determine Post-Retirement FinancesSlide20
Calculate Estimated Retired PaySlide21
Step 1:Determine your DIEMS date (Date of Initial Entry into Military Service)Step 2:Determine which retirement system you are eligible for based on your DIEMS dateStep 3:Use appropriate formula to calculate your retired payCalculate Retired Pay in 3 StepsSlide22
Active Duty years as a USPHS Commissioned OfficerActive Duty years as a Commissioned Officer or Enlisted Member in any uniformed serviceCivil Service with any PHS agencyComparable to service performed by a commissioned officerMaximum of 5 years creditCreditable towards retirement credit dateNot towards payNurses may be an exceptionMedical or Dental Training and Education CreditMaximum of 5 yearsAdded to creditable active duty service time at time of retirementInformation to ConsiderSlide23
Other Retirement ConsiderationsSlide24
Current Retirement SystemsSlide25
Retirement systemsFINAL Pay
DIEMS 07 SEPT 1980 or earlier
HIGH 3 or HIGH 36
DIEMS 08 SEPT 1980 – 31 JUL 1986
Career Status Bonus
(CSB)/REDUX
DIEMS 01 AUG 1986 to present
Also know as the “Choice System”
Blended Retirement System
DIEMS 01 JAN 2018 **
Current and Future Retirement SystemsSlide26
RETIRED PAY = (Years of creditable service X 2.5%) X Final Basic PayPercentage multipliers can exceed 100%Full COLAshttp://militarypay.defense.gov/Calculators/ActiveDutyRetirement/FinalPayCalculator.aspxFinal Basic Pay Retirement SystemDIEMS Pre 08 Sep 1980
Years of service
20 21 22 23 24 25 26 27 28 29 30 thru 40 Final Pay Multiplier % 50 52.5 55 57.5 60 62.6 65 67.5 70 72.5 75 up to 100Slide27
RETIRED PAY = (Years of creditable service X 2.5%) X average of the highest 36 months base payTypically an average of the last 36 monthsPercentage multipliers cannot exceed 100%Full COLAshttp://militarypay.defense.gov/Calculators/ActiveDutyRetirement/High36Calculator.aspxHigh-36 Retirement SystemDIEMS between 08 Sep 1980 and 31 Jul 1986
Years of service
20 21 22 23 24 25 26 27 28 29 30 thru 40 High-3 Multiplier % 50 52.5 55 57.5 60 62.6 65 67.5 70 72.5 75 up to 100Slide28
RETIRED PAY = (Years of creditable service X 2.5%) minus 1% for each your < 30 years X average of the highest 36 months base pay2% per year thru 20 years; 3.5% from 20-30 years; 2.5% thereafter$30K Career Status Bonus (CSB) – 15th yearPercentage multiples cannot exceed 100%COLA minus 1%; one-time catch-up COLA at 62; COLA Minus 1% after if you chose CSB paymenthttp://militarypay.defense.gov/Calculators/ActiveDutyRetirement/High36Calculator.aspx
High-36 or REDUX Retirement System
DIEMS post 01 Aug 1986 –”Choice”
Years of service 20 21 22 23 24 25 26 27 28 29 30 thru 40REDUX Multiplier % 40 43.5 47 50.5 54 57.5 61 64.5 68 71.5 75 up to 100High-3/Final Multiplier % 50 52.5 55 57.5 60 62.5 65 67.5 70 72.5 75 up to 100Slide29
Blended Retirement SystemThe National Defense Authorization Act (NDAA) for FY2016 created the Blended Retirement System
Combines a blend of a 20 year defined benefit and a defined contribution to the TSP Program
After 20 years of service member will receive a defined benefit multiplier of 2.0%
Member may choose to receive a lump-sum payment of 25% or 50% of the total retirement benefit and a reduced monthly pay outContinuation Pay at 12 years of service as a retention tool maybe authorized. Four year service obligation.
Blended Retirement System
DIEMS post 01 Jan 2018**Slide30
Discuss with military retirement savvy financial planner concerning optionsSurvivor Benefit PlanSlide31
Discuss with military retirement savvy financial planner concerning optionsTSPSlide32
Retirement PlanningStep 4Schedule your Retirement PhysicalSlide33
Not requiredNo more than 6 months or no less than 1 month before retirement dateYour last record of active duty healthAssists with claims for VA service-connected conditionsRetirement PhysicalSlide34
QUESTIONS