Fed Tech/Military Dual Status Retirement Stories

[Blackhawk]

Any fed tech/military dual status retirees out there willing to share their retirement story/plan?

 

[ravensfan]

Sure, what do you want to know?

 

[Blackhawk]

Thanks for replying. I have questions. Is your MRD and MRA close? How are you bridging the gap until you draw both pensions? Plans after you retire? Will you work after? When are you going to start social security? FEHB or Tricare for Life? Thanks.

 

[ravensfan]

Thanks for replying. I have questions. Is your MRD and MRA close? How are you bridging the gap until you draw both pensions? Plans after you retire? Will you work after? When are you going to start social security? FEHB or Tricare for Life? Thanks.

I was under the CSRS retirement system, so instead of an MRA, I was eligible for retirement at age 55 with 30 years of service. Ended up falling victim to the Selective Retention Program and was effectively retired on my 55th birthday.

That was 6 years ago. Under CSRS I ended up with 62% of my high 3 years of earning, 32 years of service and a year of sick leave that was converted into an additional year of service. Signed up for the Survivor Benefit Program, so my wife would be taken care of if she outlives me and that knocked about 4% off my 62% total.

As for bridging the gap from my CSRS retirement until I was able to collect my military retirement at age 60, all I can say is thank goodness my wife worked as her pay helped immensely during this time. I am now collecting my military retirement and my wife was able to retire this past June.

Regarding FEHB, I had to carry it into retirement until my military retirement kicked in. I then "suspended" it (don't cancel, suspend, If you cancel, you can't get it back) and enrolled in Tricare Prime. I can carry Tricare Prime until age 65 whereas I will have to convert to Tricare for Life. Tricare Prime runs me $47. per month as opposed to over $400. I was paying for BCBS. Actually it ended up being a nice little cost savings in my CSRS retirement.

To answer your question about working after I retired, for the first 3 years I did not. But after awhile I was going stir crazy with my wife working and me sitting at home. With that said, I decided to get my CDL and got a job driving a school bus. I've been doing that now for the past 3 years and love every minute of it.

As for social security, I plan on taking it at age 62. I'm hoping they do away with the WEP penalty but do not have much confidence in that happening. I will have a decision to make at that time regarding driving the school bus. My annual income from the school bus falls below what is allowed under social security, so I will still be able to work. The question is will I still want to work or will I decide to join my wife in retirement and live happily ever after? Still have a little over a year to decide...

Hopefully I have answered your questions, but if not, fire away.

V/r
Ravensfan

 

[Blackhawk]

Ravensfan,

I'm under FERS. I'm 45, GS14/5 and O-5 over 27 (I have some enlisted years). I'll be 56 at my MRD and my MRA is 57. I've been through a few Select Retention Boards and will have several more to come. I plan to be GS14/10 and O-6 over 38 when I retire. I should have over 30 years of service when I finish buying back my military time and another year of sick time. And I should have 24 years towards calculating of the supplement. My wife is 44 and a pharmacist at the local hospital. My agency recently put out a policy that told us to plan on retirement at our MRD. I'll be able to draw my military pension at 59 due to my last deployment after 2008. I was thinking I would draw my social security at 62, despite my financial planner recommending 67, and my wife draw hers when she's 62. Good info on Tricare Prime. I have BCBS now and it's expensive! I have a few ideas for work after I'm retired to bridge the gap until I draw my military pension but I have 10 more years to prepare for that. Luckily, dear wife (DW) makes good money and will still be working. It is interesting how many retired officers I run into say they're bored. And my TSP is doing well but I just lowered my contributions down to 5% so we can pay off a rental property before we retire.

Thank you for the info. I try to ask our retirees how they did it and if they would do anything differently. DW and I have a good vision and plan for retirement and are looking forward to that day when we can. Blackhawk.

 

[ravensfan]

Blackhawk,

It sounds like you have a good plan in place and that is the key. Just re-evaluate it periodically and make changes as necessary as things do change.

I had to snicker a little when I read your comment about retired officers being bored. It's the same way with us enlisted folks as well. I think sometimes we get so wrapped up in our retirement/exit strategy that we forget to plan on what we will do once we are retired. My plan was to catch up with all those home improvement projects I kept putting off during my working career. Well that lasted about a year and a half and once completed the boredom set in. With that said, my advice is to include a plan for what you will do once retired. Whether that is to travel, play golf, learn to play a musical instrument or whatever, ensure you have something to retire to.

And finally, two other things, when that great day comes and you hang up your uniform for the last time, make sure you join NARFE (National Association of Retired Federal Employees) and get involved with your local retiree's association.

Good luck, and if I can be of further assistance, just let me know.

 

[sillbeer]

I'm in the same boat and currently 37 with over 18 military and 11 civil service. Working on buying back my 7 years of active duty time at $5609.

How do I calculate MRD and MRA?

I'm not necessarily looking to retire on either side at the earliest age/time possible. I actually like the work I do on the civil service side since I left the DOD.

 

[evilanne]

How do I calculate MRD and MRA?

Not sure what MRD is, but for MRA/years of service for FERS, see https://www.opm.gov/retirement-services/fers-information/eligibility/

 

[sillbeer]

Thanks for posting that link Evilanne. By the time I hit 57 I'll have over 30 years so no worries. I'll be happily retired at that point and hopefully have my first house paid in full and working on a second house. As long as that is the case, I'll bridge the 2 years between civil service and when my military retirement kick in and be in fine shape.

