Just wanted to give anyone interested that falls under the CSB/Redux retirement plan a heads up about potential problems with retired pay starting when expected. I recently transferred to the Fleet Reserve (1 May 2007) under the CSB/Redux retirement plan. Throughout my checkout process I was assured by PSD that retired pay would start the first of the month following retirement. As of today, my retired account at DFAS is still not established. After several phone calls and e-mails to DFAS and NPC I finally found out that personnel who fall under the CSB/Redux retirment plan will not receive their retirement pay the month after transfer due to the fact that their retired pay accounts have to be created manually at DFAS, which could take up to 60 days.
I don't think anybody knows. My CC never mentioned anything and PSD definitely didn't know.
Anybody on this program who has not put away that money they got at their 15 year mark, or have any savings could have a hard time until their retired pay starts. I have started a new job, but it doesn't even come close to what I made on active duty. That plus going through a nasty divorce at the end of a career has drained almost all savings I had, so things are very tight. I don't want to see anyone else have to go through what I am.
This is something that Command C.C's need to explain to members when they elect to accept the Redux.
Good luck Dragoon, I'm a PLR so I'm fimiliar with what you are talking about. I just found out last year, that this was happening? You have to remember that the CBX/Redux just came into play about 5-6 years ago (if that long) so now people are starting to hit their 20 yr mark and its a new learning process for all? Should someone already knew about it? Yes? Especially the personnel who created the CBX/Redux option? However, from my understanding it takes anywhere from 30-60 days before you will receive your retainers pay! Good luck with your new job, and I hope everything works out for you.
I too had the same problem with my retire pay. I retired August of 2006, and it took almost 6 months before they actually got it right. Initially, I did not get a paycheck, and it all went back to the PSD at my duty station, Secondly, when I started to receive a check, I was getting it at 50% even though DFAS had the paperwork stating I was REDUX (it states it on your LES). I was getting over paid every month, they would not accept a check from me, I had to wait until they took it out the next month, which cause my pay to really be messed up for several months. For those of you getting ready to retire and are under REDUX, watch your pay and make sure your PSD is aware of informing DFAS so you will not have these problems.
For those of you getting ready to retire and are under REDUX, watch your pay and make sure your PSD is aware of informing DFAS so you will not have these problems.
fbrayden,
would it be safe for the MEMBER to contact DFAS directly instead of waiting around for PSD? When it comes to my LES or pay, I would like to contact them first instead of waiting around for PSD to do it? They seem busy enough or short-handed.
NIMITZRIDER, unfortunately DFAS cannot help you in advance. The paper work has to be pushed through your PSD. I tried calling DFAS, and it was DFAS who informed me that I had to contact the PSD that was handling my fleet reserve paperwork. They are only looking at a screen with info when you give them your SSN.
I retired in 76 with 18yrs/11mo. Got paid for 20 becuse back then you got to use what was called constructive time. It was if you came in as a kiddie cruiser or ever time reelisted 3 months early it counted as a full tour. I understand thats been done away with. I guess you have to do a full 20 or that redux that you all have mention. Personally I would do the full 20 especially with what the pay is now. Like that person who said he lost $300. You figure that compouned with future colas that could be a large amount. To show how much colas add up I retired as a E-8 base pay was $1000. per month, ret. check $500. now over $1800. You can see what that $300 could mean in the long run. Think twice unless you have a good job lined up. TAK AMCS
When I joined, I was promised 50% of my base pay + 2 1/2% for every year beyond 20-years, so I get 55% of my base for retirement. I remember when the law you guys got screwed because the Congress signed the bill after midnight, and it wasn't until some folks reached the 15-year mark that they discovered they won't get 50%. Just one more example of how the government can screw you. Compare the writing of DD-214s from WW-II to now. During my pre-retirement seminar, the instructor did. It was shocking. I dug up all of my old 214s and they take more away from you whenever they can. When I enlisted, I was promised "Free" medical and dental for me and my ENTIRE family for the rest of my life. Ha, ha, ha !
HEY EVERYONE DO ANY OF YOU KNOW WHAT THE FINAL DECISION IS ON WHO GETS CRSC, HUSBAND IS A CHAPTER 61 MEDICALLY RETIRED NAVY MAN. WAS REALLY MESSED UP ABOUT 40 YEARS AGOIN VIETNAM. CONGRESS IS MAKING A NEW DECISION ON LETTING THE GUYS WHO HAD TO RETIRE BECAUSE OF A DISABILITY RECEIVE THEIR RETIREMEMT ALSO...ANYONE KNOW ANYTHING? THANKS SUSAN
Susan, You might check over here. That is the Disability forum and the Mod over there (Dave) is VERY knowledgeable in these issues and will be able to answer your questions.
Thank GOD I fall under the OLD PLAN. Even if I fell under the REDUX they would NOT SUCKER me into taking the LUMP SUM at 15 years. Most people live between 30-45 years after retiring. Since "dragoon70056" stated he is getting $300.00 a month less in retirement that costed him between $108,000 - $162,000 in pay not including the annual "cost of living" (COLA) raises. Wow! Up front money is not always the thing to do. Patients......is a virtue!
"Life is: You reap what you sow!!" "Go ahead make my day!!"
Bill, I'm with you. Remember back in 1975 when they came out with the NEW retirement wnere NO ONE would lose any money. Well everyone that fell for that little trick lost $100.00 per month. I retired 8 days before it took effect and all my friends that had told me I was wrong lost $100.00 per month. The government/congress loves us when we are fighting for their problems, but when we retire they forget about us.
I retired under the "FINAL PAY" plan and my retirement pay started 60 days or so after I retired, that is when I was told it would start. I haven't had any problems yet, although I got smacked when I paid income tax the next year and found out I wasn't paying enough Fed and State tax out of my reirement pay. Now I take both out of my pay and haven't had any problems since then.
Montgomery GI Bill, I retired November 30th 2005. During my 20 year career I did not sign up for the Montgomery GI Bill. However, when I tried to sign up two years before I retired I was told that it wasn't open season. I was recently told that this new Montgomery GI Bill that's waiting for approval will cover those who did not sign up, is this true?????
