Financial Management Element 42 Page 193 Purpose To
- Slides: 9
Financial Management Element 42 Page 193
Purpose �To inform the member of the financial resources available to help with the transition
Overview �Unless the member has a career lined up, finding a job could take some time �Careful financial planning is key to managing limited income �Command Financial Specialist can be used to assist �Courses are offered at Military One. Source and Fleet and Family Support Centers �Budgets MUST and will be developed when attending TGPS
Thrift Savings Program (TSP) �A savings/retirement plan that is similar to a 401 k �Purpose: to provide retirement income �The amount contributed and the earnings attributable to the contributions belong to the member, even if they do not serve 20 or more years �Post sep withdraw: partial ($1, 000 or more) and full (lump sum, monthly payments, or life annuity) �Must withdraw by April 1 the year after the member turned 70 ½ yrs old
Blended Retirement System (BRS) �Moves from a vested defined retirement plan to a reduced benefit plan �Major changes: • The military will contribute 1% • Service members automatically enrolled to contribute 3% • Military will match dollar for dollar up to 3% and. 50 on the dollar for the next 2% • The contributions will go to “age appropriate” lifecycle (L) fund, unless service members choose otherwise • 2% a year at 20 years of service instead of 2. 5% a year
Survivor Benefit Plan (SBP) �All AD covered under SBP while on AD �SBP is a form of life insurance for retired pay �Alternatives to the SBP that the member and spouse are equally responsible for �Provides an annuity to make up the loss for retirement income
Indirect Compensation �Medical Care (free prescriptions, Ms. Carlson LIKES A LOT) �Tricare Dental Program �Federal Tax Advantage on BAH and BAS �State/Local Tax advantage �Military Pension �Serviceman’s Group Life Insurance �Discounted Services at the Commissary and NEX �Etc, etc……….
Resources �http: //militarypay. defense. gov/Calculators/RMC-Calculator �TSP: www. tsp. gov �BRS: http: //militarypa. defense. gov/Portals/3/Documents/Blended. Retirement. Doc uments/BRS%20 Frequently%20 Asked. Questions%205. 01. 2017. pdf? ver=2017 -05 -02 -095830 -163 �SBP: http: //militarypay. defense. gov/Benefits/Survivor-Benefit-Program �Start turning ideas into reality.
Questions? � 1) � 2)