 

[Blackhawk]

Sillbeer, I'll be 56 at my 30 year MRD and plan on requesting an MRD extension to at least get to my MRA and hopefully make it to 59 when I can draw my military pension. Officers typically have a 28 year MRD until you are selected for O-6 then your MRD is extended to 30 years commissioned service. We have a few O-6s that are on MRD extensions. Any active duty time or tours are great bonuses. The State National Guard USPFO, though may not be an appealing job, is usually a 3 year active duty O-6 tour that you stay home for, you are making O-6 wages, acruing points and you can buy the years back into your tech retirement.

 

[sillbeer]

I couldn't find a reference to MRD and stumbled upon RMD which is Required Minimum Distribution fore IRAs. Is MRD Military Retirement Date? I'll be 49 years old if/when I hit 30 years in service. No matter what I do I'll have a gap between when I hang it up and when I start collecting.

 

[Blackhawk]

MRD = Mandatory Removal Date. I'm an officer in the Army National Guard. Army officers have a maximum 28 year MRD until they are selected for O-6 then they are extended two more years for a max of 30 years of commissioned service. Enlisted have an enlistment contract but after they accrue 20 years of service they are subject to Quality Retention Boards where they can be separated. Warrant Officers are a different subject.

 

[jpcavin]

I'm still stuck at "having to wait until able to collect my military retirement at age 60." I'm confused. Is it because you guys did not do 20 years active duty or because you were in the Reserves? I retired from the military after 20 years and started drawing my pension immediately. In another 1 1/2 years, I will have 10 years civil service and I'm calling it quits. I hope to do a lot of traveling in my time off.

 

[sillbeer]

I did 7 years active duty and now close to 12 in the reserves. Guard and reserve can start collecting at 59 1/2. Any active duty time can be bought back and counted towards civil service years. Even if you do 20 years you can buy back your time but it's not advisable.

I'm sure the reserves doesn't have MRD. About a year ago a guy transferred to my old reserve unit from the guard and he was at 21 years and under 1 year left on his contract. During his first drill orientation he was asked if he wanted to reenlist for 6 more years. He said it blew him away because in the guard anything over 20 is closely scrutinized for enlisted.

 

[Frixxxx]

I'm still stuck at "having to wait until able to collect my military retirement at age 60." I'm confused. Is it because you guys did not do 20 years active duty or because you were in the Reserves? I retired from the military after 20 years and started drawing my pension immediately. In another 1 1/2 years, I will have 10 years civil service and I'm calling it quits. I hope to do a lot of traveling in my time off.

The thread leans towards the combination of Dual Status 'Civil Service and Military' and how they plan.

Reservists recieve their military retirement pay at 60. (Minus AOR time of war for some)

There can be a whole conversation on how and what retirement is between Active Duty (20 years of day to day service) and Reservists (20 years of Weekend/Annual Tour/Orders).

The quickest explanation is this:
Active duty 20 years * 365 = 7300 points = 50% base pay (2.5% a year after 20)
Reservist 20 years * (enter participation points) = ??% base pay

There are many contributing factors, Rank, special orders, total years, etc.

 

[Frixxxx]

I did 7 years active duty and now close to 12 in the reserves. Guard and reserve can start collecting at 59 1/2.

It's actually 60. Adjustments are made based on participation designated in the 2008 law that allows reservists/guard to claim that time against retirement.

Any active duty time can be bought back and counted towards civil service years. Even if you do 20 years you can buy back your time but it's not advisable.

I'm sure the reserves doesn't have MRD. About a year ago a guy transferred to my old reserve unit from the guard and he was at 21 years and under 1 year left on his contract. During his first drill orientation he was asked if he wanted to reenlist for 6 more years. He said it blew him away because in the guard anything over 20 is closely scrutinized for enlisted.

Reservists still have High Year Tenure (HYT) rules. And it's not the years that are scrutinized it's the points. Retirements are funded differently between state and federal and if some people fulfill the 7300 points, they are elligible for a federal retirement.

 

[jpcavin]

I did 7 years active duty and now close to 12 in the reserves. Guard and reserve can start collecting at 59 1/2. Any active duty time can be bought back and counted towards civil service years. Even if you do 20 years you can buy back your time but it's not advisable.

I'm sure the reserves doesn't have MRD. About a year ago a guy transferred to my old reserve unit from the guard and he was at 21 years and under 1 year left on his contract. During his first drill orientation he was asked if he wanted to reenlist for 6 more years. He said it blew him away because in the guard anything over 20 is closely scrutinized for enlisted.

The Navy Reserves has High Year Tenure (different name in other services) for enlisted, that limits how long anyone can be in the reserves(or active duty) based on rank. HYT for Reserves is a bit more accomodating than the active side. Regarless of rank, mandatory retirement age is 60 for enlisted so in a way, that is sort of like MRD? :smile:

The link below has the term limits for each respective branch based on rank.
https://www.thebalance.com/high-year-of-tenure-in-the-us-military-3355995

 

[jpcavin]

It's actually 60. Adjustments are made based on participation designated in the 2008 law that allows reservists/guard to claim that time against retirement.

Reservists still have High Year Tenure (HYT) rules. And it's not the years that are scrutinized it's the points. Retirements are funded differently between state and federal and if some people fulfill the 7300 points, they are elligible for a federal retirement.

For those that are not familiar, that law (FY2008 National Defense Authorization Act) passed on January 28, 2008, allows National Guard and Reserve members to reduce the age at which they are aligible to receive retired pay by three months for every cummulative 90 days active duty served in any fiscal year. That could mean starting retired pay as early as age 50 but no less.