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Military_Retirement__When_Services_Really_Pay

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									Title: Military Retirement: When Services Really Pay

Word Count: 420

Summary: 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...


Keywords: retirement, investment, 401k financial, stocks, ira


Article Body: 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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