I think I read it right........ Lump sum is the only choice for SRB payments starting soon, and taxed at 25% now instead of 28? I like how it reads, but I'm not sure if I read it right?!?!?!

You have the option now of the lump sum (only 85% though) or if you want half up front and rest paid in equal installments on the years you extended or enlisted for (like it has been). It is taxed now at 25%.

5. FROM THE DATE OF RELEASE OF THIS MESSAGE THROUGH 15 JULY 2008,
MEMBERS REENLISTING OR EXTENDING WILL HAVE THE OPTION TO ELECT THE
LUMP SUM PAYMENT OR THE OLD INSTALLMENT PLAN. ALL BONUSES
AUTHORIZED DURING THIS PERIOD WILL BE CALCULATED AS FOLLOWS:
A. INSTALLMENT PLAN: SRB MULTIPLE X MONTHLY BASIC PAY X MONTHS
NEWLY OBLIGATED SERVICE)/12
B. LUMP SUM: SRB MULTIPLE X MONTHLY BASIC PAY X MONTHS NEWLY
OBLIGATED SERVICE)/12 X 0.85.
C. PER REF A. AS A REMINDER, BONUSES ARE TAXED AT A RATE OF 25
PERCENT.

And for the new SRB's:

6. EFFECTIVE 16 JULY 2008, SRBS WILL BE PAID LUMP SUM ACCORDING TO
THE FOLLOWING FORMULA (SRB MULTIPLE X MONTHLY BASIC PAY X MONTHS
NEWLY OBLIGATED SERVICE) /12, MINUS 25 PERCENT TAX WITHHOLDING IN
LUMP SUM. MEMBERS MUST REALIZE THERE ARE POTENTIAL TAX
IMPLICATIONS AND, THEREFORE, MAY WANT TO CONSIDER A TSP BONUS
CONTRIBUTION (TSP YEARLY CONTRIBUTION LIMIT IS 15,500 DOLLARS). IF
A MEMBER ELECTS TO CONTRIBUTE BONUS MONIES TO TSP, THE ELECTION
MUST BE MADE ONE MONTH PRIOR TO RECEIPT OF BONUS.


They called the installment method the OLD installment method. Doesn't seem there's any option for SRB payment after July 15. Sounds ok with me though!

I saw the message today. How stupid I really think it is. But I did not read anywhere it stated you guys are subject to only 85% now. I think you will get the 100%. Hopefully it works in your favor. I also noticed that a lot of the multiples are at like 1.2 what happened to 1.5.........

hmm. Back to high school math I guess. "0.85" as a multiplier is 85%. Para 5.B

1.2 vs 1.5? Simple answer: That is all the board felt was needed to bribe people in those circumstances. The SRB checkbook only has so much money in it. A 25% increase from 1.2 to 1.5 in one area would require a drop in another area of 20% from 1.5 to 1.2.

Another item of note: Understand that the SRB is NOT, I repeat NOT TAXED at 25% (or the old 28%). It is withheld at that rate! I make considerably more money than anyone who can get an SRB and I file a 1040EZ using only standard deductions and my actual tax rate was 11%. Everyone's actual tax rate will be different and only your tax accountant can give you an idea what % of that will actually be taxed the following year and what you can expect to get back. That is one of the MANY reason that if you are getting an SRB, you should talk to a PROFESSIONAL advisor about YOUR $ situation well before you get any of this money.

One more piece of advice. Read your contract carefully! If by your own fault, you loose eligibility for the SRB any time during that enlistment, you will be writing a LARGE check. With installments, the check would not include upcoming installments. In lump sum, you are 'spending' way ahead of your earning!

THREAD HIJACK:

I've been looking for an answer. Maybe you guys can help. I will be re-enlisting this year. On August 6th I will have exactly six years of service. My question is, if I re-enlist on August 6th am I still eligible for the zone A with my 6 year basic pay or am I forced to now take the Zone B?

EDIT:
MC you are correct, I did further research and found that in the Personnel Manual 3.4.C.a Item 3 states, "Have completed NOT MORE than 6 years active service on the date of renlistment or the date on which the extension becomes operative."

This means I will be re-enlisting on August 6th for 6 years. Thanks for pointing me in the right direction MC.

