Do I have to use the new retirement rules?

  1. I'll be going back to active duty in 2019, after 7 years as a civilian. I was active 2007-2012. Can I still take advantage of the old military retirement system (based on rank and last few years of pay) or do I have to do this new 401k thing? Thanks in advance.
  2. Visit Aluben profile page

    About Aluben, LPN

    Joined: Mar '11; Posts: 3


  3. by   jeckrn
    I believe you still fall under the retirement rules from when you first joined.
  4. by   caliotter3
    I would contact a recruiter and pose the question. Ask for the source of the current info, including the date.
  5. by   jfratian
    I am fairly sure that the break in service, in light of the fact that you only have 4 years of service, and are commissioning after 2018 means that you'll be in the new blended program.

    It's not a full 401K. Under the blended program, for 20 years of service, you get a reduced 40% pension that amounts of your highest 3 year average of your base pay (instead of 50% under the old system). You must now contribute 5% to obtain a matching 5% contribution from the government.

    The new program is actually better for the vast majority of people who don't do a full career. Under the old system you wouldn't get squat for your 4 or 6 years. Now, the government's matching funds are vested at 3 or 4 years I believe.
  6. by   jeckrn
    This is from the following website r/t the new retirement system. The way I read it you will have a choice of which retirement system you would like to be in.

    Q1.19. What if I have a break in service—can I still opt into the Blended Retirement System? A1.19. If you left the military (prior to January 1, 2018) and rejoin after the opt-in decision year (calendar year 2018), upon re-entry you will have 30 days to decide whether to stay in the legacy retirement system or elect the new BRS, so long as you are either in the active component and meet the less than 12-year service criterion or in the Reserve component and have less than 4,320 retirement points. However, if you re-enter military service in 2018, you will only have the remaining time in calendar year 2018 to make a decision to opt into BRS.