Taking a promotion with two years left before retirement? Do you take it or just retire?

2015-01-04T07:33:51-05:00

I posed the question if you were two years to retirement and you're up for promotion and you get selected do you take that promotion where you know you're going to have to give additional time to the army or do you say no I'm going to pass on this promotion and just retire. Now the pro is you are under the high three so you could take it and earn that higher retirement pay...but with the cost of doing a few extra years to ensure that higher retirement paycheck. Is it worth it?

Response by SSgt James Sewell made Jan 4 at 2015 7:43 AM

2015-01-04T07:43:23-05:00

I would retire sir. I've benn retired 2 years (1 Jan), and no one could ever offer me a promotion to make me stay longer for what I endured. You'll feel more happier and in control of your own destiny at the end of the day. Prepare to fight for your VA compensation for service-connection disabilities though. That's another fight out here in the world you have to go through just to collect for battles/injuries you may of gotten collectively during your time.

Response by SFC A.M. Drake made Jan 4 at 2015 7:52 AM

2015-01-04T07:52:54-05:00

You only have to do three years, I'm in that boat if I get picked up for 8, then I would have to only do an additional year to get the 3 yr TIG then retire...too easy

Response by CSM Michael J. Uhlig made Jan 4 at 2015 8:48 AM

2015-01-04T08:48:58-05:00

This answer depends on the situation of individual. What is your post military plan, education, employment, entrepreneurship?

For retirement pay consideration, go to the retirement pay calculator (AKO; my benefits; calculators; retirement calculator) and see the difference in retirement pay yourself. If it is financially worth staying, meets your timeline and (most importantly) you want to continue serving then I'd recommend continuing to serve. Do not stay just for the promotion/pay raise, your heart has to be in it.

Response by LTC Yinon Weiss made Jan 4 at 2015 11:23 AM

2015-01-04T11:23:02-05:00

Why can't you take the promotion and still retire after two years? Or at least decide in a year or two after taking the promotion?

According to AR 600-8-19, 5-26 (a):

"The Soldier must report for duty in the position to which promoted, comply with a reassignment order, if issued, and serve at least 12 months in the duty position before voluntary reassignment, discharge or retirement. "

So you can take the promotion and then decide later what you want to do... unless I'm missing something? There's no requirement to serve three years.

Response by CW5 Jim Steddum made Jan 4 at 2015 11:31 AM

2015-01-04T11:31:11-05:00

I have twenty-six years and was recently selected for promotion. I plan two stay three years in grade to get the high three (my retirement plan). However, if the right job presented itself to me, things might change. I always look at how my decisions will effect me 5 to 10 years out.

Response by Maj Chris Nelson made Jan 4 at 2015 11:41 AM

2015-01-04T11:41:19-05:00

Way back in the day, my wife asked me how long I was going to stay in the military... I told her that I would stay in until I knew it was time to go....she did not understand that answer. That is step 1....knowing when it is time to go. Next step is to know what you want out of life... AND being able to do some self evaluation. I am a Major in the AF and am in the Nurse Corps. With that being said, I am not even eligible to be looked at for LTC until 2016 at the soonest (and maybe after depending on board schedules). I am eligible to retire 1 March 2016. IF I waited until the board AND I got selected (results take 6-12 months to post), it would probably be about 1 year before I pinned on, then to keep full benefit of the promotion I would have to stay in an additional 3 years.... on self evaluation, I do not wish to do that. I have been in (variety of services) since 1987 and feel that it is my time to go, making room for the younger generation to leave their mark. It is all about self evaluation and what YOU want...both military wise and post-military. Good luck with your decisions!!

Response by CMSgt Private RallyPoint Member made Jan 4 at 2015 11:47 AM

2015-01-04T11:47:35-05:00

As others have alluded to, there is no cookie cutter answer to this question as it will all depend on the circumstances and the will of the individual. If you were hell bent on getting out and starting a new life and you chose to stay simply for the promotion and extra pay then chances are you will still be miserable inside and maybe even more so due to the increased responsibility and workload that comes with a promotion. Additionally, if you are miserable the scope of influence you have in the new promotion will likely suffer from it as well.