This message has been edited. Last edited by: Krutch,

Krutch;
The SRB message lists the two references regarding SRBs. One of those two references answers your questions CLEARLY and EXCACTLY. Since this could have an effect of (TENS) THOUSANDS of dollars now - and maybe 4 years from now, I will not answer your question. Go to those references and read the ENTIRE section(s) on SRBs yourself.

Whether you know it or not - you asked TWO questions really:

Zone A or Zone B?
Base pay for over 4 or Base pay for over 6?

Not only does the instruction state which way you will go, but the example given happen to be for your very situation. Again, read the whole section(s), don't stop when you think you know enough.

When you are done, come back and state what you found where. Cite specific paragraph numbers of specific instructions.
MC

Master Chief,

Your post gave me a warm and fuzzy feeling all over. Go research the material and report back with your findings. Excellent!!

Like you, I am sure, I learned a long time ago the benifits of that, especially on such a HUGELY importanttopic.

Thanks for the comment shipmate!

quote:

This means I will be re-enlisting on August 6th for 6 years. Thanks for pointing me in the right direction MC.

Be careful and do like I said. Read the whole section. Know your actual dates. Know what day will be you actual 6 year mark. There is NO real advantage, other than a buck or two to waiting until the last day.

For instance - if you re-enlist on your actual 6 year anniversary - or the day you start getting paid at over 6 - what base pay is used?

(Hint: This will be your second to last EVER re-enlistment day! Why not make it special? When is your CG Day picnic planned? Why not do it at the Picnic? Maybe do it on CG Day itself? Who you gonna have do it? You know, a lot of Senior people show up at CG Picnics. Maybe find out where the District or Area CMC will be at that time or your RFMC. OinCs and Gold Badge MCs can do re-enlistments)

Understood that SRB tax is withheld at 25%. Now, Krutch, re-enlisting beyond your zone-b eligibility can be a dice game....... You'll get more money now by re-enlisitng for 6 vs. four. However, if your multiple is higher at your ten year mark, you could essentially make more money by re-enlisting for a zone B SRB as well. It is a very tricky game...... And just as Master Chief said, reading the manual will definitely assist in knowing your options. The BS that states you are to be counseled on your SRB options at your 6 and 10 year mark, is just that, BS. YN don't get SRB's like so many do and subsequently are typically not as up to speed about said matters (imo.) I am coming up on my zone-b and am doing the manual dance trying to understand my options regarding executing orders, re-enlisting, and recieving the maximum zone-b SRB I can....

Read up my friend!!!!!!!!!!

quote:

YN don't get SRB's like so many do and subsequently are typically not as up to speed about said matters (imo.) I am coming up on my zone-b and am doing the manual dance trying to understand my options regarding executing orders, re-enlisting, and recieving the maximum zone-b SRB I can....

Read up my friend!!!!!!!!!!

YN's are not up to speed??? WHO DOES YOUR PAPERWORK?????? Maybe you should rephrase that..Some Yn's are up to speed b/c we have to be. We have to read the same Alcoast as you do but the difference is we actually submit the page 7's and sumbit your Statement of Intent and your reenlistment contract. Without that...NO SRB for you....Ok now that I have cooled down..Not all of us are retarded.

Clukkes- That's why I said Typically....... Not all YN are up to speed with things they don't deal with regularly, or for themselves as well. The amount of administrative work placed on the member these days far exceeds the training they recieve to do so. This is a problem and exactly why I tell all of my shipmates to read the manual FIRST. Why entrust everything to someone else when it involves large sums of money for YOU?

The amount of different regulations and policies YN are required to deal with day to day makes it difficult to find one that knows it all through and through. With that said, I bet most YN could spew, on the spot, whatever you want to know about a memo, 3307, SGLI forms, BAH/dependency verification forms and so on because it's a commonly recurring thing for everyone. Because of the complexity of SRB's and re-enlistments, I would also say that most YN would have to read the manual and corresponding messages to be up to speed. Point being, why not just read it yourself and be educated on your options before someone else tries to explain them to you. If a YN HAS TO do something for themselves regularly, they will probably know how to do it for others. With that said, I wouldn't trust my re-enlistment options or SRB to ANYONE who hadn't dealt with it quite a bit themselves.

No offense intended Clukkes, just stating what I think is the obvious.

I get what you your saying. I have to keep to speed for my hubby! He's a BM!! So I am the first person he goes to before anyone else!!