About Military Retirement

Military retirement is the benefit for those who chose to make a career out of the military and have worked 20 or more years in military service. Military retirement is also available for qualifying reserve service. When a service member is preparing to retire, preparation and planning are crucial for a smooth transition.

Facts

The military has its own retirement system. Prior to retiring, it is important to attend any and all briefings offered by your command concerning the retirement system. Decisions made at the time of retirement affect your retirement benefits as well as survivor's benefits. Therefore you must pay attention and review all paperwork carefully. Some of the decisions you make cannot be changed. Consider all of your options.

Different Types of Benefits

When planning to retire, a service member must take the time to get his affairs in order. It is crucial that retirement pay is not overlooked. Form DD256 must be completed and submitted based on the policy of the specific branch of service you served in. This form has to be completed prior to your retirement and transfer date. Information that must be included is dependent information, survivor's benefit plan election, beneficiary information detailing who will receive unpaid retirement pay at the time of your death, and withholding information for federal and state tax purposes.

Disability Benefit

It is a service member's responsibility to contact the local Veterans Administration office either after retirement or transfer to determine if she is eligible for disability benefits. The criteria may be different from military criteria. All retiring members can and should apply for VA benefits prior to retirement. A service-connected disability will be established if the member has a physical or mental impairment that substantially limits one or more major life activities or is regarded as having such an impairment that occurred while serving on active duty in the U.S. Armed Forces.

Long-Term Planning

Another area that should not be overlooked is the survivor's benefit plan. This provides an annuity to whomever you designate as your survivor(s) based on a specific dollar amount of your retirement pay. Based on the coverage chosen, an annuity may be paid to the spouse/former spouse only, children only, or spouse/former spouse and children, or someone else with an insurable interest. You are automatically enrolled with maximum coverage upon retirement if you have a spouse or dependent unless you choose a lesser coverage or no coverage.

Retirement Ceremony

After preparing for retirement by getting all your affairs in order regarding payment, veteran affairs and a survivors benefit plan, a service member can look forward to the actual retirement ceremony. The retirement ceremony is a special event that will share with attendees the history of the retiring member's years of service and dedication. It is a way of celebrating and officially retiring the service member.

Warning

Do not assume that all of your benefits are automatic. Take the time to ask questions and complete all necessary paperwork to retire.

For those retiring who must return to work, be sure to attend a Transition Assistance Program.