3. Fleet Reserve and Retirement
Enabling Objectives
Upon successful completion of this
topic, the trainee will be able to:
IDENTIFY personnel eligible for the Navy
Fleet Reserve and retirement.
STATE the purpose of the Fleet Reserve.
IDENTIFY the duties credited towards Active
Service in the Armed Forces.
IDENTIFY the required documentation for
transferring to the Fleet Reserve.
3
4. Fleet Reserve and Retirement
Enabling Objectives (cont.)
IDENTIFY the non-disability Fleet Reserve
retirement procedures and privileges.
LIST the factors affecting retirement pay.
IDENTIFY the effects on retainer pay if
recalled.
IDENTIFY how the Date Initial Entry Military
Service (DIEMS) affects retirement.
LIST the three military retirement systems in
effect.
4
5. Fleet Reserve and Retirement
Enabling Objectives (cont.)
IDENTIFY the steps to compute retainer pay
for all three retirement systems.
IDENTIFY the factors to consider when
deciding on a retirement system.
LIST the eligibility requirements for the U.S.
Naval Reserve (USNR).
IDENTIFY the steps to calculate USNR
retirement pay.
IDENTIFY the CCC’s responsibilities for
command retirement ceremonies.
5
6. Fleet Reserve and Retirement
References
NAVPERS 15560(series), Navy Military
Personnel Manual (MILPERSMAN)
NAVADMIN 344/02, Revised Career Status
Bonus and REDUX Retired Pay System
Navy Personnel website: http://
www.npc.navy.mil
Retirement Calculator:
http://www.npc.navy.mil under Career
Info/Pay and Benefits
Career Status Bonus website: http://
www.npc.navy.mil/AboutUs/NPC/ITIM/Data
Management/CareerStatusBonus/
6
7. Fleet Reserve and Retirement
Fleet Reserve and Retirement Overview
MILPERSMAN 1830-040
Consists of military personnel who
have completed 20 to 30 years of
Active Service in the Armed Forces
(ASAF).
CCCs initially screen Sailors to
determine eligibility.
CCCs help Sailors verify their
statement of service.
7
8. Fleet Reserve and Retirement
Fleet Reserve Purpose
Provides an available reserve of
former members of the Regular
Navy and the Naval Reserve who
may be used without further
training to fill those billets requiring
experienced personnel in the initial
stages of mobilization during an
emergency or in war (Art. 1830-040).
8
9. Fleet Reserve and Retirement
Fleet Reserve Eligibility Requirements
Complete 20 years of credible
service (ASAF).
Complete current assignment or
DOD tour.
E-7/8/9 must serve 2 years in
present pay grade.
Those in HYT zone can compete for
advancement. (Verify HYT with
current MPM and NAVADMINs)
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10. Fleet Reserve and Retirement
Fleet Reserve Creditable Service
MILPERSMAN 1830-040/7220-130
Service creditable for ASAF:
Active Duty (day for day)
Active Duty for Training (ACDUTRA):
After 9 August 56
Army and Air Guard (federalized only)
10
11. Fleet Reserve and Retirement
Fleet Reserve Documentation
Requests for Transfer to Fleet
Reserve:
Submit a special request chit up to 6
to 18 months (E-6 and below) or up to
24 months (E-7 to E-9) in advance via
OPINS/NSIPS (PERS-823).
Authorization for transfer arrives via
naval message.
11
12. Fleet Reserve and Retirement
Fleet Reserve Documentation (cont.)
NAVCOMPT 2274:
Pre-retirement pay information
DD Form 2656 SBP:
Sample form in BUPERSINST 1750.11
Continued Obligation:
MILPERSMAN 1830-070 & 1800-040
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13. Fleet Reserve and Retirement
Non-Disability Fleet Reserve
Retirement
Retirement from Fleet Reserve is automatic.
Retired List: >30 Years (MILPERSMAN
1800-040):
Permanent change of status and may only be
changed by resignation or discharge approved
by the SECNAV, or following a court-martial
sentence.
Application submitted by OPINS/NSIPS to
president via PERS 823.
Constructive service counts (but not minority
enlistment).
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14. Fleet Reserve and Retirement
Non-Disability Fleet Reserve
Privileges
ID card
Commissary/Exchange
Legal
Chaplain
Medical
Travel
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15. Fleet Reserve and Retirement
Retirement Pay Factors
Factors That Affect Pay:
Date of initial entry
Pay scale in effect
Pay Entry Base Date (PEBD)
Amount of ASAF:
Active service is rounded down to the
lowest month and converted to a decimal.
