Retirement from the military can be an exciting time. Though the days of waking up at 0 dark 30 for PT in the rain and frequent separation from friends and family may be coming to an end, a new set of challenges awaits. Some servicemembers start to count down the days to retirement shortly after passing their 10-year halfway mark; others stay in as long as Uncle Sam will allow. But for all military retirees, the transition from active duty means changes in pay, health care, insurance and more.

One of the biggest and most significant changes for military retirees is the monthly paycheck. Many servicemembers head into retirement thinking their retired pay will be 50-percent of what they were making when they retired, said Alex Silva, a retired master sergeant and the Retirement Services Officer for Joint Base Lewis-McChord. Not true, he said. "The reality is, (they'll) live off a third of what they make (at retirement)."  

Items often taken for granted, such as Basic Allowance for Housing, separate rations and airborne pay are not considered when calculating retirement pay. Instead, for most servicemembers, the figure will be based on the average of the top three earning years (known as the "High 3") of the servicemember's base pay (generally, his or her last three years of service). The percentage will vary with length in service, but won't exceed 75-percent.

In addition to changes in pay, retirees also face changes in their medical coverage. Though they may remain Tricare Prime, retirees, unlike active duty servicemembers and their dependents, must pay an annual enrollment fee ($460 per year for a family and $230 per individual; there are no co-pays).

Also, active duty and their dependents will have appointment priority, said Kathi Proctor, Human Resources assistant and Survivor Benefits counselor at the RSO, and right now Madigan Army Medical Center is not accepting new retiree patients, she said. Retirees can also enroll in the U.S. Family Health Plan system, which falls under Tricare. Enrollment costs the same as Tricare Prime, but pharmacy benefits are not available and USFHP enrollees may not use Madigan for care.

Another change at retirement is life insurance.   Following separation from the military, both veterans and retirees can opt in to the Veterans Group Life Insurance program; cost varies depending on coverage and increases with age.

The RSO, located in room 102 in Waller Hall on JBLM. For more information, call (253) 966-5884.

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