Posted on Nov 14, 2023
How does a retirement time work with mixed Active Duty and Reserve time?
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I was in the reserves for 6 years and transferred to active duty. I know that most of the time in the reserves won't count towards the active duty retirement but does it work in reverse? If I did 14 years of active duty and was unable to continue, would the combined time of service make me eligible for the reserve retirement? Multiple retention NCO's are not very knowledgeable on mixed time unfortunately. I know that at the very least I should be eligible for federal retirement. I also have 3 years with the post office.
Retirement
Pension
Retention
Posted 1 y ago
Responses: 5
Short answer: Yes, your active component time counts towards a non-regular retirement ('non-regular retirement' is the formal name for a "reserve retirement" while 'regular retirement' is the formal name for an "active duty retirement").
There used to be a law that you had to serve the last six years before retirement in the reserve component, but that was rescinded in 2005. However, you'll still come across some documents that mention the six year requirement because they were created before it was rescinded or it got through the editing process in later versions.
Longer answer:
Your question should be in reference to "eligibility", as all "good" time is counted regardless if it is active duty, reserve IDT, while in training, etc. I say that because most of the confusion comes from mixing "compensation" and "eligibility" in the discussion. For example, your comment "most of the time in the reserves won't count towards the active duty retirement" is correct if you are referring to "retirement eligibility", but incorrect if you are referring to "retirement compensation".
Just like a regular retirement, to be eligible for a reserve retirement (or 'non-regular retirement'), you must have 20 years of qualifying service (a year of service in the regular component counts as a year of qualifying service). However, there are slight differences in additional eligibility requirements according to law (for the Army, that is 10 U.S. Code § 7326*). For example, a qualifying year for a non-regular retirement is a year which you have 50 credited points. Points are given for:
● One point for each day of active-duty service
● One point for each day of full-time service while performing training duty or instruction at a service school
● One point for attendance at a each period of drill or instruction (i.e., a typical 'weekend drill' four periods .. i.e., MUTA-4)
● One point for each day during which funeral honors duty was performed
● 15 points for each year of membership in a reserve component of the military
So, if you earned 50 points in a year, then that is considered a qualifying year of service for eligibility. Keep in mind that a "year" is probably not January 1st through December 31st (unless you came into the military on New Year's Day), it depends on your Retirement Year Ending/Anniversary Year End (RYE or AYE .. they refer to the same thing) date is when you entered an active status (not 'active duty' .. the day you officially joined the active or reserve component).
Assuming there is no break in service, "your personal year" starts on that date each year and goes to the date previous to that in the next year (unless again, you somehow entered active status on 1 JAN ... then it would go to 31 DEC of the same year). So, if you enlisted on 15 September of the year, your Year End would finish on 14 September of the next year. That's the 'year' you would have to have 50+ points earned.
The "personal year" is important if you had a break in service before you joined the reserve component. For example, you enlisted on active duty on 15 February 2000. You were discharged on 31 March 2014 and later joined a reserve unit in June of 2015. If you did it from a straight "calendar year", you would have had 14 qualifying years for your non-regular retirement (all you need is 50 points each year). However, you only actually have 13 qualifying years because the year goes from 15 February to 14 February of the next year (the last year goes from 15 February 2015 through 31 March 2015 .. and that means it's 45 days).
---------------------------------
* Title 10 U.S. Code, Section 7236 - https://www.law.cornell.edu/uscode/text/10/7326
* DoDI 1215.07 - Service Credit for Non-Regular Retirement - https://www.esd.whs.mil/Portals/54/Documents/DD/issuances/dodi/121507p.pdf
* AR 135-180 - Retirement for Non-Regular Service - https://armypubs.army.mil/epubs/DR_pubs/DR_a/pdf/web/r135_180.pdf
* Army Reserve Retirement Points Information Guide - https://soldierforlife.army.mil/Documents/Army%20Reserve%20Retirement%20Point%20Information%20Guide%2014%20May%202018.pdf
* DoD 7000.14-R - DoD's Financial Management Regulation, Volume 7B, Chapter 1 (Initial entitlements - Retirement) - https://comptroller.defense.gov/Portals/45/documents/fmr/current/07b/07b_01.pdf
There used to be a law that you had to serve the last six years before retirement in the reserve component, but that was rescinded in 2005. However, you'll still come across some documents that mention the six year requirement because they were created before it was rescinded or it got through the editing process in later versions.
Longer answer:
Your question should be in reference to "eligibility", as all "good" time is counted regardless if it is active duty, reserve IDT, while in training, etc. I say that because most of the confusion comes from mixing "compensation" and "eligibility" in the discussion. For example, your comment "most of the time in the reserves won't count towards the active duty retirement" is correct if you are referring to "retirement eligibility", but incorrect if you are referring to "retirement compensation".
