Have you known anyone who drilled in the Reserve component after reaching 20 years AFS to take advantage of T10 section 12741?

LTC Private RallyPoint Member — Sat, 19 Nov 2022 12:23:14 -0500

Under T10 section 12741an individual who drills for 2 years after reaching 20 years AFS can then take their Active retirement and later recompute to a reserve retirement after the gray area. This would somewhat increase the retirement but it would have significant impact if that individual was also a federal government employee.

Response by LTC Private RallyPoint Member made Nov 20 at 2022 9:11 AM

LTC Private RallyPoint Member — Sun, 20 Nov 2022 09:11:18 -0500

I ask because my intent is to do this.

Response by CPT Private RallyPoint Member made Nov 20 at 2022 1:07 PM

CPT Private RallyPoint Member — Sun, 20 Nov 2022 13:07:51 -0500

Sir,

There is going to be a present value cost component to postponing your LTC retirement pay in order to get recalculated pay at a later date based on reserve points.

What I'm saying is that roughly a SINGLE LTC retirement point is worth about 62 cents based on the old retirement plan.

Generally, it looks like you'd pick up $1,500 a year for those two years giving up $54,000 for those two years that you could be sitting on the couch.

So the question is are you going to live long enough that $1,500 a YEAR starting two years later is going to make up $108,000 you gave up.

I am presuming postponing retirement and going into the USAR prevents one from getting 100% of their AD retirement during that time, and the only additional points that are going to be earned are the additional points while in the USAR, which is really going to be a much lower optempo in terms of accumulating additional points (I presumed 100 points a year in my example for simplification. I personally have never earned less than 90 in a typical USAR year).

Oh, I've not even calculated out the health care you'd still have to PAY FOR via Tricare Reserve Select which presumably would be free if you just retired.

I also understand the drive to continue and possibly promote to COL and BG if you have the time left. The question still remains in my discipline, how much is that worth $$$$$$$

Someone once told me that after 20 years folks are working for half a pay check.

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Every time I look at one of these choices of collect now or put off for a higher payment down the line the HOUSE ALWAYS WINS.

If you don't mind sharing with me your numbers and the details of what you expect to get additionally out of it I'd be happy to calculate the break even age you'd have to reach to make it worth it.

As a side gig I've started helping attorneys calculate out economic damages for service members who's careers were cut short to no fault of their own. Your life world problem isn't like that, but the inputs are much in line with the models I've built.

Response by COL Randall C. made Nov 20 at 2022 3:10 PM

COL Randall C. — Sun, 20 Nov 2022 15:10:13 -0500

LTC Private RallyPoint Member CPT Private RallyPoint Member - Good writeup, but one thing to keep in mind is that (at least my understanding from reading the regs) a service member in this situation still draws retirement pay (see DoDI 1215.07* para 3.2.c(3)).

Now, how exactly does that manifest and what limitations are there? No idea. It may be that you will have to give up retirement pay akin to giving up VA disability pay for the days that you drill (I could see this). It might be that you won't be able to drill for pay and instead only for points (I don't think so .. just throwing it out as an example of various options).

Of course, it might be a case where you get your full retirement pay as well as any drill pay (obviously the optimum scenario).

On a separate, but related, some of the considerations you'd have to look into. I know that you (LTC Miller) are looking at this from the point of view of being able to double-dip points, but it's probably a lot more complicated than that since the only way you can double-dip in this situation will likely be if you actually are under a non-regular retirement.
- Retirement age. A RC retirement kicks in at 60. While there are many cases where that is reduced by AC time, an AC Soldier won't be eligible for any of those situations at the start of their reserve service. What happens one you are eligible for a non-regular retirement - does it become moot until you turn 60? If you "transfer over to a non-regular retirement" does your regular retirement stop?
- Medical coverage for a RC Soldier doesn't kick in until 60. No age reduction here. If you convert to a non-regular retirement does your TRICARE get affected?
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* DoDI 1215.07 - https://www.esd.whs.mil/Portals/54/Documents/DD/issuances/dodi/121507p.pdf

121507p.pdf

Response by SFC Private RallyPoint Member made Nov 20 at 2022 3:28 PM

SFC Private RallyPoint Member — Sun, 20 Nov 2022 15:28:13 -0500

https://www.google.com/url?sa=t&source=web&rct=j&url=https://cdn.ymaws.com/http://www.roa.org/resource/resmgr/LawReviews/2016/16104-LR.pdf&ved=2ahUKEwjQ58HHy737AhWCHewKHS77ByUQFnoECB8QAQ&usg=AOvVaw1dgYLP4WlGmllAoMyQyAOP

url

Response by CPT David McDonald made Jan 7 at 2023 12:01 PM

CPT David McDonald — Sat, 07 Jan 2023 12:01:16 -0500

Once my 3rd board of correction is settled and DFAS shows me the money, I will let you know. Been retired as enlisted 10 USC 3914, since 2012, should have been placed on retired list in highest rank satisfactorily held, O3E. HRC opined 10 USC 12731 did not apply but 10 USC 12741 did. So they screwed up my retirement even more and now for the last 2 years I also have a garnishment on top of an E-6 retirement not O3E. I was also shorted 5 years. All was in my record at timr of retirement. So now I am looking at 130 months plus of the the difference and all cola increases since 2012. The beaureautic incompetence should end soon.