Example: 23 years, 5 months, 23 days =
23 years, 5 months = 23.4166 years.
Retainer pay shall not exceed 75%
base pay
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16. Fleet Reserve and Retirement
Retirement Pay Factors (cont.)
Heroism:
Increase retainer 10%, or if at 75%, 10%
tax free.
Medal of Honor:
Add $1,027.00 to calculated retainer pay.
Effects on Pay if Recalled:
1 Day – 23 mos., 29 days: Add ASAF (old
pay scale).
> 24 mos. continuous: Recomputed (new
pay scale).
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17. Fleet Reserve and Retirement
Date Initial Entry Military Service (DIEMS)
Obscure, but critical, date:
Determines your retirement plan.
Date first enlisted/commissioned
into any component of the armed
forces:
Has no bearing on longevity for pay or
years of service.
Should never change; not adjusted for
broken time or time lost.
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18. Fleet Reserve and Retirement
Military Retirement Plans
Original/“Final Pay” Plan
“High 3” Plan
“REDUX/CSB” Plan (REDUX plus
Career Status Bonus)
18
19. Three Ways of Computing
Retainer/Retired Pay
8 Sep 80 1 Aug 86
HIGH 3 Now called REDUX/CSB
Now called FINAL PAY * DIEMS on or after * DIEMS on or after 1AUG 86
* DIEMS prior to 8 Sep 80 8 Sep 80 * COLA - 1%
* Full COLA * Full COLA * (2 1/2% x ASAF) - (1 YAS <
* 2 1/2% x ASAF x BP = RP * 2 1/2% x BP (36 mos. 30) x BP (36 mos. avg.) = RP
(DTC) avg.) x ASAF = RP (DTC) (DTC)
19
20. Fleet Reserve and Retirement
Retirement Plan Choice
http://www.npc.navy.mil
Detailed information - NAVADMIN
344/02:
One-time catch-up at age 62
Bonus options
Sample case studies
Personalized calculator
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21. Fleet Reserve and Retirement
Retirement Plan Choice (cont.)
Review a few considerations:
A one-time, irrevocable decision.
If CSB/REDUX is chosen, bonus will be
taxed.
Biggest difference in REDUX is not the
40% at 20 - it is the “Minus 1% COLA”
feature.
CSB affects SBP premium.
CSB/REDUX looks better the longer
you remain on active duty.
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22. Fleet Reserve and Retirement
Retirement Plan Choice (cont.)
Consumer Price Index (CPI):
Determined by cost of living increases
(federal government).
Do not confuse retired COLA with
overseas COLA.
Huge benefit to those receiving
retainer pay.
Those with a DIEMS after 1 August 86
electing CSB receive CPI - 1%.
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23. Fleet Reserve and Retirement
Military Retirement Comparisons
Years of Service “Final/High 3” % “REDUX” %
20 50 40
21 52.5 43.5
22 55 47
23 57.5 50.5
24 60 54
25 62.5 57.5
26 65 61
27 67.5 64.5
28 70 68
29 72.5 71.5
30 75 75
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24. Fleet Reserve and Retirement
USNR Retirement Eligibility
Achieves 20 years of qualifying
service and reaches age of 60.
Maintains a minimum of 50 points per
year to qualify:
1 point for each drill or one point for each
annual training day.
Various points credited for completion of
approved correspondence courses.
Gratuitous points up to 15 points per
year.
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25. Fleet Reserve and Retirement
USNR Retirement Pay Computation
Total points X 0.025 X BP = Retired
360 Pay
25
26. Fleet Reserve and Retirement
Statement of Service
Complete accounting of all military
service credited towards ASAF for
Retirement /Fleet Reserve.
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27. Fleet Reserve and Retirement
Retirement Ceremonies
MILPERSMAN 1800-010
Ceremony:
Is a Sailor’s choice.
Is sponsored by Sailor’s last permanent duty
station.
Is assigned a ceremony coordinator.
Is official and traditional.
CCC responsibilities:
Make sure all documents are prepared.
Make sure command issues flag.
Verify ceremony script is appropriate.
Make yourself available to coordinator.
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29. Fleet Reserve and Retirement
Summary and Review
When are you eligible to transfer to
the Fleet Reserve?
What is the effective date for
transfer to the Fleet Reserve?
How early can you request transfer
to the Fleet Reserve?
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30. Fleet Reserve and Retirement
Summary and Review (cont.)
What is the formula for Non-
Disability Retirement?
What is the maximum retirement %
you can receive?
Who is eligible for REDUX/CSB?
30