GI Jane Finances

February 8, 2011

Easy decision

Filed under: Uncategorized — gijanefinances @ 3:20 pm

Today, I received notification that I am eligible for the career status bonus.  The $30,000 bonus is available in exchange for a reduced retirement pay of 40% basic pay  instead of the 50% .  The regular retirement pay averages the last 3 years of salary and I would get paid 50% once a month.  The REDUX plan and the bonus:

 If you elect the CSB, you have a choice of payment options:

  1. One payment of $30,000
  2. Two annual installments of $15,000 each
  3. Three annual installments of $10,000 each
  4. Four annual installments of $7,500 each
  5. Five annual installments of $6,000 each

You get this option when you reach 15 years of service.    I can elect to put $16,500 in the Thrift Savings Plan and pay taxes upfront on the balance.  I, of course, will not take the REDUX plan.  I prefer 50% every month, if I can survive the next five years.  The AF just announced that they are going to reduce the officer strength by 10% in the 1999-2005 year groups.  They will also conduct more Selective Early Retirement Boards for Lt Cols and Cols.  I know my career fied is hurting and ineligible for the voluntary force management plans for FY11.  The high unemployment rates has left the AF with the highest retention rate in 16 years.  I hardly know of anyone who is separating, unlike how it was in 1999-2000. 

Those were interesting times….I’m getting old.

GI Jane

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