Military base retirement plans are the one of the best options among the available retirement plans. A person who has served for minimum 20 years in the military is eligible for the retirement benefits.
Military retirement schemes have been changed according the changing cost of living over the years. The schemes differ for each personnel in service on the basis of his year of joining the military. Hence, every individual should check the rules and regulations during their year of joining.
The retirement pay is mainly based on the years of service in the military. There are three types of military retirement plans:
- Final pay retirement system
- High 36 retirement system
- Career Status bonus (CBS) / Redux Retirement System
The similarity between all the three systems is that all of them assure a pension based on your basic pay. The differences lie in determining the retirement pay based on the multiplier, career status bonus and the adjustment done for cost of living.
If you retire by the final pay system, you would receive 50 percent of your previous month pay as the amount in addition to 2.5 percent increase for each additional year of service after twenty years of your working in the military.
If you retire by the High 36 / CBS / REDUX system, you would receive an average of the highest 36th’s month base pay along with 2.5 percent increase for each additional year you have serve after the 20-year service period.
In case of the multiplier, you receive 50 percent for twenty years which goes up to 100 percent for forty years. The adjustment done for cost of living is always done based on the consumer fixed price list each year.
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