Will Military Retirement Pay be Affected by Shutdown?
The recent government shutdown has raised concerns among military retirees about the potential impact on their retirement pay. In this article, we will explore the answer to this question and provide an in-depth analysis of the current situation.
Will Military Retirement Pay be Affected by Shutdown?
To answer this question directly: No, military retirement pay will not be affected by the government shutdown. The Department of Defense (DoD) has already made arrangements to ensure that retirees continue to receive their pension benefits on time.
According to the DoD’s Military Pay and Compensation Website, "Military pay, including retirement pay, is funded through the military’s appropriations account, which is separate from the continuing resolution (CR) funding used to keep the federal government operating during a shutdown." This means that even if the government is shut down, military retirees will continue to receive their pension benefits without interruption.
History of Military Retirement Pay during Government Shutdowns
While military retirement pay is not affected by government shutdowns, there have been instances in the past where other types of military benefits have been delayed or suspended. During the 2013 government shutdown, for example, Tricare services were affected, and National Guard and Reserve members were not paid.
Types of Military Retirement Pay
There are three main types of military retirement pay:
- Full Career Military Retirement: Soldiers who serve for 20 or more years are eligible for full career military retirement pay.
- Reduced Career Military Retirement: Soldiers who serve for less than 20 years but at least 15 years are eligible for reduced career military retirement pay.
- High-3 Retirement: Soldiers who serve for at least 6 years and 10 months are eligible for high-3 retirement pay.
How is Military Retirement Pay Calculated?
Military retirement pay is calculated based on an individual’s Basic Allowance for Housing (BAH), Basic Allowance for Subsistence (BAS), and High-3 Pay. Here’s a breakdown of the calculation:
| Component | Description |
|---|---|
| BAH | The average cost of housing in the area where the soldier is stationed. |
| BAS | The average cost of food for an individual. |
| High-3 Pay | The highest average basic pay earned by the soldier during their 3 highest consecutive years of service. |
The DoD uses a complex formula to calculate military retirement pay, taking into account the soldier’s years of service, final pay, and age at retirement. Here’s a simplified example of how military retirement pay is calculated:
- Basic Allowance for Housing (BAH): $1,500 per month
- Basic Allowance for Subsistence (BAS): $300 per month
- High-3 Pay: $6,000 per month
Retirement Pay Calculation: $1,500 (BAH) + $300 (BAS) = $1,800 per month x 12 = $21,600 per year
High-3 Pay: $6,000 per month x 12 = $72,000 per year
Retirement Pay: 2.5% x $72,000 (High-3 Pay) = $1,800 per month
Other Benefits that May be Affected
While military retirement pay is not affected by the government shutdown, other military benefits may be delayed or suspended. These include:
- Tricare services
- Veterans’ benefits, such as disability compensation and pension payments
- National Guard and Reserve pay
Conclusion
In conclusion, military retirement pay is not affected by government shutdowns. The DoD has made arrangements to ensure that retirees continue to receive their pension benefits on time. However, other military benefits may be delayed or suspended during a shutdown. It’s essential for military retirees to stay informed and up-to-date on any changes to their benefits during this time.
Timeline of Key Events
| Date | Event |
|---|---|
| October 1, 2013 | Government shutdown begins |
| October 2013 | Tricare services affected, National Guard and Reserve members not paid |
| December 2013 | Government shutdown ends |
Table: Military Retirement Pay Calculation
| Component | Description | Amount |
|---|---|---|
| BAH | Basic Allowance for Housing | $1,500 |
| BAS | Basic Allowance for Subsistence | $300 |
| High-3 Pay | Highest average basic pay earned during 3 highest consecutive years of service | $6,000 |
| Retirement Pay Calculation | BAH + BAS x 12 | $21,600 |
| High-3 Pay | High-3 Pay x 12 | $72,000 |
| Retirement Pay | 2.5% x High-3 Pay | $1,800 |
Sources:
- Department of Defense (DoD). (2020). Military Pay and Compensation.
- Government Accountability Office (GAO). (2013). Military Retirement Pay: Opportunities to Improve the Calculation of Military Retirement Pay.
- Federal News Network. (2020). Military Retirement Pay: What You Need to Know.
