Military Retirement FAQ
Members of the military who have completed at least 20 years of service and are considering retirement should learn about their retirement benefits before making any decisions. The military has many resources to help service members who have questions about retirement. Knowing the benefits that you and your family qualify for is the first step in making a smooth and successful transition. Retirement benefits, with the exception of pay, are the same for all retirees.
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Retirement Pay
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Retirement pay is based on when you went into the service. There are three different formulas the military uses for determining retirement pay. For those members that entered military service before September 8, 1980, retirement pay is computed under the Final Pay retirement system. If your entry into military service was between September 8, 1980, and July 31, 1986, your retirement pay is computed under the High 36 retirement system. If your entry into military service was on or after August 1, 1986, you will have to choose between the High 36 option and the Career Status Bonus/Redux option. You will be asked to make this choice during your 15th year of service. The military finance office on each installation can help explain how the retirement pay system works.
Educational Benefits
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Military retirees are entitled to educational benefits. The benefit level is based on the date you entered the military. Over the course of a 20-year career, the educational benefits that you are entitled to may have changed several times. Most military installations will have an education office that can help you plan your future educational pursuits. The GI Bill is administered through the Department of Veterans Affairs (VA).
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Medical Benefits
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Military retirees and certain dependents are eligible for full medical care through Tricare. Like many civilian insurance companies, Tricare offers multiple levels of coverage, each with a different cost. Tricare Prime is treatment in a military treatment facility; all expenses are paid. Tricare Extra and Standard are similar to a civilian preferred provider organization (PPO), and some copays may apply based on the services received.
VA Benefits
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The VA provides other benefits to retirees and nonretired veterans. It is the administrator for the government-backed home loan program, and it provides employment and job training assistance to retirees and veterans. The VA runs the National Cemetery Administration and is responsible for burial benefits for all eligible veterans.
Other Benefits
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Retired military receive other benefits as well. They are given unlimited access to base commissaries, post exchanges and many other recreational facilities, such as movie theaters and base golf courses. Most states also offer some benefits for veterans that have their legal residence in the state. Some states will waive or discount fees for special licenses or permits, and some may subsidize nursing home care for elderly retired military personnel. Check with your state to see what programs it offers veterans.
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