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Retirement Grandfathering in ARC

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So here's a question: for the past few years the idea of retirement reform has been in play, with the caveat that anybody on active duty gets grandfathered (if they wish) in the current 20-year pension system. With both the HASC and SASC bills talking about changing some version of matching TSP contributions it looks like the writing's on the wall that within the next few years the traditional retirement won't be around for new accessions.

So the question is, for individuals currently on active duty who transition to a Guard/Reserve component after any retirement legislation has been passed, can they stay in the current ARC retirement system (draw a pension at 60 years of age)? Obviously nothing's final until it's law, but just wondering if anybody's looked at the fine print in the HASC/SASC markups?

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I haven't heard anything about changes to Guard/Reserve retirement WRT the current military retirement "reform" discussions.

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The last post is by deaddebate who follows that stuff very closely. His post has the latest version of the NDAA that's going through SASC now I believe. Either way, it's a good starting point.

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The last post is by deaddebate who follows that stuff very closely. His post has the latest version of the NDAA that's going through SASC now I believe. Either way, it's a good starting point.

It's passed SASC and pushed to the full Senate calendar. Once it passes the Senate, both the House and Senate will appoint members for a joint committee this fall to iron out the differences between the House and Senate versions (which are substantial). I'll look for the answer to op's question later.

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https://www.congress.gov/bill/114th-congress/senate-bill/1376/text

SEC. 632. Modernized retirement system for members of the uniformed services.

(a) Modernized retirement system.—

(1) IN GENERAL.—Section 1409(b) of title 10, United States Code, is amended by adding at the end the following new paragraph:

(4) MODERNIZED RETIREMENT SYSTEM.—

[...]

(B) ELECTION TO PARTICIPATE IN MODERNIZED RETIREMENT SYSTEM.—

(i) ELECTION.—A member of a uniformed service serving on January 1, 2018, may elect to accept the reduced multipliers described in subparagraph (A) for purposes of calculating the retired pay of the member.

[...]

(iii) ELECTION PERIOD.—

(I) IN GENERAL.—Except as provided in subclauses (II) and (III), a member of a uniformed service may make the election described in clause (i) during the period that begins on July 1, 2018, and ends on December 31, 2018.

[...]

(III) MEMBERS EXPERIENCING BREAK IN SERVICE.—A member of a uniformed service returning to service after a break in service in which falls the election period specified in subclause (I) shall make the election described in clause (i) on the date of the reentry into service of the member.

As currently written, to even choose to convert to the new retirement system, you must be in service on 1 Jan 2018.

If you separate/retire on or before 31 Dec 2017 and re-enter on or after 2 Jan 2018, you must retain the original/current retirement plan because you were not in service on 1 Jan 2018.

If you served on or after 1 Jan 2018, then separate between 2 Jan 2018 and 29 Dec 2018, then re-enter service between 1 Jul 2018 and 31 Dec 2018, you would choose to or decline to convert within that standard conversion window.

If you continuously serve on or after 1 Jan 2018 and re-enter service on or after 1 Jan 2019, you will choose to or decline to convert as part of your re-entry paperwork.

Again, this is only in the current version of the bill.

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http://ec.militarytimes.com/static/pdfs/Retirement-Reform-Info-Paper.pdf

According to the DoD white paper on the proposed retirement plan, "All members serving on the day before the effective date of the new retirement system will be 'grandfathered' into the current system, but will also have the opportunity to “opt-in” to the new, blended retirement system. All service members must opt-in within 2 years of the effective date of the new system." This sounds like it applies to all service members, regardless if they're active or reserve, just as long as they're in the service before 1 Jan 18.

Of course, the defense bills aren't final yet and the white paper is only DoD's own recommendations at this point, but the direction this new retirement system is going has been getting clearer this month. We'll see how everything unfolds.

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Those who opt in...

Will the matching TSP not start for 4 additional years of service or will those members be "grandfathered in" based on having at least 4 years of service already behind them? Anyone have any intel on that part of the deal?

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Those who opt in...

Will the matching TSP not start for 4 additional years of service or will those members be "grandfathered in" based on having at least 4 years of service already behind them? Anyone have any intel on that part of the deal?

By the sound of it, the 4 years of service is a general requirement to receive government matching funds. If you opt in and already have over 4 years, you should should get matching TSP funds.

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Is anyone smart on the original question of this thread, now that the BRS is happening? If I choose to stay grandfathered in while on active duty, separate at my UPT ADSC and do 20 in the Guard/Reserve, will I still be grandfathered into the Guard/Reserve original retirment percentage?  I fear that they will reset me to the new system when I transition to the Guard/Reserve and I will miss out on years of matching while on active duty, thinking I would be grandfathered.

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According to the training, if you enter any branch of the military before 2018, (I'm assuming from your question you don't have more than 12 years in) then you get to choose one time, and it's non reversible. Those who enter after 2018 will automatically be placed in the new system. AD to Guard/Reserve will not change your retirement.

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The default is the old system. It requires action on your part to enroll in the new system. I'm in the hybrid group where the option is offered, I of course will be defaulting to remain in the old system. They can shove thier 401k and 1% b fund up their ass. If I wanted to gamble with a defined contribution retirement, there's plenty of airlines hiring at 15% b-fund for a lot less social engineering and ucmj anachronism to endure. I digress. Fuck, there goes my New year's resolution to keep calm about military employment. That's not true, I blew my top off at work two weeks into January, but I'm trying guys. Lol. 

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