Selective Early Retirement (SER)

[twobecrazy]

Today the Navy announced it will be conducting selective early retirement for 100 Captains and 100 Commanders. I don't know if I should have put this in another thread. I am also curious as to whether you believe this will be enough to help with promotion difficulties I have heard some people on here discuss.

http://www.navy.mil/search/display.asp?story_id=58018

 

[bert]

Too small to make a significant difference, but still a good thing.

 

[Random Task]

Is there any loss of benefits that come along with a forced retirement or is it simply retirement earlier than you would have liked?

 

[FlyBoyd]

Is there any loss of benefits that come along with a forced retirement or is it simply retirement earlier than you would have liked?

I doubt there is anyone on the list with less than 20 years. They most likely are just asked to retire and go home.

 

[helolumpy]

If you are an O-5 twice FOS for O-6, then you are 20+ years. If you're an O-6 you are 20+ years.
For O-5 you pretty much max out retirement at 24 years. The Navy may be looking to force out some folks at 22 years vice allowing them to make the additional money.

While only 200 folks may be small in the grand scheme of things, it does two things:
1) Frees up my promotional opportunity for folks coming up behind them
2) Will save some significant coinage when you consider the cost saving multiplied over 30+ years of retirement pay. If you retire at 24 vice 22 then your retirement check is about $500 more a month. Multiply that figure by 100 folks over the rest of thier lives and you can see some savings.

If this works (to the accountants) expect the program to be expanded.

 

[OnTopTime]

If you are an O-5 twice FOS for O-6, then you are 20+ years. If you're an O-6 you are 20+ years.
For O-5 you pretty much max out retirement at 24 years. The Navy may be looking to force out some folks at 22 years vice allowing them to make the additional money.

While only 200 folks may be small in the grand scheme of things, it does two things:
1) Frees up my promotional opportunity for folks coming up behind them
2) Will save some significant coinage when you consider the cost saving multiplied over 30+ years of retirement pay. If you retire at 24 vice 22 then your retirement check is about $500 more a month. Multiply that figure by 100 folks over the rest of thier lives and you can see some savings.

If this works (to the accountants) expect the program to be expanded.

I agree with all of the above, except for one small nit: O-5 pay tops out at 22 years, not 24.

 

[Gatordev]

I agree with all of the above, except for one small nit: O-5 pay tops out at 22 years, not 24.

Unless you're FTS, apparently, in which case you stay as long as you want until enough people start complaining that they can't promote.

 

[helolumpy]

I agree with all of the above, except for one small nit: O-5 pay tops out at 22 years, not 24.

While you pay tops out at 22, the percentage you get (+2.5% per year) increased for every year you continue to serve.

So getting out at 24 years means a higher percentage of your base pay, therefore a bigger retirement check once you get out.

 

[OnTopTime]

While you pay tops out at 22, the percentage you get (+2.5% per year) increased for every year you continue to serve.

So getting out at 24 years means a higher percentage of your base pay, therefore a bigger retirement check once you get out.

Yup. So, even though you may have hit your highest base pay, your retirement won't really max out until you get to 40 years. Actually, I think that 30 years/75% is the highest that you can get for calculating retirement pay.

 

[Flash]

Unless you're FTS, apparently, in which case you stay as long as you want until enough people start complaining that they can't promote.

Then they stay in anyways, waaayyyy too top heavy in the reserves.

Yup. So, even though you may have hit your highest base pay, your retirement won't really max out until you get to 40 years. Actually, I think that 30 years/75% is the highest that you can get for calculating retirement pay.

Nope, you can max out at 100% now if you go to 40 years and apparently go over that if you stay longer (I believe only 3 and 4 star Generals and Admirals can do that since they are appointed). A recent former boss of mine retired after 40 years in the Marines and was going to get 100%, they changed the law in 2006 or so.

 

[desertoasis]

Yup. So, even though you may have hit your highest base pay, your retirement won't really max out until you get to 40 years. Actually, I think that 30 years/75% is the highest that you can get for calculating retirement pay.

True statement. None of the calculators (staynavy, etc) go higher than 75, and isn't the only way you can retire with higher than 75% is to have five stars on your collar or a MoH around your neck (under the 10% increase in retired pay rule)?

EDIT: Just remembered that five-stars technically don't retire. The principle is the same though.

 

[Gatordev]

Then they stay in anyways, waaayyyy too top heavy in the reserves.

For SELRES, yes. But the FTS are supposed to abide by the same HYT times as REGNAV. The problem was no one was enforcing it. I'm still not sure anyone really is, even though they say they're starting to conduct review boards. FlyBoyd may have more info on that.

 

[Jim123]

Unless you're FTS, apparently, in which case you stay as long as you want until enough people start complaining that they can't promote.

Umm, not quite- FTS O-5>20 SERAD boards exist from time to time. There was (or was supposed to be?) one last year but I can't remember whatever became of it. <shrug> I can't remember because it wasn't on my list of "things that I worry about" (a very short to non-existent list). Maybe I'll ask around next week.

 

[phrogdriver]

After 20, you're working for half pay. I don't know why you'd stay if you weren't getting promoted.

 

[OnTopTime]

After 20, you're working for half pay. I don't know why you'd stay if you weren't getting promoted.

Every year beyond 20, up to 30 years, gets you another 2.5% of your retirement base pay.