X hits on this document

Word document

TAKING CARE OF YOUR PEOPLE: - page 22 / 28

84 views

0 shares

0 downloads

0 comments

22 / 28

FACT SHEET ON AIR FORCE BENEFITS Revised: Aug 2001

.

 THIS IS A LISTING OF JUST SOME OF THE MANY AIR FORCE BENEFITS WITH A BRIEF SUMMARY OF EACH. IAW AFI 36-2618, THE ENLISTED FORCE STRUCTURE, SUPERVISORS ARE REQUIRED TO REVIEW THE FACT SHEET WITH EACH FIRST AND SECOND TERM SUBORDINATE WHEN CONDUCTING PERFORMANCE FEEDBACK AND WHEN AN INDIVIDUAL COMES UP FOR QUALITY REVIEW UNDER THE SELECTIVE REENLISTMENT PROGRAM.  FOR MORE INFORMATION ON A PARTICULAR BENEFIT, CONTACT THE APPROPRIATE BASE AGENCY.

MILITARY PAY RAISES: By law, military pay raises are set at .5% below the Employment Cost Index (ECI) published by the Department of Labor.  However, the FY00 National Defense Authorization Act (NDAA) changed the law to allow military pay raises to be set at .5% above the ECI through the year 2006. Received 4.8% and 3.7% pay raise in 2000 and 2001 respectively.   We are scheduled for a 4.6% pay raise in 2002.

SPECIAL AND INCENTIVE PAYS: Air Force members are entitled to selective reenlistment bonuses, enlistment bonuses, continuation bonuses, accession bonuses, proficiency pays, career incentive pays, deployment pays, hazardous duty pays, and other special pays depending on specific qualifications.

TAX ADVANTAGE: Military personnel receive additional compensation since some allowances are not taxable.  These include Basic Allowance for Subsistence (BAS), Basic Allowance for Housing (BAH), Overseas Housing Allowance (OHA), Cost-of-Living Allowance (COLA), and Family Separation Allowance (FSA). Federal income tax is calculated using the standard deduction rates.

RETIREMENT: Individuals are typically retirement eligible upon completing 20 years of service.  Those who first entered military service on or after 8 Sep 80, but before 1 Aug 86, will have their retired pay computed under the "High-3" plan as follows.  First, the highest 36 months of basic pay are averaged to come up with the member's retired pay base.  Next, the retired pay base is multiplied by the retired pay multiplier shown in the table below to determine the actual retired pay.  (Note that multipliers are indicated below for whole years only, but are actually incremented for each additional whole month.)  Members who initially entered military service on or after 1 Aug 86 have the option of taking their retirement under the High-3 plan or accepting a $30,000 Career Status Bonus (CSB) at 15 years of service and then retiring under the provisions of the “Redux” plan.  Although the retired pay base is determined the same way as under the High-3 plan, the multiplier under Redux is reduced by one percentage point for each year less than 30 years of service as shown in the chart below.  However, at age 62 and after, Redux retired pay is recomputed using the "High-3" multiplier instead.  While members who retire under High-3 receive annual cost of living adjustments (COLAs), those who retire under the Redux/$30K CSB option receive an annual COLA reduced by one percentage point.  There is a one-time catch-up recomputation at age 62 and then the reduced COLA continues.

Years of Service

20

21

22

23

24

25

26

27

28

29

30

High-3 Multiplier

50%

52.5%

55%

57.5%

60%

62.5%

65%

67.5

70%

72.5%

75%*

Redux Multiplier

40%

43.5%

47%

50.5%

54%

57.5%

61%

64.5%

68%

71.5%

75%*

             * Max by law

The following illustrates how two master sergeants retiring with 20 years of active military service on 1 Sep 2006 could fall under two different plans. The sergeant who signed a delayed entry program enlistment contract on 4 Jun 86 and entered active duty 23 Aug 86 will calculate her retirement pay under the High-3 rules as follows: $2,422 (average of highest 36 months basic pay) x 50 percent (multiplier for 20 years) = $1,211 retired pay. The master sergeant who initially enlisted and came on active duty 15 Aug 86 and elected the $30,000 Career Status Bonus at the 15-year point would fall under the Redux rules and would calculate his retired pay this way: $2,422 (average of highest 36 months basic pay) x 40 percent (Redux multiplier for 20 years) = $968 retired pay. The sergeant retiring under the High-3 plan would receive about $243 more per month than the one retiring under the Redux plan who had taken the bonus.

A comparative description of each plan follows.

Document info
Document views84
Page views84
Page last viewedSat Dec 10 17:09:05 UTC 2016
Pages28
Paragraphs941
Words11631

Comments