Posted on Jun 29, 2021
How is your RCP separation pay handled if you subsequently join the Reserves and get promoted?
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If you were RCP at E-5 and the choose full Separation pay and you have to the reserve component to collect the pay , what happens if you inadvertently pick up to E-6 ? I’m pretty sure you pay the Sep. Pay back but is this even possible? I don’t wanna be in a predicament thinking I’m gonna do just 3 years reserve collect the pay then find out I might get my 6 within those years .
Army Reserve Elements
NCOs
Promotions
Promotion Board
Posted >1 y ago
Responses: 3
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You may have to pay your Sep pay back one day, but not because you got promoted. Go ahead and get promoted in the Reserves, preferably even stay to retirement. If you separate at the 14 years RCP as an E5 and do the three years and don't stay till 20 years to retire, you're an idiot. But if you're a 92F and you can't make E6 in 14 years you aren't really trying either, so there is that
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Lt Col Timothy Cassidy-Curtis
If you join the Reserves then you will get a chance to complete a "full career." I did. I stayed in until I hit the Mandatory Retirement point for my grade. At that point, you can retire into the "Grey zone." You won't be able to get a retirement annuity until you reach age 60. For some, this could be as much as 20 years.
If you separated from Active Duty you probably got a separation physical. At that point, you might have been awarded a disability. The good news (trust me, it is) is that, if you got a Separation Pay, your Disability Pay will be redirected to repayment of your Separation Pay. Thus, when you get to age 60, and your Annuity starts, there will also be deductions to recoup your Separation Pay; but whatever was paid from your Disability Pay will offset what you owe.
In my case, I got about $45K in Separation Pay, back in 1992. I also got a Disability (10%), which was a bit under $100/month then, but increased over time. I never saw a dime of it, but I calculated that it amounted to about $35K. That means that the $45K was knocked down to below $10K.
Bottom line, go take that promotion! Enjoy Reserve duty. When you get your Retirement Annuity (at age 60, if you make a "full career") then there will be deductions, so plan your budget accordingly. The Service will take up to 40% until the Sep Pay is recouped.
If you separated from Active Duty you probably got a separation physical. At that point, you might have been awarded a disability. The good news (trust me, it is) is that, if you got a Separation Pay, your Disability Pay will be redirected to repayment of your Separation Pay. Thus, when you get to age 60, and your Annuity starts, there will also be deductions to recoup your Separation Pay; but whatever was paid from your Disability Pay will offset what you owe.
In my case, I got about $45K in Separation Pay, back in 1992. I also got a Disability (10%), which was a bit under $100/month then, but increased over time. I never saw a dime of it, but I calculated that it amounted to about $35K. That means that the $45K was knocked down to below $10K.
Bottom line, go take that promotion! Enjoy Reserve duty. When you get your Retirement Annuity (at age 60, if you make a "full career") then there will be deductions, so plan your budget accordingly. The Service will take up to 40% until the Sep Pay is recouped.
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CPT Aaron Kletzing
SFC (Join to see) how on earth do you know the answer to literally every and any question that is asked on RallyPoint?! It's the most incredible thing to witness day in and day out... ;-)
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SFC (Join to see)
CPT Aaron Kletzing lol it's mostly the same crazy questions people come to my office and ask me. Also, at a previous assignment I was the one who had to contract them to the Reserves, write their Separation Pay memo and explain how it worked
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You could possibly go back active if you make SSG in the reserves. If they need a 92F SSG at that moment on active duty. But you will pay the separation pay back if you retire.
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With that being said how reserve promotion work for E-6 , rumor is it isn’t only by points , this is why the questioned was asked , especially if you time in with 14-15 years active duty .
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COL (Join to see)
In the Reserves you also have to select how far you are willing to travel to get to a position, since you aren't PCS'd. If there aren't any positions vacant within your mileage limit, you won't get promoted.
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