As I am sure you probably realize already, military life and leadership is never about the money or even the prestige of a given rank, but the love of service and the satisfaction of commitment to others. If your heart is not in it then take the retirement and get started on the next chapter of your life. The extra years of staying could easily be made up for in the civilian world by applying yourself at whatever calling you choose and using the skills you acquired in the military.

Response by 1SG Private RallyPoint Member made Jan 4 at 2015 2:03 PM

2015-01-04T14:03:05-05:00

It can be a difficult decision. It was for me. I was on the SGM Promotion list with 22 yrs in service when I decided to retire. Mine was for family reasons, with my wife at the half way mark of her Air Force career and with 2 sons to raise. When I was told by SGM branch that I most likely would stay at Ft. Bliss after completing the SGM Academy, that pretty much sealed the decision for me. Had I known I would be going back to a Battalion or Bde Staff (Eastern US Installation) it would have been a harder choice to make, but in the end regardless of what assignment I was to get, I made the right choice. I still had more to give to the Army and was willing to give it, however, it was also the one time that I felt I had to put my family first. Which is something that many of us did not do thru out our careers, and some of us paid with broken marriages. I had been there and done that. The time had come, so I quietly retired at Fort Bragg in Jun 96. I still miss the hell out of the Army and would not hesitate one second to go back today...but at 59.....a man can day dream can't he.

Response by SSG Private RallyPoint Member made Jan 4 at 2015 3:04 PM

2015-01-04T15:04:27-05:00

SSG Private RallyPoint Member, here's your break down, I know there are tools out there but mostly because I look doing this stuff. DIEMS date determines which pay plan you are eligible for, based on what you said its the High-3. Retired Pay = (Years of creditable service x 2.5%) x average of highest 36 months basic pay and I averaged it in a very crude way, I averaged your basic pay amount only:

E-6 base pay as of today $3724.20 and you are at max pay for your grade but at your 17th YOS, your base pay was $3672.20. $3724.20 + $3724.20 + $3672.20 = $11120.60/3= $3706.86 avg high-3 base pay.

E6 - 20 yrs AFS Base pay $3724.20 * 50% = $1862.10 retired pay
(here I just used the base pay from the pay tables)

E-7 - 21 yrs AFS Base pay $4399.30 * 52.5% = $2309.63 retired pay
$2309.63- $1862.10 = $447.53 difference

If you were promoted 1 Jan 2015, E-7 Pay is $4670.10 for 2 yrs and at your 20th yr, it changes to $4415.40 and remains the same because you retire in your 21st year. $4415.40 + $4415.40 + $4367.10 = 13197.90/3 = $4399.30

Why 21 yrs AFS? Assuming you are in your 18th yr of service and requiring 3 yrs TIG to retire as an E7 as SFC A.M. Drake stated.

Projected figures using 2015 Pay table for an E-7 and averaging the high-3, at which at the 26 yr of service, pay is maxed out (pay raises not factored, keeping it simple):
21 $4399.30 * 52.5% = $2309.63 retired pay
22- $4469.50 * 55% = $2458.22 retired pay
23- $4523.60 * 57.5% = $2601.07
24- $4606.70 * 60% = $2764.02
25- $4635.70 * 62.5% = $2897.31
26- $4775.20 * 65% = $3103.88 (stopped here because of max RCP for E-7 is 26yrs)

Keep in mind that above are merely very rough figures because I used the crude method only. There's a whole lot more that goes into calculating your retired pay.

You retired base pay is actually calculated this way, based off 36 months:
2014 - 2015 E-6 your base pay is $3672.00 * 12 = $44064.00
2015-2017 E-6 your base pay is $3724.20 * 24 = $89380.80 (maxed out for pay)
$44064.00 + $89380.80 = $133444.80/36 month = $3706.80 retired pay base

What is also not accounted for is you get credit for each full month of service, but days of service less than a month are truncated. (One day of service is zero months, and so is 29 days.) Each month of service beyond a whole year is divided by 12, taken to three decimal places, rounded to two decimal places, and added to the 2.5% * YOS(Yrs of Svc). DFAS also rounds down to the nearest dollar to determine your monthly pension payment.

