Retirement
TSP
Advice
Career Advice
Military Career
Responses: 3
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Capt Brandon Charters, I'm still teetering on the fence about this. It looks like a great change for the military, but I am nearing 18 good years between VAARNG, Active Duty, and FLARNG. I don't see a benefit if I switch over now and decide to leave the service in two years.
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Capt Brandon Charters
I totally hear you LTC (Join to see). I saw a good conversation on RP not too long ago with BG Michael Meese. He's a great resource in case you have other questions. https://www.rallypoint.com/answers/on-1-jan-2018-will-you-stick-with-the-current-military-retirement-plan-or-join-the-new-blended-retirement-system
On 1 Jan 2018, will you stick with the current military retirement plan or join the new Blended...
Not sure what to do? Join AAFMAA on 27 April for a free webinar about how to decide.
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BG Michael Meese
Brian:
If you have 18 "good years," that would imply more than 4,320 retirement points. Don't worry about the fence, because you are already on the legacy side of the fence and can't get over to the other side (nor would you want to). The 50% retirement, which you will get after 20 years of service is definitely better than a 40% retirement and one or two years of TSP matching won't make up for it.
The rule is a DIEMS date (check your LES) of 1 Jan 2006 or earlier or more than 4,320 retirement points, and you are automatically in the old system.
If you have 18 "good years," that would imply more than 4,320 retirement points. Don't worry about the fence, because you are already on the legacy side of the fence and can't get over to the other side (nor would you want to). The 50% retirement, which you will get after 20 years of service is definitely better than a 40% retirement and one or two years of TSP matching won't make up for it.
The rule is a DIEMS date (check your LES) of 1 Jan 2006 or earlier or more than 4,320 retirement points, and you are automatically in the old system.
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If I was in this situation, I would get on the phone and talk with professional financial advisors at a place like AAFMA (American Armed Forces Mutual Aid Association). This takes the guesswork out of critical decisions. I wouldn't sit and read stuff on Google when I could just bounce a bunch of questions off of professionals and get them to help me out. This is not the type of decision you want to get wrong.
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Take a look at the article I just posted from my colleague Steve Galing, Col USA, ret.
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