Military Retirement: When Services Really Pay
When somebody has done something good, it is right to provide
him or her some rewards. For all the hardships and continuous
service to the community, a worker is entitled to all the
required benefits in exchange for all the services that he or
she has done.
It is for this reason that retirement benefits are extremely
important. It is solely the best gratification one could ever
have after so many years of working hard.
In the military, people who work for the government and for
their respective community should likewise be entitled to
receive the benefits that are due for them.
Basically, military retirement is available in three
remuneration plans. These plans were authorized by the Congress,
which are entitled for every military personnel who have
rendered the needed services to the government and to the whole
country as well.
Military retirement plans are unique on its basic concept
inclusive of the service dates, in which the amount of
retirement benefits will be based from.
These military retirement benefits involve the "primary service
dates" that provides the DIEMS or the "Date of Initial Entry
into Military Service" and the service date as stipulated in the
Title 10, Section 1405 of the United States Code.
For a complete understanding of the benefits in military
retirement, here is a list of the three remuneration plans.
1. DIEMS before September 8, 1980
For military personnel whose DIEMS is before September 8, 1980,
the military retirement benefit is based on the product of the
military personnel's monthly income and the 2 ½% of the
concerned personnel's years of service.
This plan is known as the present military retirement plan.
2. DIEMS between September 8, 1980 and July 31, 1986
Any military personnel whose service dates falls between
September 8, 1980 and July 31, 1986, the expected retirement pay
is the product of the 2 ½ % of the personnel's years of service
and the average of a personnel's "highest 36 months" of the
basic take-home pay based on the days of active duty.
This military retirement plan is known as the "High 36/50
Percent Plan."
3. DIEMS on or after August 1, 1986
Any military personnel whose DIEMS is on or after August 1,
1986, the amount of the expected retirement benefit is the
product of 2 ½% of the personnel's years of service, but less
than 1% for every year of service that is below 30 years, and
the average of the personnel's maximum income on a 36-month
remuneration.
This plan is called "High 36/40 Percent Plan."
Indeed, any of these three plans will definitely give the
military people enough financial aid by the time they retired
from service.
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