Here's an example assuming SSG Private RallyPoint Member, you were promoted 1 Jan 2015 to SFC and properly calculating the final retired pay base and that you actually retired at 21 yrs and 8 months and 9 days:
2015-2017 E-7 your base pay is $4367.10 * 24 = $104810.40
2017-2018 E-7 your base pay is $4415.40 * 12 = $59984.80
$104810.40 + $52984.80 = $157795.20/36 = $4383.20 retired pay base

253 months/12 = 21 years
8 months/12 = .666 (.67)
21.67 YOS * .025 (2.5%) = 54.18%
$4383.20 * 54.18% = $2374.82 Retired pay
There’s an example of the Retirement Percentage Multiplier Conversions in DoD FMR Vol 7b Table 3-4 on page 3-35.

I could go on for other things to consider but I think I just made everyones' head exploded. It was not my intention to do that on a Sunday.

Years of service 20 21 22 23 24 25 26 27 28 29 30 thru 40
High-3 Multiplier % 50 52.5 55 57.5 60 62.5 65 67.5 70 72.5 75 up to 100

**240 months/12 = 20 years
**360 months/12 = 30 years

Legend:
DIEMS date = Date of Initial Entry into Military Service date
YOS = Years of Service or Years of credible service
RCP - Retention Control Points

Response by COL Private RallyPoint Member made Jan 4 at 2015 5:19 PM

2015-01-04T17:19:39-05:00

Do the math. Look at the retirement pay over the next 30 years and what the difference will be over that time. You'd be surprised at how much more you will make in retirement. Don't get out if you are looking at promotion and another 2 years. You could end up with another 300K just for staying in another 2 years.

Response by 1SG Frank Boynton made Jan 4 at 2015 6:23 PM

2015-01-04T18:23:57-05:00

Really depends on your personal situation. I was selected for SGM academy and gave it up to retire. I was on orders to a permanent change of station from Germany, would be there for a few months and then move to Texas for school, and then be eligible for deployment anywhere in the world, and I was sure to be selected for SGM on the next promotion board. Didn't feel like moving my family 3 times in a 2 year period. Did that previously and it's no fun. Plus I had my 20, I was 38 - which was very marketable in the civilian world. If I'd stayed, I'd be at least 43 before I would retire maybe 44, not as marketable, and who knows how many more PCS's. I'm 60 now, and I do not and have never had any regret my decision.

Response by MSG Tim Donahue, M.Ed. made Jan 5 at 2015 11:37 AM

2015-01-05T11:37:32-05:00

For me the decision came easy. I would have gone to the SGM academy - then deploy for a year. Not a problem - but my wife would have done the same thing after I got back from deployment - so we would have been separated for four years. Decided to retire instead. Retired in 2008 - worth it to spend more time with my family.

Response by MSG Willy Paypon made Jan 6 at 2015 5:41 AM

2015-01-06T05:41:26-05:00

Either you will take the two years promotion or you will retire. The deciding factor is depend on your assignment and from the unit you where belong the most of all is to considered the situation of the place where you assigned. If you assigned in the most critical places in the world and you will always be in the front line ground troop (Jungle warfare) which you will always in the worse environment of armed struggle. Then the situation will push you through to plan for separation from the service. So the best option is to follow your plan not mean you are afraid that is the right choice. However, It would be harder to choice to those soldiers who were not assigned in front line and not even involved in the crisis. In serving the country there were two things to happen in our life and career. If you wish to be a good father then don’t expect that you are a good soldier to your country and if you wish to be a good soldier don’t expect that you’re a good father, sometimes you would experienced the worse trouble in our life. The best thing I did while I was in the service we were team work with my wife. I was concentrating to be a good soldier while my wife is to our kids working as mother and father while I was away from home with my support thrue motivation. If this things done then take the opportunity of the promotion as long as you are assigned away from risk. Then serve the country in good faith and honor.

Response by SFC Private RallyPoint Member made Feb 4 at 2015 6:19 AM

2015-02-04T06:19:06-05:00

Of course you do. there is a big difference in the retirement check not only from the additional grade but the other years you have to put in to keep it. ROCK IT!

