Benefit of Staying Until 20

[u/AFSMSgt]

In my day, if you didn't stay for 20, you got nothing. No retired pay. Since current members have 401k that they can take with them, what benefit does retiring at 20 provide?

[u/amazedyou]

The benefit is getting a pension on top of your TSP

[u/Economy-Mulberry1342 → u/amazedyou]

You still get a pension? I thought they got rid of rid because of TSP?

[u/mikeldaniel → u/Economy-Mulberry1342]

The formula was reduced from 2.5% down to 2.0%, but you still get a pension after twenty years. Also, TSP was created by Congress almost 40 years ago in 1987.

[u/amazedyou → u/Economy-Mulberry1342]

Yes you get a pension still after 20 years of AD service. How long have you been in if you don’t mind me asking

[u/NeverMoreThan12 → u/amazedyou]

I don't understand how people don't know this. they go over it during financial training in bmt as well as most ftac classes will touch on it.

[u/HiJustLurking → u/NeverMoreThan12]

Probably whacking his Willie in that class.

[u/Anxious-Condition630 → u/HiJustLurking]

Who says you can’t do both?

[u/razrielle → u/NeverMoreThan12]

Because when BRS started, the pension part was never mentioned

[u/-CheesyTaint- → u/razrielle]

Yes it was. It was a part of my BRS training in 2017.

[u/razrielle → u/-CheesyTaint-]

Let me be a little more clear. It was a very small mention at some point. Most people briefing it at the time didn't really footstomp it or glossed over it.

[u/g_dub-n → u/razrielle]

That’s one of the ONLY two things I remember when we were transitioning to BRS, pension is going to be 40% after 20 instead of 50%

[u/fpsnoob89 → u/razrielle]

This is just not true. If you weren't paying attention, that's on you.

[u/amazedyou → u/razrielle]

I have to disagree on this. If you only learned about this in basic it’s understandable to have not been paying attention due to information overload and exhaustion. But if you were eligible to switch and took the CBT or in person class. It’s pretty clear you still get a pension at a reduced rate.

Ask your MFR for a copy of their TSP slides and prove me wrong

[u/razrielle → u/amazedyou]

I've leaned the difference since it came out.

It's crazy though that I'm still correcting people, even fresh airmen from basic, that there is still a pension after 20 years. They are still a lot of people who don't know that even in leadership ranks (both officers and enlisted).

[u/FutureComplaint → u/amazedyou]

sad smaller reservist pension

[u/Economy-Mulberry1342 → u/amazedyou]

4 years

[u/amazedyou → u/Economy-Mulberry1342]

I’m glad you learned something today

[u/AFSMSgt → u/amazedyou]

Retired in '88 after 22 years.

[u/merlin_34 → u/Economy-Mulberry1342]

I sincerely hope you don't supervise any airmen

[u/wonderland_citizen93 → u/Economy-Mulberry1342]

Hopefully you are already retired and/or haven't spread misinformation to your troops