Just like a regular retirement, to be eligible for a reserve retirement (or 'non-regular retirement'), you must have 20 years of qualifying service (a year of service in the regular component counts as a year of qualifying service). However, there are slight differences in additional eligibility requirements according to law (for the Army, that is 10 U.S. Code § 7326*). For example, a qualifying year for a non-regular retirement is a year which you have 50 credited points. Points are given for:
● One point for each day of active-duty service
● One point for each day of full-time service while performing training duty or instruction at a service school
● One point for attendance at a each period of drill or instruction (i.e., a typical 'weekend drill' four periods .. i.e., MUTA-4)
● One point for each day during which funeral honors duty was performed
● 15 points for each year of membership in a reserve component of the military
So, if you earned 50 points in a year, then that is considered a qualifying year of service for eligibility. Keep in mind that a "year" is probably not January 1st through December 31st (unless you came into the military on New Year's Day), it depends on your Retirement Year Ending/Anniversary Year End (RYE or AYE .. they refer to the same thing) date is when you entered an active status (not 'active duty' .. the day you officially joined the active or reserve component).
Assuming there is no break in service, "your personal year" starts on that date each year and goes to the date previous to that in the next year (unless again, you somehow entered active status on 1 JAN ... then it would go to 31 DEC of the same year). So, if you enlisted on 15 September of the year, your Year End would finish on 14 September of the next year. That's the 'year' you would have to have 50+ points earned.
The "personal year" is important if you had a break in service before you joined the reserve component. For example, you enlisted on active duty on 15 February 2000. You were discharged on 31 March 2014 and later joined a reserve unit in June of 2015. If you did it from a straight "calendar year", you would have had 14 qualifying years for your non-regular retirement (all you need is 50 points each year). However, you only actually have 13 qualifying years because the year goes from 15 February to 14 February of the next year (the last year goes from 15 February 2015 through 31 March 2015 .. and that means it's 45 days).
---------------------------------
* Title 10 U.S. Code, Section 7236 - https://www.law.cornell.edu/uscode/text/10/7326
* DoDI 1215.07 - Service Credit for Non-Regular Retirement - https://www.esd.whs.mil/Portals/54/Documents/DD/issuances/dodi/121507p.pdf
* AR 135-180 - Retirement for Non-Regular Service - https://armypubs.army.mil/epubs/DR_pubs/DR_a/pdf/web/r135_180.pdf
* Army Reserve Retirement Points Information Guide - https://soldierforlife.army.mil/Documents/Army%20Reserve%20Retirement%20Point%20Information%20Guide%2014%20May%202018.pdf
* DoD 7000.14-R - DoD's Financial Management Regulation, Volume 7B, Chapter 1 (Initial entitlements - Retirement) - https://comptroller.defense.gov/Portals/45/documents/fmr/current/07b/07b_01.pdf
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COL Randall C.
SSG (Join to see) - Sorry, but I forgot to comment about your post office time. Bottom line, that would have nothing to do with a military retirement.
While it's not specific to your question, I'll throw out that the reverse is not true - you can "buy back" your active duty time if you're a federal employee. With 14 years of AFS, you would really do yourself a disservice if you didn't get a federal job long enough to establish eligibility for a pension* and then moving on to something else (if so inclined).
Here's why.
If you have a regular retirement, you can't collect your retirement AND use that time as 'buy back'. It's one or the other (if you buy back the time, then you have to waive your retirement .. which in almost all cases doesn't make fiscal sense).
However (and this is a BIG however), that doesn't apply if you are collecting a non-regular retirement. In this case, you can 'double dip' on the active duty time and ALSO continue to collect your non-regular retirement.
The easiest way to calculate how much it would cost to buy back the time is to use the online Buy Back calculator*.
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* https://www.fedweek.com/ask/federal-retirement/retirement-eligibility/
* https://myfedbenefitshelp.com/benefits/military-time/
While it's not specific to your question, I'll throw out that the reverse is not true - you can "buy back" your active duty time if you're a federal employee. With 14 years of AFS, you would really do yourself a disservice if you didn't get a federal job long enough to establish eligibility for a pension* and then moving on to something else (if so inclined).
Here's why.
If you have a regular retirement, you can't collect your retirement AND use that time as 'buy back'. It's one or the other (if you buy back the time, then you have to waive your retirement .. which in almost all cases doesn't make fiscal sense).