Response by MSG Joseph Dutton made Dec 29 at 2017 3:03 AM

2017-12-29T03:03:37-05:00

I am in the same boat two years left to retire. I have been an E7 for 5 years; the last 3 years i have been trying to pick up my MSG/1SG i boarded 3 times for 1SG and did not get selected this year i was No 1 on the promotion list to get my E8 however there are no slots (National Guard) something being over strength at BN and Statewide. I am encouraged to apply for a 1SG position that opened up but after long thought and discussing with family i am just going to focus on retiring and my civilian career call it burn out or what you will my heart is not in it. I know what i accomplished and proud of that no one can take that away............. just time to move on let the young ones take the reigns; all said and done i will have 23 years of service. Every situation is different good luck but weigh the pros and cons just don't do it for prestige or money find if your heart is in it.

Response by TSgt David Holman made Aug 8 at 2018 8:01 AM

2018-08-08T08:01:08-04:00

Unless you have everything in line to retire, if you are given the opportunity to promote you should take it. If you have two years remaining, you would be looking at a possible two years additional (something like 21 years). Honestly, the difference in pay between an E-6 and E-7 was significant enough for me to give everything I had on a last push for promotion. It all depends on your situation, but financially, it is a good move.

Response by MSgt Michael Smith made Aug 8 at 2018 8:54 AM

2018-08-08T08:54:35-04:00

Take it! Why not? Unless said promotion will automatically make you eligible for some sort of Hell assignment which you are 100% certain you get selected for, and remaining in your current rank would prevent your selection for said assignment. I can really think of no other reason not to take the promotion. You know...you can extend as long as you like --once you make it past 20 years you are eligible to retire, and that retirement overrides any reenlistments, extensions, time-on-station requirements, etc. as long as you are not on a remote tour or a deployment. And its more money. Take it.

Response by SFC Nelson Martin made Oct 20 at 2019 12:22 PM

2019-10-20T12:22:09-04:00

I turned down promotion to E8 because of the required commitment to the service after promotion, which was two more years. I did have to go to Personnel and sign a form formally turning down the promotion. As a result I retired after 20 years and I am very glad I did; I did so much better in the civilian community, made more money, got better health care, and a much better second retirement. At about my 16th year of service I seen that the system is not fair and felt the army has nothing else left I want and I have nothing else the military wants. I was an MP serving in Germany at the time.

Response by Maj Private RallyPoint Member made Oct 20 at 2019 12:39 PM

2019-10-20T12:39:25-04:00

If you have 2 years left then take the promotion. The financial impact is significant down the road. In my case, I was selected for O5 but declined and opted to retire because I already had 24 years but in your case it makes sense to compete for E7.

Response by MSG Michael Weaver made Mar 2 at 2020 7:06 PM

2020-03-02T19:06:42-05:00

Hello, I am a retired U. S. Army First Sergeant (1SG). I have a friend who retired in March 2003 who shared with me a troublesome story. That experience still haunts her today literally having a negative effect on her health. I want to help this retiree to make a horrible wrong right and need assistance in finding out how to. Her story goes like this: When her CSM had called her to his office he had several MSG/E8's standing around his desk when she entered his office. Not knowing why she was summon, she assumed it was in reference to a recent email communication addressed to him. When she begin to address the communication, the CSM abruptly stopped her and commented that 'she was not humble enough' and she left his office not understanding why he said that. After her retirement she learn from the Personnel NCOIC that she had, in fact, made the special Master Sergeant/E8 Promotions List. The PSNCO said she was asked to do something she was not willing to do. My friend had no knowledge at the time that she had been selected for MSG/E8 promotion and was never given an opportunity to accept or decline the MSG/E8 promotion in lieu of retirement. This soldier faithfully served a country she wholeheartedly loves for over 24 years . No soldier should ever leave the military with such a traumatic experience. Every Veteran's Day and Independence Day this soldier is reminded of this horrific experience. Help me to dry her tears and restore her faith in U. S. Army and the Noncommissioned Officer Corp.