However (and this is a BIG however), that doesn't apply if you are collecting a non-regular retirement. In this case, you can 'double dip' on the active duty time and ALSO continue to collect your non-regular retirement.
The easiest way to calculate how much it would cost to buy back the time is to use the online Buy Back calculator*.
--------------------------------------
* https://www.fedweek.com/ask/federal-retirement/retirement-eligibility/
* https://myfedbenefitshelp.com/benefits/military-time/
Retirement Eligibility & FERS Minimum Retirement Age (MRA)
Retirement eligibility in the federal government adheres to certain age and years of service combinations. Federal retirees are eligible for ...More
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If you have 6 good years Army Reserve and 14 Active Army, you will have enough years and points to qualify for a Reserve Retirement at age 60. Until age 60, you are a gray area Retiree. It has some benefits, but no pay or Tricare. No idea about the post office.
You will get credit for every Reserve Point earned for Pay, points divided by 360 to figure years credited for pay. The Active years are already maxed out.
Are you on the old system or the new mixed retirement?
You will get credit for every Reserve Point earned for Pay, points divided by 360 to figure years credited for pay. The Active years are already maxed out.
Are you on the old system or the new mixed retirement?
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CPT Lawrence Cable
COL Randall C. - I hit that real quick in the first post about the Active Time maxed out on points, but I was trying to keep it relatively simple, which it isn't.
Past my time to worry about it, but I can't decide it the Blended System is a blessing or a curse. I like the fact that if you don't stay for twenty, and a lot of Captains and Majors seem to come out around that 12 or 13 year mark (including me), you still get something. OTOH, it does take away some incentive to stay
Past my time to worry about it, but I can't decide it the Blended System is a blessing or a curse. I like the fact that if you don't stay for twenty, and a lot of Captains and Majors seem to come out around that 12 or 13 year mark (including me), you still get something. OTOH, it does take away some incentive to stay
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COL Randall C.
CPT Lawrence Cable - Personally, I think the BRS is better than the High-3 hands down ... especially for the enlisted ranks.
The average number of service members that stay in for 20 years varies, but it's around 25%-30% of officers and only about 10% of enlisted. When you look at them as a whole, only about 12-15% of those entering active duty will make it to 20 years and be eligible for a retirement (note: this includes ALL retireements - Regular and non-regular, disability and non-disability).
Just based on that, a BRS is more advantageous as it gives something that the other 85-88% of the service members can take with them when they leave the military.
Additionally, the government does an automatic 1% contribution and will throw in another 4% matching if the service member does 5% contributions (for a total of 10%) .. that's a pretty good matching rate as the Bureau of Labor statistics puts the average matching at about 3.5%.
If you assuming a modest return and they do at least 5% individual contributions, then even a PVT retiring in 20 years as a SFC should have a retirement account worth about a half-million dollars.
The initial defined pension would be lower (20% lower because they are getting 2% instead of 2.5%) but, assuming they don't kick the bucket early in their golden years, the increase of ~50% in monthly income after they hit full retirement age (67) will more than make up for it in less than 10 years.
The average number of service members that stay in for 20 years varies, but it's around 25%-30% of officers and only about 10% of enlisted. When you look at them as a whole, only about 12-15% of those entering active duty will make it to 20 years and be eligible for a retirement (note: this includes ALL retireements - Regular and non-regular, disability and non-disability).
Just based on that, a BRS is more advantageous as it gives something that the other 85-88% of the service members can take with them when they leave the military.
Additionally, the government does an automatic 1% contribution and will throw in another 4% matching if the service member does 5% contributions (for a total of 10%) .. that's a pretty good matching rate as the Bureau of Labor statistics puts the average matching at about 3.5%.
If you assuming a modest return and they do at least 5% individual contributions, then even a PVT retiring in 20 years as a SFC should have a retirement account worth about a half-million dollars.
The initial defined pension would be lower (20% lower because they are getting 2% instead of 2.5%) but, assuming they don't kick the bucket early in their golden years, the increase of ~50% in monthly income after they hit full retirement age (67) will more than make up for it in less than 10 years.
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CPT Lawrence Cable
COL Randall C. - I don't disagree and I understand why they did it. For those that already had some time in the system, it's not as good a deal. My son was starting his second enlistment when BRS, so was close to 7 years already towards retirement. We did the math and it might have broke even, but he will hit 20 years before he is 45 and it takes awhile to make up that pay difference when you did start at year 1.
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20 years is 20 years ... the difference is when (and how much you get paid - depending on which retirement plan you are under) you can start getting paid. You are elligible to start collecting your pention right after completing 20 years of active duty. Those with reserve time are not elligible until age 60 (minus any creditible service time).
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